MCCORMICK & CO-NON VTG SHRS (MKC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MKC - US5797802064 - Common Stock
60.145 USD
-1.05 (-1.72%)
Overall MKC gets a fundamental rating of 5 out of 10. We evaluated MKC against 87 industry peers in the Food Products industry. MKC scores excellent on profitability, but there are concerns on its financial health. MKC is not valued too expensively and it also shows 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.
- In the past 5 years MKC always reported a positive cash flow from operatings.
1.2 Ratios
- MKC's Return On Assets of 5.87% is amongst the best of the industry. MKC outperforms 82.76% of its industry peers.
- MKC has a better Return On Equity (13.52%) than 85.06% of its industry peers.
- MKC's Return On Invested Capital of 8.05% is amongst the best of the industry. MKC outperforms 82.76% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for MKC is significantly below the industry average of 27.79%.
- The 3 year average ROIC (7.52%) for MKC is below the current ROIC(8.05%), indicating increased profibility in the last year.
| 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
- With an excellent Profit Margin value of 11.46%, MKC belongs to the best of the industry, outperforming 91.95% of the companies in the same industry.
- MKC's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 15.99%, MKC belongs to the top of the industry, outperforming 95.40% of the companies in the same industry.
- In the last couple of years the Operating Margin of MKC has declined.
- MKC's Gross Margin of 38.23% is amongst the best of the industry. MKC outperforms 88.51% 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MKC is still 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.
- MKC has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.42 indicates that MKC is not a great score, but indicates only limited risk for bankruptcy at the moment.
- MKC has a Altman-Z score (2.42) which is in line with its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 6.65, MKC is in the better half of the industry, outperforming 70.11% 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.65 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.03
WACC7.82%
2.3 Liquidity
- A Current Ratio of 0.71 indicates that MKC may have some problems paying its short term obligations.
- With a Current ratio value of 0.71, MKC is not doing good in the industry: 83.91% 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 90.80% 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.
- The Earnings Per Share has been growing slightly by 1.98% on average over the past years.
- 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
- Based on estimates for the next years, MKC will show a small growth in Earnings Per Share. The EPS will grow by 6.68% on average per year.
- The Revenue is expected to grow by 4.07% on average over the next years.
EPS Next Y3.11%
EPS Next 2Y5.04%
EPS Next 3Y6.49%
EPS Next 5Y6.68%
Revenue Next Year2.01%
Revenue Next 2Y4.72%
Revenue Next 3Y4.58%
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.
- 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 20.46 indicates a rather expensive valuation of MKC.
- The rest of the industry has a similar Price/Earnings ratio as MKC.
- MKC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 18.48, the valuation of MKC can be described as rather expensive.
- MKC's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of MKC to the average of the S&P500 Index (24.32), we can say MKC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.46 | ||
| Fwd PE | 18.48 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as MKC.
- 60.92% of the companies in the same industry are more expensive than MKC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.64 | ||
| EV/EBITDA | 15.43 |
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)6.58
PEG (5Y)10.35
EPS Next 2Y5.04%
EPS Next 3Y6.49%
5. Dividend
5.1 Amount
- MKC has a Yearly Dividend Yield of 2.88%.
- Compared to an average industry Dividend Yield of 2.28, MKC pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, MKC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
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.
- The dividend of MKC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP61.04%
EPS Next 2Y5.04%
EPS Next 3Y6.49%
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 3.11% 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%.