MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MKC - US5797802064 - Common Stock
61.2 USD
-5.36 (-8.05%)
61.37 USD
+0.17 (+0.28%)
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. MKC is quite expensive at the moment. It does show 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.
- In the past 5 years MKC has always been profitable.
- In the past 5 years MKC always reported a positive cash flow from operatings.
1.2 Ratios
- MKC's Return On Assets of 5.87% is amongst the best of the industry. MKC outperforms 81.61% of its industry peers.
- MKC has a better Return On Equity (13.52%) than 83.91% of its industry peers.
- MKC's Return On Invested Capital of 8.05% is amongst the best of 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
- MKC has a better Profit Margin (11.46%) than 90.80% of its industry peers.
- MKC's Profit Margin has declined in the last couple of years.
- MKC has a Operating Margin of 15.99%. This is amongst the best in the industry. MKC outperforms 94.25% of its industry peers.
- In the last couple of years the Operating Margin of MKC has declined.
- With an excellent Gross Margin value of 38.23%, MKC belongs to the best of the industry, outperforming 87.36% of the companies in the same industry.
- 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.
- Compared to 1 year ago, MKC has about the same amount of shares outstanding.
- MKC has more shares outstanding than it did 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 2.42 indicates that MKC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 2.42, MKC is in line with its industry, outperforming 58.62% of the companies in the same 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.
- MKC's Debt to FCF ratio of 6.65 is fine compared to the rest of the industry. MKC outperforms 68.97% 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.
- With a Debt to Equity ratio value of 0.63, MKC perfoms like the industry average, outperforming 43.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.03
WACC7.82%
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.
- The Current ratio of MKC (0.71) is worse 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
- MKC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.00%.
- 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.
- 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
- MKC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.68% yearly.
- MKC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.07% yearly.
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.
- 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
- With a Price/Earnings ratio of 20.82, MKC is valued on the expensive side.
- MKC's Price/Earnings is on the same level as the industry average.
- MKC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 18.80, the valuation of MKC can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MKC is on the same level as its industry peers.
- MKC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.82 | ||
| Fwd PE | 18.8 |
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.
- 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 | 25.07 | ||
| EV/EBITDA | 15.43 |
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.
- The excellent profitability rating of MKC may justify a higher PE ratio.
PEG (NY)6.7
PEG (5Y)10.53
EPS Next 2Y5.04%
EPS Next 3Y6.49%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.88%, 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 | 2.88% |
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 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
- 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 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 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 3.11% 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%.