McCormick & Company, Incorporated
McCormick & Company, Incorporated Fundamental Analysis
McCormick & Company, Incorporated (MKC-V) shows moderate financial fundamentals with a PE ratio of 23.30, profit margin of 11.54%, and ROE of 14.03%. The company generates $6.8B in annual revenue with weak year-over-year growth of 0.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MKC-V's fundamental strength across five key dimensions:
Efficiency Score
WeakMKC-V struggles to generate sufficient returns from assets.
Valuation Score
ModerateMKC-V shows balanced valuation metrics.
Growth Score
ModerateMKC-V shows steady but slowing expansion.
Financial Health Score
ModerateMKC-V shows balanced financial health with some risks.
Profitability Score
WeakMKC-V struggles to sustain strong margins.
Key Financial Metrics
Is MKC-V Expensive or Cheap?
P/E Ratio
MKC-V trades at 23.30 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MKC-V's PEG of 13.47 indicates potential overvaluation.
Price to Book
The market values McCormick & Company, Incorporated at 3.21 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.81 times EBITDA. This signals the market has high growth expectations.
How Well Does MKC-V Make Money?
Net Profit Margin
For every $100 in sales, McCormick & Company, Incorporated keeps $11.54 as profit after all expenses.
Operating Margin
Core operations generate 15.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.03 in profit for every $100 of shareholder equity.
ROA
McCormick & Company, Incorporated generates $5.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
McCormick & Company, Incorporated produces operating cash flow of $961.84M, showing steady but balanced cash generation.
Free Cash Flow
McCormick & Company, Incorporated generates strong free cash flow of $878.17M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.27 in free cash annually.
FCF Yield
MKC-V converts 4.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
13.47
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.70
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How MKC-V Stacks Against Its Sector Peers
| Metric | MKC-V Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.30 | 23.25 | Neutral |
| ROE | 14.03% | 1240.00% | Weak |
| Net Margin | 11.54% | -9728.00% (disorted) | Strong |
| Debt/Equity | 0.70 | 0.77 | Neutral |
| Current Ratio | 0.70 | 2.54 | Weak Liquidity |
| ROA | 5.98% | -203388.00% (disorted) | Weak |
MKC-V outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews McCormick & Company, Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
24.19%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
10.83%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
-3.83%
Industry Style: Defensive, Dividend, Low Volatility
Declining