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McCormick

WBAG:MKC
Snowflake Description

Average dividend payer with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MKC
WBAG
$21B
Market Cap
  1. Home
  2. AT
  3. Food, Beverage & Tobacco
Company description

McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry. The last earnings update was 21 days ago. More info.


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MKC Share Price and Events
7 Day Returns
1.5%
WBAG:MKC
0.7%
Europe Food
-0.9%
AT Market
1 Year Returns
-
WBAG:MKC
13.7%
Europe Food
-7.2%
AT Market
MKC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
McCormick (MKC) 1.5% 3.8% - - - -
Europe Food 0.7% 1% 6% 13.7% 13.2% 41.9%
AT Market -0.9% -0% -7.6% -7.2% 38.6% 26.1%
1 Year Return vs Industry and Market
  • No trading data on MKC.
  • No trading data on MKC.
Price Volatility
MKC
Industry
5yr Volatility vs Market

MKC Value

 Is McCormick undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of McCormick to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for McCormick.

WBAG:MKC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5.3%
Perpetual Growth Rate 10-Year AT Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for WBAG:MKC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AT Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6%
Food Unlevered Beta Simply Wall St/ S&P Global 0.56
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.565 (1 + (1- 21%) (22.04%))
0.774
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.51% + (0.8 * 5.96%)
5.28%

Discounted Cash Flow Calculation for WBAG:MKC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for McCormick is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

WBAG:MKC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 5.28%)
2020 774.50 Analyst x4 735.67
2021 874.50 Analyst x2 789.01
2022 925.67 Est @ 5.85% 793.31
2023 965.01 Est @ 4.25% 785.56
2024 995.19 Est @ 3.13% 769.51
2025 1,018.49 Est @ 2.34% 748.05
2026 1,036.75 Est @ 1.79% 723.29
2027 1,051.35 Est @ 1.41% 696.70
2028 1,063.32 Est @ 1.14% 669.30
2029 1,073.42 Est @ 0.95% 641.79
Present value of next 10 years cash flows $7,352.20
WBAG:MKC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,073.42 × (1 + 0.51%) ÷ (5.28% – 0.51%)
$22,627.74
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $22,627.74 ÷ (1 + 5.28%)10
$13,528.97
WBAG:MKC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $7,352.20 + $13,528.97
$20,881.18
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $20,881.18 / 132.53
$157.56
WBAG:MKC Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in WBAG:MKC represents 0.89694x of NYSE:MKC
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.89694x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 157.56 x 0.89694
€141.32
Value per share (EUR) From above. €141.32
Current discount Discount to share price of €142.39
= -1 x (€142.39 - €141.32) / €141.32
-0.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of McCormick is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for McCormick's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are McCormick's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
WBAG:MKC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-05-31) in USD $5.19
NYSE:MKC Share Price ** NYSE (2019-07-19) in USD $158.75
Europe Food Industry PE Ratio Median Figure of 118 Publicly-Listed Food Companies 17.13x
Austria Market PE Ratio Median Figure of 54 Publicly-Listed Companies 14.07x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of McCormick.

WBAG:MKC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MKC Share Price ÷ EPS (both in USD)

= 158.75 ÷ 5.19

30.6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McCormick is overvalued based on earnings compared to the Europe Food industry average.
  • McCormick is overvalued based on earnings compared to the Austria market.
Price based on expected Growth
Does McCormick's expected growth come at a high price?
Raw Data
WBAG:MKC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 30.6x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
7.1%per year
Europe Food Industry PEG Ratio Median Figure of 67 Publicly-Listed Food Companies 1.67x
Austria Market PEG Ratio Median Figure of 33 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

WBAG:MKC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 30.6x ÷ 7.1%

4.31x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McCormick is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on McCormick's assets?
Raw Data
WBAG:MKC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-05-31) in USD $25.44
NYSE:MKC Share Price * NYSE (2019-07-19) in USD $158.75
Europe Food Industry PB Ratio Median Figure of 160 Publicly-Listed Food Companies 1.3x
Austria Market PB Ratio Median Figure of 62 Publicly-Listed Companies 1.18x
WBAG:MKC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MKC Share Price ÷ Book Value per Share (both in USD)

= 158.75 ÷ 25.44

6.24x

* Primary Listing of McCormick.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McCormick is overvalued based on assets compared to the Europe Food industry average.
X
Value checks
We assess McCormick's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Food industry average (and greater than 0)? (1 check)
  5. McCormick has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MKC Future Performance

 How is McCormick expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is McCormick expected to grow at an attractive rate?
  • McCormick's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • McCormick's earnings growth is positive but not above the Austria market average.
  • McCormick's revenue growth is positive but not above the Austria market average.
Annual Growth Rates Comparison
Raw Data
WBAG:MKC Future Growth Rates Data Sources
Data Point Source Value (per year)
WBAG:MKC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 7.1%
WBAG:MKC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 2.8%
Europe Food Industry Earnings Growth Rate Market Cap Weighted Average 9.9%
Europe Food Industry Revenue Growth Rate Market Cap Weighted Average 4%
Austria Market Earnings Growth Rate Market Cap Weighted Average 8.6%
Austria Market Revenue Growth Rate Market Cap Weighted Average 3.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
WBAG:MKC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
WBAG:MKC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-11-30 5,744 1,021 812 6
2020-11-30 5,584 912 746 8
2019-11-30 5,418 864 700 8
WBAG:MKC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-05-31 5,426 901 685
2019-02-28 5,425 945 659
2018-11-30 5,409 821 933
2018-08-31 5,353 901 895
2018-05-31 5,193 873 830
2018-02-28 5,006 751 807
2017-11-30 4,834 815 477
2017-08-31 4,570 639 459
2017-05-31 4,476 623 479
2017-02-28 4,425 624 472
2016-11-30 4,412 658 472
2016-08-31 4,386 596 464

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • McCormick's earnings are expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).
  • McCormick's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
WBAG:MKC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from McCormick Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WBAG:MKC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-11-30 6.12 6.22 5.92 3.00
2020-11-30 5.61 5.75 5.40 4.00
2019-11-30 5.22 5.30 5.17 4.00
WBAG:MKC Past Financials Data
Date (Data in USD Millions) EPS *
2019-05-31 5.19
2019-02-28 5.00
2018-11-30 7.10
2018-08-31 6.82
2018-05-31 6.39
2018-02-28 6.28
2017-11-30 3.76
2017-08-31 3.65
2017-05-31 3.81
2017-02-28 3.75
2016-11-30 3.73
2016-08-31 3.65

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • McCormick is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess McCormick's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
McCormick has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MKC Past Performance

  How has McCormick performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare McCormick's growth in the last year to its industry (Food).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • McCormick's year on year earnings growth rate has been positive over the past 5 years.
  • McCormick's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • McCormick's 1-year earnings growth is negative, it can't be compared to the Europe Food industry average.
Earnings and Revenue History
McCormick's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from McCormick Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WBAG:MKC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-05-31 5,425.60 684.90 1,349.20 69.40
2019-02-28 5,425.00 658.80 1,357.80 69.40
2018-11-30 5,408.90 933.40 1,360.10 69.40
2018-08-31 5,352.90 895.10 1,228.50 66.10
2018-05-31 5,192.80 829.80 1,161.60 66.10
2018-02-28 5,005.80 806.50 1,171.40 66.10
2017-11-30 4,834.10 477.40 1,178.70 66.10
2017-08-31 4,570.20 459.10 1,127.50 61.00
2017-05-31 4,476.00 478.60 1,110.70 61.00
2017-02-28 4,425.00 472.40 1,107.30 61.00
2016-11-30 4,411.50 472.30 1,114.00 61.00
2016-08-31 4,386.40 464.10 1,090.20 60.80
2016-05-31 4,355.30 434.00 1,092.40 60.80
2016-02-29 4,316.10 424.50 1,069.70 60.80
2015-11-30 4,296.30 401.60 1,063.00 60.80
2015-08-31 4,268.00 400.40 1,062.10 62.00
2015-05-31 4,250.90 425.70 1,051.10 62.00
2015-02-28 4,260.20 425.90 1,060.70 62.00
2014-11-30 4,243.20 437.90 1,060.00 62.00
2014-08-31 4,239.60 419.90 1,044.50 61.30
2014-05-31 4,213.30 401.40 1,042.70 61.30
2014-02-28 4,182.40 395.50 1,026.60 61.30
2013-11-30 4,123.40 389.00 1,009.40 61.30
2013-08-31 4,099.20 407.50 1,005.70 57.80
2013-05-31 4,060.40 407.50 994.60 57.80
2013-02-28 4,041.90 409.30 986.90 57.80
2012-11-30 4,014.20 407.80 980.00 57.80
2012-08-31 3,979.10 391.10 975.50 58.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst McCormick has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • McCormick used its assets more efficiently than the Europe Food industry average last year based on Return on Assets.
  • McCormick's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess McCormick's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
McCormick has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MKC Health

 How is McCormick's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up McCormick's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • McCormick's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • McCormick's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of McCormick's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from McCormick Company Filings, last reported 1 month ago.

WBAG:MKC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-05-31 3,382.60 4,678.40 151.50
2019-02-28 3,342.70 4,736.40 102.40
2018-11-30 3,182.20 4,702.80 96.60
2018-08-31 3,112.00 4,991.10 73.00
2018-05-31 3,040.30 5,161.00 202.60
2018-02-28 3,072.40 5,140.60 179.60
2017-11-30 2,570.90 5,029.60 186.80
2017-08-31 2,533.30 5,377.00 166.40
2017-05-31 1,809.40 1,714.80 130.00
2017-02-28 1,731.60 1,695.20 125.70
2016-11-30 1,638.10 1,448.40 118.40
2016-08-31 1,774.60 1,617.80 139.70
2016-05-31 1,773.50 1,568.90 134.50
2016-02-29 1,726.90 1,446.50 116.30
2015-11-30 1,686.90 1,395.00 115.10
2015-08-31 1,762.20 1,492.20 111.90
2015-05-31 1,735.30 1,430.50 95.40
2015-02-28 1,703.90 1,323.00 86.70
2014-11-30 1,809.40 1,284.90 84.70
2014-08-31 1,970.00 1,367.70 101.10
2014-05-31 1,979.90 1,325.20 91.20
2014-02-28 1,987.40 1,298.60 99.10
2013-11-30 1,947.70 1,233.10 75.20
2013-08-31 1,797.50 1,378.60 158.30
2013-05-31 1,733.70 1,326.30 90.50
2013-02-28 1,724.80 1,229.80 84.00
2012-11-30 1,700.20 1,171.90 95.70
2012-08-31 1,724.00 1,257.50 88.80
  • McCormick's level of debt (138.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (67% vs 138.3% today).
  • Debt is not well covered by operating cash flow (19.2%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.5x coverage).
X
Financial health checks
We assess McCormick's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. McCormick has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MKC Dividends

 What is McCormick's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.44%
Current annual income from McCormick dividends. Estimated to be 1.52% next year.
If you bought €2,000 of McCormick shares you are expected to receive €29 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • McCormick's pays a lower dividend yield than the bottom 25% of dividend payers in Austria (1.48%).
  • McCormick's dividend is below the markets top 25% of dividend payers in Austria (4.59%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
WBAG:MKC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Europe Food Industry Average Dividend Yield Market Cap Weighted Average of 94 Stocks 2.3%
Austria Market Average Dividend Yield Market Cap Weighted Average of 51 Stocks 3.6%
Austria Minimum Threshold Dividend Yield 10th Percentile 1%
Austria Bottom 25% Dividend Yield 25th Percentile 1.5%
Austria Top 25% Dividend Yield 75th Percentile 4.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

WBAG:MKC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-11-30 2.58 6.00
2020-11-30 2.43 8.00
2019-11-30 2.26 8.00
WBAG:MKC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-06-25 2.280 1.445
2019-03-27 2.280 1.481
2018-11-27 2.280 1.662
2018-09-25 2.080 1.480
2018-06-26 2.080 1.704
2018-03-28 2.080 1.988
2017-11-28 2.080 1.998
2017-09-26 1.880 1.908
2017-06-27 1.880 1.953
2017-03-29 1.880 1.858
2016-11-29 1.880 1.971
2016-09-27 1.720 1.824
2016-06-28 1.720 1.694
2016-03-30 1.720 1.766
2015-11-24 1.720 1.948
2015-09-29 1.600 1.921
2015-06-30 1.600 1.971
2015-03-25 1.600 2.058
2014-11-25 1.600 2.162
2014-09-30 1.480 2.119
2014-06-25 1.480 2.147
2014-03-26 1.480 2.073
2013-11-26 1.480 2.192
2013-09-24 1.360 2.005
2013-06-26 1.360 1.933
2013-04-03 1.360 1.890
2012-11-27 1.360 2.058
2012-09-25 1.240 1.980
2012-06-26 1.240 2.030
2012-03-28 1.240 2.219
2011-11-22 1.240 2.458
2011-09-27 1.120 2.330
2011-06-28 1.120 2.362
2011-03-30 1.120 2.289
2010-11-23 1.120 2.410
2010-09-28 1.040 2.413
2010-06-22 1.040 2.618
2010-03-31 1.040 2.663
2009-11-24 1.040 2.810
2009-09-22 0.960 2.766
2009-06-23 0.960 2.936
2009-03-25 0.960 3.182
2008-11-25 0.960 3.099
2008-09-23 0.880 2.620

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of McCormick's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
X
Income/ dividend checks
We assess McCormick's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can McCormick afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. McCormick has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MKC Management

 What is the CEO of McCormick's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Lawrence Kurzius
COMPENSATION $14,836,426
AGE 61
TENURE AS CEO 3.4 years
CEO Bio

Mr. Lawrence E. Kurzius has been the President at McCormick & Company, Incorporated since January 5, 2015 and has been its Chief Executive Officer since February 1, 2016. Mr. Kurzius served as the Chief Administrative Officer at McCormick & Company, Incorporated from July 1, 2013 to January 5, 2015 and served as its President of Americas and China until January 5, 2015. Mr. Kurzius served as the President of Global Consumer at McCormick & Company, Incorporated since July 1, 2013 and its Chief Operating Officer from January 5, 2015 to February 1, 2016 and President of the global consumer business from 2013 to 2016. He served as the President of McCormick International at McCormick & Co. Inc since September 1, 2008 until July 2013. He was responsible for McCormick’s consumer and industrial businesses in Europe, the Middle East and Africa, Canada, Asia and Australia. He serves as a Member of Management Committee at McCormick & Co. Inc. He served as the President of International Business at McCormick & Co. Inc. from 2008 to 2013. He served as the President of Europe, Africa and Middle East at McCormick & Co. Inc., since 2007 until August 31, 2008 where he was responsible to strengthen the synergies between its industrial and consumer businesses in those regions and provided strategic direction generating positive results over that time. He was responsible for both the consumer and industrial businesses in these regions and manufacturing, supply chain, finance, human relations and other support activities. Mr. Kurzius served as President of U.S. Consumer Foods of Mccormick & Co. Inc. from September 6, 2005 to 2006 and also served as its President of Europe since January 1, 2007. He joined McCormick in 2003 and served as its President and Chief Executive Officer. He joined McCormick’s U.S. Consumer Foods in 2004 as Vice President and General Manager of Sales and Marketing from 2005 and served in these positions until September 2005. He served as the President and Chief Executive Officer of Zatarain’s Brands Inc., a subsidiary of McCormick & Co. Inc. from January 1997 to December 2004. He served as Marketing Executive of Uncle Ben’s, a division of Mars, Inc., and Quaker Oats Company. Mr. Kurzius was also a marketing executive with the Quaker Oats Company and Mars Inc.’s Uncle Ben’s Company. In these various roles, Mr. Kurzius developed a broad knowledge of the Company’s markets – both domestic and foreign, and consumer and industrial – and had senior level responsibility for strategic planning and leadership with respect to these businesses. In his present role, Mr. Kurzius is responsible for the strategic leadership of the Company. He has extensive knowledge of consumer goods marketing in general, with a specific knowledge of the business, markets, and customers within the food industry in particular, and has hands-on experience in directing the day-to-day operations of large, multi-faceted, consumer and industrial foods business.He joined Zatarain’s in 1991. He serves on the President Council of Tulane University. He has been the Chairman of the Board at McCormick & Company, Incorporated from February 2017. He has been a Director of McCormick & Company, Incorporated since November 24, 2015. He serves as a Director of Elanco Animal Health Incorporated from September 2018. He was Director of McCormick Foods Australia Pty Ltd until July 10, 2014. Mr. Kurzius served as a Director of the Federal Reserve Bank of Atlanta’s New Orleans Branch. He holds a BA degree, Magna Cum Laude in Economics from Princeton University.

CEO Compensation
  • Lawrence's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Insufficient data for Lawrence to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure

Average tenure and age of the McCormick management team in years:

4.1
Average Tenure
54
Average Age
  • The tenure for the McCormick management team is about average.
Management Team

Lawrence Kurzius

TITLE
Chairman
COMPENSATION
$15M
AGE
61
TENURE
3.4 yrs

Mike Smith

TITLE
Executive VP & CFO
COMPENSATION
$5M
AGE
54
TENURE
2.8 yrs

Jeffery Schwartz

TITLE
VP, General Counsel & Corporate Secretary
COMPENSATION
$3M
AGE
49
TENURE
4.6 yrs

Malcolm Swift

TITLE
President of Global Flavor Solutions & McCormick International
COMPENSATION
$2M
AGE
59
TENURE
5.5 yrs

Brendan Foley

TITLE
President of Global Consumer & Americas
COMPENSATION
$6M
AGE
53
TENURE
3.5 yrs

Christina McMullen

TITLE
VP, Controller & Chief Accounting Officer
AGE
63
TENURE
5.8 yrs

Kasey Jenkins

TITLE
Vice President of Investor Relations

Lori Robinson

TITLE
Vice President of Corporate Communications
TENURE
8.5 yrs

Lisa Manzone

TITLE
Senior Vice President of Human Relations
AGE
54
TENURE
4.1 yrs

Nneka Rimmer

TITLE
Senior Vice President of Business Transformation
AGE
47
TENURE
1.9 yrs
Board of Directors Tenure

Average tenure and age of the McCormick board of directors in years:

5.7
Average Tenure
62
Average Age
  • The tenure for the McCormick board of directors is about average.
Board of Directors

Lawrence Kurzius

TITLE
Chairman
COMPENSATION
$15M
AGE
61
TENURE
2.4 yrs

Freeman Hrabowski

TITLE
Independent Director
COMPENSATION
$265K
AGE
68
TENURE
22.5 yrs

Patricia Little

TITLE
Independent Director
COMPENSATION
$269K
AGE
58
TENURE
9.2 yrs

Tony Vernon

TITLE
Independent Director
COMPENSATION
$261K
AGE
63
TENURE
2.2 yrs

Michael Mangan

TITLE
Lead Independent Director
COMPENSATION
$276K
AGE
62
TENURE
12.5 yrs

Margaret Mary Preston

TITLE
Independent Director
COMPENSATION
$250K
AGE
62
TENURE
15.8 yrs

Jacques Tapiero

TITLE
Independent Director
COMPENSATION
$250K
AGE
60
TENURE
6.8 yrs

Maritza Montiel

TITLE
Independent Director
COMPENSATION
$250K
AGE
67
TENURE
4.2 yrs

Mike Conway

TITLE
Independent Director
COMPENSATION
$250K
AGE
52
TENURE
4.5 yrs

Gary Rodkin

TITLE
Independent Director
COMPENSATION
$250K
AGE
67
TENURE
2.5 yrs
Who owns this company?
Recent Insider Trading
  • McCormick individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
02. Jul 19 Sell Nneka Rimmer Individual 28. Jun 19 28. Jun 19 -2,070 €135.35 €-280,181
23. May 19 Sell Margaret Mary Preston Individual 21. May 19 21. May 19 -3,865 €138.22 €-534,217
X
Management checks
We assess McCormick's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. McCormick has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MKC News

Simply Wall St News

MKC Company Info

Description

McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry. The company operates in two segments, Consumer and Flavor Solutions. The Consumer segment offers spices, herbs, and seasonings, as well as desserts. This segment markets its products under the McCormick, French, Frank’s RedHot, Lawry’s, Club House, Gourmet Garden, and OLD BAY brands in the Americas; Ducros, Schwartz, Kamis, and Drogheria & Alimentari, and Vahiné brand names in Europe, the Middle East, and Africa; McCormick and DaQiao brands in China; and McCormick, Aeroplane, and Gourmet Garden brand names in Australia, as well as markets regional and ethnic brands, such as Zatarain’s, Stubb's, Thai Kitchen, and Simply Asia. It also supplies its products under the private labels. This segment serves retailers comprising grocery, mass merchandise, warehouse clubs, discount and drug stores, and e-commerce retailers directly and indirectly through distributors or wholesalers. The Flavor Solutions segment offers seasoning blends, spices and herbs, condiments, coating systems, and compound flavors to multinational food manufacturers and foodservice customers. It serves foodservice customers directly and indirectly through distributors. The company was founded in 1889 and is headquartered in Hunt Valley, Maryland.

Details
Name: McCormick & Company, Incorporated
MKC
Exchange: WBAG
Founded: 1889
$18,917,429,011
132,526,191
Website: http://www.mccormickcorporation.com
Address: McCormick & Company, Incorporated
24 Schilling Road,
Suite 1,
Hunt Valley,
Maryland, 21031,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MKC Non-Voting Common Stock New York Stock Exchange US USD 02. Jan 1969
DB MCX Non-Voting Common Stock Deutsche Boerse AG DE EUR 02. Jan 1969
LSE 0JZS Non-Voting Common Stock London Stock Exchange GB USD 02. Jan 1969
WBAG MKC Non-Voting Common Stock Wiener Boerse AG AT EUR 02. Jan 1969
BMV MKC * Non-Voting Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1969
NYSE MKC.V Common Stock New York Stock Exchange US USD 08. Dec 1975
Number of employees
Current staff
Staff numbers
11,600
McCormick employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 22:26
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/19
Last earnings filing: 2019/06/28
Last earnings reported: 2019/05/31
Last annual earnings reported: 2018/11/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.