MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
NYSE:MKC - New York Stock Exchange, Inc. - US5797802064 - Common Stock - Currency: USD
Taking everything into account, MKC scores 5 out of 10 in our fundamental rating. MKC was compared to 91 industry peers in the Food Products industry. MKC has an excellent profitability rating, but 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.
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
MKC has a better Return On Assets (5.88%) than 75.00% of its industry peers.
MKC's Return On Equity of 13.85% is fine compared to the rest of the industry. MKC outperforms 77.17% 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 76.09% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MKC is significantly below the industry average of 28.11%.
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's Profit Margin of 11.50% is amongst the best of the industry. MKC outperforms 91.30% of its industry peers.
MKC's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 16.02%, MKC belongs to the best of the industry, outperforming 90.22% of the companies in the same industry.
MKC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 38.54%, MKC belongs to the top of the industry, outperforming 86.96% 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 | 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) below the Cost of Capital (WACC), MKC is destroying value.
The number of shares outstanding for MKC remains at a similar level compared to 1 year ago.
The number of shares outstanding for MKC has been increased compared to 5 years ago.
MKC has a better debt/assets ratio than last year.
2.2 Solvency
MKC has an Altman-Z score of 2.61. 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.
The Altman-Z score of MKC (2.61) is better than 61.96% of its industry peers.
MKC has a debt to FCF ratio of 8.07. This is a slightly negative value and a sign of low solvency as MKC would need 8.07 years to pay back of all of its debts.
MKC has a Debt to FCF ratio of 8.07. This is in the better half of the industry: MKC outperforms 65.22% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that MKC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.66, MKC is in line with its industry, outperforming 42.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 8.07 | ||
| Altman-Z | 2.61 |
ROIC/WACC0.99
WACC8.09%
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 84.78% of its industry peers.
MKC has a Quick 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.
MKC's Quick ratio of 0.27 is on the low side compared to the rest of the industry. MKC is outperformed by 92.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.55% over the past year.
MKC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.98% yearly.
The Revenue has been growing slightly by 0.89% in the past year.
The Revenue has been growing slightly by 4.69% on average over the past years.
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
Based on estimates for the next years, MKC will show a small growth in Earnings Per Share. The EPS will grow by 6.22% on average per year.
The Revenue is expected to grow by 2.99% on average over the next years.
EPS Next Y4.13%
EPS Next 2Y6.19%
EPS Next 3Y6.93%
EPS Next 5Y6.22%
Revenue Next Year1.77%
Revenue Next 2Y2.71%
Revenue Next 3Y3.07%
Revenue Next 5Y2.99%
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.
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
A Price/Earnings ratio of 24.64 indicates a rather expensive valuation of MKC.
MKC's Price/Earnings ratio is in line with the industry average.
MKC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.41.
A Price/Forward Earnings ratio of 21.63 indicates a rather expensive valuation of MKC.
MKC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MKC is cheaper than 61.96% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.19. MKC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.64 | ||
| Fwd PE | 21.63 |
4.2 Price Multiples
MKC's Enterprise Value to EBITDA is on the same level as the industry average.
MKC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.99 | ||
| EV/EBITDA | 17.77 |
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)5.96
PEG (5Y)12.47
EPS Next 2Y6.19%
EPS Next 3Y6.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.48%, MKC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.72, MKC pays a bit more dividend than its industry peers.
MKC's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
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 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.
The dividend of MKC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP60.21%
EPS Next 2Y6.19%
EPS Next 3Y6.93%
71.95
-0.49 (-0.68%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners90.35%
Inst Owner Change0.13%
Ins Owners0.01%
Ins Owner Change10.09%
Market Cap19.31B
Analysts72
Price Target85.85 (19.32%)
Short Float %1.97%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
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)-0.77%
PT rev (3m)-2.16%
EPS NQ rev (1m)-2.97%
EPS NQ rev (3m)-2.74%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-0.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.64 | ||
| Fwd PE | 21.63 | ||
| P/S | 2.86 | ||
| P/FCF | 34.99 | ||
| P/OCF | 24.7 | ||
| P/B | 3.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.77 |
EPS(TTM)2.92
EY4.06%
EPS(NY)3.33
Fwd EY4.62%
FCF(TTM)2.06
FCFY2.86%
OCF(TTM)2.91
OCFY4.05%
SpS25.13
BVpS20.87
TBVpS-11.17
PEG (NY)5.96
PEG (5Y)12.47
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 | 2.61 |
F-Score7
WACC8.09%
ROIC/WACC0.99
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 Y4.13%
EPS Next 2Y6.19%
EPS Next 3Y6.93%
EPS Next 5Y6.22%
Revenue 1Y (TTM)0.89%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%0.99%
Revenue Next Year1.77%
Revenue Next 2Y2.71%
Revenue Next 3Y3.07%
Revenue Next 5Y2.99%
EBIT growth 1Y4.25%
EBIT growth 3Y-0.97%
EBIT growth 5Y1.8%
EBIT Next Year24.5%
EBIT Next 3Y11.7%
EBIT Next 5Y8.05%
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%