MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MKC - US5797802064 - Common Stock
67.83 USD
+0.79 (+1.18%)
68.35 USD
+0.52 (+0.77%)
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. While showing a medium growth rate, MKC is valued expensive at the moment.
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
- Looking at the Return On Assets, with a value of 5.87%, MKC belongs to the top of the industry, outperforming 81.61% 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 83.91% of the companies in the same industry.
- MKC has a Return On Invested Capital of 8.05%. This is amongst the best in the industry. MKC outperforms 81.61% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MKC 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
- The Profit Margin of MKC (11.46%) is better than 90.80% of its industry peers.
- In the last couple of years the Profit Margin of MKC has declined.
- The Operating Margin of MKC (15.99%) is better than 94.25% of its industry peers.
- In the last couple of years the Operating Margin of MKC has declined.
- MKC's Gross Margin of 38.23% is amongst the best of the industry. MKC outperforms 87.36% 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
- 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.
- Compared to 5 years ago, MKC has more shares outstanding
- The debt/assets ratio for MKC has been reduced compared to a year ago.
2.2 Solvency
- MKC has an Altman-Z score of 2.57. 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.
- The Altman-Z score of MKC (2.57) is comparable to the rest of the 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.
- Looking at the Debt to FCF ratio, with a value of 6.65, MKC is in the better half of the industry, outperforming 68.97% of the companies in the same industry.
- MKC has a Debt/Equity ratio of 0.63. This is a neutral value indicating MKC is somewhat dependend on debt financing.
- MKC's Debt to Equity ratio of 0.63 is in line compared to the rest of the industry. MKC outperforms 43.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 2.57 |
ROIC/WACC1.02
WACC7.89%
2.3 Liquidity
- A Current Ratio of 0.71 indicates that MKC may have some problems paying its short term obligations.
- MKC has a worse Current ratio (0.71) than 85.06% of its industry peers.
- 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.
- With a Quick ratio value of 0.29, MKC is not doing good in the industry: 91.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
- The earnings per share for MKC have decreased by -2.00% in the last year.
- 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%.
- MKC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.69% yearly.
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
- MKC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.68% yearly.
- 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 Y3.15%
EPS Next 2Y4.56%
EPS Next 3Y6.16%
EPS Next 5Y6.68%
Revenue Next Year2.01%
Revenue Next 2Y4.72%
Revenue Next 3Y4.58%
Revenue Next 5Y4.07%
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
- A Price/Earnings ratio of 23.07 indicates a rather expensive valuation of MKC.
- MKC's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 26.94, MKC is valued at the same level.
- MKC is valuated rather expensively with a Price/Forward Earnings ratio of 21.03.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MKC is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.94, MKC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.07 | ||
| Fwd PE | 21.03 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as MKC.
- 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 | 27.78 | ||
| EV/EBITDA | 16.79 |
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 excellent profitability rating of MKC may justify a higher PE ratio.
PEG (NY)7.33
PEG (5Y)11.67
EPS Next 2Y4.56%
EPS Next 3Y6.16%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.79%, MKC has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.28, MKC pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, MKC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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
- 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 2Y4.56%
EPS Next 3Y6.16%
67.83
+0.79 (+1.18%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)10-07 2025-10-07/bmo
Earnings (Next)01-21 2026-01-21/amc
Inst Owners93.1%
Inst Owner Change0.03%
Ins Owners0.01%
Ins Owner Change0.12%
Market Cap18.20B
Revenue(TTM)6.79B
Net Income(TTM)778.00M
Analysts73.68
Price Target79.21 (16.78%)
Short Float %4.61%
Short Ratio4.34
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-DateN/A
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)0.09%
PT rev (3m)-6.88%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-1.37%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.07 | ||
| Fwd PE | 21.03 | ||
| P/S | 2.68 | ||
| P/FCF | 27.78 | ||
| P/OCF | 20.71 | ||
| P/B | 3.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.79 |
EPS(TTM)2.94
EY4.33%
EPS(NY)3.23
Fwd EY4.75%
FCF(TTM)2.44
FCFY3.6%
OCF(TTM)3.27
OCFY4.83%
SpS25.29
BVpS21.44
TBVpS-10.67
PEG (NY)7.33
PEG (5Y)11.67
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 | 2.57 |
F-Score6
WACC7.89%
ROIC/WACC1.02
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 5Y6.68%
Revenue 1Y (TTM)1.64%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%2.68%
Revenue Next Year2.01%
Revenue Next 2Y4.72%
Revenue Next 3Y4.58%
Revenue Next 5Y4.07%
EBIT growth 1Y1.11%
EBIT growth 3Y-0.97%
EBIT growth 5Y1.8%
EBIT Next Year23.76%
EBIT Next 3Y12.89%
EBIT Next 5Y10.39%
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.
Can you provide the valuation status for MCCORMICK & CO-NON VTG SHRS?
ChartMill assigns a valuation rating of 3 / 10 to MCCORMICK & CO-NON VTG SHRS (MKC). This can be considered as Overvalued.
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 3.15% 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%.