MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MKC - US5797802064 - Common Stock
68.8 USD
-0.34 (-0.49%)
MKC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. MKC scores excellent on profitability, but there are concerns on its financial health. MKC is quite expensive at the moment. 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.
Each year in the past 5 years MKC has been profitable.
In the past 5 years MKC always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 5.87%, MKC belongs to the best of the industry, outperforming 83.91% of the companies in the same industry.
With an excellent Return On Equity value of 13.52%, MKC belongs to the best of the industry, outperforming 85.06% of the companies in the same industry.
MKC's Return On Invested Capital of 8.05% is amongst the best of the industry. MKC outperforms 81.61% of its industry peers.
MKC had an Average Return On Invested Capital over the past 3 years of 7.52%. This is significantly below the industry average of 28.50%.
The 3 year average ROIC (7.52%) for MKC is below the current ROIC(8.05%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 13.52% | ||
| ROIC | 8.05% |
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 has a better Profit Margin (11.46%) than 90.80% of its industry peers.
In the last couple of years the Profit Margin of MKC has declined.
MKC has a Operating Margin of 15.99%. This is amongst the best in the industry. MKC outperforms 94.25% of its industry peers.
MKC's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 38.23%, MKC belongs to the best of the industry, outperforming 88.51% of the companies in the same industry.
In the last couple of years the Gross Margin of MKC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.99% | ||
| PM (TTM) | 11.46% | ||
| GM | 38.23% |
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.
MKC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.59 indicates that MKC is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.59, MKC is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
The Debt to FCF ratio of MKC is 6.65, which is on the high side as it means it would take MKC, 6.65 years of fcf income to pay off all of its debts.
MKC has a better Debt to FCF ratio (6.65) than 71.26% of its industry peers.
MKC has a Debt/Equity ratio of 0.63. This is a neutral value indicating MKC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.63, MKC is in line with its industry, outperforming 43.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 2.59 |
ROIC/WACC1.03
WACC7.83%
2.3 Liquidity
A Current Ratio of 0.71 indicates that MKC may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.71, MKC is doing worse than 85.06% of the companies in the same industry.
A Quick Ratio of 0.29 indicates that MKC may have some problems paying its short term obligations.
MKC's Quick ratio of 0.29 is on the low side compared to the rest of the industry. MKC is outperformed by 91.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
MKC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.00%.
MKC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.98% yearly.
MKC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.64%.
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)-2%
EPS 3Y-1.11%
EPS 5Y1.98%
EPS Q2Q%2.41%
Revenue 1Y (TTM)1.64%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%2.68%
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 5.88% on average per year.
The Revenue is expected to grow by 4.05% on average over the next years.
EPS Next Y3.15%
EPS Next 2Y4.56%
EPS Next 3Y6.16%
EPS Next 5Y5.88%
Revenue Next Year2.04%
Revenue Next 2Y4.06%
Revenue Next 3Y4.4%
Revenue Next 5Y4.05%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.40, the valuation of MKC can be described as rather expensive.
MKC's Price/Earnings ratio is in line with the industry average.
MKC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.84.
The Price/Forward Earnings ratio is 21.33, which indicates a rather expensive current valuation of MKC.
MKC's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.40, MKC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.4 | ||
| Fwd PE | 21.33 |
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 | 28.18 | ||
| EV/EBITDA | 17.06 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)7.43
PEG (5Y)11.84
EPS Next 2Y4.56%
EPS Next 3Y6.16%
5. Dividend
5.1 Amount
MKC has a Yearly Dividend Yield of 2.79%.
MKC's Dividend Yield is a higher than the industry average which is at 2.42.
MKC's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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 Years34
Div Non Decr Years34
5.3 Sustainability
61.04% of the earnings are spent on dividend by MKC. This is not a sustainable payout ratio.
MKC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP61.04%
EPS Next 2Y4.56%
EPS Next 3Y6.16%
NYSE:MKC (12/30/2025, 10:07:09 AM)
68.8
-0.34 (-0.49%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners93%
Inst Owner Change3.34%
Ins Owners0.01%
Ins Owner Change0.17%
Market Cap18.46B
Revenue(TTM)6.79B
Net Income(TTM)778.00M
Analysts72
Price Target79.14 (15.03%)
Short Float %3.99%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
Yearly Dividend1.68
Dividend Growth(5Y)8.09%
DP61.04%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.57%
Min EPS beat(2)3.22%
Max EPS beat(2)3.93%
EPS beat(4)3
Avg EPS beat(4)0.66%
Min EPS beat(4)-7.59%
Max EPS beat(4)3.93%
EPS beat(8)7
Avg EPS beat(8)6.81%
EPS beat(12)9
Avg EPS beat(12)4.57%
EPS beat(16)11
Avg EPS beat(16)1.43%
Revenue beat(2)0
Avg Revenue beat(2)-0.61%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)-0.29%
Revenue beat(4)1
Avg Revenue beat(4)-0.55%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)0.39%
Revenue beat(8)2
Avg Revenue beat(8)-0.51%
Revenue beat(12)3
Avg Revenue beat(12)-0.97%
Revenue beat(16)4
Avg Revenue beat(16)-0.99%
PT rev (1m)0%
PT rev (3m)-7.52%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)-6.04%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.4 | ||
| Fwd PE | 21.33 | ||
| P/S | 2.72 | ||
| P/FCF | 28.18 | ||
| P/OCF | 21.01 | ||
| P/B | 3.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.06 |
EPS(TTM)2.94
EY4.27%
EPS(NY)3.23
Fwd EY4.69%
FCF(TTM)2.44
FCFY3.55%
OCF(TTM)3.27
OCFY4.76%
SpS25.29
BVpS21.44
TBVpS-10.67
PEG (NY)7.43
PEG (5Y)11.84
Graham Number37.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 13.52% | ||
| ROCE | 10.72% | ||
| ROIC | 8.05% | ||
| ROICexc | 8.13% | ||
| ROICexgc | 44.76% | ||
| OM | 15.99% | ||
| PM (TTM) | 11.46% | ||
| GM | 38.23% | ||
| 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%
ROICexgc growth 3Y-19.64%
ROICexgc 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-Score6
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.65 | ||
| Debt/EBITDA | 2.75 | ||
| Cap/Depr | 100.13% | ||
| Cap/Sales | 3.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.16% | ||
| Profit Quality | 84.22% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 2.59 |
F-Score6
WACC7.83%
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)-2%
EPS 3Y-1.11%
EPS 5Y1.98%
EPS Q2Q%2.41%
EPS Next Y3.15%
EPS Next 2Y4.56%
EPS Next 3Y6.16%
EPS Next 5Y5.88%
Revenue 1Y (TTM)1.64%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%2.68%
Revenue Next Year2.04%
Revenue Next 2Y4.06%
Revenue Next 3Y4.4%
Revenue Next 5Y4.05%
EBIT growth 1Y1.11%
EBIT growth 3Y-0.97%
EBIT growth 5Y1.8%
EBIT Next Year23.76%
EBIT Next 3Y12.89%
EBIT Next 5Y8.67%
FCF growth 1Y-15.9%
FCF growth 3Y5.54%
FCF growth 5Y-3.5%
OCF growth 1Y-17.2%
OCF growth 3Y3.63%
OCF growth 5Y-0.53%
MCCORMICK & CO-NON VTG SHRS / MKC FAQ
What is the ChartMill fundamental rating of MCCORMICK & CO-NON VTG SHRS (MKC) stock?
ChartMill assigns a fundamental rating of 5 / 10 to MKC.
What is the valuation status for MKC stock?
ChartMill assigns a valuation rating of 3 / 10 to MCCORMICK & CO-NON VTG SHRS (MKC). This can be considered as Overvalued.
How profitable is MCCORMICK & CO-NON VTG SHRS (MKC) stock?
MCCORMICK & CO-NON VTG SHRS (MKC) has a profitability rating of 8 / 10.
What is the financial health of MCCORMICK & CO-NON VTG SHRS (MKC) stock?
The financial health rating of MCCORMICK & CO-NON VTG SHRS (MKC) is 3 / 10.
Can you provide the dividend sustainability for MKC stock?
The dividend rating of MCCORMICK & CO-NON VTG SHRS (MKC) is 6 / 10 and the dividend payout ratio is 61.04%.