MCDONALD'S CORP Achieves Mixed Rating on Multi-Factor Model

MCDONALD'S CORP shows a moderate score of 62% based on fundamentals and valuation. While it passes several tests, it fails in the final ranking, raising questions about its growth potential.

Date: 19-01-2025

AI Rating: 5

Rating Overview

MCDONALD'S CORP has achieved a score of 62% in the Multi-Factor Investor model developed by Pim van Vliet. This score indicates a mixed outlook on the stock based on its fundamentals and valuation. Although the score is not overly negative, it is below the 80% threshold that typically indicates interest from this investment strategy.

Market Cap and Volatility

The stock passes the market cap and standard deviation tests, which suggests that it is considered a stable investment option. A passing score in market cap implies a solid position within the industry, and the green pass in standard deviation reflects its low volatility, aligning with the strategy aimed at low-risk investments.

Momentum and Net Payout Yield

The stock received neutral scores for both twelve minus one momentum and net payout yield. While this does not detract significantly from the company's outlook, it also does not provide a strong momentum backing to drive stock prices higher.

Final Rank Concern

Despite passing several tests, MCD's overall performance results in a fail in the final ranking category. This could indicate potential concerns regarding its growth prospects or return on investment, possibly affecting investor sentiment negatively.

In summary, while MCD shows low volatility and a stable market cap, the final rank fail is concerning and may lead to a cautious approach from investors moving forward. Investors clinging to the prospects of stock growth and stable returns may want to be vigilant regarding MCD's performance metrics.

Stocks: MCD