MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MKC - US5797802064 - Common Stock
68.93 USD
+0.05 (+0.07%)
68.93 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 scores excellent on profitability, 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
MKC had positive earnings in the past year.
MKC had a positive operating cash flow in the past year.
MKC had positive earnings in each of the past 5 years.
Each year in the past 5 years MKC had a positive operating cash flow.
1.2 Ratios
MKC has a Return On Assets of 5.87%. This is amongst the best in the industry. MKC outperforms 83.91% of its industry peers.
MKC's Return On Equity of 13.52% is amongst the best of the industry. MKC outperforms 85.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.05%, MKC belongs to the top of the industry, outperforming 81.61% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MKC is significantly below the industry average of 28.50%.
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
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.
MKC has a Operating Margin of 15.99%. This is amongst the best in the industry. MKC outperforms 94.25% 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 88.51% 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
MKC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
MKC has about the same amout of shares outstanding than it did 1 year ago.
MKC has more shares outstanding than it did 5 years ago.
MKC has a better debt/assets ratio than last year.
2.2 Solvency
MKC has an Altman-Z score of 2.59. 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 2.59, 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.
MKC has a Debt to FCF ratio of 6.65. This is in the better half of the industry: MKC outperforms 71.26% of its industry peers.
MKC has a Debt/Equity ratio of 0.63. This is a neutral value indicating MKC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.63, MKC perfoms like the industry average, outperforming 43.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 2.59 |
ROIC/WACC1.03
WACC7.82%
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.
With a Current ratio value of 0.71, MKC is not doing good in the industry: 85.06% of the companies in the same industry are doing better.
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 91.95% of the companies in the same industry.
| 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.
MKC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.98% yearly.
MKC shows a small growth in Revenue. In the last year, the Revenue has grown by 1.64%.
Measured over the past years, MKC shows a small growth in Revenue. The Revenue has been growing by 4.69% on average per year.
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.
Based on estimates for the next years, MKC will show a small growth in Revenue. The Revenue will grow by 4.05% on average per year.
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.
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
With a Price/Earnings ratio of 23.45, MKC is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as MKC.
The average S&P500 Price/Earnings ratio is at 26.92. MKC is around the same levels.
The Price/Forward Earnings ratio is 21.37, which indicates a rather expensive current 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 similar valuation than the S&P500 average which is at 23.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.45 | ||
| Fwd PE | 21.37 |
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 in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.23 | ||
| EV/EBITDA | 17.02 |
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)7.45
PEG (5Y)11.86
EPS Next 2Y4.56%
EPS Next 3Y6.16%
5. Dividend
5.1 Amount
MKC has a Yearly Dividend Yield of 2.79%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.42, 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
5.2 History
On average, the dividend of MKC grows each year by 8.09%, which is quite nice.
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)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%
68.93
+0.05 (+0.07%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners93%
Inst Owner Change3.34%
Ins Owners0.01%
Ins Owner Change0.17%
Market Cap18.50B
Revenue(TTM)6.79B
Net Income(TTM)778.00M
Analysts72
Price Target79.14 (14.81%)
Short Float %4.64%
Short Ratio4.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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)0%
PT rev (3m)-7.52%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)-6.04%
EPS NY rev (1m)0.1%
EPS NY rev (3m)-0.92%
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 | 23.45 | ||
| Fwd PE | 21.37 | ||
| P/S | 2.73 | ||
| P/FCF | 28.23 | ||
| P/OCF | 21.05 | ||
| P/B | 3.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.02 |
EPS(TTM)2.94
EY4.27%
EPS(NY)3.23
Fwd EY4.68%
FCF(TTM)2.44
FCFY3.54%
OCF(TTM)3.27
OCFY4.75%
SpS25.29
BVpS21.44
TBVpS-10.67
PEG (NY)7.45
PEG (5Y)11.86
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 | 2.59 |
F-Score6
WACC7.82%
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.
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 8 / 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%.