MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MKC - US5797802064 - Common Stock
67.42 USD
+0.58 (+0.87%)
67.42 USD
0 (0%)
Overall MKC gets a fundamental rating of 5 out of 10. We evaluated MKC against 87 industry peers in the Food Products industry. While MKC belongs to the best of the industry regarding profitability, there are concerns on its financial health. MKC is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- MKC had positive earnings in the past year.
- In the past year MKC had a positive cash flow from operations.
- MKC had positive earnings in each of the past 5 years.
- MKC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 5.87%, MKC belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
- The Return On Equity of MKC (13.52%) is better than 83.91% of its industry peers.
- MKC has a Return On Invested Capital of 8.05%. This is amongst the best in the industry. MKC outperforms 80.46% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for MKC is significantly below the industry average of 27.80%.
- The 3 year average ROIC (7.52%) for MKC is below the current ROIC(8.05%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 13.52% | ||
| ROIC | 8.05% |
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
- The Profit Margin of MKC (11.46%) is better than 90.80% of its industry peers.
- In the last couple of years the Profit Margin of MKC has declined.
- MKC has a Operating Margin of 15.99%. This is amongst the best in the industry. MKC outperforms 94.25% of its industry peers.
- MKC's Operating Margin has declined in the last couple of years.
- The Gross Margin of MKC (38.23%) is better than 87.36% of its industry peers.
- In the last couple of years the Gross Margin of MKC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.99% | ||
| PM (TTM) | 11.46% | ||
| GM | 38.23% |
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 has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for MKC remains at a similar level compared to 1 year ago.
- MKC has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, MKC has an improved debt to assets ratio.
2.2 Solvency
- MKC has an Altman-Z score of 2.56. This is not the best score and indicates that MKC is in the grey zone with still only limited risk for bankruptcy at the moment.
- MKC has a Altman-Z score of 2.56. This is in the better half of the industry: MKC outperforms 60.92% of its industry peers.
- MKC has a debt to FCF ratio of 6.65. This is a slightly negative value and a sign of low solvency as MKC would need 6.65 years to pay back of all of its debts.
- MKC has a Debt to FCF ratio of 6.65. This is in the better half of the industry: MKC outperforms 68.97% of its industry peers.
- A Debt/Equity ratio of 0.63 indicates that MKC is somewhat dependend on debt financing.
- MKC's Debt to Equity ratio of 0.63 is in line compared to the rest of the industry. MKC outperforms 43.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.03
WACC7.85%
2.3 Liquidity
- MKC has a Current Ratio of 0.71. This is a bad value and indicates that MKC is not financially healthy enough and could expect problems in meeting its short term obligations.
- MKC has a Current ratio of 0.71. This is amonst the worse of the industry: MKC underperforms 85.06% of its industry peers.
- A Quick Ratio of 0.29 indicates that MKC may have some problems paying its short term obligations.
- MKC has a Quick ratio of 0.29. This is amonst the worse of the industry: MKC underperforms 91.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
- The earnings per share for MKC have decreased by -2.00% in the last year.
- Measured over the past 5 years, MKC shows a small growth in Earnings Per Share. The EPS has been growing by 1.98% on average per year.
- Looking at the last year, MKC shows a small growth in Revenue. The Revenue has grown by 1.64% in the last year.
- Measured over the past years, MKC shows a small growth in Revenue. The Revenue has been growing by 4.69% on average per year.
EPS 1Y (TTM)-2%
EPS 3Y-1.11%
EPS 5Y1.98%
EPS Q2Q%2.41%
Revenue 1Y (TTM)1.64%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%2.68%
3.2 Future
- The Earnings Per Share is expected to grow by 6.68% on average over the next years.
- MKC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.07% yearly.
EPS Next Y3.15%
EPS Next 2Y4.56%
EPS Next 3Y6.16%
EPS Next 5Y6.68%
Revenue Next Year2.04%
Revenue Next 2Y4.06%
Revenue Next 3Y4.4%
Revenue Next 5Y4.07%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 22.93, which indicates a rather expensive current valuation of MKC.
- MKC's Price/Earnings ratio is in line with the industry average.
- MKC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 20.91, MKC is valued on the expensive side.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MKC is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 24.04. MKC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.93 | ||
| Fwd PE | 20.91 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MKC is on the same level as its industry peers.
- MKC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.62 | ||
| EV/EBITDA | 16.71 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of MKC may justify a higher PE ratio.
PEG (NY)7.28
PEG (5Y)11.6
EPS Next 2Y4.56%
EPS Next 3Y6.16%
5. Dividend
5.1 Amount
- MKC has a Yearly Dividend Yield of 2.86%. Purely for dividend investing, there may be better candidates out there.
- MKC's Dividend Yield is a higher than the industry average which is at 2.46.
- Compared to an average S&P500 Dividend Yield of 1.92, MKC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
5.2 History
- The dividend of MKC is nicely growing with an annual growth rate of 8.09%!
- MKC has been paying a dividend for at least 10 years, so it has a reliable track record.
- MKC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.09%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- 61.04% of the earnings are spent on dividend by MKC. This is not a sustainable payout ratio.
- MKC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP61.04%
EPS Next 2Y4.56%
EPS Next 3Y6.16%
67.42
+0.58 (+0.87%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)10-07 2025-10-07/bmo
Earnings (Next)01-21 2026-01-21/amc
Inst Owners93.1%
Inst Owner Change0.02%
Ins Owners0.01%
Ins Owner Change0.12%
Market Cap18.09B
Revenue(TTM)6.79B
Net Income(TTM)778.00M
Analysts73.68
Price Target79.14 (17.38%)
Short Float %3.99%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend1.68
Dividend Growth(5Y)8.09%
DP61.04%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.57%
Min EPS beat(2)3.22%
Max EPS beat(2)3.93%
EPS beat(4)3
Avg EPS beat(4)0.66%
Min EPS beat(4)-7.59%
Max EPS beat(4)3.93%
EPS beat(8)7
Avg EPS beat(8)6.81%
EPS beat(12)9
Avg EPS beat(12)4.57%
EPS beat(16)11
Avg EPS beat(16)1.43%
Revenue beat(2)0
Avg Revenue beat(2)-0.61%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)-0.29%
Revenue beat(4)1
Avg Revenue beat(4)-0.55%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)0.39%
Revenue beat(8)2
Avg Revenue beat(8)-0.51%
Revenue beat(12)3
Avg Revenue beat(12)-0.97%
Revenue beat(16)4
Avg Revenue beat(16)-0.99%
PT rev (1m)0%
PT rev (3m)-6.97%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)-6%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.93 | ||
| Fwd PE | 20.91 | ||
| P/S | 2.67 | ||
| P/FCF | 27.62 | ||
| P/OCF | 20.59 | ||
| P/B | 3.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.71 |
EPS(TTM)2.94
EY4.36%
EPS(NY)3.23
Fwd EY4.78%
FCF(TTM)2.44
FCFY3.62%
OCF(TTM)3.27
OCFY4.86%
SpS25.29
BVpS21.44
TBVpS-10.67
PEG (NY)7.28
PEG (5Y)11.6
Graham Number37.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 13.52% | ||
| ROCE | 10.72% | ||
| ROIC | 8.05% | ||
| ROICexc | 8.13% | ||
| ROICexgc | 44.76% | ||
| OM | 15.99% | ||
| PM (TTM) | 11.46% | ||
| GM | 38.23% | ||
| 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%
ROICexgc growth 3Y-19.64%
ROICexgc 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-Score6
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.65 | ||
| Debt/EBITDA | 2.75 | ||
| Cap/Depr | 100.13% | ||
| Cap/Sales | 3.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.16% | ||
| Profit Quality | 84.22% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 2.56 |
F-Score6
WACC7.85%
ROIC/WACC1.03
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)-2%
EPS 3Y-1.11%
EPS 5Y1.98%
EPS Q2Q%2.41%
EPS Next Y3.15%
EPS Next 2Y4.56%
EPS Next 3Y6.16%
EPS Next 5Y6.68%
Revenue 1Y (TTM)1.64%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%2.68%
Revenue Next Year2.04%
Revenue Next 2Y4.06%
Revenue Next 3Y4.4%
Revenue Next 5Y4.07%
EBIT growth 1Y1.11%
EBIT growth 3Y-0.97%
EBIT growth 5Y1.8%
EBIT Next Year23.76%
EBIT Next 3Y12.89%
EBIT Next 5Y10.39%
FCF growth 1Y-15.9%
FCF growth 3Y5.54%
FCF growth 5Y-3.5%
OCF growth 1Y-17.2%
OCF growth 3Y3.63%
OCF growth 5Y-0.53%
MCCORMICK & CO-NON VTG SHRS / MKC FAQ
What is the ChartMill fundamental rating of MCCORMICK & CO-NON VTG SHRS (MKC) stock?
ChartMill assigns a fundamental rating of 5 / 10 to MKC.
Can you provide the valuation status for MCCORMICK & CO-NON VTG SHRS?
ChartMill assigns a valuation rating of 3 / 10 to MCCORMICK & CO-NON VTG SHRS (MKC). This can be considered as Overvalued.
What is the profitability of MKC stock?
MCCORMICK & CO-NON VTG SHRS (MKC) has a profitability rating of 8 / 10.
What is the expected EPS growth for MCCORMICK & CO-NON VTG SHRS (MKC) stock?
The Earnings per Share (EPS) of MCCORMICK & CO-NON VTG SHRS (MKC) is expected to grow by 3.15% in the next year.
Can you provide the dividend sustainability for MKC stock?
The dividend rating of MCCORMICK & CO-NON VTG SHRS (MKC) is 6 / 10 and the dividend payout ratio is 61.04%.