| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 1/6 |
| Past Performance | 2/6 |
| Financial Health | 1/6 |
| Dividends | 5/6 |
MKC Stock Overview
McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry.
McCormick Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$96.35 |
| 52 Week High | US$98.80 |
| 52 Week Low | US$77.85 |
| Beta | 0.48 |
| 1 Month Change | 2.37% |
| 3 Month Change | 21.33% |
| 1 Year Change | 3.13% |
| 3 Year Change | 38.20% |
| 5 Year Change | 106.52% |
| Change since IPO | 2,908.00% |
Recent News & Updates
McCormick Stock: 'Over-Seasoned' Heading Into 2022
MKC has staged a solid rally over the past month with the market eyeing its outlook for steady growth as a category leader in consumer staples. While we believe the long-term outlook is positive, some ongoing cost pressures and softer margins add to uncertainties through 2022. We expect limited upside in the stock as its valuation appears pricey.
McCormick (NYSE:MKC) Is Paying Out A Larger Dividend Than Last Year
McCormick & Company, Incorporated ( NYSE:MKC ) has announced that it will be increasing its dividend on the 10th of...
Calculating The Fair Value Of McCormick & Company, Incorporated (NYSE:MKC)
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of McCormick & Company...
McCormick (NYSE:MKC) Seems To Use Debt Quite Sensibly
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Shareholder Returns
| MKC | US Food | US Market | |
|---|---|---|---|
| 7D | 0.3% | 0.8% | -0.5% |
| 1Y | 3.1% | 15.4% | 13.7% |
Return vs Industry: MKC underperformed the US Food industry which returned 15.4% over the past year.
Return vs Market: MKC underperformed the US Market which returned 13.7% over the past year.
Price Volatility
| MKC volatility | |
|---|---|
| MKC Average Weekly Movement | 2.3% |
| Food Industry Average Movement | 5.2% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.9% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: MKC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: MKC's weekly volatility (2%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1889 | 13,000 | Lawrence Kurzius | https://www.mccormickcorporation.com |
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 rice, spices, herbs, and seasonings, as well as desserts.
McCormick Fundamentals Summary
| MKC fundamental statistics | |
|---|---|
| Market Cap | US$25.76b |
| Earnings (TTM) | US$758.60m |
| Revenue (TTM) | US$6.15b |
34.0x
P/E Ratio4.2x
P/S RatioIs MKC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| MKC income statement (TTM) | |
|---|---|
| Revenue | US$6.15b |
| Cost of Revenue | US$3.69b |
| Gross Profit | US$2.46b |
| Expenses | US$1.70b |
| Earnings | US$758.60m |
Last Reported Earnings
Aug 31, 2021
Next Earnings Date
Jan 27, 2022
| Earnings per share (EPS) | 2.84 |
| Gross Margin | 40.01% |
| Net Profit Margin | 12.34% |
| Debt/Equity Ratio | 125.4% |
How did MKC perform over the long term?
See historical performance and comparisonDividends
1.5%
Current Dividend Yield47%
Payout RatioValuation
Is McCormick undervalued compared to its fair value and its price relative to the market?
33.95x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MKC ($96.35) is trading above our estimate of fair value ($88.63)
Significantly Below Fair Value: 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 (34x) compared to the US Food industry average (21.8x).
PE vs Market: MKC is poor value based on its PE Ratio (34x) compared to the US market (17.4x).
Price to Earnings Growth Ratio
PEG Ratio: MKC is poor value based on its PEG Ratio (6.8x)
Price to Book Ratio
PB vs Industry: MKC is overvalued based on its PB Ratio (5.9x) compared to the US Food industry average (2.4x).
Future Growth
How is McCormick forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
5.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MKC's forecast earnings growth (5% per year) is above the savings rate (2%).
Earnings vs Market: MKC's earnings (5% per year) are forecast to grow slower than the US market (13% 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 (9.3% 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 (18.1%).
Past Performance
How has McCormick performed over the past 5 years?
8.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MKC has high quality earnings.
Growing Profit Margin: MKC's current net profit margins (12.3%) are lower than last year (13.7%).
Past Earnings Growth Analysis
Earnings Trend: MKC's earnings have grown by 8.7% 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 (-0.2%) over the past year, making it difficult to compare to the Food industry average (18.7%).
Return on Equity
High ROE: MKC's Return on Equity (17.2%) is considered low.
Financial Health
How is McCormick's financial position?
Financial Position Analysis
Short Term Liabilities: MKC's short term assets ($2.2B) do not cover its short term liabilities ($3.2B).
Long Term Liabilities: MKC's short term assets ($2.2B) do not cover its long term liabilities ($5.3B).
Debt to Equity History and Analysis
Debt Level: MKC's net debt to equity ratio (118.3%) is considered high.
Reducing Debt: MKC's debt to equity ratio has increased from 91.1% to 125.4% over the past 5 years.
Debt Coverage: MKC's debt is not well covered by operating cash flow (14.3%).
Interest Coverage: MKC's interest payments on its debt are well covered by EBIT (8.5x coverage).
Balance Sheet
Dividend
What is McCormick current dividend yield, its reliability and sustainability?
1.54%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MKC's dividend (1.54%) is higher than the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: MKC's dividend (1.54%) is low compared to the top 25% of dividend payers in the US market (3.44%).
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 (46.8%), 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 (47.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.8yrs
Average management tenure
CEO
Lawrence Kurzius (63 yo)
7yrs
Tenure
US$19,546,334
Compensation
Mr. Lawrence E. Kurzius has been the President at McCormick & Company, Incorporated since January 5, 2015 and has been its Chief Executive Officer since February 1, 2016. Mr. Kurzius served as the Chief Ad...
CEO Compensation Analysis
Compensation vs Market: Lawrence's total compensation ($USD19.55M) is above 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.
Leadership Team
Experienced Management: MKC's management team is seasoned and experienced (6.8 years average tenure).
Board Members
Experienced Board: MKC's board of directors are considered experienced (7 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
McCormick & Company, Incorporated's 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
- Implied Market Cap: US$25.759b
- Shares outstanding: 267.32m
- Website: https://www.mccormickcorporation.com
Number of Employees
Location
- McCormick & Company, Incorporated
- 24 Schilling Road
- Suite 1
- Hunt Valley
- Maryland
- 21031
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/16 23:17 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/08/31 |
| Annual Earnings | 2020/11/30 |
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.