Market Cap
US$19.5b
Last Updated
2020/04/04 04:33 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.
Rewards
Risk Analysis
Snowflake Analysis
Proven track record average dividend payer.
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
Stable Share Price: MKC has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
11.0%
MKC
4.2%
US Food
-2.0%
US Market
1 Year Return
-3.3%
MKC
-4.7%
US Food
-15.1%
US Market
Return vs Industry: MKC exceeded the US Food industry which returned -5.7% over the past year.
Return vs Market: MKC exceeded the US Market which returned -14.9% over the past year.
Shareholder returns
| MKC | Industry | Market | |
|---|---|---|---|
| 7 Day | 11.0% | 4.2% | -2.0% |
| 30 Day | -4.3% | -9.2% | -19.7% |
| 90 Day | -13.7% | -13.3% | -23.2% |
| 1 Year | -2.3%-3.3% | -2.2%-4.7% | -13.4%-15.1% |
| 3 Year | 54.5%47.5% | -12.2%-19.4% | 10.9%3.7% |
| 5 Year | 105.4%88.9% | 22.3%7.9% | 28.4%14.4% |
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
2 weeks ago | Simply Wall St
McCormick (NYSE:MKC) Has A Pretty Healthy Balance Sheet3 weeks ago | Simply Wall St
Do Institutions Own Shares In McCormick & Company, Incorporated (NYSE:MKC)?1 month ago | Simply Wall St
McCormick & Company, Incorporated (NYSE:MKC) Earns Among The Best Returns In Its IndustryValuation
Is McCormick undervalued compared to its fair value and its price relative to the market?
1.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MKC ($145.21) is trading below our estimate of fair value ($149.03)
Significantly Below Fair Value: MKC is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: MKC is poor value based on its PE Ratio (27.6x) compared to the Food industry average (19.3x).
PE vs Market: MKC is poor value based on its PE Ratio (27.6x) compared to the US market (12.5x).
Price to Earnings Growth Ratio
PEG Ratio: MKC is poor value based on its PEG Ratio (4.2x)
Price to Book Ratio
PB vs Industry: MKC is overvalued based on its PB Ratio (5.4x) compared to the US Food industry average (1.6x).
Next Steps
Future Growth
How is McCormick forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
5.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MKC's forecast earnings growth (6.5% per year) is above the savings rate (1.7%).
Earnings vs Market: MKC's earnings (6.5% per year) are forecast to grow slower than the US market (12.2% per year).
High Growth Earnings: MKC's earnings are forecast to grow, but not significantly.
Revenue vs Market: MKC's revenue (3.2% per year) is forecast to grow slower than the US market (7.1% per year).
High Growth Revenue: MKC's revenue (3.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MKC's Return on Equity is forecast to be low in 3 years time (18.7%).
Next Steps
Past Performance
How has McCormick performed over the past 5 years?
15.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MKC has high quality earnings.
Growing Profit Margin: MKC's current net profit margins (13.1%) are higher than last year (12.1%).
Past Earnings Growth Analysis
Earnings Trend: MKC's earnings have grown by 15.1% per year over the past 5 years.
Accelerating Growth: MKC's earnings growth over the past year (6.1%) is below its 5-year average (15.1% per year).
Earnings vs Industry: MKC earnings growth over the past year (6.1%) exceeded the Food industry 0.4%.
Return on Equity
High ROE: MKC's Return on Equity (19.6%) is considered low.
Next Steps
Financial Health
How is McCormick's financial position?
Financial Position Analysis
Short Term Liabilities: MKC's short term assets ($1.5B) do not cover its short term liabilities ($2.1B).
Long Term Liabilities: MKC's short term assets ($1.5B) do not cover its long term liabilities ($4.8B).
Debt to Equity History and Analysis
Debt Level: MKC's debt to equity ratio (120.4%) is considered high.
Reducing Debt: MKC's debt to equity ratio has increased from 77.8% to 120.4% over the past 5 years.
Debt Coverage: MKC's debt is well covered by operating cash flow (20.6%).
Interest Coverage: MKC's interest payments on its debt are well covered by EBIT (6.7x 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 0.4x debt).
Next Steps
Dividend
What is McCormick's current dividend yield, its reliability and sustainability?
1.69%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MKC's dividend (1.71%) isn’t notable compared to the bottom 25% of dividend payers in the US market (2.04%).
High Dividend: MKC's dividend (1.71%) is low compared to the top 25% of dividend payers in the US market (5.7%).
Stability and Growth of Payments
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 (44.2%), 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
How experienced are the management team and are they aligned to shareholders interests?
4.2yrs
Average management tenure
CEO
Lawrence Kurzius (61yo)
4.17s
Tenure
US$12,769,185
Compensation
Mr. Lawrence E. Kurzius has been the President at McCormick & Company, Incorporated since January 5, 2015 and has been its Chief Executive Officer since February 1, 2016. Mr. Kurzius served as the Chief Ad ...
CEO Compensation Analysis
Compensation vs Market: Lawrence's total compensation ($USD12.77M) is about average for companies of similar size in the US market ($USD11.87M).
Compensation vs Earnings: Lawrence's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 4.17yrs | US$12.77m | 0.084% $16.5m | |
| Executive VP & CFO | 3.58yrs | US$4.64m | 0.025% $4.8m | |
| Chief Administrative Officer and President of Global Flavor Solutions & International-EMEA | 0.25yr | US$3.23m | 0.021% $4.2m | |
| VP, General Counsel & Corporate Secretary | 5.33yrs | US$2.33m | 0.0084% $1.6m | |
| President of Global Consumer | 2.33yrs | US$3.90m | 0.014% $2.7m | |
| VP, Controller & Chief Accounting Officer | 6.5yrs | no data | 0.0014% $265.3k | |
| Vice President of Investor Relations | no data | no data | no data | |
| Vice President of Corporate Communications | 9.25yrs | no data | no data | |
| Senior Vice President of Human Relations | 4.83yrs | no data | 0.0096% $1.9m | |
| Senior Vice President of Business Transformation | 2.67yrs | no data | 0.012% $2.3m |
4.2yrs
Average Tenure
54yo
Average Age
Experienced Management: MKC's management team is considered experienced (4.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 4.17yrs | US$12.77m | 0.084% $16.5m | |
| Lead Independent Director | 13.25yrs | US$275.07k | 0.015% $2.9m | |
| Independent Director | 23.25yrs | US$265.07k | 0.038% $7.4m | |
| Independent Director | 3.25yrs | US$250.07k | 0.0022% $429.1k | |
| Independent Director | 16.58yrs | US$250.07k | 0.030% $5.9m | |
| Independent Director | 2.92yrs | US$265.07k | 0.0021% $409.6k | |
| Independent Director | 7.58yrs | US$250.07k | 0.0080% $1.6m | |
| Independent Director | 9.92yrs | US$270.07k | 0.0085% $1.7m | |
| Independent Director | 4.92yrs | US$250.07k | 0.0032% $622.2k | |
| Independent Director | 5.25yrs | US$250.07k | 0.0039% $760.7k |
6.4yrs
Average Tenure
62yo
Average Age
Experienced Board: MKC's board of directors are considered experienced (6.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$19.505b
- Shares outstanding: 132.90m
- 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 | |
| M1KC34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 4 REPR 1 COM | BR | BRL | Jan 2020 |
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, 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, Gourmet Garden, Club House, 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/04 04:33 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2020/02/29 |
| Annual Earnings | 2019/11/30 |
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.