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McDonald’s Corp. (NYSE: MCD) – Is this large market cap stock undervalued?

McDonald’s Corp. (NYSE: MCD), is firmly in the large market cap category with market cap of 99109.67. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for McDonald’s Corp. is 115.49 (with a change from open of -0.41%), this in conjunction with a target price of 129.09. Volume today has so far reached 1445837, with an average volume of about 5129.68. The GAP for this stock, is 0.59%.

The P/E ratio is 21.97, bringing the forward P/E to a value of 18.78. The current EPS for McDonald’s Corp., is 5.25, with a EPS growth for this year coming to a value of -0.60%. Performance has been interesting with performance year to date coming to -0.19%.

Looking further into the growth statistics for McDonald’s Corp., EPS is looking like it will grow 10.32% in the next year. Looking even further it is projected to be 9.34%. Quarter over quarter is -0.10% for EPS growth and for sales growth quarter over quarter it is -3.60%. Looking at past EPS growth statistics we see that for the past five years it has been 0.90%. Sales growth for the past five years has in fact been 1.10%.

Looking at the ownership, we see that the insider ownership is at 0.05% and institutional ownership is 71.80%. Shares outstanding is 859.73, while shares float is at a value of 853.09. Float short for McDonald’s Corp. is 1.13% and the short ratio is 1.87.

In terms of debt, long term debt/equity is 40.64, while the total debt/equity comes to 0. The ability to meet these debts, means that the current ratio is 1.9, and the quick ratio is 1.9. The most recent gross margin is 39.80% and their operating margin is 30.00%. The profit margin is 18.80%.

McDonald’s Corp. has seen returns on assets of 13.70%, and on investment, 16.40%. Return on equity is 95.10%. Price/Earnings to growth ratio is 2.35. Price/Sales ratio is at a value of 3.94, with Price/book ratio coming to 155.78 and Price/cash is , and finally Price/Free cash Flow is 69.46.

The simple moving averages are -2.21% and -3.16% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -11.15% and the 52 week low is 24.30%.

McDonald’s Corp. has a dividend yield of 3.09%, with a current price of 115.49. The ability to pay this means the payout ratio is 66.60%. This is in an industry, Restaurants, with equally high dividends from other companies in this sector, which it is Services. McDonald’s Corp. is based in USA.

Performance in the Restaurants industry means that McDonald’s Corp. has seen performance for the past week of 0.61%, with performance for the month coming to -0.79%. Looking at the data for the quarter it is at a value of -4.98%, and for the half year the performance is 21.46%. Volatility for this week is 1.21% and for the month this is 1.03%.

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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