McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry. More Details
Established dividend payer with acceptable track record.
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 +/- 2% a week.
Volatility Over Time: MKC's weekly volatility (2%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: MKC underperformed the US Food industry which returned 27.3% over the past year.
Return vs Market: MKC underperformed the US Market which returned 52.4% over the past year.
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 day ago | Simply Wall StIs McCormick & Company, Incorporated (NYSE:MKC) A Smart Pick For Income Investors?
2 weeks ago | Simply Wall StShould We Be Delighted With McCormick & Company, Incorporated's (NYSE:MKC) ROE Of 18%?
1 month ago | Simply Wall StThere's A Lot To Like About McCormick's (NYSE:MKC) Upcoming US$0.34 Dividend
Is McCormick undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MKC ($90.46) is trading above our estimate of fair value ($87.02)
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 (31.6x) compared to the US Food industry average (22.8x).
PE vs Market: MKC is poor value based on its PE Ratio (31.6x) compared to the US market (20.6x).
Price to Earnings Growth Ratio
PEG Ratio: MKC is poor value based on its PEG Ratio (4.5x)
Price to Book Ratio
PB vs Industry: MKC is overvalued based on its PB Ratio (5.8x) compared to the US Food industry average (2.2x).
How is McCormick forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MKC's forecast earnings growth (7% per year) is above the savings rate (2%).
Earnings vs Market: MKC's earnings (7% per year) are forecast to grow slower than the US market (16% per year).
High Growth Earnings: MKC's earnings are forecast to grow, but not significantly.
Revenue vs Market: MKC's revenue (3% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: MKC's revenue (3% 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 (18.4%).
How has McCormick performed over the past 5 years?
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%) are lower than last year (13.1%).
Past Earnings Growth Analysis
Earnings Trend: MKC's earnings have grown by 11.5% per year over the past 5 years.
Accelerating Growth: MKC's earnings growth over the past year (9.3%) is below its 5-year average (11.5% per year).
Earnings vs Industry: MKC earnings growth over the past year (9.3%) exceeded the Food industry 8.2%.
Return on Equity
High ROE: MKC's Return on Equity (18.4%) is considered low.
How is McCormick's financial position?
Financial Position Analysis
Short Term Liabilities: MKC's short term assets ($2.0B) do not cover its short term liabilities ($2.4B).
Long Term Liabilities: MKC's short term assets ($2.0B) do not cover its long term liabilities ($6.1B).
Debt to Equity History and Analysis
Debt Level: MKC's debt to equity ratio (128.4%) is considered high.
Reducing Debt: MKC's debt to equity ratio has increased from 83.8% to 128.4% over the past 5 years.
Debt Coverage: MKC's debt is not well covered by operating cash flow (18%).
Interest Coverage: MKC's interest payments on its debt are well covered by EBIT (8.7x coverage).
What is McCormick current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MKC's dividend (1.5%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: MKC's dividend (1.5%) is low compared to the top 25% of dividend payers in the US market (3.42%).
Stability and Growth of Payments
Stable Dividend: MKC's dividends per share have been stable in the past 10 years.
Growing Dividend: MKC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (44.3%), MKC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MKC's dividends in 3 years are forecast to be covered by earnings (50.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Lawrence Kurzius (62 yo)
Mr. Lawrence E. Kurzius has been the President at McCormick & Company, Incorporated since January 5, 2015 and has been its Chief Executive Officer since February 1, 2016. Mr. Kurzius served as the Chief Ad...
CEO Compensation Analysis
Compensation vs Market: Lawrence's total compensation ($USD19.55M) is above average for companies of similar size in the US market ($USD11.13M).
Compensation vs Earnings: Lawrence's compensation has increased by more than 20% in the past year.
Experienced Management: MKC's management team is seasoned and experienced (5.9 years average tenure).
Experienced Board: MKC's board of directors are considered experienced (6.3 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
McCormick & Company, Incorporated's company bio, employee growth, exchange listings and data sources
- Name: McCormick & Company, Incorporated
- Ticker: MKC
- Exchange: NYSE
- Founded: 1889
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: US$24.145b
- Shares outstanding: 267.04m
- Website: https://www.mccormickcorporation.com
Number of Employees
- McCormick & Company, Incorporated
- 24 Schilling Road
- Suite 1
- Hunt Valley
- United States
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||2021/05/05 22:52|
|End of Day Share Price||2021/05/05 00:00|
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.