MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MKC - US5797802064 - Common Stock
67.48 USD
+0.18 (+0.27%)
67.48 USD
0 (0%)
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 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
MKC had positive earnings in the past year.
In the past year MKC had a positive cash flow from operations.
In the past 5 years MKC has always 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 better Return On Invested Capital (8.05%) than 79.31% 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 28.38%.
The 3 year average ROIC (7.52%) for MKC is below the current ROIC(8.05%), indicating increased profibility in the last year.
| 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.
Looking at the Operating Margin, with a value of 15.99%, MKC belongs to the top of the industry, outperforming 93.10% 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.
The number of shares outstanding for MKC remains at a similar level compared to 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
MKC has an Altman-Z score of 2.55. 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 of 2.55. This is comparable to the rest of the industry: MKC outperforms 59.77% of its industry peers.
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.
MKC has a better Debt to FCF ratio (6.65) than 74.71% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that MKC is somewhat dependend on debt financing.
MKC has a Debt to Equity ratio (0.63) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.05
WACC7.69%
2.3 Liquidity
A Current Ratio of 0.71 indicates that MKC may have some problems paying 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.
Looking at the Quick ratio, with a value of 0.29, MKC is doing worse than 90.80% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing slightly by 1.98% on average over the past years.
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
Based on estimates for the next years, MKC will show a small growth in Earnings Per Share. The EPS will grow by 5.88% on average per year.
MKC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.05% yearly.
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.
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 22.95, the valuation of MKC can be described as rather expensive.
MKC's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of MKC to the average of the S&P500 Index (26.31), we can say MKC is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 20.96, the valuation of MKC can be described as rather expensive.
63.22% of the companies in the same industry are more expensive than MKC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MKC to the average of the S&P500 Index (36.59), we can say MKC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.95 | ||
| Fwd PE | 20.96 |
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.
Based on the Price/Free Cash Flow ratio, MKC is valued a bit cheaper than the industry average as 62.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.64 | ||
| EV/EBITDA | 16.68 |
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)7.54
PEG (5Y)11.61
EPS Next 2Y4.48%
EPS Next 3Y5.82%
5. Dividend
5.1 Amount
MKC has a Yearly Dividend Yield of 2.85%.
MKC's Dividend Yield is a higher than the industry average which is at 5.21.
MKC's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.85% |
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
61.04% of the earnings are spent on dividend by MKC. 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%
67.48
+0.18 (+0.27%)
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 Cap18.11B
Revenue(TTM)6.79B
Net Income(TTM)778.00M
Analysts72
Price Target79.14 (17.28%)
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 | 22.95 | ||
| Fwd PE | 20.96 | ||
| P/S | 2.67 | ||
| P/FCF | 27.64 | ||
| P/OCF | 20.61 | ||
| P/B | 3.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.68 |
EPS(TTM)2.94
EY4.36%
EPS(NY)3.22
Fwd EY4.77%
FCF(TTM)2.44
FCFY3.62%
OCF(TTM)3.27
OCFY4.85%
SpS25.29
BVpS21.44
TBVpS-10.67
PEG (NY)7.54
PEG (5Y)11.61
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
WACC7.69%
ROIC/WACC1.05
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%.