MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MKC - US5797802064 - Common Stock
68.7 USD
+0.13 (+0.19%)
68.7 USD
0 (0%)
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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year MKC was profitable.
- In the past year MKC had a positive cash flow from operations.
- 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 has a Return On Assets of 5.87%. This is amongst the best in the industry. MKC outperforms 82.76% of its industry peers.
- The Return On Equity of MKC (13.52%) is better than 83.91% of its industry peers.
- The Return On Invested Capital of MKC (8.05%) is better than 80.46% 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 27.80%.
- 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
- Looking at the Profit Margin, with a value of 11.46%, MKC belongs to the top of the industry, outperforming 90.80% of the companies in the same industry.
- In the last couple of years the Profit Margin of MKC has declined.
- Looking at the Operating Margin, with a value of 15.99%, MKC belongs to the top 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.
- 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.
- Compared to 1 year ago, MKC has about the same amount of shares outstanding.
- Compared to 5 years ago, MKC has more shares outstanding
- The debt/assets ratio for MKC has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 2.58 indicates that MKC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of MKC (2.58) is better than 62.07% 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 68.97% of the companies in the same industry.
- A Debt/Equity ratio of 0.63 indicates that 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 43.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 2.58 |
ROIC/WACC1.03
WACC7.83%
2.3 Liquidity
- A Current Ratio of 0.71 indicates that MKC may have some problems paying its short term obligations.
- MKC's Current ratio of 0.71 is on the low side compared to the rest of the industry. MKC is outperformed by 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.
- 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
- 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
- The Earnings Per Share is expected to grow by 6.68% on average over the next years.
- The Revenue is expected to grow by 4.07% on average over the next years.
EPS Next Y3.15%
EPS Next 2Y4.56%
EPS Next 3Y6.16%
EPS Next 5Y6.68%
Revenue Next Year2.04%
Revenue Next 2Y4.06%
Revenue Next 3Y4.4%
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
- A Price/Earnings ratio of 23.37 indicates a rather expensive valuation of MKC.
- MKC's Price/Earnings ratio is in line with the industry average.
- MKC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 21.30 indicates a rather expensive 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 at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.37 | ||
| Fwd PE | 21.3 |
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 | 28.14 | ||
| EV/EBITDA | 16.97 |
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 excellent profitability rating of MKC may justify a higher PE ratio.
PEG (NY)7.42
PEG (5Y)11.82
EPS Next 2Y4.56%
EPS Next 3Y6.16%
5. Dividend
5.1 Amount
- MKC has a Yearly Dividend Yield of 2.86%.
- Compared to an average industry Dividend Yield of 2.43, 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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 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 2Y4.56%
EPS Next 3Y6.16%
68.7
+0.13 (+0.19%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)10-07 2025-10-07/bmo
Earnings (Next)01-21 2026-01-21/amc
Inst Owners93.1%
Inst Owner Change0.02%
Ins Owners0.01%
Ins Owner Change0.12%
Market Cap18.44B
Revenue(TTM)6.79B
Net Income(TTM)778.00M
Analysts73.68
Price Target79.14 (15.2%)
Short Float %3.99%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend1.68
Dividend Growth(5Y)8.09%
DP61.04%
Div Incr Years34
Div Non Decr Years34
Ex-DateN/A
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)0%
PT rev (3m)-6.97%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)-6%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.37 | ||
| Fwd PE | 21.3 | ||
| P/S | 2.72 | ||
| P/FCF | 28.14 | ||
| P/OCF | 20.98 | ||
| P/B | 3.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.97 |
EPS(TTM)2.94
EY4.28%
EPS(NY)3.23
Fwd EY4.69%
FCF(TTM)2.44
FCFY3.55%
OCF(TTM)3.27
OCFY4.77%
SpS25.29
BVpS21.44
TBVpS-10.67
PEG (NY)7.42
PEG (5Y)11.82
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 | 2.58 |
F-Score6
WACC7.83%
ROIC/WACC1.03
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 Y3.15%
EPS Next 2Y4.56%
EPS Next 3Y6.16%
EPS Next 5Y6.68%
Revenue 1Y (TTM)1.64%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%2.68%
Revenue Next Year2.04%
Revenue Next 2Y4.06%
Revenue Next 3Y4.4%
Revenue Next 5Y4.07%
EBIT growth 1Y1.11%
EBIT growth 3Y-0.97%
EBIT growth 5Y1.8%
EBIT Next Year23.76%
EBIT Next 3Y12.89%
EBIT Next 5Y10.39%
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.
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 3.15% 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%.