OTCPK:MDND.F

Stock Analysis Report

McDonald's Holdings Company (Japan)

Executive Summary

McDonald's Holdings Company (Japan), Ltd.


Snowflake Analysis

Excellent 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: MDND.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

n/a

MDND.F

-0.6%

US Hospitality

0.8%

US Market


1 Year Return

n/a

MDND.F

16.7%

US Hospitality

25.1%

US Market

Return vs Industry: Insufficient data to determine how MDND.F performed against the US Hospitality industry.

Return vs Market: Insufficient data to determine how MDND.F performed against the US Market.


Shareholder returns

MDND.FIndustryMarket
7 Dayn/a-0.6%0.8%
30 Dayn/a1.1%3.1%
90 Dayn/a11.3%10.9%
1 Yearn/a19.8%16.7%27.7%25.1%
3 Yearn/a40.1%30.7%51.3%41.6%
5 Yearn/a50.4%34.3%77.2%57.6%

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?

47.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MDND.F's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MDND.F's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: MDND.F is poor value based on its PE Ratio (47.3x) compared to the Hospitality industry average (25.1x).

PE vs Market: MDND.F is poor value based on its PE Ratio (47.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: MDND.F is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: MDND.F is overvalued based on its PB Ratio (4.5x) compared to the US Hospitality industry average (2.4x).


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?

13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDND.F's forecast earnings growth (13.4% per year) is above the savings rate (1.7%).

Earnings vs Market: MDND.F's earnings (13.4% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: MDND.F's revenue (3.1% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: MDND.F's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MDND.F's Return on Equity is forecast to be low in 3 years time (12.1%).


Next Steps

Past Performance

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

62.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDND.F has high quality earnings.

Growing Profit Margin: MDND.F's current net profit margins (5.3%) are lower than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: MDND.F has become profitable over the past 5 years, growing earnings by 62.5% per year.

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

Earnings vs Industry: MDND.F had negative earnings growth (-49.6%) over the past year, making it difficult to compare to the Hospitality industry average (-18.9%).


Return on Equity

High ROE: MDND.F's Return on Equity (9.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: MDND.F's short term assets (¥69.9B) exceed its short term liabilities (¥39.6B).

Long Term Liabilities: MDND.F's short term assets (¥69.9B) exceed its long term liabilities (¥8.4B).


Debt to Equity History and Analysis

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

Reducing Debt: MDND.F's debt to equity ratio has increased from 0.3% to 0.3% over the past 5 years.

Debt Coverage: MDND.F's debt is well covered by operating cash flow (7354.4%).

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


Balance Sheet

Inventory Level: MDND.F has a high level of physical assets or inventory.

Debt Coverage by Assets: MDND.F's debt is covered by short term assets (assets are 139.8x debt).


Next Steps

Dividend

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

0.57%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years0.6%

Current dividend yield vs market & industry

Notable Dividend: MDND.F's dividend (0.57%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: MDND.F's dividend (0.57%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: MDND.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of McDonald's Holdings Company (Japan)'s salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average board tenure


CEO

Sarah Casanova (54yo)

5.8yrs

Tenure

0

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 Age and Tenure

4.8yrs

Average Tenure

63yo

Average Age

Experienced Board: MDND.F's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

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.


Management Team

  • Shotaro Shimizu

    Director of Investor Relations Group

    • Hitoshi Sato (65yo)

      Senior Vice President and Representative Director

      • Tenure: 10.8yrs
    • Sarah Casanova (54yo)

      Chief Executive Officer

      • Tenure: 5.8yrs
    • Atsuo Shimodaira (66yo)

      Chief Operating Officer

      • Tenure: 4.8yrs
    • Kenji Miyashita (56yo)

      VP & Director

      • Tenure: 4.8yrs

    Board Members

    • Akira Kawamura (78yo)

      External Director

      • Tenure: 17.8yrs
    • Hitoshi Sato (65yo)

      Senior Vice President and Representative Director

      • Tenure: 10.8yrs
    • Andrew Hipsley (62yo)

      Director

      • Tenure: 8.8yrs
    • Sarah Casanova (54yo)

      Chief Executive Officer

      • Tenure: 5.8yrs
    • Robert Larson (63yo)

      Chairman

      • Tenure: 4.8yrs
    • Atsuo Shimodaira (66yo)

      Chief Operating Officer

      • Tenure: 4.8yrs
    • Kenji Miyashita (56yo)

      VP & Director

      • Tenure: 4.8yrs
    • Arosha Wijemuni (58yo)

      Director

      • Tenure: 3.8yrs
    • Masataka Ueda (64yo)

      External Director

      • Tenure: 3.8yrs
    • Tamotsu Hiiro

      Director

      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: MDND.F
      • Exchange: OTCPK
      • Founded: 1971
      • Industry: Restaurants
      • Sector: Consumer Services
      • Market Cap: JP¥695.376b
      • Listing Market Cap: JP¥6.323b
      • 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 under the McDonald’s brand in Japan. 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 Analysis2020/01/22 00:06
      End of Day Share Price2020/01/09 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      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.