MCCORMICK & CO-NON VTG SHRS (MKC)

US5797802064 - Common Stock

67.81  -1.05 (-1.52%)

After market: 67.81 0 (0%)

Fundamental Rating

5

Taking everything into account, MKC scores 5 out of 10 in our fundamental rating. MKC was compared to 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. MKC has a decent growth rate and is not valued too expensively.



7

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.
Each year in the past 5 years MKC has been profitable.
In the past 5 years MKC always reported a positive cash flow from operatings.

1.2 Ratios

With a decent Return On Assets value of 5.29%, MKC is doing good in the industry, outperforming 67.39% of the companies in the same industry.
MKC has a Return On Equity of 13.45%. This is in the better half of the industry: MKC outperforms 73.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.03%, MKC belongs to the top of the industry, outperforming 81.52% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MKC is in line with the industry average of 7.89%.
The last Return On Invested Capital (8.03%) for MKC is above the 3 year average (7.71%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.29%
ROE 13.45%
ROIC 8.03%
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

MKC has a Profit Margin of 10.22%. This is amongst the best in the industry. MKC outperforms 83.70% of its industry peers.
In the last couple of years the Profit Margin of MKC has declined.
MKC has a Operating Margin of 15.37%. This is amongst the best in the industry. MKC outperforms 90.22% of its industry peers.
MKC's Operating Margin has declined in the last couple of years.
MKC has a Gross Margin of 37.56%. This is amongst the best in the industry. MKC outperforms 92.39% of its industry peers.
MKC's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 15.37%
PM (TTM) 10.22%
GM 37.56%
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%

3

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.
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

An Altman-Z score of 2.43 indicates that MKC is not a great score, but indicates only limited risk for bankruptcy at the moment.
MKC has a Altman-Z score of 2.43. This is comparable to the rest of the industry: MKC outperforms 53.26% of its industry peers.
MKC has a debt to FCF ratio of 4.53. This is a neutral value as MKC would need 4.53 years to pay back of all of its debts.
MKC has a Debt to FCF ratio of 4.53. This is in the better half of the industry: MKC outperforms 76.09% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that MKC is somewhat dependend on debt financing.
MKC has a Debt to Equity ratio (0.71) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.71
Debt/FCF 4.53
Altman-Z 2.43
ROIC/WACC1.04
WACC7.75%

2.3 Liquidity

MKC has a Current Ratio of 0.65. 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 Current ratio of 0.65 is on the low side compared to the rest of the industry. MKC is outperformed by 88.04% of its industry peers.
MKC has a Quick Ratio of 0.65. This is a bad value and indicates that MKC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.28, MKC is not doing good in the industry: 93.48% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.65
Quick Ratio 0.28

4

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 6.32% over the past year.
MKC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.60% yearly.
The Revenue has been growing slightly by 4.91% in the past year.
The Revenue has been growing slightly by 4.67% on average over the past years.
EPS 1Y (TTM)6.32%
EPS 3Y-1.68%
EPS 5Y1.6%
EPS growth Q2Q16.44%
Revenue 1Y (TTM)4.91%
Revenue growth 3Y5.95%
Revenue growth 5Y4.67%
Revenue growth Q2Q3.37%

3.2 Future

The Earnings Per Share is expected to grow by 9.59% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.41% on average over the next years.
EPS Next Y7.69%
EPS Next 2Y8.55%
EPS Next 3Y9.15%
EPS Next 5Y9.59%
Revenue Next Year-0.03%
Revenue Next 2Y1.37%
Revenue Next 3Y2.14%
Revenue Next 5Y3.41%

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

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 25.21 indicates a quite expensive valuation of MKC.
61.96% of the companies in the same industry are more expensive than MKC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.31, MKC is valued at the same level.
Based on the Price/Forward Earnings ratio of 23.41, the valuation of MKC can be described as rather expensive.
61.96% 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 21.87.
Industry RankSector Rank
PE 25.21
Fwd PE 23.41

4.2 Price Multiples

MKC's Enterprise Value to EBITDA ratio is in line with the industry average.
75.00% of the companies in the same industry are more expensive than MKC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 18.69
EV/EBITDA 18.11

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.
MKC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.28
PEG (5Y)15.77
EPS Next 2Y8.55%
EPS Next 3Y9.15%

6

5. Dividend

5.1 Amount

MKC has a Yearly Dividend Yield of 2.44%.
Compared to an average industry Dividend Yield of 3.47, MKC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, MKC has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.44%

5.2 History

The dividend of MKC is nicely growing with an annual growth rate of 8.48%!
MKC has been paying a dividend for at least 10 years, so it has 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)8.48%
Div Incr Years19
Div Non Decr Years19

5.3 Sustainability

MKC pays out 61.49% of its income as dividend. This is not a sustainable payout ratio.
The dividend of MKC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP61.49%
EPS Next 2Y8.55%
EPS Next 3Y9.15%

MCCORMICK & CO-NON VTG SHRS

NYSE:MKC (3/1/2024, 7:04:00 PM)

After market: 67.81 0 (0%)

67.81

-1.05 (-1.52%)

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 Cap18.19B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.44%
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
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)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 RankSector Rank
PE 25.21
Fwd PE 23.41
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)3.28
PEG (5Y)15.77
Profitability
Industry RankSector Rank
ROA 5.29%
ROE 13.45%
ROCE
ROIC
ROICexc
ROICexgc
OM 15.37%
PM (TTM) 10.22%
GM 37.56%
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 Turnover0.52
Health
Industry RankSector Rank
Debt/Equity 0.71
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.65
Quick Ratio 0.28
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)
Growth
EPS 1Y (TTM)6.32%
EPS 3Y-1.68%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.91%
Revenue growth 3Y5.95%
Revenue growth 5Y
Revenue growth 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