MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MKC - US5797802064 - Common Stock
61.86 USD
-1.55 (-2.44%)
61.8 USD
-0.06 (-0.1%)
Overall MKC gets a fundamental rating of 5 out of 10. We evaluated MKC against 87 industry peers in the Food Products industry. While MKC belongs to the best of the industry regarding profitability, there are concerns on its financial health. MKC is not valued too expensively and it also shows a decent growth rate. Finally 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.
- In the past 5 years MKC has always been profitable.
- MKC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- MKC has a Return On Assets of 5.98%. This is amongst the best in the industry. MKC outperforms 81.61% of its industry peers.
- MKC has a better Return On Equity (13.76%) than 85.06% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.22%, MKC belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
- MKC had an Average Return On Invested Capital over the past 3 years of 8.07%. This is significantly below the industry average of 27.79%.
- The 3 year average ROIC (8.07%) for MKC is below the current ROIC(8.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.98% | ||
| ROE | 13.76% | ||
| ROIC | 8.22% |
ROA(3y)5.77%
ROA(5y)5.67%
ROE(3y)14.04%
ROE(5y)14.76%
ROIC(3y)8.07%
ROIC(5y)7.87%
1.3 Margins
- The Profit Margin of MKC (11.54%) is better than 90.80% of its industry peers.
- 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.
- The Gross Margin of MKC (37.93%) is better than 87.36% of its industry peers.
- In the last couple of years the Gross Margin of MKC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.99% | ||
| PM (TTM) | 11.54% | ||
| GM | 37.93% |
OM growth 3Y3.45%
OM growth 5Y-2.54%
PM growth 3Y2.43%
PM growth 5Y-2.86%
GM growth 3Y1.93%
GM growth 5Y-1.58%
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
- Compared to 1 year ago, MKC has an improved debt to assets ratio.
2.2 Solvency
- MKC has an Altman-Z score of 2.45. 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.
- The Altman-Z score of MKC (2.45) is comparable to the rest of the industry.
- MKC has a debt to FCF ratio of 5.40. This is a neutral value as MKC would need 5.40 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 5.40, MKC is in the better half of the industry, outperforming 74.71% of the companies in the same industry.
- MKC has a Debt/Equity ratio of 0.61. This is a neutral value indicating MKC is somewhat dependend on debt financing.
- MKC has a Debt to Equity ratio (0.61) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 5.4 | ||
| Altman-Z | 2.45 |
ROIC/WACC1.05
WACC7.83%
2.3 Liquidity
- A Current Ratio of 0.70 indicates that MKC may have some problems paying its short term obligations.
- With a Current ratio value of 0.70, MKC is not doing good in the industry: 85.06% of the companies in the same industry are doing better.
- MKC has a Quick Ratio of 0.70. 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 0.28, MKC is not doing good in the industry: 93.10% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.28 |
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%.
- The Earnings Per Share has been growing slightly by 1.17% on average over the past years.
- MKC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.73%.
- Measured over the past years, MKC shows a small growth in Revenue. The Revenue has been growing by 4.08% on average per year.
EPS 1Y (TTM)1.69%
EPS 3Y5.84%
EPS 5Y1.17%
EPS Q2Q%7.5%
Revenue 1Y (TTM)1.73%
Revenue growth 3Y2.51%
Revenue growth 5Y4.08%
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.
- Based on estimates for the next years, MKC will show a small growth in Revenue. The Revenue will grow by 3.33% on average per year.
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.
- 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 20.62 indicates a rather expensive valuation of MKC.
- 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 28.60, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 19.00 indicates a rather expensive valuation of MKC.
- The rest of the industry has a similar Price/Forward Earnings ratio as MKC.
- MKC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.62 | ||
| Fwd PE | 19 |
4.2 Price Multiples
- MKC's Enterprise Value to EBITDA ratio is in line with the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MKC indicates a somewhat cheap valuation: MKC is cheaper than 60.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.42 | ||
| EV/EBITDA | 15.18 |
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)2.43
PEG (5Y)17.57
EPS Next 2Y8.97%
EPS Next 3Y7.92%
5. Dividend
5.1 Amount
- MKC has a Yearly Dividend Yield of 3.03%.
- Compared to an average industry Dividend Yield of 2.29, 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 | 3.03% |
5.2 History
- The dividend of MKC is nicely growing with an annual growth rate of 7.76%!
- 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)7.76%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
- 61.19% of the earnings are spent on dividend by MKC. This is not a sustainable payout ratio.
- MKC's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP61.19%
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 7 / 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 7 / 10 and the dividend payout ratio is 61.19%.