MKC Stock Overview
McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$90.32|
|52 Week High||US$107.35|
|52 Week Low||US$77.85|
|1 Month Change||-13.39%|
|3 Month Change||-7.64%|
|1 Year Change||-0.31%|
|3 Year Change||16.40%|
|5 Year Change||72.89%|
|Change since IPO||2,719.75%|
Recent News & Updates
Why McCormick Is Substantially Overvalued
DCF analysis indicates minimal pathways to upside. Multiple trades well above the historical range over the last two decades. An inflationary environment, increasing private label competition, and an economic pullback complicate an upside story.
|MKC||US Food||US Market|
Return vs Industry: MKC exceeded the US Food industry which returned -5.2% over the past year.
Return vs Market: MKC exceeded the US Market which returned -12.9% over the past year.
|MKC Average Weekly Movement||4.6%|
|Food Industry Average Movement||6.6%|
|Market Average Movement||7.8%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||2.9%|
Stable Share Price: MKC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: MKC's weekly volatility (5%) has been stable over the past year.
About the Company
McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry. It operates in two segments, Consumer and Flavor Solutions. The Consumer segment offers spices, herbs, and seasonings, as well as condiments and sauces, and desserts.
McCormick Fundamentals Summary
|MKC fundamental statistics|
Is MKC overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|MKC income statement (TTM)|
|Cost of Revenue||US$3.88b|
Last Reported Earnings
Feb 28, 2022
Next Earnings Date
|Earnings per share (EPS)||2.79|
|Net Profit Margin||11.77%|
How did MKC perform over the long term?See historical performance and comparison
1.6%Current Dividend Yield
Is McCormick undervalued compared to its fair value and its price relative to the market?
Valuation Score 2/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PB vs Industry
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MKC ($90.32) is trading below our estimate of fair value ($141.4)
Significantly Below Fair Value: MKC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MKC is poor value based on its PE Ratio (32.4x) compared to the US Food industry average (18.5x).
PE vs Market: MKC is poor value based on its PE Ratio (32.4x) compared to the US market (15.3x).
Price to Earnings Growth Ratio
PEG Ratio: MKC is poor value based on its PEG Ratio (3.6x)
Price to Book Ratio
PB vs Industry: MKC is overvalued based on its PB Ratio (5.3x) compared to the US Food industry average (1.9x).
How is McCormick forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MKC's forecast earnings growth (9.1% per year) is above the savings rate (1.9%).
Earnings vs Market: MKC's earnings (9.1% per year) are forecast to grow slower than the US market (12.5% per year).
High Growth Earnings: MKC's earnings are forecast to grow, but not significantly.
Revenue vs Market: MKC's revenue (3.6% per year) is forecast to grow slower than the US market (7.8% per year).
High Growth Revenue: MKC's revenue (3.6% 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 (17.9%).
How has McCormick performed over the past 5 years?
Past Performance Score2/6
Past Performance Score 2/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MKC has high quality earnings.
Growing Profit Margin: MKC's current net profit margins (11.8%) are lower than last year (13%).
Past Earnings Growth Analysis
Earnings Trend: MKC's earnings have grown by 5.8% 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 (-2.1%) over the past year, making it difficult to compare to the Food industry average (13%).
Return on Equity
High ROE: MKC's Return on Equity (16.2%) is considered low.
How is McCormick's financial position?
Financial Health Score1/6
Financial Health Score 1/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: MKC's short term assets ($2.2B) do not cover its short term liabilities ($3.1B).
Long Term Liabilities: MKC's short term assets ($2.2B) do not cover its long term liabilities ($5.2B).
Debt to Equity History and Analysis
Debt Level: MKC's net debt to equity ratio (109.1%) is considered high.
Reducing Debt: MKC's debt to equity ratio has increased from 97.9% to 116.4% over the past 5 years.
Debt Coverage: MKC's debt is not well covered by operating cash flow (16.4%).
Interest Coverage: MKC's interest payments on its debt are well covered by EBIT (8.5x coverage).
What is McCormick current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MKC's dividend (1.64%) is higher than the bottom 25% of dividend payers in the US market (1.58%).
High Dividend: MKC's dividend (1.64%) is low compared to the top 25% of dividend payers in the US market (4.11%).
Stability and Growth of Payments
Stable Dividend: MKC's dividends per share have been stable in the past 10 years.
Growing Dividend: MKC's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (49.7%), MKC's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (65.5%), MKC's dividend payments are covered by cash flows.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Lawrence Kurzius (63 yo)
Mr. Lawrence E. Kurzius has been the President at McCormick & Company, Incorporated since January 5, 2015 and has been its Chief Executive Officer since February 1, 2016. Mr. Kurzius served as the Chief Ad...
CEO Compensation Analysis
Compensation vs Market: Lawrence's total compensation ($USD12.72M) is about average for companies of similar size in the US market ($USD13.34M).
Compensation vs Earnings: Lawrence's compensation has been consistent with company performance over the past year.
Experienced Management: MKC's management team is seasoned and experienced (7.1 years average tenure).
Experienced Board: MKC's board of directors are considered experienced (7.3 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 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
- Implied Market Cap: US$24.202b
- Shares outstanding: 268.08m
- Website: https://www.mccormickcorporation.com
Number of Employees
- McCormick & Company, Incorporated
- 24 Schilling Road
- Suite 1
- Hunt Valley
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/05/21 00:00|
|End of Day Share Price||2022/05/20 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.