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 90 industry peers in the Food Products industry. While MKC has a great profitability rating, there are quite some 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
In the past year MKC was profitable.
In the past year MKC had a positive cash flow from operations.
In the past 5 years MKC has always been profitable.
MKC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MKC has a better Return On Assets (6.08%) than 77.78% of its industry peers.
MKC has a Return On Equity of 14.47%. This is in the better half of the industry: MKC outperforms 78.89% of its industry peers.
MKC has a Return On Invested Capital of 8.13%. This is in the better half of the industry: MKC outperforms 76.67% of its industry peers.
MKC had an Average Return On Invested Capital over the past 3 years of 7.52%. This is in line with the industry average of 8.11%.
The last Return On Invested Capital (8.13%) for MKC is above the 3 year average (7.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.08% | ||
| ROE | 14.47% | ||
| ROIC | 8.13% |
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
The Profit Margin of MKC (11.67%) is better than 90.00% of its industry peers.
In the last couple of years the Profit Margin of MKC has declined.
MKC's Operating Margin of 15.72% is amongst the best of the industry. MKC outperforms 88.89% of its industry peers.
MKC's Operating Margin has declined in the last couple of years.
MKC has a better Gross Margin (38.59%) than 86.67% of its industry peers.
MKC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.72% | ||
| PM (TTM) | 11.67% | ||
| GM | 38.59% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MKC is still creating some value.
Compared to 1 year ago, MKC has about the same amount of shares outstanding.
The number of shares outstanding for MKC has been increased compared to 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 2.63. 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.
With a decent Altman-Z score value of 2.63, MKC is doing good in the industry, outperforming 65.56% of the companies in the same industry.
MKC has a debt to FCF ratio of 6.64. This is a slightly negative value and a sign of low solvency as MKC would need 6.64 years to pay back of all of its debts.
MKC has a Debt to FCF ratio of 6.64. This is in the better half of the industry: MKC outperforms 72.22% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that MKC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, MKC perfoms like the industry average, outperforming 43.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 6.64 | ||
| Altman-Z | 2.63 |
ROIC/WACC1
WACC8.09%
2.3 Liquidity
A Current Ratio of 0.65 indicates that MKC may have some problems paying its short term obligations.
The Current ratio of MKC (0.65) is worse than 86.67% of its industry peers.
A Quick Ratio of 0.25 indicates that MKC may have some problems paying its short term obligations.
MKC has a Quick ratio of 0.25. This is amonst the worse of the industry: MKC underperforms 93.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.25 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.96% over the past year.
Measured over the past 5 years, MKC shows a small growth in Earnings Per Share. The EPS has been growing by 1.98% on average per year.
Looking at the last year, MKC shows a small growth in Revenue. The Revenue has grown by 0.40% in the last year.
The Revenue has been growing slightly by 4.69% on average over the past years.
EPS 1Y (TTM)6.96%
EPS 3Y-1.11%
EPS 5Y1.98%
EPS Q2Q%-4.76%
Revenue 1Y (TTM)0.4%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%0.17%
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 6.51% on average per year.
MKC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.19% yearly.
EPS Next Y4.31%
EPS Next 2Y6.49%
EPS Next 3Y7.24%
EPS Next 5Y6.51%
Revenue Next Year1.77%
Revenue Next 2Y2.64%
Revenue Next 3Y3.04%
Revenue Next 5Y3.19%
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
Based on the Price/Earnings ratio of 24.56, the valuation of MKC can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MKC is on the same level as its industry peers.
When comparing the Price/Earnings ratio of MKC to the average of the S&P500 Index (26.17), we can say MKC is valued inline with the index average.
With a Price/Forward Earnings ratio of 21.44, MKC is valued on the expensive side.
MKC's Price/Forward Earnings ratio is in line with the industry average.
MKC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.56 | ||
| Fwd PE | 21.44 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MKC.
61.11% of the companies in the same industry are more expensive than MKC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.63 | ||
| EV/EBITDA | 17.97 |
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)5.7
PEG (5Y)12.43
EPS Next 2Y6.49%
EPS Next 3Y7.24%
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 4.64, MKC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, MKC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.09%
Div Incr Years33
Div Non Decr Years33
5.3 Sustainability
58.49% 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.
DP58.49%
EPS Next 2Y6.49%
EPS Next 3Y7.24%
NYSE:MKC (5/29/2025, 9:44:35 AM)
71.71
+0.33 (+0.46%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners88.85%
Inst Owner Change0.66%
Ins Owners0.01%
Ins Owner Change10.79%
Market Cap19.23B
Analysts71.43
Price Target86.52 (20.65%)
Short Float %2.08%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
Yearly Dividend1.68
Dividend Growth(5Y)8.09%
DP58.49%
Div Incr Years33
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.26%
Min EPS beat(2)-7.59%
Max EPS beat(2)3.07%
EPS beat(4)3
Avg EPS beat(4)8.31%
Min EPS beat(4)-7.59%
Max EPS beat(4)21.3%
EPS beat(8)6
Avg EPS beat(8)6.23%
EPS beat(12)7
Avg EPS beat(12)0.9%
EPS beat(16)11
Avg EPS beat(16)2.3%
Revenue beat(2)1
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)0.39%
Revenue beat(4)1
Avg Revenue beat(4)-0.38%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)0.39%
Revenue beat(8)2
Avg Revenue beat(8)-0.75%
Revenue beat(12)3
Avg Revenue beat(12)-1.44%
Revenue beat(16)5
Avg Revenue beat(16)-0.61%
PT rev (1m)-1.4%
PT rev (3m)0.18%
EPS NQ rev (1m)-0.98%
EPS NQ rev (3m)-2.44%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-0.65%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.56 | ||
| Fwd PE | 21.44 | ||
| P/S | 2.86 | ||
| P/FCF | 29.63 | ||
| P/OCF | 21.39 | ||
| P/B | 3.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.97 |
EPS(TTM)2.92
EY4.07%
EPS(NY)3.35
Fwd EY4.66%
FCF(TTM)2.42
FCFY3.37%
OCF(TTM)3.35
OCFY4.67%
SpS25.08
BVpS20.22
TBVpS-11.53
PEG (NY)5.7
PEG (5Y)12.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.08% | ||
| ROE | 14.47% | ||
| ROCE | 10.79% | ||
| ROIC | 8.13% | ||
| ROICexc | 8.21% | ||
| ROICexgc | 50.89% | ||
| OM | 15.72% | ||
| PM (TTM) | 11.67% | ||
| GM | 38.59% | ||
| 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%
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-Score8
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 6.64 | ||
| Debt/EBITDA | 2.79 | ||
| Cap/Depr | 115.31% | ||
| Cap/Sales | 3.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.56% | ||
| Profit Quality | 82.7% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.25 | ||
| Altman-Z | 2.63 |
F-Score8
WACC8.09%
ROIC/WACC1
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)6.96%
EPS 3Y-1.11%
EPS 5Y1.98%
EPS Q2Q%-4.76%
EPS Next Y4.31%
EPS Next 2Y6.49%
EPS Next 3Y7.24%
EPS Next 5Y6.51%
Revenue 1Y (TTM)0.4%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%0.17%
Revenue Next Year1.77%
Revenue Next 2Y2.64%
Revenue Next 3Y3.04%
Revenue Next 5Y3.19%
EBIT growth 1Y2.14%
EBIT growth 3Y-0.97%
EBIT growth 5Y1.8%
EBIT Next Year24.5%
EBIT Next 3Y11.7%
EBIT Next 5Y8.33%
FCF growth 1Y41.95%
FCF growth 3Y5.54%
FCF growth 5Y-3.5%
OCF growth 1Y21.98%
OCF growth 3Y3.63%
OCF growth 5Y-0.53%