MCCORMICK & CO-NON VTG SHRS (MKC)
US5797802064 - Common Stock
Overall MKC gets a fundamental rating of 4 out of 10. We evaluated MKC against 92 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
MKC had positive earnings in the past year.
MKC had a positive operating cash flow in the past year.
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
MKC's Return On Assets of 5.69% is fine compared to the rest of the industry. MKC outperforms 68.48% of its industry peers.
MKC's Return On Equity of 13.88% is fine compared to the rest of the industry. MKC outperforms 70.65% of its industry peers.
MKC's Return On Invested Capital of 7.87% is fine compared to the rest of the industry. MKC outperforms 76.09% of its industry peers.
MKC had an Average Return On Invested Capital over the past 3 years of 7.71%. This is in line with the industry average of 8.91%.
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
Looking at the Profit Margin, with a value of 11.07%, MKC belongs to the top of the industry, outperforming 84.78% of the companies in the same industry.
MKC's Profit Margin has declined in the last couple of years.
MKC has a better Operating Margin (15.50%) than 85.87% of its industry peers.
In the last couple of years the Operating Margin of MKC has declined.
Looking at the Gross Margin, with a value of 38.05%, MKC belongs to the top of the industry, outperforming 89.13% of the companies in the same industry.
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 | 15.5% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MKC is creating some 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
The debt/assets ratio for MKC has been reduced compared to a year ago.
2.2 Solvency
MKC has an Altman-Z score of 2.82. 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's Altman-Z score of 2.82 is in line compared to the rest of the industry. MKC outperforms 57.61% of 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.
Looking at the Debt to FCF ratio, with a value of 5.14, MKC is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
MKC has a Debt/Equity ratio of 0.69. This is a neutral value indicating MKC is somewhat dependend on debt financing.
MKC has a Debt to Equity ratio of 0.69. This is comparable to the rest of the industry: MKC outperforms 43.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.14 | ||
| Altman-Z | 2.82 |
ROIC/WACC1.05
WACC7.48%
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 82.61% of its industry peers.
MKC has a Quick 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's Quick ratio of 0.31 is on the low side compared to the rest of the industry. MKC is outperformed by 91.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.69 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
MKC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.05%, which is quite good.
MKC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.60% yearly.
Looking at the last year, MKC shows a small growth in Revenue. The Revenue has grown by 2.57% in the last 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
The Earnings Per Share is expected to grow by 7.42% 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 2.64% yearly.
EPS Next Y7.52%
EPS Next 2Y7.35%
EPS Next 3Y7.45%
EPS Next 5Y7.42%
Revenue Next Year-0.46%
Revenue Next 2Y1.1%
Revenue Next 3Y1.81%
Revenue Next 5Y2.64%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 29.39, which means the current valuation is very expensive for MKC.
The rest of the industry has a similar Price/Earnings ratio as MKC.
The average S&P500 Price/Earnings ratio is at 29.62. MKC is around the same levels.
A Price/Forward Earnings ratio of 26.74 indicates a quite expensive valuation of MKC.
MKC's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of MKC to the average of the S&P500 Index (21.22), we can say MKC is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.39 | ||
| Fwd PE | 26.74 |
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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.63 | ||
| EV/EBITDA | 21.15 |
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.
The decent profitability rating of MKC may justify a higher PE ratio.
PEG (NY)3.91
PEG (5Y)18.39
EPS Next 2Y7.35%
EPS Next 3Y7.45%
5. Dividend
5.1 Amount
MKC has a Yearly Dividend Yield of 2.02%.
MKC's Dividend Yield is a higher than the industry average which is at 3.62.
MKC's Dividend Yield is comparable with the S&P500 average which is at 2.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
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
58.79% of the earnings are spent on dividend by MKC. 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 2Y7.35%
EPS Next 3Y7.45%
MCCORMICK & CO-NON VTG SHRS
NYSE:MKC (9/6/2024, 8:04:00 PM)
After market: 82.88 0 (0%)82.88
-0.16 (-0.19%)
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 Cap22.27B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
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)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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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 | 29.39 | ||
| Fwd PE | 26.74 | ||
| 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)3.91
PEG (5Y)18.39
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 Y7.52%
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