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Is this Large Market Cap Stock target price reasonable for McDonald’s Corp. (NYSE:MCD)?

The company in question is,¬†McDonald’s Corp. (NYSE:MCD)¬†currently with a stock price of 115 (-0.82% today). The market cap for McDonald’s Corp. is 100319.94, and is in the sector Services, and Restaurants industry. The target price for McDonald’s Corp. is 129.45. Currently McDonald’s Corp. is trading with a P/E of 22.1, and a forward P/E of 18.89. Average volume for McDonald’s Corp. is 5099.29 and so far today it is 345911.

Performance in the last year for McDonald’s Corp. has been 22.71%. For EPS growth, McDonald’s Corp. has seen a growth of -0.60%, and is looking to grow in the next year to 10.36%. More long term stats show that EPS growth has been 0.90% over the last five years and could be 9.34% for the next five years. McDonald’s Corp. has seen sales growth quarter over quarter at -3.60%, with EPS growth quarter over quarter at -0.10%. The 20-day simple moving average is -2.92%, with the 200-day simple moving average coming to -3.51%.

Since the IPO date for McDonald’s Corp. on the 1/2/1970, McDonald’s Corp. has seen performance year to date to be 0.39%. With McDonald’s Corp. trading at 115, the dividend yield is 3.07%, and the EPS is 5.25.

So could McDonald’s Corp., be undervalued? Well as said before P/E is 22.1. The PEG is 2.36, P/S is 3.99 and the P/B is at 156.69. The P/cash is *TBA, with P/free cash flow at 70.31.

McDonald’s Corp.¬†ability to deal with debt shows that the current ratio is 1.9, and the quick ratio is 1.9. This is with long term debt/equity at 40.64, and total debt/equity at 0.

In terms of margins, McDonald’s Corp. has a gross margin of 39.80%, an operating margin of 30.00% and a profit margin of 18.80%.Payout ratio for McDonald’s Corp. is 66.60%. Return on assets come to 13.70% with return on investment coming to 16.40%.

Insider ownership for McDonald’s Corp., is at 0.05% and institutional ownership comes to 71.50%. Outstanding shares are at 865.2. While shares float is 853.09. The float short is currently 1.10%, and short ratio is 1.83.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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