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 4 out of 10. We evaluated MKC against 87 industry peers in the Food Products industry. While MKC has a great profitability rating, there are quite some concerns on its financial health. MKC is valued expensive and it does not seem to be growing. MKC also has an excellent dividend rating.
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.
- Of the past 5 years MKC 4 years were profitable.
- Of the past 5 years MKC 4 years had a positive operating cash flow.
1.2 Ratios
- MKC has a better Return On Assets (5.87%) than 81.61% of its industry peers.
- Looking at the Return On Equity, with a value of 13.52%, MKC belongs to the top of the industry, outperforming 83.91% of the companies in the same industry.
- MKC has a better Return On Invested Capital (8.05%) than 81.61% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital 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.
- With an excellent Operating Margin value of 15.99%, MKC belongs to the best of the industry, outperforming 94.25% of the companies in the same industry.
- 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.
- In the last couple of years the Gross Margin of MKC has remained more or less at the same level.
| 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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 2.41 indicates that MKC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- MKC has a Altman-Z score of 2.41. This is comparable to the rest of the industry: MKC outperforms 57.47% of its industry peers.
- 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 68.97% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 2.41 |
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.
- The Current ratio of MKC (0.71) is worse than 85.06% of its industry peers.
- A Quick Ratio of 0.29 indicates that MKC may have some problems paying 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 91.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
- MKC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.69%.
- Measured over the past 5 years, MKC shows a small growth in Earnings Per Share. The EPS has been growing by 1.17% on average per year.
EPS 1Y (TTM)1.69%
EPS 3Y5.84%
EPS 5Y1.17%
EPS Q2Q%7.5%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.91%
3.2 Future
- MKC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.24% yearly.
- The Revenue is expected to grow by 3.33% on average over the next years.
EPS Next Y8.5%
EPS Next 2Y8.97%
EPS Next 3Y7.92%
EPS Next 5Y9.24%
Revenue Next Year11.45%
Revenue Next 2Y7.56%
Revenue Next 3Y6.82%
Revenue Next 5Y3.33%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 20.26, MKC is valued on the expensive side.
- 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 (27.21), we can say MKC is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 18.68, the valuation of MKC can be described as rather expensive.
- 60.92% of the companies in the same industry are more expensive than MKC, based on the Price/Forward Earnings ratio.
- MKC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.26 | ||
| Fwd PE | 18.68 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as MKC.
- The rest of the industry has a similar Price/Free Cash Flow ratio as MKC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.9 | ||
| EV/EBITDA | 15.35 |
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 decent profitability rating of MKC may justify a higher PE ratio.
PEG (NY)2.38
PEG (5Y)17.27
EPS Next 2Y8.97%
EPS Next 3Y7.92%
5. Dividend
5.1 Amount
- MKC has a Yearly Dividend Yield of 3.14%.
- MKC's Dividend Yield is a higher than the industry average which is at 2.29.
- MKC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| 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 been paying a dividend for at least 10 years, so it has 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.
- The dividend of MKC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP61.04%
EPS Next 2Y8.97%
EPS Next 3Y7.92%
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 8.5% 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%.