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%)
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 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
- In the past year MKC was profitable.
- MKC had a positive operating cash flow in the past year.
- MKC had positive earnings in each of the past 5 years.
- 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 82.76% of the companies in the same industry.
- MKC's Return On Equity of 13.52% is amongst the best of the industry. MKC outperforms 85.06% of its industry peers.
- MKC's Return On Invested Capital of 8.05% is amongst the best of the industry. MKC outperforms 82.76% 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 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.
- In the last couple of years the Profit Margin of MKC has declined.
- MKC has a Operating Margin of 15.99%. This is amongst the best in the industry. MKC outperforms 95.40% of its industry peers.
- 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
- 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.
- 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
- 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 of 2.42. This is comparable to the rest of the industry: MKC outperforms 56.32% 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.
- Looking at the Debt to FCF ratio, with a value of 6.65, MKC is in the better half of 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 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 | 2.42 |
ROIC/WACC1.03
WACC7.82%
2.3 Liquidity
- A Current Ratio of 0.71 indicates that MKC may have some problems paying its short term obligations.
- MKC has a Current ratio of 0.71. This is amonst the worse of the industry: MKC underperforms 83.91% of its industry peers.
- A Quick Ratio of 0.29 indicates that MKC may have some problems paying its short term obligations.
- The Quick ratio of MKC (0.29) is worse than 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.
- Measured over the past 5 years, MKC shows a small growth in Earnings Per Share. The EPS has been growing by 1.98% on average per year.
- Looking at the last year, MKC shows a small growth in Revenue. The Revenue has grown by 1.64% in the last year.
- The Revenue has been growing slightly by 4.69% on average over the past years.
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 6.68% on average per year.
- 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
- MKC is valuated rather expensively with a Price/Earnings ratio of 20.68.
- The rest of the industry has a similar Price/Earnings ratio as MKC.
- MKC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 18.68, which indicates a rather expensive current valuation of MKC.
- 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 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.68 | ||
| Fwd PE | 18.68 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as MKC.
- Based on the Price/Free Cash Flow ratio, MKC is valued a bit cheaper than the industry average as 60.92% of the companies are valued more expensively.
| 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 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)6.65
PEG (5Y)10.46
EPS Next 2Y5.04%
EPS Next 3Y6.49%
5. Dividend
5.1 Amount
- MKC has a Yearly Dividend Yield of 2.88%.
- 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 1.82, 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 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.
- 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%.