McCormick & Company (MKC)
Consumer Staples · $13.3B market cap · SEC CIK 0000063754
fundamentals score out of 100
Next reports on Mar 29, 2027, with analysts expecting $0.69 in earnings per share.
The case for MKC
- Cheap on earnings at 8.2×, well under the market's usual 20×.
- Earns 25% back on shareholder equity.
- 22% of revenue drops through to net profit.
- Revenue growing 9.5% year over year.
- Earnings per share up 108.8%.
- A PEG of 0.08: a P/E of 8.2× is low for EPS growing 109%.
The case against
- Down 25.3% over the past year.
- Current liabilities exceed current assets (ratio 0.78).
- Near the bottom of its 52-week range, 32% below the high. Falling prices usually have a reason; find it first.
- Long-term debt of $3.1B against $95.9M of cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Staples companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 87 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 75 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 74 |
| Momentumhow the price has behaved lately | 32 |
| Stabilityhow violently it moves, what it owes and what it pays you | 51 |
- Each factor except momentum is half fixed thresholds, half rank among the 36 Consumer Staples companies.
Key numbers
| Price / earnings | 8.2× |
|---|---|
| Price / book | 1.79× |
| Price / sales | 1.8× |
| Revenue growth (YoY) | +9.5% |
| EPS growth (YoY) | +108.8% |
| Gross margin | 39% |
| Operating margin | 15% |
| Net margin | 22% |
| Return on equity | 25% |
| Debt / equity | 0.71× |
| Current ratio | 0.78 |
| Dividend yield | 2.35% |
| Beta | 0.65 |
| 52-week range | $44.82 – $72.41 |
| Position in that range | 17% of the way up |
| 3-month return | +4.8% |
| 1-year return | -25.3% |
Five years of financials, as filed
Pulled from McCormick & Company's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $6.8B | $6.7B | $6.7B | $6.4B | $6.3B |
| Gross profit | $2.6B | $2.6B | $2.5B | $2.3B | $2.5B |
| Operating income | $1.1B | $1.1B | $963M | $864M | $1.0B |
| Net income | $789M | $789M | $681M | $682M | $755M |
| Operating cash flow | $962M | $922M | $1.2B | $652M | $828M |
| Capital expenditure | $222M | $275M | $264M | $262M | $278M |
| Total assets | $13.2B | $13.1B | $12.9B | $13.1B | $12.9B |
| Total liabilities | $7.4B | $7.8B | $7.8B | $8.4B | $8.5B |
| Shareholder equity | $5.7B | $5.3B | $5.1B | $4.7B | $4.4B |
| Cash | $95.9M | $186M | $167M | $334M | $352M |
| Long-term debt | $3.1B | $3.6B | $3.3B | $3.6B | $4.0B |
| Free cash flow | $740M | $647M | $973M | $390M | $550M |
| Gross margin | 37.9% | 38.5% | 37.6% | 35.8% | 39.5% |
| Operating margin | 15.7% | 15.8% | 14.5% | 13.6% | 16.1% |
| Net margin | 11.5% | 11.7% | 10.2% | 10.7% | 12.0% |
| Diluted shares | 269M | 270M | 270M | 270M | 270M |
Share count is essentially flat over 4 years.
What McCormick & Company says it does
McCormick is a global leader in flavor. We manufacture, market, and distribute herbs, spices, seasoning mixes, condiments, and other flavorful products to the entire food and beverage industry: retailers, food manufacturers, and foodservice businesses. We also are partners in a number of joint ventures that are involved in the manufacture and sale of flavorful products, the most significant of which is McCormick de Mexico. Our major sales, distribution, and production facilities are located in North America, Europe, and China. Additional facilities are based in Australia, Central America, Thailand, and South Africa. On January 2, 2026, we completed the purchase of an additional 25% ownership interest in McCormick de Mexico. The purchase price was $750 million, which increased our ownership to a 75% controlling interest. We believe the acquisition creates opportunities for further growth in the Mexican market and provides a strategic…
Risk factors MKC lists in its 10-K
- Risks Related to Our Company, Business and Operations
- Customer consolidation, consumer behaviors, and competitive, economic and other pressures facing our customers, may impact our financial condition or results of operations
- The inability to maintain mutually beneficial relationships with large customers could adversely affect our business, financial condition and results of operations
- Issues regarding procurement of raw materials may negatively impact us
- Changes in global trade policies have impacted and may continue to impact our financial condition or results of operations
- Disruption of our supply chain could adversely affect our business
- Our results of operations can be adversely affected by labor shortages, turnover and labor cost increases or any failure to effectively manage changes in our workforce
- We may not be able to increase prices to fully offset inflationary and other pressures on costs, such as raw and packaging materials, labor and distribution costs, which may impact our financial condition or results of operations
- Our profitability may suffer as a result of competition in our markets
- Changing political and geopolitical conditions, including conflicts and the related implications may negatively impact our operations
- Our operations may be impaired as a result of disasters, business interruptions or similar events
- We may not be able to successfully consummate and manage ongoing acquisition, joint venture and divestiture activities which could have an impact on our results
- An impairment of the carrying value of goodwill or other indefinite-lived intangible assets could adversely affect our results
- Streamlining actions to reduce fixed costs, simplify or improve processes, and improve our competitiveness may have a negative effect on employee relations