DB:MJ8

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McDonald's Holdings Company (Japan)

Executive Summary

McDonald's Holdings Company (Japan), Ltd.

Rewards

Earnings are forecast to grow 9.47% per year

Risk Analysis

No risks detected for MJ8 from our risk checks.


Snowflake Analysis

Flawless balance sheet with questionable track record.

Share Price & News

How has McDonald's Holdings Company (Japan)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MJ8 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

MJ8

10.4%

DE Hospitality

2.0%

DE Market


1 Year Return

16.0%

MJ8

-39.2%

DE Hospitality

-2.6%

DE Market

Return vs Industry: MJ8 exceeded the German Hospitality industry which returned -43.8% over the past year.

Return vs Market: MJ8 exceeded the German Market which returned -3.9% over the past year.


Shareholder returns

MJ8IndustryMarket
7 Day2.6%10.4%2.0%
30 Day4.9%16.4%8.4%
90 Day17.5%-38.2%-7.3%
1 Year16.8%16.0%-37.0%-39.2%-1.0%-2.6%
3 Year53.4%50.5%-55.4%-61.4%-6.6%-13.9%
5 Year159.3%149.2%-54.3%-63.9%1.1%-11.7%

Price Volatility Vs. Market

How volatile is McDonald's Holdings Company (Japan)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is McDonald's Holdings Company (Japan) undervalued compared to its fair value and its price relative to the market?

47.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MJ8 (€47) is trading above our estimate of fair value (€33.03)

Significantly Below Fair Value: MJ8 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MJ8 is poor value based on its PE Ratio (47x) compared to the Hospitality industry average (22.1x).

PE vs Market: MJ8 is poor value based on its PE Ratio (47x) compared to the German market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: MJ8 is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: MJ8 is overvalued based on its PB Ratio (4.7x) compared to the DE Hospitality industry average (1.8x).


Next Steps

Future Growth

How is McDonald's Holdings Company (Japan) forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MJ8's forecast earnings growth (9.5% per year) is above the savings rate (0.2%).

Earnings vs Market: MJ8's earnings (9.5% per year) are forecast to grow slower than the German market (21.7% per year).

High Growth Earnings: MJ8's earnings are forecast to grow, but not significantly.

Revenue vs Market: MJ8's revenue (3.4% per year) is forecast to grow slower than the German market (5.6% per year).

High Growth Revenue: MJ8's revenue (3.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MJ8's Return on Equity is forecast to be low in 3 years time (10.9%).


Next Steps

Past Performance

How has McDonald's Holdings Company (Japan) performed over the past 5 years?

61.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MJ8 has high quality earnings.

Growing Profit Margin: MJ8's current net profit margins (5.6%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: MJ8 has become profitable over the past 5 years, growing earnings by 61.3% per year.

Accelerating Growth: MJ8's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MJ8 had negative earnings growth (-18.7%) over the past year, making it difficult to compare to the Hospitality industry average (-36.2%).


Return on Equity

High ROE: MJ8's Return on Equity (10.1%) is considered low.


Next Steps

Financial Health

How is McDonald's Holdings Company (Japan)'s financial position?


Financial Position Analysis

Short Term Liabilities: MJ8's short term assets (¥73.0B) exceed its short term liabilities (¥41.3B).

Long Term Liabilities: MJ8's short term assets (¥73.0B) exceed its long term liabilities (¥8.0B).


Debt to Equity History and Analysis

Debt Level: MJ8's debt to equity ratio (0.3%) is considered satisfactory.

Reducing Debt: MJ8's debt to equity ratio has reduced from 17.5% to 0.3% over the past 5 years.

Debt Coverage: MJ8's debt is well covered by operating cash flow (8990.4%).

Interest Coverage: MJ8 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is McDonald's Holdings Company (Japan)'s current dividend yield, its reliability and sustainability?

0.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MJ8's dividend (0.58%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.35%).

High Dividend: MJ8's dividend (0.58%) is low compared to the top 25% of dividend payers in the German market (4.05%).


Stability and Growth of Payments

Stable Dividend: MJ8 is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: MJ8 is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: MJ8 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MJ8's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average board tenure


CEO

Sarah Casanova (54yo)

6.17yrs

Tenure

Ms. Sarah L. Casanova has been the Chief Executive Officer and President of McDonald's Holdings Company (Japan), Ltd. since March 2014. Ms. Casanova has been the Chief Executive Officer of McDonald's Compa ...


Board Members

NamePositionTenureCompensationOwnership
Sarah Casanova
Chief Executive Officer6.17yrsno data0.0014% ¥91.3k
Atsuo Shimodaira
Chief Operating Officer5.17yrsno data0.00038% ¥24.3k
Hitoshi Sato
Senior Vice President and Representative Director11.17yrsno data0.0044% ¥283.6k
Kenji Miyashita
VP & Director5.17yrsno data0.0011% ¥72.2k
Akira Kawamura
Independent External Director18.17yrsno datano data
Andrew Hipsley
Director9.17yrsno datano data
Robert Larson
Chairman5.17yrsno datano data
Arosha Wijemuni
Director4.17yrsno datano data
Masataka Ueda
External Director4.17yrsno datano data
Tamotsu Hiiro
Directorno datano data0.00038% ¥24.3k

5.2yrs

Average Tenure

63yo

Average Age

Experienced Board: MJ8's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

McDonald's Holdings Company (Japan), Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: McDonald's Holdings Company (Japan), Ltd.
  • Ticker: MJ8
  • Exchange: DB
  • Founded: 1971
  • Industry: Restaurants
  • Sector: Consumer Services
  • Market Cap: JP¥755.208b
  • Listing Market Cap: JP¥6.388b
  • Shares outstanding: 132.96m
  • Website: https://www.mcd-holdings.co.jp

Number of Employees


Location

  • McDonald's Holdings Company (Japan), Ltd.
  • Shinjuku i-Land Tower
  • 6-5-1 Nishi-Shinjuku
  • Tokyo
  • 163-1339
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MDND.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 2001
2702JASDAQ (TSE JASDAQ)YesCommon SharesJPJPYJul 2001
MJ8DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2001

Biography

McDonald's Holdings Company (Japan), Ltd. operates hamburger restaurants in Japan. As of December 31, 2019, it operated 2,910 restaurants. The company was formerly known as Japan McDonald’s K.K. and changed its name to McDonald’s Holdings Company (Japan), Ltd. in July 2002. McDonald's Holdings Company (Japan), Ltd. was founded in 1971 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/27 05:16
End of Day Share Price2020/05/26 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.