McCormick & Co., Inc. (MKC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

McCormick & Co., Inc.

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Post Holdings, Inc.

Conagra Brands, Inc.

The Hershey Co.

Lamb Weston Holdings, Inc.

Why is McCormick & Co., Inc. ?

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

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

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

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 Report

Verdict Report

How 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.

-35.35%

-0.13

23.82%

S&P 500

22.99%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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

Institutional Holding

97.25%

ROCE (avg)

10.66%

ROE (avg)

15.62%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

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%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

26What is working for the Company

ROCE(HY)

Highest at 26.5%

DEBT-EQUITY RATIO (HY)

Lowest at 67.99 %

DIVIDEND PER SHARE(HY)

Highest at USD 10.56

NET SALES(Q)

Highest at USD 1,873.9 MM

NET PROFIT(Q)

Highest at USD 1,058.78 MM

RAW MATERIAL COST(Y)

Fallen by -3.25% (YoY

EPS(Q)

Highest at USD 3.77

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 897.6 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 12.73%

CASH AND EQV(HY)

Lowest at USD 273.6 MM

Here's what is working for McCormick & Co., Inc.

Net Profit

At USD 1,058.78 MM has Grown at 560.26%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Sales

Highest at USD 1,873.9 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Net Profit

Highest at USD 1,058.78 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Debt-Equity Ratio

Lowest at 67.99 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at USD 10.56 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

EPS

Highest at USD 3.77

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Raw Material Cost

Fallen by -3.25% (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 63 MM

in the last five periods

MOJO 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.

Operating Cash Flow

Lowest at USD 897.6 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv

Lowest at USD 273.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend Payout Ratio

Lowest at 12.73%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)