McCormick Stock Analysis, Valuation (NYSE:MKC)

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$102.99 $0.67 (0.65%) MKC stock closing price May 23, 2018 (Closing)
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McCormick
Updated on : May 23, 2018
previous close
MKC 103 (0%)
S&P 500 2733.3 (0%)
Closing Price On: May 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Food-Misc-Diversified
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
15%
Sector Average:
12%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
4.71B
Debt/Equity Ratio:
 1.53
Compared to the industry
Cash Flow
Operating cash flow:
-$20.5M
Net Income:
$422.6M
Dividend Yield
MKC dividend yield:
1.87%
PROS      CONS
Recent Growth
Operating Margins
Net Margins
ROE
High Debt Burden
Cash Flow
FCF Margin
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
MKC PS :
2.7
Industry PS :
1.6
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
7.7%
Return on Equity:
34.4%
Free Cash Flow Margin:
-4.2%
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McCormick Stock Analysis

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Investors can watch the Amigobulls McCormick stock analysis video here. This video puts forward our latest analysis highlighting the pros and cons for MKC stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

McCormick & Company, Incorporated Stock Rating 2.9/5

Amigobulls MKC stock analysis takes into account various financial ratios like relative valuation, McCormick revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check McCormick dividend performance. McCormick valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. McCormick stock rating is our opinion about the business fundamentals of the company.

Should you buy MKC stock?

  • McCormick's revenue growth came in at 18.5% in 2018 Q1.
  • The TTM operating margin was good at 15% for McCormick.
  • Net margins came in at average 16% for McCormick over the last twelve months.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for McCormick at 34.4%.

Should you sell MKC stock?

  • With a debt/equity ratio of  1.53, McCormick is highly leveraged in comparison to Consumer Staples peers.
  • MKC stock is trading at a PS multiple of 2.7, which is a negative when compared to the Food-Misc-Diversified industry average multiple of 1.6.
  • The company has a negative free cash flow margin of -4.2%.

Comments on this video and McCormick stock

Amigobulls McCormick stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

McCormick revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.