Mccormick & Co Inc

MKC

Miscellaneous Food Preparations & Kindred Products

Mkt Cap

$19.14B

PE

27.05

Debt

$4.926B

Cash

$178M

EV

$23.89B

FCF

$1.008B

Market Cap

$19.14B

P/E Ratio

27.05

Debt

$4.926B

Cash

$178M

EV

$23.89B

FCF

$1.008B

Charts data: {"Earnings":[{"time":"2014-11-29","value":437900000},{"time":"2015-11-29","value":401600000},{"time":"2016-11-29","value":472300000},{"time":"2017-11-29","value":477400000},{"time":"2018-11-29","value":933400000},{"time":"2019-11-29","value":702700000},{"time":"2020-11-29","value":747400000},{"time":"2021-11-29","value":755300000},{"time":"2022-11-29","value":682000000},{"time":"2023-11-29","value":680600000}],"Sales":[{"time":"2014-11-29","value":4243200000},{"time":"2015-11-29","value":4296300000},{"time":"2016-11-29","value":4411500000},{"time":"2017-11-29","value":4834100000},{"time":"2018-11-29","value":5408900000},{"time":"2019-11-29","value":5347400000},{"time":"2020-11-29","value":5601300000},{"time":"2021-11-29","value":6317900000},{"time":"2022-11-29","value":6350500000},{"time":"2023-11-29","value":6662200000}],"Net Margins":[{"time":"2014-11-29","value":0.10320041478129713},{"time":"2015-11-29","value":0.09347578148639527},{"time":"2016-11-29","value":0.10706109033208659},{"time":"2017-11-29","value":0.09875674892948015},{"time":"2018-11-29","value":0.17256743515317347},{"time":"2019-11-29","value":0.13140965702958446},{"time":"2020-11-29","value":0.1334333101244354},{"time":"2021-11-29","value":0.11954921730321784},{"time":"2022-11-29","value":0.10739311865207464},{"time":"2023-11-29","value":0.10215844615892648}],"Assets":[{"time":"2014-11-29","value":4414300000},{"time":"2015-11-29","value":4507800000},{"time":"2016-11-29","value":4635900000},{"time":"2017-11-29","value":10385800000},{"time":"2018-11-29","value":10256400000},{"time":"2019-11-29","value":10362100000},{"time":"2020-11-29","value":12089700000},{"time":"2021-11-29","value":12905800000},{"time":"2022-11-29","value":13124900000},{"time":"2023-11-29","value":12862300000}],"Stockholders Equity":[{"time":"2014-11-29","value":1809400000},{"time":"2015-11-29","value":1686900000},{"time":"2016-11-29","value":1638100000},{"time":"2017-11-29","value":2570900000},{"time":"2018-11-29","value":3182200000},{"time":"2019-11-29","value":3456700000},{"time":"2020-11-29","value":3940000000},{"time":"2021-11-29","value":4425500000},{"time":"2022-11-29","value":4699200000},{"time":"2023-11-29","value":5083500000}],"ROE":[{"time":"2014-11-29","value":0.24201392726870785},{"time":"2015-11-29","value":0.2380698322366471},{"time":"2016-11-29","value":0.28832183627373176},{"time":"2017-11-29","value":0.1856937259325528},{"time":"2018-11-29","value":0.29331908742379487},{"time":"2019-11-29","value":0.20328637139468278},{"time":"2020-11-29","value":0.1896954314720812},{"time":"2021-11-29","value":0.17066998079313073},{"time":"2022-11-29","value":0.1451310861423221},{"time":"2023-11-29","value":0.1338841349463952}],"ROA":[{"time":"2014-11-29","value":0.13685068980359286},{"time":"2015-11-29","value":0.1218998180930831},{"time":"2016-11-29","value":0.13917470178390387},{"time":"2017-11-29","value":0.06763080359721928},{"time":"2018-11-29","value":0.0893003393003393},{"time":"2019-11-29","value":0.0950000482527673},{"time":"2020-11-29","value":0.08412946557813676},{"time":"2021-11-29","value":0.07999504098932263},{"time":"2022-11-29","value":0.07328817743373282},{"time":"2023-11-29","value":0.07828304424558594}]}

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. This segment markets its products under the McCormick, French's, Frank's RedHot, Lawry's, Cholula Hot Sauce, Gourmet Garden, Club House, and OLD BAY brands in the Americas; Ducros, Schwartz, Kamis, and LA Drogheria, and Vahiné brands in Europe, the Middle East, and Africa; McCormick and DaQiao brands in China; and McCormick, Aeroplane, and Gourmet Garden brands 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 and wholesale foodservice suppliers. 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. McCormick & Company, Incorporated was founded in 1889 and is headquartered in Hunt Valley, Maryland.

Sector

10-Q
8/31/23
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11/30/22
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10-K
11/30/18
10-Q
8/31/18
10-Q
5/31/18
10-Q
2/28/18

DCF

Discounted Cash Flow Valuation of Mccormick & Co Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$1.008B	$1.052B	$1.098B	$1.146B	$1.196B	$1.248B	$1.303B	$1.359B	$1.419B	$1.481B	$1.545B	$15.45B
DCF		$914.7M	$830.1M	$753.4M	$683.7M	$620.5M	$563.1M	$511.1M	$463.8M	$420.9M	$382M	$3.82B
Value	$9.964B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 6.2%

Earnings Stability 41%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	11-2015	11-2016	11-2017	11-2018	11-2019	11-2020	11-2021	11-2022	11-2023	TTM
Net Margin	9.3%	11%	9.9%	17%	13%	13%	12%	11%	10%	11%
ROA	12%	14%	6.8%	8.9%	9.5%	8.4%	8%	7.3%	7.8%	8.1%
ROE	24%	29%	19%	29%	20%	19%	17%	15%	13%	13%

What is the average Net Margin?

The average Net Margin over the past 5 years is +12.78%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -1.25%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +8.33%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.36%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +18.93%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -2.83%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	11-2015	11-2016	11-2017	11-2018	11-2019	11-2020	11-2021	11-2022	11-2023	TTM
Debt FCF	3.16	2.87	8.05	7.20	5.59	6.01	10.02	13.22	5.07	4.89
Debt Equity	0.87	0.88	1.98	1.48	1.25	1.24	1.25	1.10	0.97	0.94
MIN
Graham Stability	-	-	100%	100%	100%	100%	95%	93%	93%	93%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 4.89.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.46.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.93.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	11-2016	11-2018	11-2020	11-2022	Trend
Revenue	6.1%	4.3%	6%	4.9%	0.12%
Net Income	5.4%	-6.1%	-3.1%	-0.21%	-2.3%
Stockholders Equity	18%	9.8%	8.9%	8.2%	-0.2%
FCF	9.9%	8.3%	6.1%	150%	4.5%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +4.26%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.12%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -6.12%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -2.31%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +9.82%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -0.2%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +8.34%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +4.55%.