ScoreWhy is McCormick & Co., Inc. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 4.44% and Operating profit at 1.17% over the last 5 years
2
Flat results in May 25
- OPERATING CASH FLOW(Y) Lowest at USD 781.8 MM
- CASH AND EQV(HY) Lowest at USD 226.9 MM
- DEBTORS TURNOVER RATIO(HY) Lowest at 11.4 times
3
With ROCE of 10.98%, it has a fair valuation with a 2.50 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -18.95%, its profits have risen by 5.6% ; the PEG ratio of the company is 4.9
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -18.95% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to McCormick & Co., Inc. should be less than 10%
- Overall Portfolio exposure to FMCG should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is McCormick & Co., Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
McCormick & Co., Inc.
-22.32%
-0.13
23.82%
S&P 500
17.45%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.08%
EBIT Growth (5y)
1.44%
EBIT to Interest (avg)
5.90
Debt to EBITDA (avg)
3.85
Net Debt to Equity (avg)
0.77
Sales to Capital Employed (avg)
0.69
Tax Ratio
22.09%
Dividend Payout Ratio
61.43%
Pledged Shares
0
Institutional Holding
96.97%
ROCE (avg)
10.66%
ROE (avg)
15.62%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
3.16
EV to EBIT
20.70
EV to EBITDA
17.16
EV to Capital Employed
2.24
EV to Sales
3.31
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
10.83%
ROE (Latest)
13.67%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend10What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 11.25
INTEREST COVERAGE RATIO(Q)
Highest at 810.37
DEBT-EQUITY RATIO
(HY)
Lowest at 71.94 %
NET SALES(Q)
Highest at USD 1,850.4 MM
OPERATING PROFIT(Q)
Highest at USD 375.2 MM
PRE-TAX PROFIT(Q)
Highest at USD 304.4 MM
NET PROFIT(Q)
Highest at USD 249.72 MM
EPS(Q)
Highest at USD 0.84
-2What is not working for the Company
CASH AND EQV(HY)
Lowest at USD 190.8 MM
DEBTORS TURNOVER RATIO(HY)
Lowest at 11.25 times
Here's what is working for McCormick & Co., Inc.
Interest Coverage Ratio
Highest at 810.37
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at USD 11.25 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 1,850.4 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 375.2 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 304.4 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 249.72 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.84
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Lowest at 71.94 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for McCormick & Co., Inc.
Cash and Eqv
Lowest at USD 190.8 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio
Lowest at 11.25 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Non Operating Income
Highest at USD 0.13 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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