MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
USA - NYSE:MKC - US5797802064 - Common Stock
66.1 USD
+0.22 (+0.33%)
66.1 USD
0 (0%)
Overall MKC gets a fundamental rating of 5 out of 10. We evaluated MKC against 86 industry peers in the Food Products industry. While MKC has a great profitability rating, there are quite some concerns on its financial health. MKC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year MKC was profitable.
MKC had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 5.87%, MKC is doing good in the industry, outperforming 77.91% of the companies in the same industry.
With an excellent Return On Equity value of 13.52%, MKC belongs to the best of the industry, outperforming 81.40% of the companies in the same industry.
MKC has a better Return On Invested Capital (8.05%) than 77.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MKC is significantly below the industry average of 29.14%.
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 better Profit Margin (11.46%) than 88.37% 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 90.70% of the companies in the same industry.
In the last couple of years the Operating Margin of MKC has declined.
MKC has a better Gross Margin (38.23%) than 88.37% 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.
MKC has about the same amout of shares outstanding than it did 1 year ago.
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
An Altman-Z score of 2.53 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 2.53. This is in the better half of the industry: MKC outperforms 62.79% 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.
With a decent Debt to FCF ratio value of 6.65, MKC is doing good in the industry, outperforming 72.09% 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 | 2.53 |
ROIC/WACC1.04
WACC7.74%
2.3 Liquidity
A Current Ratio of 0.71 indicates that MKC may have some problems paying its short term obligations.
The Current ratio of MKC (0.71) is worse than 84.88% of its industry peers.
A Quick Ratio of 0.29 indicates that MKC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.29, MKC is doing worse than 90.70% of the companies in the same industry.
| 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.
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 5.88% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.48 indicates a rather expensive valuation of MKC.
Compared to the rest of the industry, the Price/Earnings ratio of MKC is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 25.91, MKC is valued at the same level.
MKC is valuated rather expensively with a Price/Forward Earnings ratio of 20.53.
Based on the Price/Forward Earnings ratio, MKC is valued a bit cheaper than 60.47% of the companies in the same industry.
MKC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.48 | ||
| Fwd PE | 20.53 |
4.2 Price Multiples
MKC's Enterprise Value to EBITDA is on the same level as the industry average.
MKC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MKC is cheaper than 60.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.08 | ||
| EV/EBITDA | 16.44 |
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 decent profitability rating of MKC may justify a higher PE ratio.
PEG (NY)7.39
PEG (5Y)11.38
EPS Next 2Y4.48%
EPS Next 3Y5.82%
5. Dividend
5.1 Amount
MKC has a Yearly Dividend Yield of 2.81%.
Compared to an average industry Dividend Yield of 5.19, MKC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, MKC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
5.2 History
On average, the dividend of MKC grows each year by 8.09%, which is quite nice.
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 2Y4.48%
EPS Next 3Y5.82%
66.1
+0.22 (+0.33%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners89.6%
Inst Owner Change-0.96%
Ins Owners0.01%
Ins Owner Change-0.18%
Market Cap17.74B
Revenue(TTM)6.79B
Net Income(TTM)778.00M
Analysts72
Price Target79.58 (20.39%)
Short Float %4.28%
Short Ratio3.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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)-6.46%
PT rev (3m)-7.88%
EPS NQ rev (1m)-6.42%
EPS NQ rev (3m)-6.46%
EPS NY rev (1m)-1.02%
EPS NY rev (3m)-1.05%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.48 | ||
| Fwd PE | 20.53 | ||
| P/S | 2.61 | ||
| P/FCF | 27.08 | ||
| P/OCF | 20.18 | ||
| P/B | 3.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.44 |
EPS(TTM)2.94
EY4.45%
EPS(NY)3.22
Fwd EY4.87%
FCF(TTM)2.44
FCFY3.69%
OCF(TTM)3.27
OCFY4.95%
SpS25.29
BVpS21.44
TBVpS-10.67
PEG (NY)7.39
PEG (5Y)11.38
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 | 2.53 |
F-Score6
WACC7.74%
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 4 / 10 to MCCORMICK & CO-NON VTG SHRS (MKC). This can be considered as Fairly Valued.
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 5 / 10 and the dividend payout ratio is 61.04%.