MCCORMICK & CO INC VTG COM (MKC.V) Stock Fundamental Analysis
NYSE:MKC.V - New York Stock Exchange, Inc. - US5797801074 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MKC.V. MKC.V was compared to 91 industry peers in the Food Products industry. MKC.V has an excellent profitability rating, but there are concerns on its financial health. MKC.V is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MKC.V was profitable.
MKC.V had a positive operating cash flow in the past year.
MKC.V had positive earnings in each of the past 5 years.
MKC.V had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MKC.V has a Return On Assets of 5.88%. This is in the better half of the industry: MKC.V outperforms 74.73% of its industry peers.
MKC.V has a better Return On Equity (13.85%) than 76.92% of its industry peers.
With a decent Return On Invested Capital value of 8.03%, MKC.V is doing good in the industry, outperforming 75.82% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MKC.V is significantly below the industry average of 28.10%.
The last Return On Invested Capital (8.03%) for MKC.V is above the 3 year average (7.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 13.85% | ||
| ROIC | 8.03% |
ROA(3y)5.51%
ROA(5y)5.71%
ROE(3y)14.31%
ROE(5y)15.82%
ROIC(3y)7.52%
ROIC(5y)7.83%
1.3 Margins
MKC.V's Profit Margin of 11.50% is amongst the best of the industry. MKC.V outperforms 90.11% of its industry peers.
MKC.V's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 16.02%, MKC.V belongs to the best of the industry, outperforming 89.01% of the companies in the same industry.
MKC.V's Operating Margin has declined in the last couple of years.
The Gross Margin of MKC.V (38.54%) is better than 85.71% of its industry peers.
MKC.V's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.02% | ||
| PM (TTM) | 11.5% | ||
| GM | 38.54% |
OM growth 3Y-3%
OM growth 5Y-2.76%
PM growth 3Y-0.64%
PM growth 5Y-2.25%
GM growth 3Y-0.95%
GM growth 5Y-0.8%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MKC.V is destroying value.
MKC.V has about the same amout of shares outstanding than it did 1 year ago.
MKC.V has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MKC.V has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.59 indicates that MKC.V is not a great score, but indicates only limited risk for bankruptcy at the moment.
MKC.V has a Altman-Z score of 2.59. This is in the better half of the industry: MKC.V outperforms 63.74% of its industry peers.
MKC.V has a debt to FCF ratio of 8.07. This is a slightly negative value and a sign of low solvency as MKC.V would need 8.07 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 8.07, MKC.V is doing good in the industry, outperforming 64.84% of the companies in the same industry.
MKC.V has a Debt/Equity ratio of 0.66. This is a neutral value indicating MKC.V is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, MKC.V perfoms like the industry average, outperforming 41.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 8.07 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.99
WACC8.08%
2.3 Liquidity
A Current Ratio of 0.68 indicates that MKC.V may have some problems paying its short term obligations.
The Current ratio of MKC.V (0.68) is worse than 85.71% of its industry peers.
A Quick Ratio of 0.27 indicates that MKC.V may have some problems paying its short term obligations.
The Quick ratio of MKC.V (0.27) is worse than 93.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.55% over the past year.
MKC.V shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.98% yearly.
Looking at the last year, MKC.V shows a small growth in Revenue. The Revenue has grown by 0.89% in the last year.
The Revenue has been growing slightly by 4.69% on average over the past years.
EPS 1Y (TTM)3.55%
EPS 3Y-1.11%
EPS 5Y1.98%
EPS Q2Q%0%
Revenue 1Y (TTM)0.89%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%0.99%
3.2 Future
The Earnings Per Share is expected to grow by 6.22% on average over the next years.
MKC.V is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.99% yearly.
EPS Next Y4.13%
EPS Next 2Y6.19%
EPS Next 3Y6.93%
EPS Next 5Y6.22%
Revenue Next Year1.77%
Revenue Next 2Y2.71%
Revenue Next 3Y3.07%
Revenue Next 5Y2.99%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.20 indicates a rather expensive valuation of MKC.V.
MKC.V's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of MKC.V to the average of the S&P500 Index (27.18), we can say MKC.V is valued inline with the index average.
The Price/Forward Earnings ratio is 21.24, which indicates a rather expensive current valuation of MKC.V.
Based on the Price/Forward Earnings ratio, MKC.V is valued a bit cheaper than 60.44% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MKC.V to the average of the S&P500 Index (35.34), we can say MKC.V is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.2 | ||
| Fwd PE | 21.24 |
4.2 Price Multiples
MKC.V's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as MKC.V.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.37 | ||
| EV/EBITDA | 17.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MKC.V does not grow enough to justify the current Price/Earnings ratio.
MKC.V has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.85
PEG (5Y)12.25
EPS Next 2Y6.19%
EPS Next 3Y6.93%
5. Dividend
5.1 Amount
MKC.V has a Yearly Dividend Yield of 2.48%. Purely for dividend investing, there may be better candidates out there.
MKC.V's Dividend Yield is a higher than the industry average which is at 4.72.
MKC.V's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
5.2 History
On average, the dividend of MKC.V grows each year by 8.09%, which is quite nice.
MKC.V has been paying a dividend for at least 10 years, so it has a reliable track record.
MKC.V has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.09%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
MKC.V pays out 60.21% of its income as dividend. This is not a sustainable payout ratio.
MKC.V's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP60.21%
EPS Next 2Y6.19%
EPS Next 3Y6.93%
NYSE:MKC.V (7/16/2025, 2:58:35 PM)
70.67
-0.22 (-0.31%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners90.35%
Inst Owner Change0%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap18.97B
Analysts72
Price Target84.93 (20.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
Yearly Dividend1.68
Dividend Growth(5Y)8.09%
DP60.21%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.83%
Min EPS beat(2)-7.59%
Max EPS beat(2)3.93%
EPS beat(4)3
Avg EPS beat(4)5.18%
Min EPS beat(4)-7.59%
Max EPS beat(4)21.3%
EPS beat(8)6
Avg EPS beat(8)6.22%
EPS beat(12)8
Avg EPS beat(12)3.45%
EPS beat(16)11
Avg EPS beat(16)1.85%
Revenue beat(2)0
Avg Revenue beat(2)-1.15%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)-0.93%
Revenue beat(4)1
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)0.39%
Revenue beat(8)2
Avg Revenue beat(8)-0.69%
Revenue beat(12)3
Avg Revenue beat(12)-1.08%
Revenue beat(16)4
Avg Revenue beat(16)-0.99%
PT rev (1m)-1.31%
PT rev (3m)-2.9%
EPS NQ rev (1m)-2.97%
EPS NQ rev (3m)-2.74%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-0.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.2 | ||
| Fwd PE | 21.24 | ||
| P/S | 2.81 | ||
| P/FCF | 34.37 | ||
| P/OCF | 24.26 | ||
| P/B | 3.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.55 |
EPS(TTM)2.92
EY4.13%
EPS(NY)3.33
Fwd EY4.71%
FCF(TTM)2.06
FCFY2.91%
OCF(TTM)2.91
OCFY4.12%
SpS25.13
BVpS20.87
TBVpS-11.17
PEG (NY)5.85
PEG (5Y)12.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 13.85% | ||
| ROCE | 10.79% | ||
| ROIC | 8.03% | ||
| ROICexc | 8.12% | ||
| ROICexgc | 45.31% | ||
| OM | 16.02% | ||
| PM (TTM) | 11.5% | ||
| GM | 38.54% | ||
| FCFM | 8.18% |
ROA(3y)5.51%
ROA(5y)5.71%
ROE(3y)14.31%
ROE(5y)15.82%
ROIC(3y)7.52%
ROIC(5y)7.83%
ROICexc(3y)7.68%
ROICexc(5y)8.06%
ROICexgc(3y)53.77%
ROICexgc(5y)64.53%
ROCE(3y)10.15%
ROCE(5y)10.62%
ROICexcg growth 3Y-19.64%
ROICexcg growth 5Y-5.32%
ROICexc growth 3Y-2.94%
ROICexc growth 5Y-2.03%
OM growth 3Y-3%
OM growth 5Y-2.76%
PM growth 3Y-0.64%
PM growth 5Y-2.25%
GM growth 3Y-0.95%
GM growth 5Y-0.8%
F-Score7
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 8.07 | ||
| Debt/EBITDA | 2.85 | ||
| Cap/Depr | 106.09% | ||
| Cap/Sales | 3.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.29% | ||
| Profit Quality | 71.14% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 2.59 |
F-Score7
WACC8.08%
ROIC/WACC0.99
Cap/Depr(3y)131.56%
Cap/Depr(5y)136.09%
Cap/Sales(3y)4.06%
Cap/Sales(5y)4.12%
Profit Quality(3y)94.06%
Profit Quality(5y)92.84%
High Growth Momentum
Growth
EPS 1Y (TTM)3.55%
EPS 3Y-1.11%
EPS 5Y1.98%
EPS Q2Q%0%
EPS Next Y4.13%
EPS Next 2Y6.19%
EPS Next 3Y6.93%
EPS Next 5Y6.22%
Revenue 1Y (TTM)0.89%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%0.99%
Revenue Next Year1.77%
Revenue Next 2Y2.71%
Revenue Next 3Y3.07%
Revenue Next 5Y2.99%
EBIT growth 1Y4.25%
EBIT growth 3Y-0.97%
EBIT growth 5Y1.8%
EBIT Next Year24.5%
EBIT Next 3Y11.7%
EBIT Next 5Y8.05%
FCF growth 1Y-9.88%
FCF growth 3Y5.54%
FCF growth 5Y-3.5%
OCF growth 1Y-12.29%
OCF growth 3Y3.63%
OCF growth 5Y-0.53%