MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MKC - US5797802064 - Common Stock
63.3 USD
-0.14 (-0.22%)
63.3 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 quite expensive at the moment. It does show 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.
Each year in the past 5 years MKC has been profitable.
Each year in the past 5 years MKC had a positive operating cash flow.
1.2 Ratios
MKC's Return On Assets of 5.87% is amongst the best of the industry. MKC outperforms 80.46% of its industry peers.
MKC has a better Return On Equity (13.52%) than 82.76% of its industry peers.
MKC's Return On Invested Capital of 8.05% is fine compared to the rest of the industry. MKC outperforms 78.16% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MKC 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
MKC's Profit Margin of 11.46% is amongst the best of the industry. MKC outperforms 89.66% of its industry peers.
MKC's Profit Margin has declined in the last couple of years.
MKC's Operating Margin of 15.99% is amongst the best of the industry. MKC outperforms 91.95% of its industry peers.
In the last couple of years the Operating Margin of MKC has declined.
The Gross Margin of MKC (38.23%) is better than 87.36% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MKC is still 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 2.47. 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 2.47. This is in the better half of the industry: MKC outperforms 60.92% 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.
With a decent Debt to FCF ratio value of 6.65, MKC is doing good in the industry, outperforming 72.41% of the companies in the same industry.
MKC has a Debt/Equity ratio of 0.63. This is a neutral value indicating MKC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.63, MKC is in line with its industry, outperforming 42.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 2.47 |
ROIC/WACC1.04
WACC7.76%
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 has a Current ratio of 0.71. This is amonst the worse of the industry: MKC underperforms 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 has a worse Quick ratio (0.29) than 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 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.
The Revenue has been growing slightly by 1.64% in the past 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
MKC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.88% yearly.
The Revenue is expected to grow by 4.05% on average over the next years.
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
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 21.53, which indicates a rather expensive current valuation of MKC.
The rest of the industry has a similar Price/Earnings ratio as MKC.
MKC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.66, MKC is valued on the expensive side.
MKC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MKC is cheaper than 60.92% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MKC to the average of the S&P500 Index (36.10), we can say MKC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.53 | ||
| Fwd PE | 19.66 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MKC.
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 | 25.93 | ||
| EV/EBITDA | 15.89 |
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.
MKC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)7.08
PEG (5Y)10.89
EPS Next 2Y4.48%
EPS Next 3Y5.82%
5. Dividend
5.1 Amount
MKC has a Yearly Dividend Yield of 3.03%.
Compared to an average industry Dividend Yield of 5.07, MKC pays a bit more dividend than its industry peers.
MKC's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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.
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%
63.3
-0.14 (-0.22%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners93%
Inst Owner Change3.32%
Ins Owners0.01%
Ins Owner Change0.15%
Market Cap16.99B
Revenue(TTM)6.79B
Net Income(TTM)778.00M
Analysts72
Price Target79.14 (25.02%)
Short Float %4.92%
Short Ratio4.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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)-6.26%
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 | 21.53 | ||
| Fwd PE | 19.66 | ||
| P/S | 2.5 | ||
| P/FCF | 25.93 | ||
| P/OCF | 19.33 | ||
| P/B | 2.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.89 |
EPS(TTM)2.94
EY4.64%
EPS(NY)3.22
Fwd EY5.09%
FCF(TTM)2.44
FCFY3.86%
OCF(TTM)3.27
OCFY5.17%
SpS25.29
BVpS21.44
TBVpS-10.67
PEG (NY)7.08
PEG (5Y)10.89
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 | 2.47 |
F-Score6
WACC7.76%
ROIC/WACC1.04
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 3 / 10 to MCCORMICK & CO-NON VTG SHRS (MKC). This can be considered as Overvalued.
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 6 / 10 and the dividend payout ratio is 61.04%.