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 buy?
- 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.
-28.04%
-0.13
23.82%
S&P 500
16.26%
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
97.25%
ROCE (avg)
10.66%
ROE (avg)
15.62%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
2.48
EV to EBIT
16.58
EV to EBITDA
13.69
EV to Capital Employed
1.89
EV to Sales
2.65
PEG Ratio
17.44
Dividend Yield
1.65%
ROCE (Latest)
11.37%
ROE (Latest)
14.24%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend23What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,231.5 MM
NET PROFIT(HY)
Higher at USD 1,253.36 MM
ROCE(HY)
Highest at 25.7%
DIVIDEND PER SHARE(HY)
Highest at USD 11.42
NET SALES(Q)
Highest at USD 1,936.6 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 86.08%
RAW MATERIAL COST(Y)
Fallen by -7.65% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 65.79 %
OPERATING PROFIT(Q)
Highest at USD 411.8 MM
OPERATING PROFIT MARGIN(Q)
Highest at 21.26 %
-8What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 536.52
INVENTORY TURNOVER RATIO(HY)
Lowest at 3.32 times
INTEREST(Q)
Highest at USD 57.8 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 17.37 %
EPS(Q)
Lowest at USD 0.56
Here's what is working for McCormick & Co., Inc.
Net Profit
At USD 1,253.36 MM has Grown at 266.44%
Year on Year (YoY)MOJO Watch
Net Profit trend is very positive
Net Profit (USD MM)
Net Sales
Highest at USD 1,936.6 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Net Profit
Higher at USD 1,253.36 MM
than preceding 12 month period ended May 2026MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (USD MM)
Dividend per share
Highest at USD 11.42 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Cash Flow
Highest at USD 1,231.5 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Operating Profit
Highest at USD 411.8 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 21.26 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Debt-Equity Ratio
Lowest at 65.79 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend Payout Ratio
Highest at 86.08%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -7.65% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 73.5 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for McCormick & Co., Inc.
Interest
At USD 57.8 MM has Grown at 17%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest Coverage Ratio
Lowest at 536.52
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at USD 57.8 MM
in the last five periods and Increased by 17% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Profit Margin
Lowest at 17.37 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
EPS
Lowest at USD 0.56
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Inventory Turnover Ratio
Lowest at 3.32 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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