Loading...

McCormick

NYSE:MKC
Snowflake Description

Average dividend payer with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MKC
NYSE
$21B
Market Cap
  1. Home
  2. US
  3. Food, Beverage & Tobacco
Company description

McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry. The last earnings update was 81 days ago. More info.


Add to Portfolio Compare Print
MKC Share Price and Events
7 Day Returns
-0.8%
NYSE:MKC
1.3%
US Food
0.5%
US Market
1 Year Returns
47.2%
NYSE:MKC
0.9%
US Food
0.8%
US Market
MKC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
McCormick (MKC) -0.8% 0.5% 11.9% 47.2% 56.5% 116%
US Food 1.3% 1.9% 8.8% 0.9% -10.9% 23%
US Market 0.5% 0.2% 1.1% 0.8% 37.4% 37.5%
1 Year Return vs Industry and Market
  • MKC outperformed the Food industry which returned 0.9% over the past year.
  • MKC outperformed the Market in United States of America which returned 0.8% over the past year.
Price Volatility
MKC
Industry
5yr Volatility vs Market

MKC Value

 Is McCormick undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of McCormick to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for McCormick.

NYSE:MKC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:MKC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Food Unlevered Beta Simply Wall St/ S&P Global 0.55
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.545 (1 + (1- 21%) (22.91%))
0.761
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NYSE:MKC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for McCormick is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:MKC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 762.00 Analyst x3 708.85
2020 829.67 Analyst x3 717.96
2021 912.50 Analyst x2 734.57
2022 965.24 Est @ 5.78% 722.83
2023 1,012.21 Est @ 4.87% 705.13
2024 1,054.97 Est @ 4.22% 683.65
2025 1,094.81 Est @ 3.78% 659.99
2026 1,132.71 Est @ 3.46% 635.21
2027 1,169.44 Est @ 3.24% 610.06
2028 1,205.56 Est @ 3.09% 585.04
Present value of next 10 years cash flows $6,763.29
NYSE:MKC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,205.56 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$25,974.76
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $25,974.76 ÷ (1 + 7.5%)10
$12,605.14
NYSE:MKC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $6,763.29 + $12,605.14
$19,368.44
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $19,368.44 / 132.01
$146.72
NYSE:MKC Discount to Share Price
Calculation Result
Value per share (USD) From above. $146.72
Current discount Discount to share price of $156.60
= -1 x ($156.60 - $146.72) / $146.72
-6.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of McCormick is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for McCormick's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are McCormick's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MKC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-02-28) in USD $5.00
NYSE:MKC Share Price ** NYSE (2019-06-14) in USD $156.6
United States of America Food Industry PE Ratio Median Figure of 43 Publicly-Listed Food Companies 24.84x
United States of America Market PE Ratio Median Figure of 3,091 Publicly-Listed Companies 17.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of McCormick.

NYSE:MKC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MKC Share Price ÷ EPS (both in USD)

= 156.6 ÷ 5.00

31.32x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McCormick is overvalued based on earnings compared to the US Food industry average.
  • McCormick is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does McCormick's expected growth come at a high price?
Raw Data
NYSE:MKC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 31.32x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
6.2%per year
United States of America Food Industry PEG Ratio Median Figure of 31 Publicly-Listed Food Companies 1.56x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NYSE:MKC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 31.32x ÷ 6.2%

5.03x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McCormick is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on McCormick's assets?
Raw Data
NYSE:MKC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-02-28) in USD $25.23
NYSE:MKC Share Price * NYSE (2019-06-14) in USD $156.6
United States of America Food Industry PB Ratio Median Figure of 70 Publicly-Listed Food Companies 1.97x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NYSE:MKC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MKC Share Price ÷ Book Value per Share (both in USD)

= 156.6 ÷ 25.23

6.21x

* Primary Listing of McCormick.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • McCormick is overvalued based on assets compared to the US Food industry average.
X
Value checks
We assess McCormick's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Food industry average (and greater than 0)? (1 check)
  5. McCormick has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MKC Future Performance

 How is McCormick expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is McCormick expected to grow at an attractive rate?
  • McCormick's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • McCormick's earnings growth is positive but not above the United States of America market average.
  • McCormick's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MKC Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MKC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 6.2%
NYSE:MKC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 2.8%
United States of America Food Industry Earnings Growth Rate Market Cap Weighted Average 21.1%
United States of America Food Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:MKC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MKC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-11-30 5,759 1,052 790 5
2020-11-30 5,592 942 734 8
2019-11-30 5,425 892 700 8
NYSE:MKC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-02-28 5,425 945 659
2018-11-30 5,409 821 933
2018-08-31 5,379 901 895
2018-05-31 5,219 873 830
2018-02-28 5,006 751 807
2017-11-30 4,834 815 477
2017-08-31 4,570 639 459
2017-05-31 4,476 623 479
2017-02-28 4,425 624 472
2016-11-30 4,412 658 472
2016-08-31 4,386 596 464
2016-05-31 4,355 617 434

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • McCormick's earnings are expected to grow by 6.2% yearly, however this is not considered high growth (20% yearly).
  • McCormick's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MKC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from McCormick Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MKC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-11-30 6.11 6.29 5.92 2.00
2020-11-30 5.61 5.84 5.40 3.00
2019-11-30 5.25 5.29 5.20 3.00
NYSE:MKC Past Financials Data
Date (Data in USD Millions) EPS *
2019-02-28 5.00
2018-11-30 7.10
2018-08-31 6.82
2018-05-31 6.39
2018-02-28 6.28
2017-11-30 3.76
2017-08-31 3.65
2017-05-31 3.81
2017-02-28 3.75
2016-11-30 3.73
2016-08-31 3.65
2016-05-31 3.41

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • McCormick is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess McCormick's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
McCormick has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MKC Past Performance

  How has McCormick performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare McCormick's growth in the last year to its industry (Food).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • McCormick's year on year earnings growth rate has been positive over the past 5 years.
  • McCormick's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • McCormick's 1-year earnings growth is negative, it can't be compared to the US Food industry average.
Earnings and Revenue History
McCormick's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from McCormick Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MKC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-02-28 5,425.00 658.80 1,357.80 69.40
2018-11-30 5,408.90 933.40 1,360.10 69.40
2018-08-31 5,378.90 895.10 1,298.30 66.10
2018-05-31 5,218.80 829.80 1,231.40 66.10
2018-02-28 5,005.80 806.50 1,171.40 66.10
2017-11-30 4,834.10 477.40 1,178.70 66.10
2017-08-31 4,570.20 459.10 1,127.50 61.00
2017-05-31 4,476.00 478.60 1,110.70 61.00
2017-02-28 4,425.00 472.40 1,107.30 61.00
2016-11-30 4,411.50 472.30 1,114.00 61.00
2016-08-31 4,386.40 464.10 1,090.20 60.80
2016-05-31 4,355.30 434.00 1,092.40 60.80
2016-02-29 4,316.10 424.50 1,069.70 60.80
2015-11-30 4,296.30 401.60 1,063.00 60.80
2015-08-31 4,268.00 400.40 1,062.10 62.00
2015-05-31 4,250.90 425.70 1,051.10 62.00
2015-02-28 4,260.20 425.90 1,060.70 62.00
2014-11-30 4,243.20 437.90 1,060.00 62.00
2014-08-31 4,239.60 419.90 1,044.50 61.30
2014-05-31 4,213.30 401.40 1,042.70 61.30
2014-02-28 4,182.40 395.50 1,026.60 61.30
2013-11-30 4,123.40 389.00 1,009.40 61.30
2013-08-31 4,099.20 407.50 1,005.70 57.80
2013-05-31 4,060.40 407.50 994.60 57.80
2013-02-28 4,041.90 409.30 986.90 57.80
2012-11-30 4,014.20 407.80 980.00 57.80
2012-08-31 3,979.10 391.10 975.50 58.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • McCormick has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • McCormick used its assets more efficiently than the US Food industry average last year based on Return on Assets.
  • McCormick's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess McCormick's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
McCormick has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MKC Health

 How is McCormick's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up McCormick's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • McCormick's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • McCormick's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of McCormick's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from McCormick Company Filings, last reported 3 months ago.

NYSE:MKC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-02-28 3,342.70 4,736.40 102.40
2018-11-30 3,182.20 4,702.80 96.60
2018-08-31 3,112.00 4,991.10 73.00
2018-05-31 3,040.30 5,161.00 202.60
2018-02-28 3,072.40 5,140.60 179.60
2017-11-30 2,570.90 5,029.60 186.80
2017-08-31 2,533.30 5,377.00 166.40
2017-05-31 1,809.40 1,714.80 130.00
2017-02-28 1,731.60 1,695.20 125.70
2016-11-30 1,638.10 1,448.40 118.40
2016-08-31 1,774.60 1,617.80 139.70
2016-05-31 1,773.50 1,568.90 134.50
2016-02-29 1,726.90 1,446.50 116.30
2015-11-30 1,686.90 1,395.00 115.10
2015-08-31 1,762.20 1,492.20 111.90
2015-05-31 1,735.30 1,430.50 95.40
2015-02-28 1,703.90 1,323.00 86.70
2014-11-30 1,809.40 1,284.90 84.70
2014-08-31 1,970.00 1,367.70 101.10
2014-05-31 1,979.90 1,325.20 91.20
2014-02-28 1,987.40 1,298.60 99.10
2013-11-30 1,947.70 1,233.10 75.20
2013-08-31 1,797.50 1,378.60 158.30
2013-05-31 1,733.70 1,326.30 90.50
2013-02-28 1,724.80 1,229.80 84.00
2012-11-30 1,700.20 1,171.90 95.70
2012-08-31 1,724.00 1,257.50 88.80
  • McCormick's level of debt (141.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (65.4% vs 141.7% today).
  • Debt is well covered by operating cash flow (20%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.4x coverage).
X
Financial health checks
We assess McCormick's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. McCormick has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MKC Dividends

 What is McCormick's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.46%
Current annual income from McCormick dividends. Estimated to be 1.54% next year.
If you bought $2,000 of McCormick shares you are expected to receive $29 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • McCormick's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
  • McCormick's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:MKC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United States of America Food Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:MKC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-11-30 2.61 5.00
2020-11-30 2.43 8.00
2019-11-30 2.25 8.00
NYSE:MKC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-27 2.280 1.482
2018-11-27 2.280 1.662
2018-09-25 2.080 1.480
2018-06-26 2.080 1.704
2018-03-28 2.080 1.988
2017-11-28 2.080 1.998
2017-09-26 1.880 1.908
2017-06-27 1.880 1.953
2017-03-29 1.880 1.858
2016-11-29 1.880 1.971
2016-09-27 1.720 1.824
2016-06-28 1.720 1.694
2016-03-30 1.720 1.766
2015-11-24 1.720 1.948
2015-09-29 1.600 1.921
2015-06-30 1.600 1.971
2015-03-25 1.600 2.058
2014-11-25 1.600 2.162
2014-09-30 1.480 2.119
2014-06-25 1.480 2.147
2014-03-26 1.480 2.073
2013-11-26 1.480 2.192
2013-09-24 1.360 2.005
2013-06-26 1.360 1.933
2013-04-03 1.360 1.890
2012-11-27 1.360 2.058
2012-09-25 1.240 1.980
2012-06-26 1.240 2.030
2012-03-28 1.240 2.219
2011-11-22 1.240 2.458
2011-09-27 1.120 2.330
2011-06-28 1.120 2.362
2011-03-30 1.120 2.289
2010-11-23 1.120 2.410
2010-09-28 1.040 2.413
2010-06-22 1.040 2.618
2010-03-31 1.040 2.663
2009-11-24 1.040 2.810
2009-09-22 0.960 2.766
2009-06-23 0.960 2.936

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of McCormick's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess McCormick's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can McCormick afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. McCormick has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MKC Management

 What is the CEO of McCormick's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Lawrence Kurzius
COMPENSATION $14,836,426
AGE 60
TENURE AS CEO 3.3 years
CEO Bio

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 Administrative Officer at McCormick & Company, Incorporated from July 1, 2013 to January 5, 2015 and served as its President of Americas and China until January 5, 2015. Mr. Kurzius served as the President of Global Consumer at McCormick & Company, Incorporated since July 1, 2013 and its Chief Operating Officer from January 5, 2015 to February 1, 2016 and President of the global consumer business from 2013 to 2016. He served as the President of McCormick International at McCormick & Co. Inc since September 1, 2008 until July 2013. He was responsible for McCormick's consumer and industrial businesses in Europe, the Middle East and Africa, Canada, Asia and Australia. He serves as a member of Management Committee at McCormick & Co. Inc. He served as the President of International Business at McCormick & Co. Inc. from 2008 to 2013. He served as the President of Europe, Africa and Middle East at McCormick & Co. Inc., since 2007 until August 31, 2008 where he was responsible to strengthen the synergies between its industrial and consumer businesses in those regions and provided strategic direction generating positive results over that time. He was responsible for both the consumer and industrial businesses in these regions and manufacturing, supply chain, finance, human relations and other support activities. Mr. Kurzius served as President of U.S. Consumer Foods of Mccormick & Co. Inc. from September 6, 2005 to 2006 and also served as its President of Europe since January 1, 2007. He joined McCormick in 2003 and served as its President and Chief Executive Officer. He joined McCormick's U.S. Consumer Foods in 2004 as Vice President and General Manager of Sales and Marketing from 2005 and served in these positions until September 2005. He served as the President and Chief Executive Officer of Zatarain's Brands Inc., a subsidiary of McCormick & Co. Inc. from January 1997 to December 2004. He served as Marketing Executive of Uncle Ben's, a division of Mars, Inc., and Quaker Oats Company. Mr. Kurzius was also a marketing executive with the Quaker Oats Company and Mars Inc.’s Uncle Ben’s Company. In these various roles, Mr. Kurzius developed a broad knowledge of the Company’s markets – both domestic and foreign, and consumer and industrial – and had senior level responsibility for strategic planning and leadership with respect to these businesses. In his present role, Mr. Kurzius is responsible for the strategic leadership of the Company. He has extensive knowledge of consumer goods marketing in general, with a specific knowledge of the business, markets, and customers within the food industry in particular, and has hands-on experience in directing the day-to-day operations of large, multi-faceted, consumer and industrial foods business.He joined Zatarain's in 1991. He serves on the President Council of Tulane University. He has been the Chairman of the Board at McCormick & Company, Incorporated since February 2017. He has been a Director of McCormick & Company, Incorporated since November 24, 2015. He serves as a Director of Elanco Animal Health Incorporated. He was Director of McCormick Foods Australia Pty Ltd until July 10, 2014. Mr. Kurzius served as a Director of the Federal Reserve Bank of Atlanta's New Orleans Branch. He holds a BA degree, Magna Cum Laude in Economics from Princeton University.

CEO Compensation
  • Lawrence's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Lawrence's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the McCormick management team in years:

4
Average Tenure
53
Average Age
  • The tenure for the McCormick management team is about average.
Management Team

Lawrence Kurzius

TITLE
Chairman
COMPENSATION
$15M
AGE
60
TENURE
3.3 yrs

Mike Smith

TITLE
Executive VP & CFO
COMPENSATION
$5M
AGE
53
TENURE
2.8 yrs

Jeffery Schwartz

TITLE
VP, General Counsel & Corporate Secretary
COMPENSATION
$3M
AGE
48
TENURE
4.5 yrs

Malcolm Swift

TITLE
President of Global Flavor Solutions & McCormick International
COMPENSATION
$2M
AGE
58
TENURE
5.4 yrs

Brendan Foley

TITLE
President of Global Consumer & Americas
COMPENSATION
$6M
AGE
52
TENURE
3.4 yrs

Christina McMullen

TITLE
VP, Controller & Chief Accounting Officer
AGE
62
TENURE
5.7 yrs

Kasey Jenkins

TITLE
Vice President of Investor Relations

Lori Robinson

TITLE
Vice President of Corporate Communications
TENURE
8.4 yrs

Lisa Manzone

TITLE
Senior Vice President of Human Relations
AGE
53
TENURE
4 yrs

Nneka Rimmer

TITLE
Senior Vice President of Business Transformation
AGE
46
TENURE
1.8 yrs
Board of Directors Tenure

Average tenure and age of the McCormick board of directors in years:

5.6
Average Tenure
61
Average Age
  • The tenure for the McCormick board of directors is about average.
Board of Directors

Lawrence Kurzius

TITLE
Chairman
COMPENSATION
$15M
AGE
60
TENURE
2.3 yrs

Freeman Hrabowski

TITLE
Independent Director
COMPENSATION
$265K
AGE
67
TENURE
22.4 yrs

Patricia Little

TITLE
Independent Director
COMPENSATION
$269K
AGE
57
TENURE
9.1 yrs

Tony Vernon

TITLE
Independent Director
COMPENSATION
$261K
AGE
62
TENURE
2.1 yrs

Michael Mangan

TITLE
Lead Independent Director
COMPENSATION
$276K
AGE
61
TENURE
12.4 yrs

Margaret Mary Preston

TITLE
Independent Director
COMPENSATION
$250K
AGE
61
TENURE
15.8 yrs

Jacques Tapiero

TITLE
Independent Director
COMPENSATION
$250K
AGE
59
TENURE
6.8 yrs

Maritza Montiel

TITLE
Independent Director
COMPENSATION
$250K
AGE
66
TENURE
4.1 yrs

Mike Conway

TITLE
Independent Director
COMPENSATION
$250K
AGE
51
TENURE
4.4 yrs

Gary Rodkin

TITLE
Independent Director
COMPENSATION
$250K
AGE
66
TENURE
2.4 yrs
Who owns this company?
Recent Insider Trading
  • McCormick insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
23. May 19 Sell Margaret Mary Preston Individual 21. May 19 21. May 19 -3,865 $154.31 $-596,424
X
Management checks
We assess McCormick's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. McCormick has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MKC News

Simply Wall St News

Who Has Been Selling McCormick & Company, Incorporated (NYSE:MKC) Shares?

So we'll take a look at whether insiders have been buying or selling shares in McCormick & Company, Incorporated (NYSE:MKC). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … NYSE:MKC Recent Insider Trading, June 4th 2019 If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies.

Simply Wall St -

Is McCormick & Company, Incorporated (NYSE:MKC) A Smart Choice For Dividend Investors?

Dividend paying stocks like McCormick & Company, Incorporated (NYSE:MKC) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. A slim 1.5% yield is hard to get excited about, but the long payment history is respectable. At the right price, or with strong growth opportunities, McCormick could have potential. Some simple analysis can reduce the risk of holding McCormick for its dividend, and we'll focus on the most important aspects below. Click the interactive chart for our full dividend analysis NYSE:MKC Historical Dividend Yield, May 25th 2019 Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. So we need to be form a view on if a company's dividend is sustainable, relative to its net profit after tax. Looking at the data, we can see that 43% of McCormick's profits were paid out as dividends in the last 12 months. A medium payout ratio strikes a good balance between paying dividends, and keeping enough back to invest in the business. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend. We also measure dividends paid against a company's levered free cash flow, to see if enough cash was generated to cover the dividend. McCormick paid out a conservative 35% of its free cash flow as dividends last year. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. Is McCormick's Balance Sheet Risky? As McCormick has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … Dividend Growth Potential While dividend payments have been relatively reliable, it would also be nice if earnings per share (EPS) were growing, as this is essential to maintaining the dividend's purchasing power over the long term. … Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see McCormick has grown its earnings per share at 11% per annum over the past five years. Earnings per share have been growing at a good rate, and the company is paying less than half its earnings as dividends. We generally think this is an attractive combination, as it permits further reinvestment in the business. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

What Kind Of Shareholders Own McCormick & Company, Incorporated (NYSE:MKC)?

Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. … View our latest analysis for McCormick NYSE:MKC Ownership Summary, May 14th 2019 What Does The Institutional Ownership Tell Us About McCormick? … Our information suggests that McCormick & Company, Incorporated insiders own under 1% of the company.

Simply Wall St -

Estimating The Intrinsic Value Of McCormick & Company, Incorporated (NYSE:MKC)

by taking the foreast future cash flows of the company and discounting them back to today's value. … I will be using the Discounted Cash Flow (DCF) model. … If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model?

Simply Wall St -

Did Business Growth Power McCormick's (NYSE:MKC) Share Price Gain of 119%?

One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … During five years of share price growth, McCormick achieved compound earnings per share (EPS) growth of 11% per year. … This EPS growth is lower than the 17% average annual increase in the share price.

Simply Wall St -

Are McCormick & Company, Incorporated’s (NYSE:MKC) High Returns Really That Great?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Should You Be Tempted To Sell McCormick & Company, Incorporated (NYSE:MKC) Because Of Its P/E Ratio?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll show how you can use McCormick & Company, Incorporated's (NYSE:MKC) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

How Financially Strong Is McCormick & Company, Incorporated (NYSE:MKC)?

the key to their continued success lies in its financial health. … Let’s take a look at McCormick’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself

Simply Wall St -

Is McCormick & Company, Incorporated (NYSE:MKC) Excessively Paying Its CEO?

First, this article will compare CEO compensation with compensation at other large companies. … Then we'll look at a snap shot of the business growth. … How Does Lawrence Kurzius's Compensation Compare With Similar Sized Companies?

Simply Wall St -

McCormick & Company, Incorporated (NYSE:MKC): What Does The Future Look Like?

Help shape the future of investing tools and you could win a $250 gift card! … McCormick & Company, Incorporated's (NYSE:MKC) announced its latest earnings update in November 2018, whicha

Simply Wall St -

MKC Company Info

Description

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, Club House, Gourmet Garden, 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.

Details
Name: McCormick & Company, Incorporated
MKC
Exchange: NYSE
Founded: 1889
$20,672,492,103
132,007,641
Website: http://www.mccormickcorporation.com
Address: McCormick & Company, Incorporated
24 Schilling Road,
Suite 1,
Hunt Valley,
Maryland, 21031,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MKC Non-Voting Common Stock New York Stock Exchange US USD 02. Jan 1969
DB MCX Non-Voting Common Stock Deutsche Boerse AG DE EUR 02. Jan 1969
LSE 0JZS Non-Voting Common Stock London Stock Exchange GB USD 02. Jan 1969
WBAG MKC Non-Voting Common Stock Wiener Boerse AG AT EUR 02. Jan 1969
BMV MKC * Non-Voting Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1969
NYSE MKC.V Common Stock New York Stock Exchange US USD 08. Dec 1975
Number of employees
Current staff
Staff numbers
11,600
McCormick employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/15 23:41
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/05
Last earnings filing: 2019/03/26
Last earnings reported: 2019/02/28
Last annual earnings reported: 2018/11/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.