MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
NYSE:MKC - New York Stock Exchange, Inc. - US5797802064 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to MKC. MKC was compared to 91 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.
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
The Return On Assets of MKC (6.03%) is better than 70.93% of its industry peers.
MKC has a Return On Equity of 14.90%. This is in the better half of the industry: MKC outperforms 76.74% of its industry peers.
MKC's Return On Invested Capital of 7.90% is fine compared to the rest of the industry. MKC outperforms 74.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MKC is in line with the industry average of 9.03%.
The 3 year average ROIC (7.52%) for MKC is below the current ROIC(7.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.03% | ||
| ROE | 14.9% | ||
| ROIC | 7.9% |
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 (11.73%) is better than 88.37% of its industry peers.
In the last couple of years the Profit Margin of MKC has declined.
MKC has a better Operating Margin (15.91%) than 86.05% of its industry peers.
MKC's Operating Margin has declined in the last couple of years.
MKC has a Gross Margin of 38.54%. This is amongst the best in the industry. MKC outperforms 86.05% of its industry peers.
MKC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.91% | ||
| PM (TTM) | 11.73% | ||
| GM | 38.54% |
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 below the Cost of Capital (WACC), which means it is destroying 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.
Compared to 1 year ago, MKC has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.69 indicates that MKC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.69, MKC perfoms like the industry average, outperforming 56.98% of the companies in the same industry.
MKC has a debt to FCF ratio of 6.71. This is a slightly negative value and a sign of low solvency as MKC would need 6.71 years to pay back of all of its debts.
The Debt to FCF ratio of MKC (6.71) is comparable to the rest of the industry.
MKC has a Debt/Equity ratio of 0.77. This is a neutral value indicating MKC is somewhat dependend on debt financing.
The Debt to Equity ratio of MKC (0.77) is worse than 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 6.71 | ||
| Altman-Z | 2.69 |
ROIC/WACC0.96
WACC8.22%
2.3 Liquidity
MKC has a Current Ratio of 0.74. This is a bad value and indicates that MKC is not financially healthy enough and could expect problems in meeting its short term obligations.
MKC has a Current ratio of 0.74. This is amonst the worse of the industry: MKC underperforms 83.72% of its industry peers.
MKC has a Quick Ratio of 0.74. 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 0.31, MKC is not doing good in the industry: 90.70% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.67% over the past year.
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.
MKC shows a small growth in Revenue. In the last year, the Revenue has grown by 0.92%.
The Revenue has been growing slightly by 4.69% on average over the past years.
EPS 1Y (TTM)9.67%
EPS 3Y-1.11%
EPS 5Y1.98%
EPS Q2Q%-5.88%
Revenue 1Y (TTM)0.92%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%2.58%
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 6.99% on average per year.
MKC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.48% yearly.
EPS Next Y5.42%
EPS Next 2Y6.72%
EPS Next 3Y7.25%
EPS Next 5Y6.99%
Revenue Next Year2.37%
Revenue Next 2Y2.76%
Revenue Next 3Y3.45%
Revenue Next 5Y3.48%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.18, which means the current valuation is very expensive for MKC.
The rest of the industry has a similar Price/Earnings ratio as MKC.
Compared to an average S&P500 Price/Earnings ratio of 28.46, MKC is valued at the same level.
A Price/Forward Earnings ratio of 24.83 indicates a rather expensive valuation of MKC.
MKC's Price/Forward Earnings ratio is in line with the industry average.
MKC is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.18 | ||
| Fwd PE | 24.83 |
4.2 Price Multiples
MKC's Enterprise Value to EBITDA ratio is in line with the industry average.
MKC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.03 | ||
| EV/EBITDA | 19.08 |
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 decent profitability rating of MKC may justify a higher PE ratio.
PEG (NY)4.83
PEG (5Y)13.25
EPS Next 2Y6.72%
EPS Next 3Y7.25%
5. Dividend
5.1 Amount
MKC has a Yearly Dividend Yield of 2.31%.
Compared to an average industry Dividend Yield of 3.83, MKC pays a bit more dividend than its industry peers.
MKC's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
5.2 History
The dividend of MKC is nicely growing with an annual growth rate of 8.09%!
MKC has paid a dividend for at least 10 years, which is 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 Years33
Div Non Decr Years33
5.3 Sustainability
MKC pays out 57.20% of its income as dividend. This is a bit on the high side, but may be sustainable.
MKC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP57.2%
EPS Next 2Y6.72%
EPS Next 3Y7.25%
MCCORMICK & CO-NON VTG SHRS
NYSE:MKC (1/31/2025, 8:04:00 PM)
After market: 77.24 +0.01 (+0.01%)77.23
-0.55 (-0.71%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners88.17%
Inst Owner Change0.12%
Ins Owners0.01%
Ins Owner Change-0.3%
Market Cap20.73B
Analysts72.38
Price Target87.9 (13.82%)
Short Float %1.98%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend1.68
Dividend Growth(5Y)8.09%
DP57.2%
Div Incr Years33
Div Non Decr Years33
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.18%
Min EPS beat(2)3.07%
Max EPS beat(2)21.3%
EPS beat(4)4
Avg EPS beat(4)12.18%
Min EPS beat(4)3.07%
Max EPS beat(4)21.3%
EPS beat(8)7
Avg EPS beat(8)8.95%
EPS beat(12)8
Avg EPS beat(12)1.62%
EPS beat(16)12
Avg EPS beat(16)4.14%
Revenue beat(2)1
Avg Revenue beat(2)0.07%
Min Revenue beat(2)-0.25%
Max Revenue beat(2)0.39%
Revenue beat(4)2
Avg Revenue beat(4)0.45%
Min Revenue beat(4)-0.29%
Max Revenue beat(4)1.95%
Revenue beat(8)3
Avg Revenue beat(8)-0.51%
Revenue beat(12)4
Avg Revenue beat(12)-1.1%
Revenue beat(16)6
Avg Revenue beat(16)-0.12%
PT rev (1m)0.09%
PT rev (3m)0.96%
EPS NQ rev (1m)-7.31%
EPS NQ rev (3m)-7.31%
EPS NY rev (1m)-1.32%
EPS NY rev (3m)-1.35%
Revenue NQ rev (1m)-1.45%
Revenue NQ rev (3m)-1.93%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.18 | ||
| Fwd PE | 24.83 | ||
| P/S | 3.08 | ||
| P/FCF | 32.03 | ||
| P/OCF | 22.48 | ||
| P/B | 3.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.08 |
EPS(TTM)2.95
EY3.82%
EPS(NY)3.11
Fwd EY4.03%
FCF(TTM)2.41
FCFY3.12%
OCF(TTM)3.44
OCFY4.45%
SpS25.05
BVpS19.72
TBVpS-12.13
PEG (NY)4.83
PEG (5Y)13.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.03% | ||
| ROE | 14.9% | ||
| ROCE | 10.5% | ||
| ROIC | 7.9% | ||
| ROICexc | 8.04% | ||
| ROICexgc | 43.52% | ||
| OM | 15.91% | ||
| PM (TTM) | 11.73% | ||
| GM | 38.54% | ||
| FCFM | 9.62% |
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)64.54%
ROCE(3y)10.15%
ROCE(5y)10.62%
ROICexcg growth 3Y-19.66%
ROICexcg growth 5Y-5.29%
ROICexc growth 3Y-2.95%
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-Score7
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.77 | ||
| Debt/FCF | 6.71 | ||
| Debt/EBITDA | 3.19 | ||
| Cap/Depr | 131.66% | ||
| Cap/Sales | 4.09% | ||
| Interest Coverage | 5.09 | ||
| Cash Conversion | 72.1% | ||
| Profit Quality | 82.05% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z | 2.69 |
F-Score7
WACC8.22%
ROIC/WACC0.96
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)9.67%
EPS 3Y-1.11%
EPS 5Y1.98%
EPS Q2Q%-5.88%
EPS Next Y5.42%
EPS Next 2Y6.72%
EPS Next 3Y7.25%
EPS Next 5Y6.99%
Revenue 1Y (TTM)0.92%
Revenue growth 3Y2.1%
Revenue growth 5Y4.69%
Sales Q2Q%2.58%
Revenue Next Year2.37%
Revenue Next 2Y2.76%
Revenue Next 3Y3.45%
Revenue Next 5Y3.48%
EBIT growth 1Y4.45%
EBIT growth 3Y-0.97%
EBIT growth 5Y1.8%
EBIT Next Year27.36%
EBIT Next 3Y12.29%
EBIT Next 5Y8.68%
FCF growth 1Y-33.53%
FCF growth 3Y5.54%
FCF growth 5Y-3.5%
OCF growth 1Y-25.49%
OCF growth 3Y3.63%
OCF growth 5Y-0.53%