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. While MKC belongs to the best of the industry regarding profitability, 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
- MKC had positive earnings in the past year.
- MKC had a positive operating cash flow in the past year.
- MKC had positive earnings in 4 of the past 5 years.
- MKC had a positive operating cash flow in 4 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.
- The Return On Equity of MKC (13.52%) is better than 85.06% of its industry peers.
- With an excellent Return On Invested Capital value of 8.05%, MKC belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
- 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 Profit Margin of 11.46%. This is amongst the best in the industry. MKC outperforms 91.95% of its industry peers.
- MKC's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 15.99%, MKC belongs to the top 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.
- MKC has a Gross Margin of 38.23%. This is amongst the best in 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 | 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
- MKC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- There is no outstanding debt for MKC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- MKC has an Altman-Z score of 2.42. 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.
- MKC has a Altman-Z score (2.42) 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.
- With a decent Debt to FCF ratio value of 6.65, MKC is doing good in the industry, outperforming 70.11% of the companies in the same industry.
- A Debt/Equity ratio of 0.63 indicates that 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 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.
- 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 has a Quick ratio of 0.29. This is amonst the worse of the industry: MKC underperforms 90.80% 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.
- Looking at the last year, MKC shows a small growth in Revenue. The Revenue has grown by 1.64% in the last year.
- 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
- The Earnings Per Share is expected to grow by 6.68% 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 4.07% 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.
- 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
- The Price/Earnings ratio is 20.68, which indicates a rather expensive current valuation of MKC.
- Compared to the rest of the industry, the Price/Earnings ratio of MKC is on the same level as its industry peers.
- MKC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 18.68 indicates a rather expensive valuation of MKC.
- MKC's Price/Forward Earnings ratio is in line with the industry average.
- MKC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.68 | ||
| Fwd PE | 18.68 |
4.2 Price Multiples
- MKC's Enterprise Value to EBITDA is on the same level as the industry average.
- 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 an expensive valuation of the company.
- MKC has a very decent 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
- With a Yearly Dividend Yield of 3.14%, MKC has a reasonable but not impressive dividend return.
- 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 | 3.14% |
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
- 61.04% of the earnings are spent on dividend by MKC. 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.
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%.