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McCormick (MKC.V) Stock Analysis

This is a peer-relative look at McCormick (MKC.V): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Food, Beverage & Tobacco peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for McCormick (MKC.V)
Profile ItemMKC.V
NameMcCormick & Company, Incorporated Voting Common Stock
Country/RegionUnited States
GICS SectorConsumer Staples
GICS Industry GroupFood, Beverage & Tobacco
GICS IndustryFood Products
GICS Sub-IndustryPackaged Foods & Meats
Market Capitalization13.12 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateOctober 7, 2003
Security TypeCommon Stock

Price Performance

Cumulative Growth

MKC.V
GSPC
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McCormick (MKC.V) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for McCormick (MKC.V) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for McCormick (MKC.V) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

McCormick (MKC.V) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: MKC.VIndustry group median
Total Return (1Y)-23.37%9.07%
Total Return (3Y, Annualized)-6.90%2.06%
Total Return (5Y, Annualized)-7.71%1.14%

Risk Profile

Drawdown History

MKC.V
GSPC
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McCormick (MKC.V) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for McCormick (MKC.V) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

McCormick (MKC.V) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: MKC.VIndustry group median
Volatility (1Y, Annualized)33.74%32.65%
Beta (5Y)0.560.43
Max Drawdown (5Y)-52.34%-51.71%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. MKC.V is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

McCormick (MKC.V) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: MKC.VIndustry group median
Sharpe Ratio (1Y)-0.820.14
Sortino Ratio (1Y)-1.110.20

Profitability

ROE (TTM)

McCormick (MKC.V) posts ROE of 22.62%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

MKC.V

Food, Beverage & Tobacco industry group

22.62%

Group distribution
Max
32.02%
MKC.V
22.62%
Q3
16.61%
Median
10.05%
Q1
4.10%
Min
-10.50%
Largest peers
PEP
52.19%
KO
40.59%
MKC.V
22.62%
BTI
13.42%
PM
--
BUD
--
MO
--
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Where McCormick (MKC.V) stands on ROE within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

McCormick (MKC.V) keeps 19.39% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

MKC.V

Food, Beverage & Tobacco industry group

19.39%

Group distribution
Max
24.83%
MKC.V
19.39%
Q3
11.22%
Median
5.94%
Q1
2.05%
Min
-11.49%
Largest peers
MO
39.33%
KO
28.65%
BTI
24.99%
PM
24.83%
MKC.V
19.39%
BUD
15.42%
PEP
11.09%
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Where McCormick (MKC.V) stands on net margin within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

McCormick (MKC.V) turns 17.76% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

MKC.V

Food, Beverage & Tobacco industry group

17.76%

Group distribution
Max
34.91%
MKC.V
17.76%
Q3
17.57%
Median
11.06%
Q1
4.15%
Min
-15.06%
Largest peers
MO
61.48%
PM
41.94%
BTI
34.91%
KO
33.36%
BUD
27.48%
MKC.V
17.76%
PEP
16.88%
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Where McCormick (MKC.V) stands on operating margin within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

McCormick (MKC.V) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: MKC.VIndustry group median
ROE (TTM)22.62%10.05%
ROA (TTM)5.25%5.25%
Net Margin (TTM)19.39%5.94%
Operating Margin (TTM)17.76%11.06%
Gross Margin (TTM)38.91%34.26%

Growth

Revenue Growth

McCormick (MKC.V) grew revenue 1.73%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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McCormick (MKC.V): Revenue Growth across different time periods, set against Food, Beverage & Tobacco industry-group medians.

EPS Growth

McCormick (MKC.V) grew earnings per share 0.34%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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McCormick (MKC.V): EPS Growth across different time periods, set against Food, Beverage & Tobacco industry-group medians.

Growth Metrics

McCormick (MKC.V) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: MKC.VIndustry group median
Revenue Growth (YoY)1.73%2.38%
Revenue Growth (3Y CAGR)2.51%2.51%
EPS Growth (YoY)0.34%-2.47%
EPS Growth (3Y CAGR)5.15%4.29%

Financial Strength

Current Ratio (MRQ)

McCormick (MKC.V) has current ratio of 0.66, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

MKC.V

Food, Beverage & Tobacco industry group

0.66

Group distribution
Max
4.01
Q3
2.35
Median
1.53
Q1
1.02
MKC.V
0.66
Min
0.33
Largest peers
KO
1.38
PM
1.02
PEP
0.94
BTI
0.84
MKC.V
0.66
MO
0.58
BUD
--
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Where McCormick (MKC.V) stands on current ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

McCormick (MKC.V) has debt-to-equity ratio of 0.66, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

MKC.V

Food, Beverage & Tobacco industry group

0.66

Group distribution
Max
2.19
Q3
1.11
Median
0.68
MKC.V
0.66
Q1
0.33
Min
0.00
Largest peers
PEP
2.31
KO
1.07
BTI
0.72
BUD
0.72
MKC.V
0.66
PM
--
MO
--
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Where McCormick (MKC.V) stands on debt-to-equity ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

McCormick (MKC.V) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: MKC.VIndustry group median
Current Ratio (MRQ)0.661.53
Debt / Equity (MRQ)0.660.68
Net Debt / EBITDA3.122.57

Dividends

Dividend Yield (TTM)

McCormick (MKC.V) has dividend yield of 3.77%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

MKC.V

Food, Beverage & Tobacco industry group

3.77%

Group distribution
Max
9.38%
Q3
3.77%
MKC.V
3.77%
Median
1.76%
Q1
0.00%
Min
0.00%
Largest peers
MO
5.53%
PEP
4.07%
BTI
3.88%
MKC.V
3.77%
PM
2.98%
KO
2.19%
BUD
1.91%
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Where McCormick (MKC.V) stands on dividend yield within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

McCormick (MKC.V) has payout ratio of 34.18%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

MKC.V

Food, Beverage & Tobacco industry group

34.18%

Group distribution
Max
199.19%
Q3
81.03%
Median
41.52%
MKC.V
34.18%
Q1
0.00%
Min
0.00%
Largest peers
MO
88.45%
PM
87.74%
BTI
83.97%
PEP
73.02%
KO
61.95%
MKC.V
34.18%
BUD
27.35%
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Where McCormick (MKC.V) stands on payout ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

McCormick (MKC.V) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: MKC.VIndustry group median
Dividend Yield (TTM)3.77%1.76%
Dividend Payout Ratio (TTM)34.18%41.52%

Valuation

P/E Ratio (TTM)

McCormick (MKC.V) trades at P/E ratio of 8.82, in the cheaper earnings-multiple quartile for its industry. Investors are paying less for each dollar of TTM earnings than they usually pay for comparable businesses.

MKC.V

Food, Beverage & Tobacco industry group

8.82

Group distribution
Max
52.52
Q3
30.78
Median
18.76
Q1
12.77
MKC.V
8.82
Min
4.72
Largest peers
PM
28.89
KO
28.22
PEP
17.78
BUD
17.07
MO
15.69
BTI
15.61
MKC.V
8.82
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Where McCormick (MKC.V) stands on P/E ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

McCormick (MKC.V) trades at 1.71 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

MKC.V

Food, Beverage & Tobacco industry group

1.71

Group distribution
Max
4.64
Q3
2.27
MKC.V
1.71
Median
1.17
Q1
0.52
Min
0.00
Largest peers
KO
8.06
PM
7.15
MO
6.14
BTI
5.08
BUD
2.58
PEP
1.96
MKC.V
1.71
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Where McCormick (MKC.V) stands on P/S ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

McCormick (MKC.V) trades at 1.87 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

MKC.V

Food, Beverage & Tobacco industry group

1.87

Group distribution
Max
6.35
Q3
3.07
MKC.V
1.87
Median
1.58
Q1
0.82
Min
0.00
Largest peers
KO
11.01
BUD
10.60
BTI
10.59
PEP
8.65
MKC.V
1.87
PM
-38.86
MO
-56.93
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Where McCormick (MKC.V) stands on P/B ratio within its Food, Beverage & Tobacco peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

McCormick (MKC.V) metric values compared with Food, Beverage & Tobacco industry-group medians
MetricCurrent stock: MKC.VIndustry group median
P/E Ratio (TTM)8.8218.76
P/S Ratio (TTM)1.711.17
P/B Ratio (MRQ)1.871.58
Free Cash Flow Yield (TTM)5.65%4.66%