MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
USA - NYSE:MKC - US5797802064 - Common Stock
66.85 USD
-0.52 (-0.77%)
66.85 USD
0 (0%)
Taking everything into account, MKC scores 5 out of 10 in our fundamental rating. MKC was compared to 87 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 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.
MKC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MKC has a Return On Assets of 5.87%. This is in the better half of the industry: MKC outperforms 78.16% of its industry peers.
The Return On Equity of MKC (13.52%) is better than 79.31% of its industry peers.
MKC has a Return On Invested Capital of 8.05%. This is in the better half of the industry: MKC outperforms 78.16% of its industry peers.
MKC had an Average Return On Invested Capital over the past 3 years of 7.52%. This is significantly below the industry average of 28.34%.
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
Looking at the Profit Margin, with a value of 11.46%, MKC belongs to the top of the industry, outperforming 88.51% of the companies in the same industry.
In the last couple of years the Profit Margin of MKC has declined.
The Operating Margin of MKC (15.99%) is better than 89.66% of its industry peers.
MKC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 38.23%, MKC belongs to the top of the industry, outperforming 86.21% 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 | 15.99% | ||
| 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
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.
MKC has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MKC has been reduced compared to a year ago.
2.2 Solvency
MKC has an Altman-Z score of 2.56. 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 has a Altman-Z score of 2.56. This is in the better half of the industry: MKC outperforms 60.92% of its industry peers.
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 has a Debt to FCF ratio of 6.65. This is in the better half of the industry: MKC outperforms 72.41% of its industry peers.
MKC has a Debt/Equity ratio of 0.63. This is a neutral value indicating MKC is somewhat dependend on debt financing.
The Debt to Equity ratio of MKC (0.63) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.05
WACC7.7%
2.3 Liquidity
A Current Ratio of 0.71 indicates that MKC may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.71, MKC is doing worse than 85.06% of the companies in the same industry.
A Quick Ratio of 0.29 indicates that MKC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.29, MKC is doing worse than 90.80% of the companies in the same industry.
| 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%.
The Earnings Per Share has been growing slightly by 1.98% on average over the past years.
MKC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.64%.
MKC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.69% yearly.
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
Based on estimates for the next years, MKC will show a small growth in Earnings Per Share. The EPS will grow by 6.30% on average per year.
Based on estimates for the next years, MKC will show a small growth in Revenue. The Revenue will grow by 4.18% on average per year.
EPS Next Y4.11%
EPS Next 2Y6.46%
EPS Next 3Y7.36%
EPS Next 5Y6.3%
Revenue Next Year1.85%
Revenue Next 2Y3.94%
Revenue Next 3Y4.07%
Revenue Next 5Y4.18%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
MKC is valuated rather expensively with a Price/Earnings ratio of 22.74.
MKC's Price/Earnings ratio is in line with the industry average.
MKC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.99, which indicates a rather expensive current valuation of MKC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MKC indicates a somewhat cheap valuation: MKC is cheaper than 62.07% of the companies listed in the same industry.
MKC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 19.99 |
4.2 Price Multiples
MKC's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as MKC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.38 | ||
| EV/EBITDA | 16.7 |
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)5.53
PEG (5Y)11.5
EPS Next 2Y6.46%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.67%, MKC has a reasonable but not impressive dividend return.
MKC's Dividend Yield is a higher than the industry average which is at 5.09.
MKC's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
5.2 History
The dividend of MKC is nicely growing with an annual growth rate of 8.09%!
MKC has been paying a dividend for at least 10 years, so it has 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
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 2Y6.46%
EPS Next 3Y7.36%
66.85
-0.52 (-0.77%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners89.6%
Inst Owner Change-0.53%
Ins Owners0.01%
Ins Owner Change-0.17%
Market Cap17.94B
Revenue(TTM)6.79B
Net Income(TTM)778.00M
Analysts72
Price Target85.07 (27.26%)
Short Float %3.69%
Short Ratio3.42
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)-5.18%
EPS NQ rev (3m)-5.18%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0.54%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 19.99 | ||
| P/S | 2.64 | ||
| P/FCF | 27.38 | ||
| P/OCF | 20.41 | ||
| P/B | 3.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.7 |
EPS(TTM)2.94
EY4.4%
EPS(NY)3.34
Fwd EY5%
FCF(TTM)2.44
FCFY3.65%
OCF(TTM)3.27
OCFY4.9%
SpS25.29
BVpS21.44
TBVpS-10.67
PEG (NY)5.53
PEG (5Y)11.5
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 | 2.56 |
F-Score6
WACC7.7%
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 Y4.11%
EPS Next 2Y6.46%
EPS Next 3Y7.36%
EPS Next 5Y6.3%
Revenue 1Y (TTM)1.64%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%2.68%
Revenue Next Year1.85%
Revenue Next 2Y3.94%
Revenue Next 3Y4.07%
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%.