Mccormick & Co Inc

Consumer Staples
Packaged Foods
www.mccormickcorporation.com

Earnings Score
Moat Score
Safety Score

Market Cap $20.04B
PE 26
Debt $4.61B
Cash $102.80M
EV $24.55B
FCF $649.00M

Earnings

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Sales & Net Margins

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Earnings	$784.80M
EBIT	$1.10B
ROE	14%
ROA	9%
FCF	$649.00M
Equity	$5.45B
Growth Stability	93%
PE	25.54
PEG	-75.69
PB	3.68
P/FCF	30.88
P/S	2.98
Price/Cash	0.01
Debt/Equity	0.85
Debt/FCF	7.1
Net Margins	10%
Gross Margins	39%
Op. Margins	16%
Earnings CAGR	4%
Sales Growth YoY	0%
Sales Growth QoQ	-11%
Sales CAGR	5%
FCF CAGR	3%
Equity CAGR	14%
Earnings Stability	0.3
Earnings Growth YoY	-2%
Earnings Growth QoQ	-25%
Earnings CAGR 5Y	-0%

Sales CAGR 5Y	4%
FCF CAGR 5Y	2%
Equity CAGR 5Y	8%
Earnings CAGR 3Y	3%
Sales CAGR 3Y	3%
FCF CAGR 3Y	25%
Equity CAGR 3Y	7%
Market Cap	$20.04B
Revenue	$6.73B
Dividend Yield	2%
Payout Ratio	58%
Assets	$12.90B
Total Debt	$4.61B
Cash	$102.80M
Shares Outstanding	268.3M
EV	24.55B
Earnings Score	11%
Moat Score	90%
Safety Score	80%
Final Score	60%
Working Capital	-1.09B
Current Ratio	0.65
Gross Profit	$2.60B
Shares Growth 3y	0%
Equity Growth QoQ	2%
Equity Growth YoY	4%

Assets & ROA

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Stockholders Equity & ROE

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In its 130-year history, McCormick has grown to become the leading global manufacturer, marketer, and distributor of spices, herbs, extracts, seasonings, and other flavorings. Beyond end consumers, McCormick's customer base also includes top quick-service restaurants, retail grocery chains, and other packaged food manufacturers, with about 30% of sales generated beyond its home turf to include 150 other countries and territories. In addition to its namesake brand, the firm's portfolio includes Old Bay, Zatarain's, Thai Kitchen, Frank's RedHot, French's, and the recently acquired Cholula brand.

SEC Filings

Direct access to Mccormick & Co Inc (MKC) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2025
- 10-Q Feb 28
2024
- 10-K Nov 30
- 10-Q Aug 31
- 10-Q May 31
- 10-Q Feb 29
2023
- 10-K Nov 30
- 10-Q Aug 31
- 10-Q May 31
- 10-Q Feb 28

Sector Comparison

How does Mccormick & Co Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Mccormick & Co Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 4%

Stability 30%

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Mccormick & Co Inc Discounted Cash Flow

Fully customizable DCF calculator online for Mccormick & Co Inc.

Years

Calculation mode

= $8.1B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$649M	$670M	$692M	$714M	$737M	$761M	$786M	$812M	$838M	$865M	$893M	$8.9B
DCF		$609M	$572M	$537M	$504M	$473M	$444M	$416M	$391M	$367M	$344M	$3.4B
Value	$8.1B

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.

Years	11/2015	11/2016	11/2017	11/2018	11/2019	11/2020	11/2021	11/2022	11/2023	11/2024	TTM
Net Margins	9%	11%	10%	17%	13%	13%	12%	11%	10%	12%	10%
ROA	-	14%	7%	9%	10%	8%	8%	7%	8%	8%	9%
ROE	-	29%	19%	29%	20%	19%	17%	15%	13%	15%	14%

Good Net Margins (10.11%)

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

Safety and Stability

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.

Years	11/2015	11/2016	11/2017	11/2018	11/2019	11/2020	11/2021	11/2022	11/2023	11/2024	TTM
Debt over FCF	-	2.87	8.05	7.2	5.59	6.01	10.02	13.22	5.07	6.71	7.1
Debt over Equity	0.87	0.88	1.98	1.48	1.25	1.24	1.25	1.1	0.97	0.82	0.85
Growth Stability	-	-	-	100%	100%	100%	95%	93%	93%	100%	93%

Bad Debt/FCF ratio (7.1)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.85)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (93%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

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.

Years	11/2015	11/2016	11/2017	11/2018	11/2019	11/2020	11/2021	11/2022	11/2023	11/2024	CAGR 5Y
Revenue YoY growth	-	3%	10%	12%	-1%	5%	13%	1%	5%	1%	4%
Earnings YoY growth	-	18%	1%	96%	-25%	6%	1%	-10%	-0%	16%	-0%
Equity YoY growth	-	-3%	57%	24%	9%	14%	12%	6%	8%	5%	8%
FCF YoY growth	-	9%	26%	3%	19%	6%	-33%	-29%	150%	-34%	2%