MCCORMICK & CO-NON VTG SHRS (MKC)
US5797802064 - Common Stock
Overall MKC gets a fundamental rating of 5 out of 10. We evaluated MKC against 92 industry peers in the Food Products industry. While MKC has a great profitability rating, there are quite some concerns on its financial health. MKC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year MKC was profitable.
MKC had a positive operating cash flow in the past year.
In the past 5 years MKC has always been profitable.
Each year in the past 5 years MKC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.49%, MKC is in the better half of the industry, outperforming 65.93% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.52%, MKC is in the better half of the industry, outperforming 72.53% of the companies in the same industry.
MKC has a better Return On Invested Capital (7.95%) than 81.32% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MKC is in line with the industry average of 7.56%.
The last Return On Invested Capital (7.95%) for MKC is above the 3 year average (7.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 13.52% | ||
| ROIC | 7.95% |
ROA(3y)5.45%
ROA(5y)5.86%
ROE(3y)15.05%
ROE(5y)16.92%
ROIC(3y)7.71%
ROIC(5y)7.99%
1.3 Margins
MKC's Profit Margin of 10.56% is amongst the best of the industry. MKC outperforms 83.52% of its industry peers.
MKC's Profit Margin has declined in the last couple of years.
MKC has a better Operating Margin (15.45%) than 89.01% of its industry peers.
MKC's Operating Margin has declined in the last couple of years.
MKC's Gross Margin of 37.90% is amongst the best of the industry. MKC outperforms 92.31% 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 | 15.45% | ||
| PM (TTM) | 10.56% | ||
| GM | 37.9% |
OM growth 3Y-5.45%
OM growth 5Y-2.6%
PM growth 3Y-8.52%
PM growth 5Y-10.31%
GM growth 3Y-2.93%
GM growth 5Y-0.99%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MKC is destroying value.
Compared to 1 year ago, MKC has about the same amount of shares outstanding.
Compared to 5 years ago, MKC has more shares outstanding
MKC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.66 indicates that MKC is not a great score, but indicates only limited risk for bankruptcy at the moment.
MKC has a Altman-Z score of 2.66. This is comparable to the rest of the industry: MKC outperforms 57.14% of its industry peers.
The Debt to FCF ratio of MKC is 4.42, which is a neutral value as it means it would take MKC, 4.42 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 4.42, MKC is doing good in the industry, outperforming 74.73% of the companies in the same industry.
A Debt/Equity ratio of 0.70 indicates that MKC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.70, MKC perfoms like the industry average, outperforming 41.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 4.42 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.97
WACC8.16%
2.3 Liquidity
MKC has a Current Ratio of 0.68. This is a bad value and indicates that MKC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.68, MKC is doing worse than 86.81% of the companies in the same industry.
A Quick Ratio of 0.30 indicates that MKC may have some problems paying its short term obligations.
The Quick ratio of MKC (0.30) is worse than 94.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.3 |
3. Growth
3.1 Past
MKC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.64%, which is quite good.
The Earnings Per Share has been growing slightly by 1.60% on average over the past years.
The Revenue has been growing slightly by 4.78% in the past year.
The Revenue has been growing slightly by 4.67% on average over the past years.
EPS 1Y (TTM)9.64%
EPS 3Y-1.68%
EPS 5Y1.6%
EPS growth Q2Q6.78%
Revenue 1Y (TTM)4.78%
Revenue growth 3Y5.95%
Revenue growth 5Y4.67%
Revenue growth Q2Q2.38%
3.2 Future
The Earnings Per Share is expected to grow by 9.59% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.41% on average over the next years.
EPS Next Y7.74%
EPS Next 2Y7.56%
EPS Next 3Y7.58%
EPS Next 5Y9.59%
Revenue Next Year-0.32%
Revenue Next 2Y1.28%
Revenue Next 3Y2.03%
Revenue Next 5Y3.41%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.68, MKC can be considered very expensive at the moment.
Based on the Price/Earnings ratio, MKC is valued a bit cheaper than 61.54% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.20, MKC is valued at the same level.
A Price/Forward Earnings ratio of 24.28 indicates a rather expensive valuation of MKC.
Based on the Price/Forward Earnings ratio, MKC is valued a bit cheaper than the industry average as 62.64% of the companies are valued more expensively.
MKC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.68 | ||
| Fwd PE | 24.28 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MKC.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MKC indicates a somewhat cheap valuation: MKC is cheaper than 69.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.12 | ||
| EV/EBITDA | 19.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MKC does not grow enough to justify the current Price/Earnings ratio.
MKC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.57
PEG (5Y)17.32
EPS Next 2Y7.56%
EPS Next 3Y7.58%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.31%, MKC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.58, MKC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, MKC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
5.2 History
The dividend of MKC is nicely growing with an annual growth rate of 8.48%!
MKC has paid a dividend for at least 10 years, which is a reliable track record.
MKC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.48%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
60.30% of the earnings are spent on dividend by MKC. This is not a sustainable payout ratio.
MKC's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP60.3%
EPS Next 2Y7.56%
EPS Next 3Y7.58%
MCCORMICK & CO-NON VTG SHRS
NYSE:MKC (4/25/2024, 7:05:08 PM)
After market: 75.56 0 (0%)75.56
-0.29 (-0.38%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap20.28B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.68 | ||
| Fwd PE | 24.28 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.57
PEG (5Y)17.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.49% | ||
| ROE | 13.52% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.45% | ||
| PM (TTM) | 10.56% | ||
| GM | 37.9% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)9.64%
EPS 3Y-1.68%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.78%
Revenue growth 3Y5.95%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y