MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MKC - US5797802064 - Common Stock
67.15 USD
+0.23 (+0.34%)
67.15 USD
0 (0%)
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 has a decent growth rate and is not valued too expensively.
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.
MKC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 5.87%, MKC belongs to the best of the industry, outperforming 81.61% of the companies in the same industry.
MKC has a Return On Equity of 13.52%. This is amongst the best in the industry. MKC outperforms 83.91% of its industry peers.
MKC has a Return On Invested Capital of 8.05%. This is in the better half of the industry: MKC outperforms 79.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MKC is significantly below the industry average of 28.38%.
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.
MKC's Profit Margin has declined in the last couple of years.
MKC has a better Operating Margin (15.99%) than 93.10% of its industry peers.
In the last couple of years the Operating Margin of MKC has declined.
MKC has a better Gross Margin (38.23%) than 89.66% 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.
MKC has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for MKC has been increased compared to 5 years ago.
The debt/assets ratio for MKC has been reduced compared to a year ago.
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 (2.55) which 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.
The Debt to FCF ratio of MKC (6.65) is better than 74.71% 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 43.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.04
WACC7.72%
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.
MKC's Current ratio of 0.71 is on the low side compared to the rest of the industry. MKC is outperformed by 83.91% 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.
MKC's Quick ratio of 0.29 is on the low side compared to the rest of the industry. MKC is outperformed by 89.66% of its industry peers.
| 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.
The Revenue has been growing slightly by 1.64% 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)-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
The Earnings Per Share is expected to grow by 5.88% on average over the next years.
Based on estimates for the next years, MKC will show a small growth in Revenue. The Revenue will grow by 4.05% on average per year.
EPS Next Y3.04%
EPS Next 2Y4.48%
EPS Next 3Y5.82%
EPS Next 5Y5.88%
Revenue Next Year2.04%
Revenue Next 2Y4.04%
Revenue Next 3Y4.32%
Revenue Next 5Y4.05%
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 22.84.
The rest of the industry has a similar Price/Earnings ratio as MKC.
When comparing the Price/Earnings ratio of MKC to the average of the S&P500 Index (25.98), we can say MKC is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 20.85, 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 62.07% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.79, MKC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.84 | ||
| Fwd PE | 20.85 |
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 a bit cheaper when compared to the industry. MKC is cheaper than 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.51 | ||
| EV/EBITDA | 16.6 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)7.51
PEG (5Y)11.56
EPS Next 2Y4.48%
EPS Next 3Y5.82%
5. Dividend
5.1 Amount
MKC has a Yearly Dividend Yield of 2.85%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.20, MKC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, MKC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
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 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 2Y4.48%
EPS Next 3Y5.82%
67.15
+0.23 (+0.34%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners89.6%
Inst Owner Change3.32%
Ins Owners0.01%
Ins Owner Change0.15%
Market Cap18.02B
Revenue(TTM)6.79B
Net Income(TTM)778.00M
Analysts72
Price Target79.14 (17.86%)
Short Float %4.59%
Short Ratio4.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
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)-6.97%
PT rev (3m)-7.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.07%
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 | 22.84 | ||
| Fwd PE | 20.85 | ||
| P/S | 2.65 | ||
| P/FCF | 27.51 | ||
| P/OCF | 20.5 | ||
| P/B | 3.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.6 |
EPS(TTM)2.94
EY4.38%
EPS(NY)3.22
Fwd EY4.8%
FCF(TTM)2.44
FCFY3.64%
OCF(TTM)3.27
OCFY4.88%
SpS25.29
BVpS21.44
TBVpS-10.67
PEG (NY)7.51
PEG (5Y)11.56
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 | 2.55 |
F-Score6
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)-2%
EPS 3Y-1.11%
EPS 5Y1.98%
EPS Q2Q%2.41%
EPS Next Y3.04%
EPS Next 2Y4.48%
EPS Next 3Y5.82%
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 2Y4.04%
Revenue Next 3Y4.32%
Revenue Next 5Y4.05%
EBIT growth 1Y1.11%
EBIT growth 3Y-0.97%
EBIT growth 5Y1.8%
EBIT Next Year23.76%
EBIT Next 3Y12.62%
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 4 / 10 to MCCORMICK & CO-NON VTG SHRS (MKC). This can be considered as Fairly Valued.
How profitable is MCCORMICK & CO-NON VTG SHRS (MKC) stock?
MCCORMICK & CO-NON VTG SHRS (MKC) has a profitability rating of 7 / 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 5 / 10 and the dividend payout ratio is 61.04%.