MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
USA - NYSE:MKC - US5797802064 - Common Stock
66.6 USD
+1.3 (+1.99%)
66 USD
-0.6 (-0.9%)
We assign a fundamental rating of 5 out of 10 to MKC. MKC was compared to 87 industry peers in the Food Products industry. MKC scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, MKC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
MKC had positive earnings in the past year.
In the past year MKC had a positive cash flow from operations.
Each year in the past 5 years MKC has been profitable.
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 5.88%, MKC is in the better half of the industry, outperforming 78.16% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.85%, MKC is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.03%, MKC is doing good in the industry, outperforming 78.16% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MKC is significantly below the industry average of 28.34%.
The 3 year average ROIC (7.52%) for MKC is below the current ROIC(8.03%), indicating increased profibility in the last year.
| 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 88.51% of the companies in the same industry.
MKC's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 16.02%, MKC belongs to the best of the industry, outperforming 89.66% of the companies in the same industry.
MKC's Operating Margin has declined in the last couple of years.
MKC's Gross Margin of 38.54% is amongst the best of the industry. MKC outperforms 88.51% of its industry peers.
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.
MKC has more shares outstanding than it did 5 years ago.
MKC has a better debt/assets ratio than last year.
2.2 Solvency
MKC has an Altman-Z score of 2.47. This is not the best score and indicates that MKC is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.47, MKC is doing good in the industry, outperforming 60.92% of the companies in the same industry.
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 65.52% 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 | 2.47 |
ROIC/WACC1.04
WACC7.72%
2.3 Liquidity
A Current Ratio of 0.68 indicates that MKC may have some problems paying its short term obligations.
The Current ratio of MKC (0.68) is worse than 86.21% of its industry peers.
MKC has a Quick Ratio of 0.68. 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 Quick ratio, with a value of 0.27, MKC is doing worse than 91.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.27 |
3. Growth
3.1 Past
MKC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.55%.
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 0.89%.
MKC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.69% yearly.
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
MKC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.30% yearly.
Based on estimates for the next years, MKC will show a small growth in Revenue. The Revenue will grow by 4.18% on average per year.
EPS Next Y4.11%
EPS Next 2Y6.46%
EPS Next 3Y7.36%
EPS Next 5Y6.3%
Revenue Next Year1.85%
Revenue Next 2Y3.94%
Revenue Next 3Y4.07%
Revenue Next 5Y4.18%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 22.81, the valuation of MKC can be described as rather expensive.
MKC's Price/Earnings ratio is in line with the industry average.
MKC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.31, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.92, the valuation of MKC can be described as rather expensive.
MKC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MKC is cheaper than 64.37% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MKC to the average of the S&P500 Index (22.85), we can say MKC is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.81 | ||
| Fwd PE | 19.92 |
4.2 Price Multiples
MKC's Enterprise Value to EBITDA is on the same level as the industry average.
MKC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.39 | ||
| EV/EBITDA | 16.39 |
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 may justify a higher PE ratio.
PEG (NY)5.55
PEG (5Y)11.54
EPS Next 2Y6.46%
EPS Next 3Y7.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.72%, MKC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.05, MKC pays a bit more dividend than its industry peers.
MKC's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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
MKC pays out 60.21% of its income as dividend. 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 2Y6.46%
EPS Next 3Y7.36%
66.6
+1.3 (+1.99%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners89.6%
Inst Owner Change-0.5%
Ins Owners0.01%
Ins Owner Change-0.17%
Market Cap17.87B
Analysts72
Price Target85.07 (27.73%)
Short Float %3.73%
Short Ratio3.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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)-0.6%
PT rev (3m)-0.91%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-0.5%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.81 | ||
| Fwd PE | 19.92 | ||
| P/S | 2.65 | ||
| P/FCF | 32.39 | ||
| P/OCF | 22.86 | ||
| P/B | 3.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.39 |
EPS(TTM)2.92
EY4.38%
EPS(NY)3.34
Fwd EY5.02%
FCF(TTM)2.06
FCFY3.09%
OCF(TTM)2.91
OCFY4.37%
SpS25.13
BVpS20.87
TBVpS-11.17
PEG (NY)5.55
PEG (5Y)11.54
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 | 2.47 |
F-Score7
WACC7.72%
ROIC/WACC1.04
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 Y4.11%
EPS Next 2Y6.46%
EPS Next 3Y7.36%
EPS Next 5Y6.3%
Revenue 1Y (TTM)0.89%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%0.99%
Revenue Next Year1.85%
Revenue Next 2Y3.94%
Revenue Next 3Y4.07%
Revenue Next 5Y4.18%
EBIT growth 1Y4.25%
EBIT growth 3Y-0.97%
EBIT growth 5Y1.8%
EBIT Next Year23.76%
EBIT Next 3Y12.62%
EBIT Next 5Y9.13%
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%