MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MKC - US5797802064 - Common Stock
60.79 USD
-0.41 (-0.67%)
60.88 USD
+0.09 (+0.15%)
Overall MKC gets a fundamental rating of 5 out of 10. We evaluated MKC against 87 industry peers in the Food Products industry. MKC has an excellent profitability rating, but there are concerns on its financial health. MKC is not valued too expensively and it also shows 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.
- MKC had positive earnings in each of the past 5 years.
- MKC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.87%, MKC belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
- MKC's Return On Equity of 13.52% is amongst the best of the industry. MKC outperforms 85.06% of its industry peers.
- The Return On Invested Capital of MKC (8.05%) is better than 82.76% 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 27.79%.
- The last Return On Invested Capital (8.05%) for MKC is above the 3 year average (7.52%), which is a sign of increasing profitability.
| 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 91.95% of its industry peers.
- MKC's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 15.99%, MKC belongs to the best of the industry, outperforming 95.40% of the companies in the same industry.
- In the last couple of years the Operating Margin of MKC has declined.
- The Gross Margin of MKC (38.23%) is better than 88.51% of its industry peers.
- MKC's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MKC is creating some value.
- MKC has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, MKC has more shares outstanding
- Compared to 1 year ago, MKC has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.42 indicates that MKC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of MKC (2.42) is comparable to the rest of the industry.
- MKC has a debt to FCF ratio of 6.65. This is a slightly negative value and a sign of low solvency as MKC would need 6.65 years to pay back of all of its debts.
- MKC has a better Debt to FCF ratio (6.65) than 70.11% 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.
- MKC has a Debt to Equity ratio of 0.63. This is comparable to the rest of the industry: MKC outperforms 44.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.03
WACC7.8%
2.3 Liquidity
- MKC has a Current Ratio of 0.71. This is a bad value and indicates that MKC is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.71, MKC is doing worse than 83.91% of the companies in the same industry.
- MKC has a Quick Ratio of 0.71. This is a bad value and indicates that MKC is not financially healthy enough and could expect problems in meeting 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 90.80% 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%.
- Measured over the past 5 years, MKC shows a small growth in Earnings Per Share. The EPS has been growing by 1.98% on average per year.
- 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 6.68% on average per year.
- Based on estimates for the next years, MKC will show a small growth in Revenue. The Revenue will grow by 4.07% on average per year.
EPS Next Y3.11%
EPS Next 2Y5.04%
EPS Next 3Y6.49%
EPS Next 5Y6.68%
Revenue Next Year2.01%
Revenue Next 2Y4.72%
Revenue Next 3Y4.58%
Revenue Next 5Y4.07%
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
- MKC is valuated rather expensively with a Price/Earnings ratio of 20.68.
- MKC's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. MKC is valued slightly cheaper when compared to this.
- The Price/Forward Earnings ratio is 18.68, which indicates a rather expensive current valuation of MKC.
- MKC's Price/Forward Earnings is on the same level as the industry average.
- MKC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.68 | ||
| Fwd PE | 18.68 |
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.
- 60.92% of the companies in the same industry are more expensive than MKC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.9 | ||
| EV/EBITDA | 15.43 |
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)6.65
PEG (5Y)10.46
EPS Next 2Y5.04%
EPS Next 3Y6.49%
5. Dividend
5.1 Amount
- MKC has a Yearly Dividend Yield of 2.88%. Purely for dividend investing, there may be better candidates out there.
- MKC's Dividend Yield is a higher than the industry average which is at 2.28.
- Compared to an average S&P500 Dividend Yield of 1.82, MKC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
5.2 History
- The dividend of MKC is nicely growing with an annual growth rate of 8.09%!
- MKC has paid a dividend for at least 10 years, which is a reliable track record.
- MKC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.09%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- MKC pays out 61.04% of its income as dividend. 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 2Y5.04%
EPS Next 3Y6.49%
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.
Can you provide the valuation status for MCCORMICK & CO-NON VTG SHRS?
ChartMill assigns a valuation rating of 4 / 10 to MCCORMICK & CO-NON VTG SHRS (MKC). This can be considered as Fairly Valued.
What is the profitability of MKC stock?
MCCORMICK & CO-NON VTG SHRS (MKC) has a profitability rating of 8 / 10.
What is the expected EPS growth for MCCORMICK & CO-NON VTG SHRS (MKC) stock?
The Earnings per Share (EPS) of MCCORMICK & CO-NON VTG SHRS (MKC) is expected to grow by 3.11% in the next year.
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%.