MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
USA - NYSE:MKC - US5797802064 - Common Stock
68.37 USD
-0.58 (-0.84%)
We assign a fundamental rating of 5 out of 10 to MKC. MKC was compared to 89 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.
MKC had a positive operating cash flow in the past year.
In the past 5 years MKC has always been profitable.
In the past 5 years MKC always reported a positive cash flow from operatings.
1.2 Ratios
MKC has a better Return On Assets (5.88%) than 77.53% of its industry peers.
MKC has a better Return On Equity (13.85%) than 78.65% of its industry peers.
The Return On Invested Capital of MKC (8.03%) is better than 75.28% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MKC is significantly below the industry average of 28.32%.
The last Return On Invested Capital (8.03%) for MKC is above the 3 year average (7.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 13.85% | ||
| ROIC | 8.03% |
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 11.50%, MKC belongs to the top of the industry, outperforming 89.89% of the companies in the same industry.
In the last couple of years the Profit Margin of MKC has declined.
With an excellent Operating Margin value of 16.02%, MKC belongs to the best of the industry, outperforming 89.89% of the companies in the same industry.
In the last couple of years the Operating Margin of MKC has declined.
With an excellent Gross Margin value of 38.54%, MKC belongs to the best of the industry, outperforming 88.76% of the companies in the same industry.
MKC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.02% | ||
| PM (TTM) | 11.5% | ||
| 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
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.
Compared to 5 years ago, MKC has more shares outstanding
MKC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.55 indicates that MKC is not a great score, but indicates only limited risk for bankruptcy at the moment.
MKC has a Altman-Z score of 2.55. This is in the better half of the industry: MKC outperforms 60.67% of its industry peers.
The Debt to FCF ratio of MKC is 8.07, which is on the high side as it means it would take MKC, 8.07 years of fcf income to pay off all of its debts.
MKC has a better Debt to FCF ratio (8.07) than 62.92% of its industry peers.
MKC has a Debt/Equity ratio of 0.66. This is a neutral value indicating MKC is somewhat dependend on debt financing.
MKC has a Debt to Equity ratio (0.66) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 8.07 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.03
WACC7.76%
2.3 Liquidity
A Current Ratio of 0.68 indicates that MKC may have some problems paying its short term obligations.
With a Current ratio value of 0.68, MKC is not doing good in the industry: 86.52% of the companies in the same industry are doing better.
A Quick Ratio of 0.27 indicates that MKC may have some problems paying its short term obligations.
MKC has a Quick ratio of 0.27. This is amonst the worse of the industry: MKC underperforms 91.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.55% over the past year.
MKC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.98% yearly.
The Revenue has been growing slightly by 0.89% in the past year.
Measured over the past years, MKC shows a small growth in Revenue. The Revenue has been growing by 4.69% on average per year.
EPS 1Y (TTM)3.55%
EPS 3Y-1.11%
EPS 5Y1.98%
EPS Q2Q%0%
Revenue 1Y (TTM)0.89%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%0.99%
3.2 Future
The Earnings Per Share is expected to grow by 6.36% on average over the next years.
The Revenue is expected to grow by 4.20% on average over the next years.
EPS Next Y4.15%
EPS Next 2Y6.39%
EPS Next 3Y7.34%
EPS Next 5Y6.36%
Revenue Next Year1.79%
Revenue Next 2Y3.57%
Revenue Next 3Y3.72%
Revenue Next 5Y4.2%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MKC is valuated rather expensively with a Price/Earnings ratio of 23.41.
The rest of the industry has a similar Price/Earnings ratio as MKC.
MKC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.47, the valuation of MKC can be described as rather expensive.
62.92% of the companies in the same industry are more expensive than MKC, based on the Price/Forward Earnings ratio.
MKC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.41 | ||
| Fwd PE | 20.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MKC is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MKC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.25 | ||
| EV/EBITDA | 17.15 |
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.
The decent profitability rating of MKC may justify a higher PE ratio.
PEG (NY)5.64
PEG (5Y)11.85
EPS Next 2Y6.39%
EPS Next 3Y7.34%
5. Dividend
5.1 Amount
MKC has a Yearly Dividend Yield of 2.58%.
Compared to an average industry Dividend Yield of 5.03, MKC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, MKC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
5.2 History
On average, the dividend of MKC grows each year by 8.09%, which is quite nice.
MKC has paid a dividend for at least 10 years, which is 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 Years34
Div Non Decr Years34
5.3 Sustainability
60.21% of the earnings are spent on dividend by MKC. 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.
DP60.21%
EPS Next 2Y6.39%
EPS Next 3Y7.34%
NYSE:MKC (9/15/2025, 10:59:53 AM)
68.37
-0.58 (-0.84%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners90.26%
Inst Owner Change-1.22%
Ins Owners0.01%
Ins Owner Change2.38%
Market Cap18.35B
Analysts74
Price Target85.58 (25.17%)
Short Float %2.66%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
Yearly Dividend1.68
Dividend Growth(5Y)8.09%
DP60.21%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.83%
Min EPS beat(2)-7.59%
Max EPS beat(2)3.93%
EPS beat(4)3
Avg EPS beat(4)5.18%
Min EPS beat(4)-7.59%
Max EPS beat(4)21.3%
EPS beat(8)6
Avg EPS beat(8)6.22%
EPS beat(12)8
Avg EPS beat(12)3.45%
EPS beat(16)11
Avg EPS beat(16)1.85%
Revenue beat(2)0
Avg Revenue beat(2)-1.15%
Min Revenue beat(2)-1.38%
Max Revenue beat(2)-0.93%
Revenue beat(4)1
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)0.39%
Revenue beat(8)2
Avg Revenue beat(8)-0.69%
Revenue beat(12)3
Avg Revenue beat(12)-1.08%
Revenue beat(16)4
Avg Revenue beat(16)-0.99%
PT rev (1m)-0.93%
PT rev (3m)-1.08%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-3.09%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.41 | ||
| Fwd PE | 20.47 | ||
| P/S | 2.72 | ||
| P/FCF | 33.25 | ||
| P/OCF | 23.47 | ||
| P/B | 3.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.15 |
EPS(TTM)2.92
EY4.27%
EPS(NY)3.34
Fwd EY4.88%
FCF(TTM)2.06
FCFY3.01%
OCF(TTM)2.91
OCFY4.26%
SpS25.13
BVpS20.87
TBVpS-11.17
PEG (NY)5.64
PEG (5Y)11.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.88% | ||
| ROE | 13.85% | ||
| ROCE | 10.79% | ||
| ROIC | 8.03% | ||
| ROICexc | 8.12% | ||
| ROICexgc | 45.31% | ||
| OM | 16.02% | ||
| PM (TTM) | 11.5% | ||
| GM | 38.54% | ||
| FCFM | 8.18% |
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-Score7
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 8.07 | ||
| Debt/EBITDA | 2.85 | ||
| Cap/Depr | 106.09% | ||
| Cap/Sales | 3.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.29% | ||
| Profit Quality | 71.14% | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.27 | ||
| Altman-Z | 2.55 |
F-Score7
WACC7.76%
ROIC/WACC1.03
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)3.55%
EPS 3Y-1.11%
EPS 5Y1.98%
EPS Q2Q%0%
EPS Next Y4.15%
EPS Next 2Y6.39%
EPS Next 3Y7.34%
EPS Next 5Y6.36%
Revenue 1Y (TTM)0.89%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%0.99%
Revenue Next Year1.79%
Revenue Next 2Y3.57%
Revenue Next 3Y3.72%
Revenue Next 5Y4.2%
EBIT growth 1Y4.25%
EBIT growth 3Y-0.97%
EBIT growth 5Y1.8%
EBIT Next Year23.85%
EBIT Next 3Y11.75%
EBIT Next 5Y9.18%
FCF growth 1Y-9.88%
FCF growth 3Y5.54%
FCF growth 5Y-3.5%
OCF growth 1Y-12.29%
OCF growth 3Y3.63%
OCF growth 5Y-0.53%