MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MKC - US5797802064 - Common Stock
67.42 USD
+0.58 (+0.87%)
67.42 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. While MKC belongs to the best of the industry regarding profitability, 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.
- In the past year MKC had a positive cash flow from operations.
- 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 82.76% 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 83.91% 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 80.46% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for MKC is significantly below the industry average of 27.80%.
- 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 better Operating Margin (15.99%) than 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 87.36% of its industry peers.
- 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
- 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.
- The number of shares outstanding for MKC has been increased compared to 5 years ago.
- The debt/assets ratio for MKC has been reduced compared to a year ago.
2.2 Solvency
- MKC has an Altman-Z score of 2.56. 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 (2.56) is better than 60.92% 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.
- MKC has a better Debt to FCF ratio (6.65) than 68.97% 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.
- The Debt to Equity ratio of MKC (0.63) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 2.56 |
ROIC/WACC1.03
WACC7.85%
2.3 Liquidity
- A Current Ratio of 0.71 indicates that MKC may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.71, MKC is doing worse than 85.06% of the companies in the same industry.
- A Quick Ratio of 0.29 indicates that MKC may have some problems paying its short term obligations.
- MKC has a Quick ratio of 0.29. This is amonst the worse of the industry: MKC underperforms 91.95% of its industry peers.
| 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%.
- 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.
- 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
- 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
- Based on the Price/Earnings ratio of 22.93, the valuation of MKC can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of MKC is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.30. MKC is around the same levels.
- The Price/Forward Earnings ratio is 20.91, which indicates a rather expensive current valuation of MKC.
- MKC's Price/Forward 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/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.93 | ||
| Fwd PE | 20.91 |
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 | 27.62 | ||
| EV/EBITDA | 16.71 |
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)7.28
PEG (5Y)11.6
EPS Next 2Y4.56%
EPS Next 3Y6.16%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.86%, MKC has a reasonable but not impressive dividend return.
- MKC's Dividend Yield is a higher than the industry average which is at 2.46.
- 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 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
- 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%
67.42
+0.58 (+0.87%)
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 Cap18.09B
Revenue(TTM)6.79B
Net Income(TTM)778.00M
Analysts73.68
Price Target79.14 (17.38%)
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 | 22.93 | ||
| Fwd PE | 20.91 | ||
| P/S | 2.67 | ||
| P/FCF | 27.62 | ||
| P/OCF | 20.59 | ||
| P/B | 3.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.71 |
EPS(TTM)2.94
EY4.36%
EPS(NY)3.23
Fwd EY4.78%
FCF(TTM)2.44
FCFY3.62%
OCF(TTM)3.27
OCFY4.86%
SpS25.29
BVpS21.44
TBVpS-10.67
PEG (NY)7.28
PEG (5Y)11.6
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 | 2.56 |
F-Score6
WACC7.85%
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%.