MCCORMICK & CO INC VTG COM (MKC.V) Stock Fundamental Analysis
NYSE:MKC.V - New York Stock Exchange, Inc. - US5797801074 - Common Stock - Currency: USD
MKC.V gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 91 industry peers in the Food Products industry. MKC.V scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, MKC.V is valued expensive at the moment.
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.
In the past 5 years MKC.V has always 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 6.03%. This is in the better half of the industry: MKC.V outperforms 70.59% of its industry peers.
MKC.V has a Return On Equity of 14.90%. This is in the better half of the industry: MKC.V outperforms 77.65% of its industry peers.
MKC.V has a Return On Invested Capital of 7.90%. This is in the better half of the industry: MKC.V outperforms 76.47% 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 9.02%.
The last Return On Invested Capital (7.90%) for MKC.V is above the 3 year average (7.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.03% | ||
| ROE | 14.9% | ||
| ROIC | 7.9% |
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
MKC.V has a Profit Margin of 11.73%. This is amongst the best in the industry. MKC.V outperforms 89.41% of its industry peers.
In the last couple of years the Profit Margin of MKC.V has declined.
MKC.V has a Operating Margin of 15.91%. This is amongst the best in the industry. MKC.V outperforms 87.06% of its industry peers.
MKC.V's Operating Margin has declined in the last couple of years.
MKC.V has a Gross Margin of 38.54%. This is amongst the best in the industry. MKC.V outperforms 87.06% of its industry peers.
MKC.V's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.91% | ||
| PM (TTM) | 11.73% | ||
| GM | 38.54% |
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 below the Cost of Capital (WACC), so MKC.V is destroying value.
The number of shares outstanding for MKC.V remains at a similar level compared to 1 year ago.
The number of shares outstanding for MKC.V has been increased compared to 5 years ago.
Compared to 1 year ago, MKC.V has an improved debt to assets ratio.
2.2 Solvency
MKC.V has an Altman-Z score of 2.72. 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.
Looking at the Altman-Z score, with a value of 2.72, MKC.V is in line with its industry, outperforming 58.82% of the companies in the same industry.
MKC.V has a debt to FCF ratio of 6.71. This is a slightly negative value and a sign of low solvency as MKC.V would need 6.71 years to pay back of all of its debts.
MKC.V has a Debt to FCF ratio (6.71) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.77 indicates that MKC.V is somewhat dependend on debt financing.
MKC.V has a worse Debt to Equity ratio (0.77) than 68.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 6.71 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.96
WACC8.23%
2.3 Liquidity
MKC.V has a Current Ratio of 0.74. 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.
With a Current ratio value of 0.74, MKC.V is not doing good in the industry: 82.35% of the companies in the same industry are doing better.
MKC.V has a Quick Ratio of 0.74. 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 0.31, MKC.V is doing worse than 90.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.67% over the past year.
MKC.V shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.98% yearly.
MKC.V shows a small growth in Revenue. In the last year, the Revenue has grown by 0.92%.
The Revenue has been growing slightly by 4.69% on average over the past years.
EPS 1Y (TTM)9.67%
EPS 3Y-1.11%
EPS 5Y1.98%
EPS Q2Q%-5.88%
Revenue 1Y (TTM)0.92%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%2.58%
3.2 Future
The Earnings Per Share is expected to grow by 6.99% on average over the next years.
The Revenue is expected to grow by 3.48% on average over the next years.
EPS Next Y4.99%
EPS Next 2Y6.4%
EPS Next 3Y7.03%
EPS Next 5Y6.99%
Revenue Next Year1.66%
Revenue Next 2Y2.59%
Revenue Next 3Y2.99%
Revenue Next 5Y3.48%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.20, which means the current valuation is very expensive for 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.
Compared to an average S&P500 Price/Earnings ratio of 29.63, MKC.V is valued at the same level.
A Price/Forward Earnings ratio of 25.91 indicates a quite expensive valuation of MKC.V.
MKC.V's Price/Forward Earnings is on the same level as the industry average.
MKC.V's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.2 | ||
| Fwd PE | 25.91 |
4.2 Price Multiples
MKC.V's Enterprise Value to EBITDA ratio is in line with the industry average.
MKC.V's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.26 | ||
| EV/EBITDA | 19.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MKC.V does not grow enough to justify the current Price/Earnings ratio.
MKC.V has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.45
PEG (5Y)13.76
EPS Next 2Y6.4%
EPS Next 3Y7.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.32%, 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 3.94.
Compared to an average S&P500 Dividend Yield of 2.29, MKC.V has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
On average, the dividend of MKC.V grows each year by 8.09%, which is quite nice.
MKC.V has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of MKC.V decreased in the last 3 years.
Dividend Growth(5Y)8.09%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
57.20% of the earnings are spent on dividend by MKC.V. 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.
DP57.2%
EPS Next 2Y6.4%
EPS Next 3Y7.03%
NYSE:MKC.V (2/21/2025, 8:04:00 PM)
80.2456
+1.57 (+1.99%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners88.17%
Inst Owner Change5.16%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap21.52B
Analysts73.33
Price Target88.01 (9.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
Yearly Dividend1.68
Dividend Growth(5Y)8.09%
DP57.2%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.18%
Min EPS beat(2)3.07%
Max EPS beat(2)21.3%
EPS beat(4)4
Avg EPS beat(4)12.18%
Min EPS beat(4)3.07%
Max EPS beat(4)21.3%
EPS beat(8)7
Avg EPS beat(8)8.95%
EPS beat(12)8
Avg EPS beat(12)1.62%
EPS beat(16)12
Avg EPS beat(16)4.14%
Revenue beat(2)1
Avg Revenue beat(2)0.07%
Min Revenue beat(2)-0.25%
Max Revenue beat(2)0.39%
Revenue beat(4)2
Avg Revenue beat(4)0.45%
Min Revenue beat(4)-0.29%
Max Revenue beat(4)1.95%
Revenue beat(8)3
Avg Revenue beat(8)-0.51%
Revenue beat(12)4
Avg Revenue beat(12)-1.1%
Revenue beat(16)6
Avg Revenue beat(16)-0.12%
PT rev (1m)0.66%
PT rev (3m)0.75%
EPS NQ rev (1m)-7.48%
EPS NQ rev (3m)-7.48%
EPS NY rev (1m)-1.72%
EPS NY rev (3m)-1.75%
Revenue NQ rev (1m)-1.52%
Revenue NQ rev (3m)-1.99%
Revenue NY rev (1m)-1.01%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.2 | ||
| Fwd PE | 25.91 | ||
| P/S | 3.2 | ||
| P/FCF | 33.26 | ||
| P/OCF | 23.34 | ||
| P/B | 4.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.37 |
EPS(TTM)2.95
EY3.68%
EPS(NY)3.1
Fwd EY3.86%
FCF(TTM)2.41
FCFY3.01%
OCF(TTM)3.44
OCFY4.28%
SpS25.07
BVpS19.73
TBVpS-12.14
PEG (NY)5.45
PEG (5Y)13.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.03% | ||
| ROE | 14.9% | ||
| ROCE | 10.5% | ||
| ROIC | 7.9% | ||
| ROICexc | 8.04% | ||
| ROICexgc | 43.52% | ||
| OM | 15.91% | ||
| PM (TTM) | 11.73% | ||
| GM | 38.54% | ||
| FCFM | 9.62% |
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)64.54%
ROCE(3y)10.15%
ROCE(5y)10.62%
ROICexcg growth 3Y-19.66%
ROICexcg growth 5Y-5.29%
ROICexc growth 3Y-2.95%
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-Score7
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 6.71 | ||
| Debt/EBITDA | 3.19 | ||
| Cap/Depr | 131.66% | ||
| Cap/Sales | 4.09% | ||
| Interest Coverage | 5.09 | ||
| Cash Conversion | 72.1% | ||
| Profit Quality | 82.05% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z | 2.72 |
F-Score7
WACC8.23%
ROIC/WACC0.96
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)9.67%
EPS 3Y-1.11%
EPS 5Y1.98%
EPS Q2Q%-5.88%
EPS Next Y4.99%
EPS Next 2Y6.4%
EPS Next 3Y7.03%
EPS Next 5Y6.99%
Revenue 1Y (TTM)0.92%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%2.58%
Revenue Next Year1.66%
Revenue Next 2Y2.59%
Revenue Next 3Y2.99%
Revenue Next 5Y3.48%
EBIT growth 1Y4.45%
EBIT growth 3Y-0.97%
EBIT growth 5Y1.8%
EBIT Next Year25.05%
EBIT Next 3Y11.6%
EBIT Next 5Y8.66%
FCF growth 1Y-33.53%
FCF growth 3Y5.54%
FCF growth 5Y-3.5%
OCF growth 1Y-25.49%
OCF growth 3Y3.63%
OCF growth 5Y-0.53%