MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MKC - US5797802064 - Common Stock
65.37 USD
-0.98 (-1.48%)
65.37 USD
0 (0%)
Taking everything into account, MKC scores 5 out of 10 in our fundamental rating. MKC was compared to 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. While showing a medium growth rate, MKC is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
MKC had positive earnings in the past year.
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
With an excellent Return On Assets value of 5.87%, MKC belongs to the best of the industry, outperforming 83.91% of the companies in the same industry.
MKC has a Return On Equity of 13.52%. This is amongst the best in 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 81.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MKC is significantly below the industry average of 28.02%.
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
The Profit Margin of MKC (11.46%) is better than 90.80% of its industry peers.
In the last couple of years the Profit Margin of MKC has declined.
The Operating Margin of MKC (15.99%) is better than 94.25% of its industry peers.
In the last couple of years the Operating Margin of MKC has declined.
With an excellent Gross Margin value of 38.23%, MKC belongs to the best of the industry, outperforming 87.36% of the companies in the same industry.
In the last couple of years the Gross Margin of MKC has remained more or less at the same level.
| 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.
MKC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MKC has an improved debt to assets ratio.
2.2 Solvency
MKC has an Altman-Z score of 2.53. 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.
With a decent Altman-Z score value of 2.53, MKC is doing good in the industry, outperforming 62.07% of the companies in the same industry.
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.
The Debt to FCF ratio of MKC (6.65) is better than 71.26% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that MKC is somewhat dependend on debt financing.
MKC has a Debt to Equity ratio of 0.63. This is comparable to the rest of the industry: MKC outperforms 44.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 2.53 |
ROIC/WACC1.03
WACC7.81%
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 83.91% of its industry peers.
A Quick Ratio of 0.29 indicates that MKC may have some problems paying its short term obligations.
With a Quick ratio value of 0.29, MKC is not doing good in the industry: 90.80% of the companies in the same industry are doing better.
| 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.
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.
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 Y3.15%
EPS Next 2Y4.56%
EPS Next 3Y6.16%
EPS Next 5Y5.88%
Revenue Next Year2.04%
Revenue Next 2Y4.06%
Revenue Next 3Y4.4%
Revenue Next 5Y4.05%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
MKC is valuated rather expensively with a Price/Earnings ratio of 22.23.
MKC's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of MKC to the average of the S&P500 Index (26.92), we can say MKC is valued inline with the index average.
MKC is valuated rather expensively with a Price/Forward Earnings ratio of 20.27.
MKC's Price/Forward Earnings is on the same level as the industry average.
MKC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.23 | ||
| Fwd PE | 20.27 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MKC.
MKC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.78 | ||
| EV/EBITDA | 16.49 |
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)7.06
PEG (5Y)11.25
EPS Next 2Y4.56%
EPS Next 3Y6.16%
5. Dividend
5.1 Amount
MKC has a Yearly Dividend Yield of 2.82%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.40, MKC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, MKC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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
MKC pays out 61.04% of its income as dividend. 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%
65.37
-0.98 (-1.48%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners93.1%
Inst Owner Change0%
Ins Owners0.01%
Ins Owner Change0%
Market Cap17.54B
Revenue(TTM)6.79B
Net Income(TTM)778.00M
Analysts72
Price Target79.14 (21.06%)
Short Float %3.99%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
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 | 22.23 | ||
| Fwd PE | 20.27 | ||
| P/S | 2.58 | ||
| P/FCF | 26.78 | ||
| P/OCF | 19.96 | ||
| P/B | 3.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.49 |
EPS(TTM)2.94
EY4.5%
EPS(NY)3.23
Fwd EY4.93%
FCF(TTM)2.44
FCFY3.73%
OCF(TTM)3.27
OCFY5.01%
SpS25.29
BVpS21.44
TBVpS-10.67
PEG (NY)7.06
PEG (5Y)11.25
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
WACC7.81%
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 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 2Y4.06%
Revenue Next 3Y4.4%
Revenue Next 5Y4.05%
EBIT growth 1Y1.11%
EBIT growth 3Y-0.97%
EBIT growth 5Y1.8%
EBIT Next Year23.76%
EBIT Next 3Y12.89%
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.
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%.