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 -18.16%, 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 -18.16% 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.
-18.16%
-0.29
24.01%
S&P 500
13.22%
0.65
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.44%
EBIT Growth (5y)
1.17%
EBIT to Interest (avg)
5.90
Debt to EBITDA (avg)
3.85
Net Debt to Equity (avg)
0.77
Sales to Capital Employed (avg)
0.68
Tax Ratio
22.09%
Dividend Payout Ratio
57.44%
Pledged Shares
0
Institutional Holding
93.14%
ROCE (avg)
10.66%
ROE (avg)
15.62%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
3.67
EV to EBIT
22.81
EV to EBITDA
18.93
EV to Capital Employed
2.50
EV to Sales
3.58
PEG Ratio
4.87
Dividend Yield
NA
ROCE (Latest)
10.98%
ROE (Latest)
14.60%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 11.4
RAW MATERIAL COST(Y)
Fallen by 0.55% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 77.32 %
-4What is not working for the Company
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
Here's what is working for McCormick & Co., Inc.
Dividend per share
Highest at USD 11.4 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Debt-Equity Ratio
Lowest at 77.32 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by 0.55% (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
Here's what is not working for McCormick & Co., Inc.
Operating Cash Flow
Lowest at USD 781.8 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Cash and Eqv
Lowest at USD 226.9 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio
Lowest at 11.4 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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