MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
USA - NYSE:MKC - US5797802064 - Common Stock
66.01 USD
-1.12 (-1.67%)
65.83 USD
-0.18 (-0.27%)
MKC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 86 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. While showing a medium growth rate, MKC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year MKC was profitable.
MKC had a positive operating cash flow in the past year.
MKC had positive earnings in each of the past 5 years.
Each year in the past 5 years MKC had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.87%, MKC is doing good in the industry, outperforming 79.07% of the companies in the same industry.
MKC has a Return On Equity of 13.52%. This is amongst the best in the industry. MKC outperforms 80.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.05%, MKC is in the better half of the industry, outperforming 79.07% of the companies in the same industry.
MKC had an Average Return On Invested Capital over the past 3 years of 7.52%. This is significantly below the industry average of 28.75%.
The last Return On Invested Capital (8.05%) for MKC is above the 3 year average (7.52%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 11.46%, MKC belongs to the best of the industry, outperforming 89.53% of the companies in the same industry.
In the last couple of years the Profit Margin of MKC has declined.
MKC has a better Operating Margin (15.99%) than 91.86% of its industry peers.
In the last couple of years the Operating Margin of MKC has declined.
MKC's Gross Margin of 38.23% is amongst the best of the industry. MKC outperforms 88.37% of its industry peers.
MKC's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MKC is still creating some value.
MKC has about the same amout of shares outstanding than it did 1 year ago.
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 2.53 indicates that MKC is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.53, MKC is in the better half of the industry, outperforming 60.47% of the companies in the same industry.
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's Debt to FCF ratio of 6.65 is fine compared to the rest of the industry. MKC outperforms 74.42% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that MKC is somewhat dependend on debt financing.
MKC has a Debt to Equity ratio of 0.63. This is comparable to the rest of the industry: MKC outperforms 45.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 2.53 |
ROIC/WACC1.05
WACC7.69%
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.
The Current ratio of MKC (0.71) is worse than 83.72% 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 89.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
MKC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.00%.
MKC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.98% yearly.
MKC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.64%.
The Revenue has been growing slightly by 4.69% on average over the past years.
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 6.30% on average over the next years.
The Revenue is expected to grow by 4.18% on average over the next years.
EPS Next Y3.04%
EPS Next 2Y4.48%
EPS Next 3Y5.82%
EPS Next 5Y6.3%
Revenue Next Year2.04%
Revenue Next 2Y4.04%
Revenue Next 3Y4.32%
Revenue Next 5Y4.18%
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
MKC is valuated rather expensively with a Price/Earnings ratio of 22.45.
MKC's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.00. MKC is around the same levels.
The Price/Forward Earnings ratio is 20.50, which indicates a rather expensive current valuation of MKC.
MKC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MKC is cheaper than 61.63% of the companies in the same industry.
MKC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.45 | ||
| Fwd PE | 20.5 |
4.2 Price Multiples
MKC's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MKC indicates a somewhat cheap valuation: MKC is cheaper than 61.63% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.04 | ||
| EV/EBITDA | 16.42 |
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)7.38
PEG (5Y)11.36
EPS Next 2Y4.48%
EPS Next 3Y5.82%
5. Dividend
5.1 Amount
MKC has a Yearly Dividend Yield of 2.67%.
Compared to an average industry Dividend Yield of 5.10, MKC pays a bit more dividend than its industry peers.
MKC's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
5.2 History
On average, the dividend of MKC grows each year by 8.09%, which is quite nice.
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)8.09%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
MKC pays out 61.04% of its income as dividend. This is not a sustainable payout ratio.
The dividend of MKC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP61.04%
EPS Next 2Y4.48%
EPS Next 3Y5.82%
66.01
-1.12 (-1.67%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners89.6%
Inst Owner Change-0.37%
Ins Owners0.01%
Ins Owner Change-0.17%
Market Cap17.72B
Revenue(TTM)6.79B
Net Income(TTM)778.00M
Analysts72
Price Target85.07 (28.87%)
Short Float %4.28%
Short Ratio3.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
Yearly Dividend1.68
Dividend Growth(5Y)8.09%
DP61.04%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)-0.6%
PT rev (3m)-2.01%
EPS NQ rev (1m)-6.46%
EPS NQ rev (3m)-6.46%
EPS NY rev (1m)-1.02%
EPS NY rev (3m)-1.05%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.45 | ||
| Fwd PE | 20.5 | ||
| P/S | 2.61 | ||
| P/FCF | 27.04 | ||
| P/OCF | 20.16 | ||
| P/B | 3.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.42 |
EPS(TTM)2.94
EY4.45%
EPS(NY)3.22
Fwd EY4.88%
FCF(TTM)2.44
FCFY3.7%
OCF(TTM)3.27
OCFY4.96%
SpS25.29
BVpS21.44
TBVpS-10.67
PEG (NY)7.38
PEG (5Y)11.36
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 | 2.53 |
F-Score6
WACC7.69%
ROIC/WACC1.05
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 Y3.04%
EPS Next 2Y4.48%
EPS Next 3Y5.82%
EPS Next 5Y6.3%
Revenue 1Y (TTM)1.64%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%2.68%
Revenue Next Year2.04%
Revenue Next 2Y4.04%
Revenue Next 3Y4.32%
Revenue Next 5Y4.18%
EBIT growth 1Y1.11%
EBIT growth 3Y-0.97%
EBIT growth 5Y1.8%
EBIT Next Year23.76%
EBIT Next 3Y12.62%
EBIT Next 5Y9.13%
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.
What is the valuation status for MKC stock?
ChartMill assigns a valuation rating of 3 / 10 to MCCORMICK & CO-NON VTG SHRS (MKC). This can be considered as Overvalued.
How profitable is MCCORMICK & CO-NON VTG SHRS (MKC) stock?
MCCORMICK & CO-NON VTG SHRS (MKC) has a profitability rating of 7 / 10.
What is the financial health of MCCORMICK & CO-NON VTG SHRS (MKC) stock?
The financial health rating of MCCORMICK & CO-NON VTG SHRS (MKC) is 3 / 10.
Can you provide the dividend sustainability for MKC stock?
The dividend rating of MCCORMICK & CO-NON VTG SHRS (MKC) is 5 / 10 and the dividend payout ratio is 61.04%.