MCCORMICK & CO-NON VTG SHRS (MKC)
US5797802064 - Common Stock
MKC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals 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 is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MKC was profitable.
In the past year MKC had a positive cash flow from operations.
MKC had positive earnings in each of the past 5 years.
In the past 5 years MKC always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.69%, MKC is in the better half of the industry, outperforming 70.33% of the companies in the same industry.
MKC has a better Return On Equity (13.88%) than 71.43% of its industry peers.
MKC has a better Return On Invested Capital (7.87%) than 75.82% 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 8.76%.
The 3 year average ROIC (7.71%) for MKC is below the current ROIC(7.87%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.69% | ||
| ROE | 13.88% | ||
| ROIC | 7.87% |
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
With an excellent Profit Margin value of 11.07%, MKC belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
MKC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 15.50%, MKC belongs to the top of the industry, outperforming 86.81% of the companies in the same industry.
In the last couple of years the Operating Margin of MKC has declined.
MKC's Gross Margin of 38.05% is amongst the best of the industry. MKC outperforms 90.11% of its industry peers.
MKC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.5% | ||
| PM (TTM) | 11.07% | ||
| GM | 38.05% |
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
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 2.64. 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 (2.64) which is in line with its industry peers.
The Debt to FCF ratio of MKC is 5.14, which is a neutral value as it means it would take MKC, 5.14 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MKC (5.14) is better than 71.43% of its industry peers.
MKC has a Debt/Equity ratio of 0.69. This is a neutral value indicating MKC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.69, MKC is in line with its industry, outperforming 43.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.14 | ||
| Altman-Z | 2.64 |
ROIC/WACC1
WACC7.85%
2.3 Liquidity
MKC has a Current Ratio of 0.69. 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 0.69. This is amonst the worse of the industry: MKC underperforms 84.62% of its industry peers.
A Quick Ratio of 0.31 indicates that MKC may have some problems paying its short term obligations.
The Quick ratio of MKC (0.31) is worse than 91.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.05% over the past year.
Measured over the past 5 years, MKC shows a small growth in Earnings Per Share. The EPS has been growing by 1.60% on average per year.
The Revenue has been growing slightly by 2.57% in the past year.
Measured over the past years, MKC shows a small growth in Revenue. The Revenue has been growing by 4.67% on average per year.
EPS 1Y (TTM)8.05%
EPS 3Y-1.68%
EPS 5Y1.6%
EPS Q2Q%15%
Revenue 1Y (TTM)2.57%
Revenue growth 3Y5.95%
Revenue growth 5Y4.67%
Sales Q2Q%-0.96%
3.2 Future
Based on estimates for the next years, MKC will show a small growth in Earnings Per Share. The EPS will grow by 7.42% on average per year.
Based on estimates for the next years, MKC will show a small growth in Revenue. The Revenue will grow by 2.64% on average per year.
EPS Next Y7.62%
EPS Next 2Y7.47%
EPS Next 3Y7.52%
EPS Next 5Y7.42%
Revenue Next Year-0.43%
Revenue Next 2Y1.2%
Revenue Next 3Y1.9%
Revenue Next 5Y2.64%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MKC is valuated quite expensively with a Price/Earnings ratio of 26.88.
Compared to the rest of the industry, the Price/Earnings ratio of MKC is on the same level as its industry peers.
MKC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.39, MKC is valued on the expensive side.
60.44% of the companies in the same industry are more expensive than MKC, based on the Price/Forward Earnings ratio.
MKC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.88 | ||
| Fwd PE | 24.39 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MKC.
The rest of the industry has a similar Price/Free Cash Flow ratio as MKC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.43 | ||
| EV/EBITDA | 19.36 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.53
PEG (5Y)16.82
EPS Next 2Y7.47%
EPS Next 3Y7.52%
5. Dividend
5.1 Amount
MKC has a Yearly Dividend Yield of 2.26%. 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 3.74.
Compared to an average S&P500 Dividend Yield of 2.30, MKC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
5.2 History
On average, the dividend of MKC grows each year by 8.48%, which is quite nice.
MKC has paid a dividend for at least 10 years, which is a reliable track record.
MKC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.48%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
MKC pays out 58.79% of its income as dividend. This is a bit on the high side, but may be sustainable.
MKC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP58.79%
EPS Next 2Y7.47%
EPS Next 3Y7.52%
MCCORMICK & CO-NON VTG SHRS
NYSE:MKC (7/26/2024, 7:04:00 PM)
After market: 75.79 0 (0%)75.79
+1.02 (+1.36%)
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 Cap20.36B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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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)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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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 | 26.88 | ||
| Fwd PE | 24.39 | ||
| 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)3.53
PEG (5Y)16.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.69% | ||
| ROE | 13.88% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.5% | ||
| PM (TTM) | 11.07% | ||
| GM | 38.05% | ||
| 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 Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.31 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)8.05%
EPS 3Y-1.68%
EPS 5Y
EPS Q2Q%
EPS Next Y7.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.57%
Revenue growth 3Y5.95%
Revenue growth 5Y
Sales 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