McCormick Stock Analysis, Valuation (NYSE:MKC)
Take a look at Amigobulls McCormick stock analysis video. Our analyst opinion covering the buy and sell arguments for MKC stock is shown in the video.
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 uses latest quarter 2018 Q2 financial data like McCormick revenue growth, profit margins and cash flows. We also use relative valuation metrics like PE ratio and price to sales ratio for McCormick valuation analysis. Our McCormick stock rating is based on company's fundamentals like balance sheet risk and cash flow position.
Should you buy MKC stock?
- McCormick sales grew by 19.1% year on year in 2018-05.
- McCormick had a healthy average operating margin of 15.48 over the last 4 quarters.
- Net margins came in at average 15.8% for McCormick over the last twelve months.
- The company has an operating cash flow which is 2.0714 times the net income. We see this as a positive signal.
- McCormick has a good Return On Equity (ROE) of 31.9.
- McCormick has a healthy FCF (Free Cash Flow) margin of 17.1.
Should you sell MKC stock?
- McCormick is debt laden and has a high debt/equity ratio of 1.57.
- MKC stock is trading at a PS multiple of 3.3, which is a negative when compared to the Consumer Staples sector average multiple of 1.7.
Investors can make use of the Amigobulls McCormick stock analysis to ascertain how MKC stock fares in fundamental analysis investment criteria. The fundamentals of a company are vital to identify long-term investment opportunities.
Among the financials of the company, McCormick revenue growth along with the profit or net income give a clear picture of the financial health. One can also combine technical analysis and fundamental analysis to get a holistic picture about MKC stock.