MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
NYSE:MKC - US5797802064 - Common Stock
72.26 USD
+1.19 (+1.67%)
72.26 USD
0 (0%)
MKC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 89 industry peers in the Food Products industry. MKC has an excellent profitability rating, but there are concerns on its financial health. MKC is valied quite expensively at the moment, while 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.
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 5.88%, MKC is in the better half of the industry, outperforming 74.16% of the companies in the same industry.
MKC's Return On Equity of 13.85% is fine compared to the rest of the industry. MKC outperforms 76.40% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.03%, MKC is in the better half of the industry, outperforming 75.28% 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 29.14%.
The 3 year average ROIC (7.52%) for MKC is below the current ROIC(8.03%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 13.85% | ||
| ROIC | 8.03% |
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
MKC has a Profit Margin of 11.50%. This is amongst the best in the industry. MKC outperforms 89.89% of its industry peers.
In the last couple of years the Profit Margin of MKC has declined.
Looking at the Operating Margin, with a value of 16.02%, MKC belongs to the top of the industry, outperforming 88.76% 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 38.54% is amongst the best of the industry. MKC outperforms 86.52% 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 | 16.02% | ||
| PM (TTM) | 11.5% | ||
| GM | 38.54% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MKC is creating some value.
The number of shares outstanding for MKC remains at a similar level compared to 1 year ago.
Compared to 5 years ago, MKC has more shares outstanding
Compared to 1 year ago, MKC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.62 indicates that MKC is not a great score, but indicates only limited risk for bankruptcy at the moment.
MKC has a better Altman-Z score (2.62) than 62.92% of its industry peers.
The Debt to FCF ratio of MKC is 8.07, which is on the high side as it means it would take MKC, 8.07 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.07, MKC is in the better half of the industry, outperforming 65.17% of the companies in the same industry.
MKC has a Debt/Equity ratio of 0.66. This is a neutral value indicating MKC is somewhat dependend on debt financing.
MKC's Debt to Equity ratio of 0.66 is in line compared to the rest of the industry. MKC outperforms 43.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 8.07 | ||
| Altman-Z | 2.62 |
ROIC/WACC1.01
WACC7.96%
2.3 Liquidity
A Current Ratio of 0.68 indicates that MKC may have some problems paying its short term obligations.
The Current ratio of MKC (0.68) is worse than 85.39% of its industry peers.
A Quick Ratio of 0.27 indicates that MKC may have some problems paying its short term obligations.
MKC has a Quick ratio of 0.27. This is amonst the worse of the industry: MKC underperforms 92.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
MKC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.55%.
The Earnings Per Share has been growing slightly by 1.98% on average over the past years.
The Revenue has been growing slightly by 0.89% in the past 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)3.55%
EPS 3Y-1.11%
EPS 5Y1.98%
EPS Q2Q%0%
Revenue 1Y (TTM)0.89%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%0.99%
3.2 Future
MKC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.60% yearly.
MKC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.02% yearly.
EPS Next Y4.15%
EPS Next 2Y6.39%
EPS Next 3Y7.34%
EPS Next 5Y6.6%
Revenue Next Year1.79%
Revenue Next 2Y2.7%
Revenue Next 3Y3.05%
Revenue Next 5Y3.02%
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
With a Price/Earnings ratio of 24.75, MKC is valued on the expensive side.
MKC's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.24. MKC is around the same levels.
MKC is valuated rather expensively with a Price/Forward Earnings ratio of 21.64.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MKC indicates a somewhat cheap valuation: MKC is cheaper than 61.80% of the companies listed in the same industry.
MKC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.75 | ||
| Fwd PE | 21.64 |
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.
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 | 35.14 | ||
| EV/EBITDA | 17.83 |
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 decent profitability rating of MKC may justify a higher PE ratio.
PEG (NY)5.96
PEG (5Y)12.52
EPS Next 2Y6.39%
EPS Next 3Y7.34%
5. Dividend
5.1 Amount
MKC has a Yearly Dividend Yield of 2.53%.
Compared to an average industry Dividend Yield of 4.62, MKC pays a bit more dividend than its industry peers.
MKC's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
5.2 History
The dividend of MKC is nicely growing with an annual growth rate of 8.09%!
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)8.09%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
60.21% 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.
DP60.21%
EPS Next 2Y6.39%
EPS Next 3Y7.34%
72.26
+1.19 (+1.67%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners90.26%
Inst Owner Change-1.25%
Ins Owners0.01%
Ins Owner Change2.06%
Market Cap19.39B
Analysts72
Price Target85.87 (18.83%)
Short Float %3.05%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend1.68
Dividend Growth(5Y)8.09%
DP60.21%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.83%
Min EPS beat(2)-7.59%
Max EPS beat(2)3.93%
EPS beat(4)3
Avg EPS beat(4)5.18%
Min EPS beat(4)-7.59%
Max EPS beat(4)21.3%
EPS beat(8)6
Avg EPS beat(8)6.22%
EPS beat(12)8
Avg EPS beat(12)3.45%
EPS beat(16)11
Avg EPS beat(16)1.85%
Revenue beat(2)0
Avg Revenue beat(2)-1.15%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)-0.93%
Revenue beat(4)1
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)0.39%
Revenue beat(8)2
Avg Revenue beat(8)-0.69%
Revenue beat(12)3
Avg Revenue beat(12)-1.08%
Revenue beat(16)4
Avg Revenue beat(16)-0.99%
PT rev (1m)-1.09%
PT rev (3m)-0.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.74%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.75 | ||
| Fwd PE | 21.64 | ||
| P/S | 2.88 | ||
| P/FCF | 35.14 | ||
| P/OCF | 24.8 | ||
| P/B | 3.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.83 |
EPS(TTM)2.92
EY4.04%
EPS(NY)3.34
Fwd EY4.62%
FCF(TTM)2.06
FCFY2.85%
OCF(TTM)2.91
OCFY4.03%
SpS25.13
BVpS20.87
TBVpS-11.17
PEG (NY)5.96
PEG (5Y)12.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 13.85% | ||
| ROCE | 10.79% | ||
| ROIC | 8.03% | ||
| ROICexc | 8.12% | ||
| ROICexgc | 45.31% | ||
| OM | 16.02% | ||
| PM (TTM) | 11.5% | ||
| GM | 38.54% | ||
| FCFM | 8.18% |
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%
ROICexcg growth 3Y-19.64%
ROICexcg 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-Score7
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 8.07 | ||
| Debt/EBITDA | 2.85 | ||
| Cap/Depr | 106.09% | ||
| Cap/Sales | 3.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.29% | ||
| Profit Quality | 71.14% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 2.62 |
F-Score7
WACC7.96%
ROIC/WACC1.01
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)3.55%
EPS 3Y-1.11%
EPS 5Y1.98%
EPS Q2Q%0%
EPS Next Y4.15%
EPS Next 2Y6.39%
EPS Next 3Y7.34%
EPS Next 5Y6.6%
Revenue 1Y (TTM)0.89%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%0.99%
Revenue Next Year1.79%
Revenue Next 2Y2.7%
Revenue Next 3Y3.05%
Revenue Next 5Y3.02%
EBIT growth 1Y4.25%
EBIT growth 3Y-0.97%
EBIT growth 5Y1.8%
EBIT Next Year23.85%
EBIT Next 3Y11.75%
EBIT Next 5Y8.21%
FCF growth 1Y-9.88%
FCF growth 3Y5.54%
FCF growth 5Y-3.5%
OCF growth 1Y-12.29%
OCF growth 3Y3.63%
OCF growth 5Y-0.53%