Market Cap
US$21.4b
Last Updated
2019/10/15 23:39 UTC
Data Sources
Company Financials +
Executive Summary
McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry.
Snowflake
Fundamentals
Average dividend payer with questionable track record.
Similar Companies
Share Price & News
How has McCormick's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
-3.4%
MKC
-0.09%
US Food
3.4%
US Market
1 Year Return
17.5%
MKC
1.0%
US Food
5.4%
US Market
Return vs Industry: MKC exceeded the US Food industry which returned 1% over the past year.
Return vs Market: MKC exceeded the US Market which returned 5.4% over the past year.
Shareholder returns
| MKC | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.4% | -0.09% | 3.4% |
| 30 Day | 2.5% | -2.6% | -1.0% |
| 90 Day | 0.6% | -0.8% | -0.4% |
| 1 Year | 19.2%17.5% | 4.0%1.0% | 7.7%5.4% |
| 3 Year | 78.9%69.7% | -2.4%-11.0% | 46.2%36.8% |
| 5 Year | 158.9%136.4% | 45.1%27.8% | 65.6%47.5% |
Price Volatility Vs. Market
How volatile is McCormick's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
McCormick & Company, Incorporated (NYSE:MKC) Earns A Nice Return On Capital Employed2 weeks ago | Simply Wall St
Is It Smart To Buy McCormick & Company, Incorporated (NYSE:MKC) Before It Goes Ex-Dividend?3 weeks ago | Simply Wall St
Should You Be Pleased About The CEO Pay At McCormick & Company, Incorporated's (NYSE:MKC)Valuation
Is McCormick undervalued compared to its fair value and its price relative to the market?
30.29x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Undervalued: MKC ($161) is trading above our estimate of fair value ($135.16)
Significantly Undervalued: MKC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MKC is poor value based on its PE Ratio (30.3x) compared to the Food industry average (25.3x).
PE vs Market: MKC is poor value based on its PE Ratio (30.3x) compared to the US market (17.7x).
Price to Earnings Growth Ratio
Low PEG Ratio: MKC is poor value based on its PEG Ratio (4.1x)
Price to Book Ratio
PB vs Industry: MKC is overvalued based on its PB Ratio (6.2x) compared to the US Food industry average (2.1x).
Next Steps
Future Growth
How is McCormick forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
7.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MKC's forecast earnings growth (7.4% per year) is above the savings rate (2.7%).
Earnings vs Market: MKC's earnings (7.4% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: MKC's earnings are forecast to grow, but not significantly.
Revenue vs Market: MKC's revenue (2.4% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: MKC's revenue (2.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: MKC's Return on Equity is forecast to be low in 3 years time (19.2%).
Next Steps
Past Performance
How has McCormick performed over the past 5 years?
16.1%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: MKC's earnings have grown by 16.1% per year over the past 5 years.
Accelerating Growth: MKC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MKC had negative earnings growth (-21.4%) over the past year, making it difficult to compare to the Food industry average (-22.7%).
Return on Equity
High ROE: Whilst MKC's Return on Equity (20.21%) is high, this metric is skewed due to their high level of debt.
Return on Assets
ROA vs Industry: MKC has a higher Return on Assets than the Food industry average last year.
Return on Capital Employed
ROCE Improving: MKC's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is McCormick's financial position?
Financial Position Analysis
Short Term Liabilities: MKC's short term assets ($1.6B) do not cover its short term liabilities ($2.0B)
Long Term Liabilities: MKC's short term assets (1.6B) do not cover its long term liabilities (4.9B)
Debt to Equity History and Analysis
Debt Level: MKC's debt to equity ratio (133.9%) is considered high
Reducing Debt: MKC's debt to equity ratio has increased from 69.4% to 133.9% over the past 5 years.
Debt Coverage: MKC's debt is not well covered by operating cash flow (19.9%).
Interest Coverage: MKC's interest payments on its debt are well covered by EBIT (5.8x coverage).
Balance Sheet
Inventory Level: MKC has a low level of unsold assets or inventory.
Debt Coverage by Assets: MKC's debt is not covered by short term assets (assets are 0.3x debt).
Next Steps
Dividend
What is McCormick's current dividend yield, its reliability and sustainability?
1.42%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: MKC's dividend (1.42%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.46%).
High Dividend: MKC's dividend (1.42%) is low compared to the top 25% of dividend payers in the US market (3.77%).
Stable Dividend: MKC's dividends per share have been stable in the past 10 years.
Growing Dividend: MKC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (42%), MKC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MKC's dividends in 3 years are forecast to be well covered by earnings (43.6% payout ratio).
Next Steps
Management
What is the CEO of McCormick's salary, the management and board of directors tenure and is there insider trading?
4.3yrs
Average management tenure
CEO
Lawrence Kurzius (61yo)
3.7yrs
Tenure
US$14,836,426
Compensation
Mr. Lawrence E. Kurzius has been the President at McCormick & Company, Incorporated since January 5, 2015 and has been its Chief Executive Officer since February 1, 2016. Mr. Kurzius served as the Chief Ad ...
CEO Compensation Analysis
Compensation vs. Market: Lawrence's total compensation ($USD14.84M) is about average for companies of similar size in the US market ($USD11.18M).
Compensation vs Earnings: Lawrence's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Management Age and Tenure
4.3yrs
Average Tenure
54yo
Average Age
Experienced Management: MKC's management team is considered experienced (4.3 years average tenure).
Board Age and Tenure
5.9yrs
Average Tenure
62yo
Average Age
Experienced Board: MKC's board of directors are considered experienced (5.9 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Senior Key Executive Senior Vice President of Business Transformation |
| Shares | 2,070 |
| Max Price | US$154.02 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 3,865 |
| Max Price | US$154.31 |
Ownership Breakdown
Management Team
Christina McMullen (63yo)
VP, Controller & Chief Accounting Officer
- Tenure: 6yrs
Lawrence Kurzius (61yo)
Chairman
- Tenure: 3.7yrs
- Compensation: US$14.84m
Malcolm Swift (59yo)
President of Global Flavor Solutions & McCormick International
- Tenure: 5.8yrs
- Compensation: US$2.49m
Lori Robinson
Vice President of Corporate Communications
- Tenure: 8.8yrs
Mike Smith (54yo)
Executive VP & CFO
- Tenure: 3.1yrs
- Compensation: US$5.16m
Brendan Foley (53yo)
President of Global Consumer & Americas
- Tenure: 3.8yrs
- Compensation: US$5.80m
Lisa Manzone (54yo)
Senior Vice President of Human Relations
- Tenure: 4.3yrs
Jeffery Schwartz (49yo)
VP, General Counsel & Corporate Secretary
- Tenure: 4.8yrs
- Compensation: US$2.77m
Nneka Rimmer (47yo)
Senior Vice President of Business Transformation
- Tenure: 2.2yrs
Kasey Jenkins
Vice President of Investor Relations
- Tenure: 0yrs
Board Members
Michael Mangan (62yo)
Lead Independent Director
- Tenure: 12.8yrs
- Compensation: US$276.28k
Freeman Hrabowski (68yo)
Independent Director
- Tenure: 22.8yrs
- Compensation: US$265.03k
Lawrence Kurzius (61yo)
Chairman
- Tenure: 3.7yrs
- Compensation: US$14.84m
Gary Rodkin (67yo)
Independent Director
- Tenure: 2.8yrs
- Compensation: US$250.03k
Margaret Mary Preston (62yo)
Independent Director
- Tenure: 16.1yrs
- Compensation: US$250.03k
Tony Vernon (63yo)
Independent Director
- Tenure: 2.4yrs
- Compensation: US$261.28k
Jacques Tapiero (60yo)
Independent Director
- Tenure: 7.1yrs
- Compensation: US$250.03k
Patricia Little (58yo)
Independent Director
- Tenure: 9.4yrs
- Compensation: US$268.78k
Maritza Montiel (67yo)
Independent Director
- Tenure: 4.4yrs
- Compensation: US$250.03k
Mike Conway (52yo)
Independent Director
- Tenure: 4.8yrs
- Compensation: US$250.03k
Company Information
McCormick & Company, Incorporated's company bio, employee growth, exchange listings and data sources
Key Information
- Name: McCormick & Company, Incorporated
- Ticker: MKC
- Exchange: NYSE
- Founded: 1889
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: US$21.401b
- Shares outstanding: 132.91m
- Website: https://www.mccormickcorporation.com
Number of Employees
Location
- McCormick & Company, Incorporated
- 24 Schilling Road
- Suite 1
- Hunt Valley
- Maryland
- 21031
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MKC | NYSE (New York Stock Exchange) | Yes | Non-Voting Common Stock | US | USD | Jan 1969 |
| MCX | DB (Deutsche Boerse AG) | Yes | Non-Voting Common Stock | DE | EUR | Jan 1969 |
| 0JZS | LSE (London Stock Exchange) | Yes | Non-Voting Common Stock | GB | USD | Jan 1969 |
| MKC | WBAG (Wiener Boerse AG) | Yes | Non-Voting Common Stock | AT | EUR | Jan 1969 |
| MKC * | BMV (Bolsa Mexicana de Valores) | Yes | Non-Voting Common Stock | MX | MXN | Jan 1969 |
| MKC.V | NYSE (New York Stock Exchange) | Common Stock | US | USD | Dec 1975 |
Biography
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, Consum ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/15 23:39 |
| End of Day Share Price | 2019/10/15 00:00 |
| Earnings | 2019/08/31 |
| Annual Earnings | 2018/11/30 |
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.