NYSE:MKC

Stock Analysis Report

Executive Summary

McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry.

Snowflake

Fundamentals

Average dividend payer with questionable 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


Market Performance


7 Day Return

1.9%

MKC

0.09%

US Food

-0.6%

US Market


1 Year Return

23.0%

MKC

1.4%

US Food

0.7%

US Market

MKC outperformed the Food industry which returned 1.4% over the past year.

MKC outperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

MKCIndustryMarket
7 Day1.9%0.09%-0.6%
30 Day-1.4%1.4%2.9%
90 Day3.7%2.7%1.3%
1 Year24.9%23.0%4.4%1.4%2.9%0.7%
3 Year74.7%65.6%-1.4%-10.0%44.6%35.2%
5 Year164.7%141.2%46.5%29.1%61.9%44.2%

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

4 weeks ago | Simply Wall St

With A -17% Earnings Drop, Is McCormick & Company, Incorporated's (NYSE:MKC) A Concern?

Valuation

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

30.86x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

McCormick's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

McCormick's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

McCormick is poor value based on expected growth next year.


Price Based on Value of Assets

McCormick is overvalued based on assets compared to the US Food industry average.


Next Steps

Future Growth

How is McCormick expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

McCormick's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).

McCormick's earnings are expected to grow by 7.9% yearly, however this is not considered high growth (20% yearly).

McCormick's revenue growth is positive but not above the United States of America market average.

McCormick's earnings growth is positive but not above the United States of America market average.

McCormick's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

McCormick is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has McCormick performed over the past 5 years?

16.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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.


Return on Equity

Whilst McCormick has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

McCormick used its assets more efficiently than the US Food industry average last year based on Return on Assets.


Return on Capital Employed

McCormick's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is McCormick's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

McCormick's level of debt (138.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (67% vs 138.3% today).

Debt is not well covered by operating cash flow (19.2%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.5x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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

1.52%

Expected Dividend Yield


Dividend Yield and Payments Analysis

McCormick's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

McCormick's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

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

Dividends paid are well covered by earnings (2.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Lawrence Kurzius (61yo)

3.6yrs

Tenure

US$14,836,426

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

Lawrence's remuneration is higher than average for companies of similar size in United States of America.

Lawrence's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

4.3yrs

Average Tenure

54yo

Average Age

The tenure for the McCormick management team is about average.


Board Age and Tenure

5.8yrs

Average Tenure

62yo

Average Age

The tenure for the McCormick board of directors is about average.


Insider Trading

McCormick individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$318,82202 Jul 19
Nneka Rimmer
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Business Transformation
Shares2,070
Max PriceUS$154.02
SellUS$596,42423 May 19
Margaret Mary Preston
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,865
Max PriceUS$154.31

Ownership Breakdown


Management Team

  • Christina McMullen (63yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 5.9yrs
  • Lawrence Kurzius (61yo)

    Chairman

    • Tenure: 3.6yrs
    • Compensation: US$14.84m
  • Malcolm Swift (59yo)

    President of Global Flavor Solutions & McCormick International

    • Tenure: 5.7yrs
    • Compensation: US$2.49m
  • Lori Robinson

    Vice President of Corporate Communications

    • Tenure: 8.7yrs
  • Mike Smith (54yo)

    Executive VP & CFO

    • Tenure: 3yrs
    • Compensation: US$5.16m
  • Brendan Foley (53yo)

    President of Global Consumer & Americas

    • Tenure: 3.7yrs
    • Compensation: US$5.80m
  • Lisa Manzone (54yo)

    Senior Vice President of Human Relations

    • Tenure: 4.3yrs
  • Jeffery Schwartz (49yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 4.8yrs
    • Compensation: US$2.77m
  • Nneka Rimmer (47yo)

    Senior Vice President of Business Transformation

    • Tenure: 2.1yrs
  • Kasey Jenkins

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Michael Mangan (62yo)

    Lead Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$276.28k
  • Freeman Hrabowski (68yo)

    Independent Director

    • Tenure: 22.7yrs
    • Compensation: US$265.03k
  • Lawrence Kurzius (61yo)

    Chairman

    • Tenure: 3.6yrs
    • Compensation: US$14.84m
  • Gary Rodkin (67yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$250.03k
  • Margaret Mary Preston (62yo)

    Independent Director

    • Tenure: 16yrs
    • Compensation: US$250.03k
  • Tony Vernon (63yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$261.28k
  • Jacques Tapiero (60yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$250.03k
  • Patricia Little (58yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$268.78k
  • Maritza Montiel (67yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$250.03k
  • Mike Conway (52yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$250.03k

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$21.232b
  • Shares outstanding: 132.53m
  • Website: https://www.mccormickcorporation.com

Number of Employees


Location

  • McCormick & Company, Incorporated
  • 24 Schilling Road
  • Suite 1
  • Hunt Valley
  • Maryland
  • 21031
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MKCNYSE (New York Stock Exchange)YesNon-Voting Common StockUSUSDJan 1969
MCXDB (Deutsche Boerse AG)YesNon-Voting Common StockDEEURJan 1969
0JZSLSE (London Stock Exchange)YesNon-Voting Common StockGBUSDJan 1969
MKCWBAG (Wiener Boerse AG)YesNon-Voting Common StockATEURJan 1969
MKC *BMV (Bolsa Mexicana de Valores)YesNon-Voting Common StockMXMXNJan 1969
MKC.VNYSE (New York Stock Exchange)Common StockUSUSDDec 1975

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 23:41
End of Day Share Price2019/09/20 00:00
Earnings2019/05/31
Annual Earnings2018/11/30


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.