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MCCORMICK & CO INC VTG COM (MKC.V) Stock Fundamental Analysis

NYSE:MKC.V - New York Stock Exchange, Inc. - US5797801074 - Common Stock

73.23  +0.09 (+0.12%)

Fundamental Rating

4

Taking everything into account, MKC.V scores 4 out of 10 in our fundamental rating. MKC.V was compared to 92 industry peers in the Food Products industry. MKC.V scores excellent on profitability, but there are concerns on its financial health. MKC.V is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

MKC.V had positive earnings in the past year.
MKC.V had a positive operating cash flow in the past year.
MKC.V had positive earnings in each of the past 5 years.
In the past 5 years MKC.V always reported a positive cash flow from operatings.
MKC.V Yearly Net Income VS EBIT VS OCF VS FCFMKC.V Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

1.2 Ratios

Looking at the Return On Assets, with a value of 6.00%, MKC.V is in the better half of the industry, outperforming 72.09% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.62%, MKC.V is in the better half of the industry, outperforming 77.91% of the companies in the same industry.
MKC.V's Return On Invested Capital of 7.51% is fine compared to the rest of the industry. MKC.V outperforms 75.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MKC.V is in line with the industry average of 8.99%.
Industry RankSector Rank
ROA 6%
ROE 14.62%
ROIC 7.51%
ROA(3y)5.45%
ROA(5y)5.86%
ROE(3y)15.05%
ROE(5y)16.92%
ROIC(3y)7.71%
ROIC(5y)7.99%
MKC.V Yearly ROA, ROE, ROICMKC.V Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20 25

1.3 Margins

Looking at the Profit Margin, with a value of 11.87%, MKC.V belongs to the top of the industry, outperforming 89.53% of the companies in the same industry.
MKC.V's Profit Margin has declined in the last couple of years.
MKC.V has a better Operating Margin (16.07%) than 87.21% of its industry peers.
In the last couple of years the Operating Margin of MKC.V has declined.
MKC.V's Gross Margin of 38.48% is amongst the best of the industry. MKC.V outperforms 87.21% of its industry peers.
In the last couple of years the Gross Margin of MKC.V has remained more or less at the same level.
Industry RankSector Rank
OM 16.07%
PM (TTM) 11.87%
GM 38.48%
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%
MKC.V Yearly Profit, Operating, Gross MarginsMKC.V Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40

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2

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MKC.V is destroying value.
The number of shares outstanding for MKC.V remains at a similar level compared to 1 year ago.
MKC.V has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MKC.V has been reduced compared to a year ago.
MKC.V Yearly Shares OutstandingMKC.V Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M
MKC.V Yearly Total Debt VS Total AssetsMKC.V Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.2 Solvency

MKC.V has an Altman-Z score of 2.58. This is not the best score and indicates that MKC.V is in the grey zone with still only limited risk for bankruptcy at the moment.
MKC.V has a Altman-Z score (2.58) which is in line with its industry peers.
MKC.V has a debt to FCF ratio of 5.92. This is a neutral value as MKC.V would need 5.92 years to pay back of all of its debts.
MKC.V has a Debt to FCF ratio (5.92) which is in line with its industry peers.
MKC.V has a Debt/Equity ratio of 0.83. This is a neutral value indicating MKC.V is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.83, MKC.V is not doing good in the industry: 69.77% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.83
Debt/FCF 5.92
Altman-Z 2.58
ROIC/WACC0.93
WACC8.1%
MKC.V Yearly LT Debt VS Equity VS FCFMKC.V Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

2.3 Liquidity

A Current Ratio of 0.71 indicates that MKC.V may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.71, MKC.V is doing worse than 82.56% of the companies in the same industry.
MKC.V has a Quick Ratio of 0.71. 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 0.32, MKC.V is doing worse than 89.53% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.71
Quick Ratio 0.32
MKC.V Yearly Current Assets VS Current LiabilitesMKC.V Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 16.73% over the past year.
The Earnings Per Share has been growing slightly by 1.60% on average over the past years.
Looking at the last year, MKC.V shows a small growth in Revenue. The Revenue has grown by 1.11% in the last year.
Measured over the past years, MKC.V shows a small growth in Revenue. The Revenue has been growing by 4.67% on average per year.
EPS 1Y (TTM)16.73%
EPS 3Y-1.68%
EPS 5Y1.6%
EPS Q2Q%27.69%
Revenue 1Y (TTM)1.11%
Revenue growth 3Y5.95%
Revenue growth 5Y4.67%
Sales Q2Q%-0.29%

3.2 Future

MKC.V is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.74% yearly.
Based on estimates for the next years, MKC.V will show a small growth in Revenue. The Revenue will grow by 2.64% on average per year.
EPS Next Y9.7%
EPS Next 2Y8.24%
EPS Next 3Y8.02%
EPS Next 5Y7.74%
Revenue Next Year-0.12%
Revenue Next 2Y1.26%
Revenue Next 3Y1.92%
Revenue Next 5Y2.64%

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
MKC.V Yearly Revenue VS EstimatesMKC.V Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B 8B
MKC.V Yearly EPS VS EstimatesMKC.V Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1 2 3 4 5

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 24.41, which indicates a rather expensive current valuation of MKC.V.
The rest of the industry has a similar Price/Earnings ratio as MKC.V.
The average S&P500 Price/Earnings ratio is at 27.96. MKC.V is around the same levels.
The Price/Forward Earnings ratio is 23.24, which indicates a rather expensive current valuation of MKC.V.
Based on the Price/Forward Earnings ratio, MKC.V is valued a bit cheaper than the industry average as 61.63% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.11. MKC.V is around the same levels.
Industry RankSector Rank
PE 24.41
Fwd PE 23.24
MKC.V Price Earnings VS Forward Price EarningsMKC.V Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

MKC.V's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MKC.V is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 25.38
EV/EBITDA 17.84
MKC.V Per share dataMKC.V EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of MKC.V may justify a higher PE ratio.
PEG (NY)2.52
PEG (5Y)15.28
EPS Next 2Y8.24%
EPS Next 3Y8.02%

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.44%, MKC.V has a reasonable but not impressive dividend return.
MKC.V's Dividend Yield is a higher than the industry average which is at 3.87.
Compared to an average S&P500 Dividend Yield of 2.29, MKC.V has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.44%

5.2 History

On average, the dividend of MKC.V grows each year by 8.48%, which is quite nice.
MKC.V has paid a dividend for at least 10 years, which is a reliable track record.
MKC.V has decreased its dividend in the last 3 years.
Dividend Growth(5Y)8.48%
Div Incr Years2
Div Non Decr Years2
MKC.V Yearly Dividends per shareMKC.V Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.5 1 1.5 2

5.3 Sustainability

MKC.V pays out 55.89% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of MKC.V is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP55.89%
EPS Next 2Y8.24%
EPS Next 3Y8.02%
MKC.V Yearly Income VS Free CF VS DividendMKC.V Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M
MKC.V Dividend Payout.MKC.V Dividend Payout, showing the Payout Ratio.MKC.V Dividend Payout.PayoutRetained Earnings

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MCCORMICK & CO INC VTG COM

NYSE:MKC.V (1/17/2025, 8:14:59 PM)

73.23

+0.09 (+0.12%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)10-01 2024-10-01/bmo
Earnings (Next)01-23 2025-01-23/bmo
Inst Owners88.17%
Inst Owner Change0%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap19.65B
Analysts72.38
Price Target87.43 (19.39%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.44%
Yearly Dividend1.56
Dividend Growth(5Y)8.48%
DP55.89%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.87%
Min EPS beat(2)16.45%
Max EPS beat(2)21.3%
EPS beat(4)4
Avg EPS beat(4)12.96%
Min EPS beat(4)6.19%
Max EPS beat(4)21.3%
EPS beat(8)6
Avg EPS beat(8)6.53%
EPS beat(12)8
Avg EPS beat(12)1.69%
EPS beat(16)11
Avg EPS beat(16)3.75%
Revenue beat(2)0
Avg Revenue beat(2)-0.27%
Min Revenue beat(2)-0.29%
Max Revenue beat(2)-0.25%
Revenue beat(4)1
Avg Revenue beat(4)-0.46%
Min Revenue beat(4)-3.27%
Max Revenue beat(4)1.95%
Revenue beat(8)2
Avg Revenue beat(8)-1.17%
Revenue beat(12)3
Avg Revenue beat(12)-1.14%
Revenue beat(16)5
Avg Revenue beat(16)-0.22%
PT rev (1m)0.89%
PT rev (3m)5.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.17%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)2.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.36%
Valuation
Industry RankSector Rank
PE 24.41
Fwd PE 23.24
P/S 2.94
P/FCF 25.38
P/OCF 18.89
P/B 3.62
P/tB N/A
EV/EBITDA 17.84
EPS(TTM)3
EY4.1%
EPS(NY)3.15
Fwd EY4.3%
FCF(TTM)2.89
FCFY3.94%
OCF(TTM)3.88
OCFY5.29%
SpS24.89
BVpS20.2
TBVpS-11.88
PEG (NY)2.52
PEG (5Y)15.28
Profitability
Industry RankSector Rank
ROA 6%
ROE 14.62%
ROCE 10.67%
ROIC 7.51%
ROICexc 7.65%
ROICexgc 34.76%
OM 16.07%
PM (TTM) 11.87%
GM 38.48%
FCFM 11.6%
ROA(3y)5.45%
ROA(5y)5.86%
ROE(3y)15.05%
ROE(5y)16.92%
ROIC(3y)7.71%
ROIC(5y)7.99%
ROICexc(3y)7.92%
ROICexc(5y)8.22%
ROICexgc(3y)68.5%
ROICexgc(5y)67.43%
ROCE(3y)10.44%
ROCE(5y)10.9%
ROICexcg growth 3Y2.35%
ROICexcg growth 5Y5.82%
ROICexc growth 3Y-1.07%
ROICexc growth 5Y-0.55%
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%
F-Score8
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 0.83
Debt/FCF 5.92
Debt/EBITDA 3.54
Cap/Depr 128.88%
Cap/Sales 3.98%
Interest Coverage 250
Cash Conversion 81.3%
Profit Quality 97.7%
Current Ratio 0.71
Quick Ratio 0.32
Altman-Z 2.58
F-Score8
WACC8.1%
ROIC/WACC0.93
Cap/Depr(3y)137.41%
Cap/Depr(5y)131.63%
Cap/Sales(3y)4.16%
Cap/Sales(5y)3.95%
Profit Quality(3y)91%
Profit Quality(5y)98.44%
High Growth Momentum
Growth
EPS 1Y (TTM)16.73%
EPS 3Y-1.68%
EPS 5Y1.6%
EPS Q2Q%27.69%
EPS Next Y9.7%
EPS Next 2Y8.24%
EPS Next 3Y8.02%
EPS Next 5Y7.74%
Revenue 1Y (TTM)1.11%
Revenue growth 3Y5.95%
Revenue growth 5Y4.67%
Sales Q2Q%-0.29%
Revenue Next Year-0.12%
Revenue Next 2Y1.26%
Revenue Next 3Y1.92%
Revenue Next 5Y2.64%
EBIT growth 1Y8.33%
EBIT growth 3Y0.18%
EBIT growth 5Y1.95%
EBIT Next Year27.96%
EBIT Next 3Y9.82%
EBIT Next 5Y9.18%
FCF growth 1Y71.86%
FCF growth 3Y6.06%
FCF growth 5Y8.34%
OCF growth 1Y47.47%
OCF growth 3Y5.92%
OCF growth 5Y8.54%