McCormick Stock Analysis, Valuation (NYSE:MKC)
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 3.1/5
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 Q2 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 19.1% in 2018-05.
- The company saw a significant growth in revenue with a 5 year CAGR of 5.2.
- McCormick's average operating margin of 15.48 was exceptional.
- LTM Net margins were good at 15.8% for McCormick.
- The operating cash flow looks good at 2.0714 times the net income.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for McCormick at 31.9.
- The company has a good Free Cash Flow (FCF) margin of 17.1.
Should you sell MKC stock?
- McCormick has a debt/equity ratio of 1.57, which is worse than the average in the Consumer Staples sector.
- The company is trading at a price to sales multiple of 2.9, which is overvalued in comparison to the Consumer Staples sector average multiple of 1.6.
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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.