McDonald's Holdings Co (Japan)MDNDF 74 Return-on-Tangible-Equity is 10.14% as of Dec. 2025, which is 22% below its 10-year median of 13.00. GuruFocus rates MDNDF with a GF Score™ of 74/100 and a GF Value™ of $36.74. The stock has 2 warning signs investors should review. Among 332 Restaurants companies, McDonald's Holdings Co (Japan) ranks better than 62.35% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. McDonald's Holdings Co (Japan)'s annualized net income for the quarter that ended in Dec. 2025 was $177 Mil. McDonald's Holdings Co (Japan)'s average shareholder tangible equity for the quarter that ended in Dec. 2025 was $1,751 Mil. Therefore, McDonald's Holdings Co (Japan)'s annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 10.14%.
The historical rank and industry rank for McDonald's Holdings Co (Japan)'s Return-on-Tangible-Equity or its related term are showing as below:
MDNDF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.31 Med: 13 Max: 21.45
Current: 14.33
During the past 13 years, McDonald's Holdings Co (Japan)'s highest Return-on-Tangible-Equity was 21.45%. The lowest was 5.31%. And the median was 13.00%.
MDNDF's Return-on-Tangible-Equity is ranked better than 62.35% of 332
companies
in the Restaurants industry
Industry Median: 8.715
vs MDNDF: 14.33
McDonald's Holdings Co (Japan) (OTCPK:MDNDF) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
McDonald's Holdings Co (Japan) Return-on-Tangible-Equity Related Terms
McDonald's Holdings Co (Japan) Return-on-Tangible-Equity Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
McDonald's Holdings Co (Japan) Return-on-Tangible-Equity Chart
MDNDF vs MCD, SBUX, YUM: Return-on-Tangible-Equity Comparison
For the Restaurants subindustry, McDonald's Holdings Co (Japan)'s Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
McDonald's Holdings Co (Japan) Return-on-Tangible-Equity vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's Holdings Co (Japan)'s Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where McDonald's Holdings Co (Japan)'s Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 10.14% mean?
McDonald's Holdings Co (Japan) (MDNDF) has a Return-on-Tangible-Equity of 10.14% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on McDonald's Holdings Co (Japan) and its competitors. This is 22% below median its historical median of 13.00. Over the past decade, McDonald's Holdings Co (Japan)'s Return-on-Tangible-Equity has ranged from 5.31 to 21.45. According to the industry distribution chart, McDonald's Holdings Co (Japan) ranks #125 out of 332 companies in the Restaurants industry, placing it in the top 37.7%.
Is McDonald's Holdings Co (Japan)'s Return-on-Tangible-Equity too high?
McDonald's Holdings Co (Japan)'s current Return-on-Tangible-Equity of 10.14% is 22% below median its 10-year median of 13.00. Over the past 10 years, this metric has ranged from a low of 5.31 to a high of 21.45. The Restaurants industry median Return-on-Tangible-Equity is 8.72. McDonald's Holdings Co (Japan)'s value of 10.14% is 16.4% above this industry median. Based on the distribution chart, McDonald's Holdings Co (Japan) ranks #125 out of 332 companies in the Restaurants industry, which is above the industry midpoint. Overall, McDonald's Holdings Co (Japan) has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does McDonald's Holdings Co (Japan)'s Return-on-Tangible-Equity compare to MCD and SBUX?
According to the Restaurants industry distribution chart, McDonald's Holdings Co (Japan) ranks #125 out of 332 companies for Return-on-Tangible-Equity. This puts McDonald's Holdings Co (Japan) in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.72. McDonald's Holdings Co (Japan)'s value of 10.14% is 16.4% above this benchmark. Historically, McDonald's Holdings Co (Japan)'s own Return-on-Tangible-Equity has ranged from 5.31 to 21.45 over the past decade. While the company's 10-year median is 13.00 vs. the industry median of 8.72, McDonald's Holdings Co (Japan) has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Restaurants company?
The median Return-on-Tangible-Equity among Restaurants companies is 8.72, based on 332 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McDonald's Holdings Co (Japan)'s current Return-on-Tangible-Equity of 10.14% is 16.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on McDonald's Holdings Co (Japan) and its competitors. For the Restaurants industry, the median Return-on-Tangible-Equity is 8.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's Holdings Co (Japan)'s current Return-on-Tangible-Equity is 10.14%, which is 22% below median its own 10-year median of 13.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McDonald's Holdings Co (Japan) stock overvalued right now?
McDonald's Holdings Co (Japan) (MDNDF) has a current Return-on-Tangible-Equity of 10.14%. The stock's GF Value™ is $36.74, compared to a current price of $42.00 — trading 14.3% above its estimated fair value. The current Return-on-Tangible-Equity is 10.14%, which is 22% below median its 10-year median of 13.00 and 16.4% above the Restaurants industry median of 8.72. McDonald's Holdings Co (Japan)'s overall GF Score™ is 74/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For McDonald's Holdings Co (Japan) (MDNDF), the current Return-on-Tangible-Equity is 10.14% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is McDonald's Holdings Co (Japan) (MDNDF) Overvalued in 2026?
Based on GuruFocus' analysis, McDonald's Holdings Co (Japan) stock appears to be overvalued.
The current stock price of $42.00 is trading 14.3% above its estimated GF Value™ of $36.74.
Key valuation signals for MDNDF:
Return-on-Tangible-Equity: 10.14% (22% below median its 10-year median of 13.00)
GF Value™: $36.74 vs. price of $42.00 (14.3% above fair value)
Industry Position: 16.4% above the Restaurants median (#125 of 332)
No single metric tells the full story. See the MDNDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
McDonald's Holdings Co (Japan) Business Description
McDonald's Holdings Co (Japan) Ltd has a license to operate McDonald's fast-food restaurants in Japan. It is engaged in the operation and management of hamburger restaurant chains under the McDonald's brand. The company pays royalties for licensed rights and, in Japan, provides sub-licenses for its know-how and trademarks to franchisees operating its franchise restaurants, from whom it earns royalty income.
74GF Score
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