MCCORMICK & CO INC VTG COM (MKC.V) Stock Fundamental Analysis
NYSE:MKC.V - New York Stock Exchange, Inc. - US5797801074 - Common Stock - Currency: USD
Overall MKC.V gets a fundamental rating of 5 out of 10. We evaluated MKC.V against 89 industry peers in the Food Products industry. MKC.V scores excellent on profitability, 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.
In the past year MKC.V had a positive cash flow from operations.
MKC.V had positive earnings in each of the past 5 years.
Each year in the past 5 years MKC.V had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.08%, MKC.V is doing good in the industry, outperforming 76.40% of the companies in the same industry.
The Return On Equity of MKC.V (14.47%) is better than 80.90% of its industry peers.
MKC.V has a Return On Invested Capital of 8.13%. This is in the better half of the industry: MKC.V outperforms 77.53% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MKC.V is in line with the industry average of 7.60%.
The 3 year average ROIC (7.52%) for MKC.V is below the current ROIC(8.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.08% | ||
| ROE | 14.47% | ||
| ROIC | 8.13% |
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 11.67% is amongst the best of the industry. MKC.V outperforms 89.89% of its industry peers.
MKC.V's Profit Margin has declined in the last couple of years.
The Operating Margin of MKC.V (15.72%) is better than 91.01% of its industry peers.
MKC.V's Operating Margin has declined in the last couple of years.
MKC.V has a better Gross Margin (38.59%) than 87.64% of its industry peers.
MKC.V's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.72% | ||
| PM (TTM) | 11.67% | ||
| GM | 38.59% |
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
MKC.V has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MKC.V has about the same amount of shares outstanding.
MKC.V has more shares outstanding than it did 5 years ago.
MKC.V has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.67 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 2.67. This is in the better half of the industry: MKC.V outperforms 66.29% of its industry peers.
The Debt to FCF ratio of MKC.V is 6.64, which is on the high side as it means it would take MKC.V, 6.64 years of fcf income to pay off all of its debts.
MKC.V has a Debt to FCF ratio of 6.64. This is in the better half of the industry: MKC.V outperforms 75.28% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that MKC.V is somewhat dependend on debt financing.
MKC.V has a Debt to Equity ratio (0.66) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 6.64 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.83
WACC9.78%
2.3 Liquidity
A Current Ratio of 0.65 indicates that MKC.V may have some problems paying its short term obligations.
MKC.V has a worse Current ratio (0.65) than 85.39% of its industry peers.
MKC.V has a Quick Ratio of 0.65. This is a bad value and indicates that MKC.V is not financially healthy enough and could expect problems in meeting its short term obligations.
MKC.V has a Quick ratio of 0.25. This is amonst the worse of the industry: MKC.V underperforms 92.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
MKC.V shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.96%.
MKC.V shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.98% yearly.
The Revenue has been growing slightly by 0.40% in the past year.
The Revenue has been growing slightly by 4.69% on average over the past years.
EPS 1Y (TTM)6.96%
EPS 3Y-1.11%
EPS 5Y1.98%
EPS Q2Q%-4.76%
Revenue 1Y (TTM)0.4%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%0.17%
3.2 Future
The Earnings Per Share is expected to grow by 6.51% 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 3.19% yearly.
EPS Next Y4.31%
EPS Next 2Y6.49%
EPS Next 3Y7.24%
EPS Next 5Y6.51%
Revenue Next Year1.74%
Revenue Next 2Y2.63%
Revenue Next 3Y3.03%
Revenue Next 5Y3.19%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 25.32, the valuation of MKC.V can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as MKC.V.
MKC.V's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.57.
Based on the Price/Forward Earnings ratio of 22.10, the valuation of MKC.V can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MKC.V is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.41, MKC.V is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 22.1 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MKC.V is on the same level as its industry peers.
64.04% of the companies in the same industry are more expensive than MKC.V, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.55 | ||
| EV/EBITDA | 18.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MKC.V has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.88
PEG (5Y)12.81
EPS Next 2Y6.49%
EPS Next 3Y7.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.37%, MKC.V has a reasonable but not impressive dividend return.
MKC.V's Dividend Yield is a higher than the industry average which is at 4.45.
Compared to an average S&P500 Dividend Yield of 2.40, MKC.V has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
5.2 History
On average, the dividend of MKC.V grows each year by 8.09%, which is quite nice.
MKC.V has paid a dividend for at least 10 years, which is 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
58.49% of the earnings are spent on dividend by MKC.V. This is a bit on the high side, but may be sustainable.
The dividend of MKC.V is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP58.49%
EPS Next 2Y6.49%
EPS Next 3Y7.24%
NYSE:MKC.V (6/16/2025, 8:04:00 PM)
73.94
+0.79 (+1.08%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners90.35%
Inst Owner Change5.53%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap19.83B
Analysts72
Price Target86.06 (16.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Yearly Dividend1.68
Dividend Growth(5Y)8.09%
DP58.49%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.26%
Min EPS beat(2)-7.59%
Max EPS beat(2)3.07%
EPS beat(4)3
Avg EPS beat(4)8.31%
Min EPS beat(4)-7.59%
Max EPS beat(4)21.3%
EPS beat(8)6
Avg EPS beat(8)6.23%
EPS beat(12)7
Avg EPS beat(12)0.9%
EPS beat(16)11
Avg EPS beat(16)2.3%
Revenue beat(2)1
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)0.39%
Revenue beat(4)1
Avg Revenue beat(4)-0.38%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)0.39%
Revenue beat(8)2
Avg Revenue beat(8)-0.75%
Revenue beat(12)3
Avg Revenue beat(12)-1.44%
Revenue beat(16)5
Avg Revenue beat(16)-0.61%
PT rev (1m)-0.66%
PT rev (3m)-0.28%
EPS NQ rev (1m)-0.68%
EPS NQ rev (3m)-2.83%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.65%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.32 | ||
| Fwd PE | 22.1 | ||
| P/S | 2.95 | ||
| P/FCF | 30.55 | ||
| P/OCF | 22.06 | ||
| P/B | 3.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.34 |
EPS(TTM)2.92
EY3.95%
EPS(NY)3.35
Fwd EY4.52%
FCF(TTM)2.42
FCFY3.27%
OCF(TTM)3.35
OCFY4.53%
SpS25.08
BVpS20.22
TBVpS-11.53
PEG (NY)5.88
PEG (5Y)12.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.08% | ||
| ROE | 14.47% | ||
| ROCE | 10.79% | ||
| ROIC | 8.13% | ||
| ROICexc | 8.21% | ||
| ROICexgc | 50.89% | ||
| OM | 15.72% | ||
| PM (TTM) | 11.67% | ||
| GM | 38.59% | ||
| FCFM | 9.65% |
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-Score8
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 6.64 | ||
| Debt/EBITDA | 2.79 | ||
| Cap/Depr | 115.31% | ||
| Cap/Sales | 3.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.56% | ||
| Profit Quality | 82.7% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | 2.67 |
F-Score8
WACC9.78%
ROIC/WACC0.83
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)6.96%
EPS 3Y-1.11%
EPS 5Y1.98%
EPS Q2Q%-4.76%
EPS Next Y4.31%
EPS Next 2Y6.49%
EPS Next 3Y7.24%
EPS Next 5Y6.51%
Revenue 1Y (TTM)0.4%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%0.17%
Revenue Next Year1.74%
Revenue Next 2Y2.63%
Revenue Next 3Y3.03%
Revenue Next 5Y3.19%
EBIT growth 1Y2.14%
EBIT growth 3Y-0.97%
EBIT growth 5Y1.8%
EBIT Next Year24.5%
EBIT Next 3Y11.7%
EBIT Next 5Y8.33%
FCF growth 1Y41.95%
FCF growth 3Y5.54%
FCF growth 5Y-3.5%
OCF growth 1Y21.98%
OCF growth 3Y3.63%
OCF growth 5Y-0.53%