MCCORMICK & CO INC VTG COM (MKC.V) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MKC.V - US5797801074 - Common Stock
61.73 USD
-1.85 (-2.91%)
Overall MKC.V gets a fundamental rating of 5 out of 10. We evaluated MKC.V against 87 industry peers in the Food Products industry. MKC.V scores excellent on profitability, but there are concerns on its financial health. MKC.V has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- MKC.V had positive earnings in the past year.
- In the past year MKC.V had a positive cash flow from operations.
- Each year in the past 5 years MKC.V has been profitable.
- Each year in the past 5 years MKC.V had a positive operating cash flow.
1.2 Ratios
- MKC.V has a Return On Assets of 5.98%. This is amongst the best in the industry. MKC.V outperforms 82.76% of its industry peers.
- With an excellent Return On Equity value of 13.76%, MKC.V belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
- The Return On Invested Capital of MKC.V (8.22%) is better than 83.91% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MKC.V is significantly below the industry average of 27.79%.
- The last Return On Invested Capital (8.22%) for MKC.V is above the 3 year average (8.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 13.76% | ||
| ROIC | 8.22% |
ROA(3y)5.77%
ROA(5y)5.67%
ROE(3y)14.04%
ROE(5y)14.76%
ROIC(3y)8.07%
ROIC(5y)7.87%
1.3 Margins
- MKC.V has a better Profit Margin (11.54%) than 91.95% of its industry peers.
- MKC.V's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 15.99%, MKC.V belongs to the top of the industry, outperforming 95.40% of the companies in the same industry.
- MKC.V's Operating Margin has declined in the last couple of years.
- MKC.V's Gross Margin of 37.93% is amongst the best of the industry. MKC.V outperforms 88.51% of its industry peers.
- MKC.V's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.99% | ||
| PM (TTM) | 11.54% | ||
| GM | 37.93% |
OM growth 3Y3.45%
OM growth 5Y-2.54%
PM growth 3Y2.43%
PM growth 5Y-2.86%
GM growth 3Y1.93%
GM growth 5Y-1.58%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MKC.V is still creating some value.
- MKC.V has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for MKC.V has been increased compared to 5 years ago.
- The debt/assets ratio for MKC.V has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.44 indicates that MKC.V is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.44, MKC.V perfoms like the industry average, outperforming 56.32% of the companies in the same industry.
- MKC.V has a debt to FCF ratio of 5.40. This is a neutral value as MKC.V would need 5.40 years to pay back of all of its debts.
- The Debt to FCF ratio of MKC.V (5.40) is better than 75.86% of its industry peers.
- A Debt/Equity ratio of 0.61 indicates that MKC.V is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.61, MKC.V is in line with its industry, outperforming 44.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 5.4 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.05
WACC7.83%
2.3 Liquidity
- MKC.V has a Current Ratio of 0.70. This is a bad value and indicates that MKC.V is not financially healthy enough and could expect problems in meeting its short term obligations.
- MKC.V has a Current ratio of 0.70. This is amonst the worse of the industry: MKC.V underperforms 83.91% of its industry peers.
- MKC.V has a Quick Ratio of 0.70. This is a bad value and indicates that MKC.V is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.28, MKC.V is doing worse than 91.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.28 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 1.69% over the past year.
- The Earnings Per Share has been growing slightly by 1.17% on average over the past years.
- The Revenue has been growing slightly by 1.73% in the past year.
- Measured over the past years, MKC.V shows a small growth in Revenue. The Revenue has been growing by 4.08% on average per year.
EPS 1Y (TTM)1.69%
EPS 3Y5.84%
EPS 5Y1.17%
EPS Q2Q%7.5%
Revenue 1Y (TTM)1.73%
Revenue growth 3Y2.51%
Revenue growth 5Y4.08%
Sales Q2Q%2.91%
3.2 Future
- Based on estimates for the next years, MKC.V will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.24% on average per year.
- The Revenue is expected to grow by 3.33% on average over the next years.
EPS Next Y8.5%
EPS Next 2Y8.97%
EPS Next 3Y7.92%
EPS Next 5Y9.24%
Revenue Next Year11.45%
Revenue Next 2Y7.56%
Revenue Next 3Y6.82%
Revenue Next 5Y3.33%
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
- The Price/Earnings ratio is 20.58, which indicates a rather expensive current valuation of MKC.V.
- Compared to the rest of the industry, the Price/Earnings ratio of MKC.V is on the same level as its industry peers.
- MKC.V's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.60.
- The Price/Forward Earnings ratio is 18.96, which indicates a rather expensive current valuation of MKC.V.
- MKC.V's Price/Forward Earnings ratio is in line with the industry average.
- MKC.V is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.58 | ||
| Fwd PE | 18.96 |
4.2 Price Multiples
- MKC.V's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, MKC.V is valued a bit cheaper than the industry average as 62.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.38 | ||
| EV/EBITDA | 15.16 |
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.V has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.42
PEG (5Y)17.53
EPS Next 2Y8.97%
EPS Next 3Y7.92%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.03%, MKC.V has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.29, MKC.V pays a bit more dividend than its industry peers.
- MKC.V's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
5.2 History
- On average, the dividend of MKC.V grows each year by 7.76%, which is quite nice.
- MKC.V has paid a dividend for at least 10 years, which is a reliable track record.
- MKC.V has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)7.76%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
- MKC.V pays out 61.19% of its income as dividend. This is not a sustainable payout ratio.
- MKC.V's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP61.19%
EPS Next 2Y8.97%
EPS Next 3Y7.92%
MCCORMICK & CO INC VTG COM / MKC.V FAQ
What is the fundamental rating for MKC.V stock?
ChartMill assigns a fundamental rating of 5 / 10 to MKC.V.
What is the valuation status of MCCORMICK & CO INC VTG COM (MKC.V) stock?
ChartMill assigns a valuation rating of 3 / 10 to MCCORMICK & CO INC VTG COM (MKC.V). This can be considered as Overvalued.
What is the profitability of MKC.V stock?
MCCORMICK & CO INC VTG COM (MKC.V) has a profitability rating of 7 / 10.
What is the valuation of MCCORMICK & CO INC VTG COM based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MCCORMICK & CO INC VTG COM (MKC.V) is 20.58 and the Price/Book (PB) ratio is 2.89.
Can you provide the expected EPS growth for MKC.V stock?
The Earnings per Share (EPS) of MCCORMICK & CO INC VTG COM (MKC.V) is expected to grow by 8.5% in the next year.