Market Cap
US$24.9b
Last Updated
2021/01/16 23:59 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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with proven 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
Stable Share Price: MKC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: MKC's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
-1.9%
MKC
-0.9%
US Food
-1.0%
US Market
1 Year Return
10.8%
MKC
1.1%
US Food
19.6%
US Market
Return vs Industry: MKC exceeded the US Food industry which returned 1.1% over the past year.
Return vs Market: MKC underperformed the US Market which returned 19.6% over the past year.
Shareholder returns
| MKC | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.9% | -0.9% | -1.0% |
| 30 Day | -1.2% | -1.4% | 2.2% |
| 90 Day | -6.3% | -0.9% | 11.5% |
| 1 Year | 12.4%10.8% | 3.6%1.1% | 22.3%19.6% |
| 3 Year | 97.3%88.4% | 5.4%-3.4% | 45.3%35.7% |
| 5 Year | 148.6%128.7% | 23.6%6.6% | 124.8%99.8% |
Long-Term 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
1 week ago | Simply Wall St
Are McCormick & Company, Incorporated (NYSE:MKC) Investors Paying Above The Intrinsic Value?3 weeks ago | Simply Wall St
Why McCormick & Company, Incorporated (NYSE:MKC) Looks Like A Quality Company1 month ago | Simply Wall St
Are Institutions Heavily Invested In McCormick & Company, Incorporated's (NYSE:MKC) Shares?Valuation
Is McCormick undervalued compared to its fair value and its price relative to the market?
32.71x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MKC ($93.43) is trading above our estimate of fair value ($74.62)
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 (32.7x) compared to the US Food industry average (25.4x).
PE vs Market: MKC is poor value based on its PE Ratio (32.7x) compared to the US market (21x).
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 (6.3x) 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 10 analysts?
4.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MKC's forecast earnings growth (4.8% per year) is above the savings rate (2%).
Earnings vs Market: MKC's earnings (4.8% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: MKC's earnings are forecast to grow, but not significantly.
Revenue vs Market: MKC's revenue (2.9% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: MKC's revenue (2.9% 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 (19.7%).
Next Steps
Past Performance
How has McCormick performed over the past 5 years?
14.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MKC has high quality earnings.
Growing Profit Margin: MKC's current net profit margins (13.7%) are higher than last year (13.2%).
Past Earnings Growth Analysis
Earnings Trend: MKC's earnings have grown by 14% per year over the past 5 years.
Accelerating Growth: MKC's earnings growth over the past year (8.1%) is below its 5-year average (14% per year).
Earnings vs Industry: MKC earnings growth over the past year (8.1%) exceeded the Food industry -6.5%.
Return on Equity
High ROE: MKC's Return on Equity (19.3%) is considered low.
Next Steps
Financial Health
How is McCormick's financial position?
Financial Position Analysis
Short Term Liabilities: MKC's short term assets ($1.8B) do not cover its short term liabilities ($2.0B).
Long Term Liabilities: MKC's short term assets ($1.8B) do not cover its long term liabilities ($5.0B).
Debt to Equity History and Analysis
Debt Level: MKC's debt to equity ratio (102.7%) is considered high.
Reducing Debt: MKC's debt to equity ratio has increased from 84.6% to 102.7% over the past 5 years.
Debt Coverage: MKC's debt is well covered by operating cash flow (26.6%).
Interest Coverage: MKC's interest payments on its debt are well covered by EBIT (7.9x coverage).
Balance Sheet
Next Steps
Dividend
What is McCormick current dividend yield, its reliability and sustainability?
1.46%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MKC's dividend (1.46%) is higher than the bottom 25% of dividend payers in the US market (1.39%).
High Dividend: MKC's dividend (1.46%) is low compared to the top 25% of dividend payers in the US market (3.85%).
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 (42.5%), 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 covered by earnings (53.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.6yrs
Average management tenure
CEO
Lawrence Kurzius (62 yo)
4.92yrs
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 ($USD10.56M).
Compensation vs Earnings: Lawrence's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 4.92yrs | US$12.77m | 0.18% $ 44.6m | |
| Executive VP & CFO | 4.33yrs | US$4.64m | 0.024% $ 6.0m | |
| Chief Administrative Officer & President of Global Flavor Solutions for EMEA | 1yr | US$3.23m | 0.023% $ 5.8m | |
| VP, General Counsel & Corporate Secretary | 6.08yrs | US$2.33m | 0.014% $ 3.5m | |
| President of Global Consumer | 3.08yrs | US$3.90m | 0.014% $ 3.5m | |
| VP, Controller & Chief Accounting Officer | 7.25yrs | no data | 0.0027% $ 677.7k | |
| Vice President of Investor Relations | no data | no data | no data | |
| Vice President of Corporate Communications | 10yrs | no data | no data | |
| Senior Vice President of Human Relations | 5.58yrs | no data | 0.012% $ 3.0m | |
| President of Global Flavors & Extracts | 3.42yrs | no data | 0.018% $ 4.6m | |
| VP & Treasurer | 9.17yrs | no data | no data | |
| President of U.S. Industrial Group | 7.83yrs | no data | no data |
5.6yrs
Average Tenure
55yo
Average Age
Experienced Management: MKC's management team is seasoned and experienced (5.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 4.92yrs | US$12.77m | 0.18% $ 44.6m | |
| Lead Independent Director | 14yrs | US$275.07k | 0.015% $ 3.7m | |
| Independent Director | 24yrs | US$265.07k | 0.039% $ 9.7m | |
| Independent Director | 4yrs | US$250.07k | 0.0022% $ 548.2k | |
| Independent Director | 17.33yrs | US$250.07k | 0.034% $ 8.5m | |
| Independent Director | 3.67yrs | US$265.07k | 0.0021% $ 520.7k | |
| Independent Director | 8.33yrs | US$250.07k | 0.0083% $ 2.1m | |
| Independent Director | 10.67yrs | US$270.07k | 0.0085% $ 2.1m | |
| Independent Director | 5.67yrs | US$250.07k | 0.0032% $ 792.3k | |
| Independent Director | 6yrs | US$250.07k | 0.0039% $ 969.2k | |
| Independent Director | 1yr | no data | 0.00010% $ 24.9k |
6.0yrs
Average Tenure
63yo
Average Age
Experienced Board: MKC's board of directors are considered experienced (6 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 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$24.916b
- Shares outstanding: 266.82m
- 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, Consum...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 23:59 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/08/31 |
| 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.