A Business at a Glance
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MCCORMICK & CO INC
MKC
$13.5B
Mkt Cap
$49.96
-0.46%
MCCORMICK & CO INC (MKC) has a current P/E ratio of 17.1, compared to its historical median P/E of 25.1. The stock is currently considered Cheap based on its historical valuation range.
MCCORMICK & CO INC (MKC) has a 5-year average return on invested capital (ROIC) of 7.8%. This is below average and may indicate limited pricing power.
MCCORMICK & CO INC (MKC) has a market capitalization of $13.5B. It is classified as a large-cap stock.
Yes, MCCORMICK & CO INC (MKC) pays a dividend with a trailing twelve-month yield of 3.65%. The company also returns capital through share buybacks, with a buyback yield of 0.21%.
Based on historical P/E analysis, MCCORMICK & CO INC (MKC) appears cheap. The current P/E of 17.1 is 32% below its historical median of 25.1. The estimated fair value CAGR (P/E method) is -0.9%.
MCCORMICK & CO INC (MKC) operates in the Miscellaneous Food Preparations & Kindred Products industry, within the Consumer Defensive sector.
MCCORMICK & CO INC (MKC) reported annual revenue of $6.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
McCormick is a global leader in flavor, manufacturing, marketing, and distributing herbs, spices, seasoning mixes, condiments, and other flavorful products to retailers, food manufacturers, and foodservice businesses across approximately 150 countries. The company operates through two segments: Consumer, which sells branded products through grocery, mass merchandise, warehouse clubs, discount and drug stores, and e-commerce channels, and Flavor Solutions, which supplies customized flavor products to multinational food manufacturers and foodservice customers. The Consumer segment, which contributed approximately 58% of consolidated net sales and 67% of consolidated operating income in 2025, features leading global brands including McCormick, French's, Frank's RedHot, Lawry's, Cholula, Ducros, Schwartz, and Gourmet Garden, with approximately two-thirds of sales from spices, seasonings, condiments, and sauces. The Flavor Solutions segment, contributing 42% of sales and 33% of operating income, provides a broad range of seasoning blends, spices, herbs, condiments, coating systems, and compound flavors to food manufacturers and foodservice operators, with many customer relationships spanning decades. McCormick's competitive advantages include its position as the global brand leader in spices and seasonings, extensive product breadth across premium to value-priced offerings, long-standing customer relationships, and expertise in sensory testing, culinary research, and food safety. The company sources raw materials including pepper, garlic, onion, capsicums, salt, tomato products, sugar, and soybean oil from global suppliers, with major production and distribution facilities in North America, Europe, and China, and additional operations in Australia, Central America, Thailand, and South Africa.
【Sustained momentum with targeted reinvestment】 Management expects to sustain volume growth momentum in Flavor Solutions while implementing targeted actions to strengthen Consumer segment performance through refined revenue growth management, expanded distribution, and increased brand marketing investments. In the second half of 2026, the company anticipates sequential volume improvement in the third quarter and volume growth in the fourth quarter in Consumer, supported by innovation and expanded distribution, while Flavor Solutions is expected to maintain its positive trajectory with healthy customer pipelines across all segments. Gross margins are expected to expand by 100 to 120 basis points for the full year relative to 2025, driven by continued productivity gains and cost savings, though this will be partially offset by increased SG&A expenses related to ERP technology investments, incentive compensation rebuilding, and significant brand marketing investments. The company remains confident in delivering on its 2026 outlook through disciplined execution and continued focus on long-term value creation, with the pending Unilever Foods combination expected to accelerate growth strategy and reinforce the company's focus on flavor as an advantaged category in consumer packaged goods.
| Metric | Target | Period |
|---|---|---|
| Gross margin expansion | 100 to 120 basis points | FY2026 |
| Adjusted operating income growth | high single to low double digits | Q3 FY2026 |
| Tariff refund benefit | $31 million | FY2026 |
| Debt paydown capacity | $1.5 billion-$2 billion | First two years post-Unilever Foods close |
| Adjusted EPS accretion from Unilever Foods transaction | mid to high single-digit in first 12 months post-close; mid to high teens in year three | Post-close of Unilever Foods transaction |
| Operating margins post-Unilever Foods close | 21% | At close of Unilever Foods transaction |
| Sustainable organic sales growth | 3%-5% | Year three post-Unilever Foods close |
| Operating margins | approximately 23%-25% | Year three post-Unilever Foods close |
| Cost synergies | $600 million annual run rate | By year three post-Unilever Foods close |
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 7.1B | 6.8B | 6.7B | 6.7B | 6.4B | 6.3B |
| Net Income | 1.6B | 789M | 789M | 681M | 682M | 755M |
| EPS | $6.10 | $2.93 | $2.92 | $2.52 | $2.52 | $2.80 |
| Free Cash Flow | 680M | 740M | 647M | 973M | 390M | 550M |
| ROIC | 8.1% | 7.6% | 9.1% | 7.0% | 7.5% | 7.6% |
| Gross Margin | 37.9% | 37.9% | 38.5% | 37.6% | 35.8% | 39.5% |
| Debt/Equity | 0.71 | 0.74 | 0.82 | 0.92 | 1.10 | 1.23 |
| Dividends/Share | $1.82 | $1.83 | $1.71 | $1.59 | $1.50 | $1.39 |
| Operating Income | 1.1B | 1.1B | 1.1B | 963M | 864M | 1.0B |
| Operating Margin | 15.1% | 15.7% | 15.8% | 14.5% | 13.6% | 16.1% |
| ROE | 23.5% | 14.3% | 14.9% | 14.0% | 14.6% | 18.1% |
| Shares Outstanding | 269M | 269M | 270M | 270M | 271M | 270M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 4.2B | 4.3B | 4.4B | 4.7B | 5.3B | 5.3B | 5.6B | 6.3B | 6.4B | 6.7B | 6.7B | 6.8B | 7.1B |
| Gross Margin | 40.8% | 40.4% | 41.5% | 37.9% | 39.5% | 40.1% | 41.1% | 39.5% | 35.8% | 37.6% | 38.5% | 37.9% | 37.9% |
| R&D | 62M | 61M | 61M | 66M | 69M | 67M | 69M | 87M | 88M | 95M | 103M | 106M | 106M |
| SG&A | 1.1B | 1.1B | 1.2B | 1.0B | 1.2B | 1.2B | 1.3B | 1.4B | 1.4B | 1.5B | 1.5B | 1.5B | 1.6B |
| EBIT | 603M | 548M | 641M | 700M | 891M | 958M | 1000M | 1.0B | 864M | 963M | 1.1B | 1.1B | 1.1B |
| Op. Margin | 14.2% | 12.8% | 14.5% | 14.8% | 16.8% | 17.9% | 17.8% | 16.1% | 13.6% | 14.5% | 15.8% | 15.7% | 15.1% |
| Net Income | 438M | 402M | 472M | 477M | 933M | 703M | 747M | 755M | 682M | 681M | 789M | 789M | 1.6B |
| Net Margin | 10.3% | 9.3% | 10.7% | 10.1% | 17.6% | 13.1% | 13.3% | 12.0% | 10.7% | 10.2% | 11.7% | 11.5% | 23.1% |
| Non-Recurring | -1.3M | 9.0M | -1.5M | -1.3M | 5.4M | 1.6M | -3.0M | 17M | 10M | -200K | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 11.8% | 11.0% | 13.0% | 8.1% | 11.7% | 9.0% | 8.9% | 7.6% | 7.5% | 7.0% | 9.1% | 7.6% | 8.1% |
| ROE | 23.3% | 23.0% | 28.4% | 22.7% | 32.5% | 21.2% | 20.3% | 18.1% | 14.6% | 14.0% | 14.9% | 14.3% | 23.5% |
| ROA | 9.9% | 9.1% | 10.4% | 6.4% | 9.0% | 6.8% | 6.7% | 6.0% | 5.2% | 5.2% | 6.0% | 6.0% | 10.1% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 504M | 590M | 658M | 815M | 821M | 947M | 1.0B | 828M | 652M | 1.2B | 922M | 962M | 898M |
| Free Cash Flow | 371M | 462M | 504M | 633M | 652M | 773M | 816M | 550M | 390M | 973M | 647M | 740M | 680M |
| Owner Earnings | 383M | 465M | 524M | 666M | 645M | 751M | 830M | 575M | 391M | 975M | 666M | 685M | 610M |
| CapEx | 133M | 128M | 154M | 182M | 169M | 174M | 225M | 278M | 262M | 264M | 275M | 222M | 217M |
| Maint. CapEx | 103M | 106M | 109M | 125M | 151M | 159M | 165M | 186M | 201M | 199M | 209M | 231M | 241M |
| Growth CapEx | 30M | 22M | 45M | 57M | 18M | 15M | 60M | 92M | 61M | 65M | 66M | 0 | 0 |
| D&A | 103M | 106M | 109M | 125M | 151M | 159M | 165M | 186M | 201M | 199M | 209M | 231M | 241M |
| CapEx/OCF | 26.4% | 21.8% | 23.4% | 22.4% | 20.6% | 18.3% | 21.6% | 33.6% | 40.2% | 21.3% | 29.8% | 23.1% | 24.2% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 192M | 205M | 218M | 238M | 273M | 302M | 330M | 363M | 397M | 419M | 451M | 483M | 491M |
| Dividend Yield | 5.3% | 4.9% | 4.3% | 4.5% | 2.0% | 1.7% | 1.6% | 1.7% | 1.8% | 2.1% | 2.4% | 2.5% | 3.6% |
| Share Buybacks | 244M | 146M | 243M | 138M | 62M | 95M | 47M | 8.6M | 39M | 36M | 53M | 35M | 29M |
| Buyback Yield | 3.1% | 1.6% | 2.4% | 1.2% | 0.4% | 0.5% | 0.2% | 0.0% | 0.2% | 0.2% | 0.3% | 0.2% | 0.2% |
| Stock-Based Comp | 18M | 19M | 26M | 24M | 26M | 37M | 46M | 67M | 60M | 63M | 47M | 46M | 47M |
| Debt Repayment | 1.6M | 1.6M | 202M | 273M | 798M | 448M | 258M | 257M | 772M | 268M | 801M | 268M | 268M |
| Balance Sheet | |||||||||||||
| Net Debt | 1.2B | 1.3B | 1.3B | 4.8B | 4.6B | 4.2B | 4.6B | 5.1B | 4.5B | 4.5B | 4.0B | 4.1B | 4.7B |
| Cash & Equiv. | 77M | 113M | 118M | 187M | 97M | 155M | 424M | 352M | 334M | 167M | 186M | 96M | 178M |
| Long-Term Debt | 1.0B | 1.1B | 1.1B | 4.4B | 4.1B | 3.6B | 3.8B | 4.0B | 3.6B | 3.3B | 3.6B | 3.1B | 3.6B |
| Debt/Equity | 0.71 | 0.83 | 0.88 | 1.96 | 1.48 | 1.26 | 1.29 | 1.23 | 1.10 | 0.92 | 0.82 | 0.74 | 0.71 |
| Interest Coverage | 12.1 | 10.3 | 11.4 | 7.3 | 5.1 | 5.8 | 7.4 | 7.4 | 5.8 | 4.6 | 5.1 | 5.5 | 5.5 |
| Equity | 1.8B | 1.7B | 1.6B | 2.6B | 3.2B | 3.4B | 3.9B | 4.4B | 4.7B | 5.1B | 5.3B | 5.7B | 7.0B |
| Total Assets | 4.4B | 4.5B | 4.6B | 10.4B | 10.3B | 10.4B | 12.1B | 12.9B | 13.1B | 12.9B | 13.1B | 13.2B | 16.3B |
| Total Liabilities | 2.6B | 2.8B | 3.0B | 7.8B | 7.1B | 6.9B | 8.1B | 8.5B | 8.4B | 7.8B | 7.8B | 7.4B | 8.8B |
| Intangibles | 331M | 372M | 425M | 3.1B | 2.9B | 2.8B | 3.2B | 3.5B | 3.4B | 3.4B | 3.3B | 3.3B | 5.0B |
| Retained Earnings | 983M | 1.0B | 1.1B | 1.2B | 1.8B | 2.1B | 2.4B | 2.8B | 3.0B | 3.2B | 3.5B | 3.8B | 4.8B |
| Working Capital | 294M | 119M | -900K | -330M | -522M | -604M | -963M | -1.0B | -1.0B | -1.1B | -744M | -924M | -833M |
| Current Assets | 1.4B | 1.4B | 1.4B | 1.6B | 1.5B | 1.6B | 2.1B | 2.2B | 2.4B | 2.0B | 2.1B | 2.1B | 2.6B |
| Current Liabilities | 1.1B | 1.2B | 1.4B | 1.9B | 2.0B | 2.2B | 3.0B | 3.2B | 3.4B | 3.1B | 2.9B | 3.1B | 3.4B |
| Per Share Data | |||||||||||||
| EPS | 3.34 | 3.11 | 3.69 | 3.72 | 3.50 | 2.62 | 2.78 | 2.80 | 2.52 | 2.52 | 2.92 | 2.93 | 6.10 |
| Owner EPS | 2.92 | 3.60 | 4.09 | 5.19 | 2.42 | 2.80 | 3.09 | 2.13 | 1.44 | 3.61 | 2.47 | 2.54 | 2.27 |
| Book Value | 13.80 | 13.06 | 12.80 | 20.03 | 11.89 | 12.84 | 14.60 | 16.35 | 17.29 | 18.74 | 19.59 | 21.29 | 25.91 |
| Cash Flow/Share | 3.84 | 4.57 | 5.14 | 6.35 | 3.08 | 3.53 | 3.87 | 3.07 | 2.41 | 4.58 | 3.41 | 3.57 | 6.99 |
| Dividends/Share | 1.51 | 1.63 | 1.76 | 1.93 | 1.07 | 1.17 | 1.27 | 1.39 | 1.50 | 1.59 | 1.71 | 1.83 | 1.82 |
| Shares Out. | 131.1M | 129.1M | 128.0M | 128.3M | 266.7M | 268.2M | 268.8M | 269.8M | 270.6M | 270.1M | 270.0M | 269.4M | 269.4M |
| Valuation | |||||||||||||
| P/E Ratio | 18.0 | 22.8 | 21.0 | 23.2 | 18.4 | 28.6 | 30.1 | 27.9 | 30.9 | 24.4 | 25.8 | 22.9 | 8.2 |
| P/FCF | 10.6 | 9.9 | 9.9 | 8.8 | 26.4 | 26.0 | 27.6 | 38.3 | 54.0 | 17.1 | 31.5 | 24.4 | 19.8 |
| EV/EBIT | 15.1 | 19.1 | 17.6 | 22.4 | 24.4 | 25.2 | 26.6 | 25.3 | 29.6 | 21.5 | 22.9 | 20.4 | 17.0 |
| Price/Book | 4.4 | 5.4 | 6.1 | 4.3 | 5.4 | 5.8 | 5.7 | 4.8 | 4.5 | 3.3 | 3.8 | 3.1 | 1.9 |
| Price/Sales | 1.7 | 1.9 | 2.3 | 2.2 | 2.5 | 3.4 | 3.7 | 3.4 | 3.5 | 3.0 | 2.8 | 2.8 | 1.9 |
| FCF Yield | 4.7% | 5.0% | 5.1% | 5.7% | 3.8% | 3.8% | 3.6% | 2.6% | 1.9% | 5.9% | 3.2% | 4.1% | 5.1% |
| Market Cap | 7.9B | 9.2B | 9.9B | 11.1B | 17.2B | 20.1B | 22.5B | 21.1B | 21.0B | 16.6B | 20.4B | 18.1B | 13.5B |
| Avg. Price | 27.76 | 32.07 | 39.61 | 41.45 | 50.01 | 66.90 | 78.04 | 79.16 | 82.62 | 74.91 | 70.41 | 71.96 | 49.96 |
| Year-End Price | 30.06 | 35.51 | 38.82 | 43.19 | 64.56 | 75.03 | 83.78 | 78.07 | 77.75 | 61.56 | 75.37 | 67.01 | 49.96 |
MCCORMICK & CO INC passes 4 of 9 quality checks, suggesting mixed fundamentals.
MCCORMICK & CO INC trades at 17.1x trailing earnings, compared to its 15-year median P/E of 25.1x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 1.0x vs a median of 26.2x. The company's 5-year average ROIC is 7.8% with a gross margin of 37.9%. Total shareholder yield (dividends + buybacks) is 3.9%. At current prices, the estimated annualized return to fair value is +65.1%.
MCCORMICK & CO INC (MKC) has a net profit margin of 11.5%. This is a healthy margin.
MCCORMICK & CO INC (MKC) generated $740 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
MCCORMICK & CO INC (MKC) has a debt-to-equity ratio of 0.74. This indicates moderate leverage.
MCCORMICK & CO INC (MKC) reported earnings per share (EPS) of $2.93 in its most recent fiscal year.
MCCORMICK & CO INC (MKC) has a return on equity (ROE) of 14.3%. This indicates moderate shareholder returns.
MCCORMICK & CO INC (MKC) has a 5-year average gross margin of 37.9%. This indicates decent pricing power.
The Ledger Terminal provides 18 years of financial data for MCCORMICK & CO INC (MKC), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
MCCORMICK & CO INC (MKC) has a book value per share of $21.29, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects to sustain volume growth momentum in Flavor Solutions while implementing targeted actions to strengthen Consumer segment performance through refined revenue growth management, expanded distribution, and increased brand marketing investments. In the second half of 2026, the company anticipates sequential volume improvement in the third quarter and volume growth in the fourth quarter in Consumer, supported by innovation and expanded distribution, while Flavor Solutions is expected to maintain its positive trajectory with healthy customer pipelines across all segments. Gross margins are expected to expand by 100 to 120 basis points for the full year relative to 2025, driven by continued productivity gains and cost savings, though this will be partially offset by increased SG&A expenses related to ERP technology investments, incentive compensation rebuilding, and significant brand marketing investments. The company remains confident in delivering on its 2026 outlook through disciplined execution and continued focus on long-term value creation, with the pending Unilever Foods combination expected to accelerate growth strategy and reinforce the company's focus on flavor as an advantaged category in consumer packaged goods.
Based on recent SEC filings and earnings calls, MCCORMICK & CO INC (MKC) has provided the following forward guidance: Gross margin expansion: 100 to 120 basis points (FY2026); Adjusted operating income growth: high single to low double digits (Q3 FY2026); Tariff refund benefit: $31 million (FY2026); Debt paydown capacity: $1.5 billion-$2 billion (First two years post-Unilever Foods close); Adjusted EPS accretion from Unilever Foods transaction: mid to high single-digit in first 12 months post-close; mid to high teens in year three (Post-close of Unilever Foods transaction), plus 6 additional metrics.
| Net leverage at Unilever Foods close |
| at or below 4x |
| At close of Unilever Foods transaction |
| Net leverage reduction target | approximately 3x | Within two years of Unilever Foods close |
Gross margin expansion (FY2026): “we expect gross margins to expand by 100 to 120 basis points for the year relative to 2025”
Adjusted operating income growth (Q3 FY2026): “For the third quarter, adjusted operating income is expected to grow in the high single to low double digits year-over-year”
Tariff refund benefit (FY2026): “the $31 million full-year expected tariff refund benefit”
Debt paydown capacity (First two years post-Unilever Foods close): “we anticipate having $1.5 billion-$2 billion available to pay down debt within the first two years”
Adjusted EPS accretion from Unilever Foods transaction (Post-close of Unilever Foods transaction): “We expect mid to high single-digit adjusted EPS accretion within the first 12 months post-close and mid to high teens accretion in year three”
Operating margins post-Unilever Foods close (At close of Unilever Foods transaction): “we expect to have industry-leading operating margins of 21%”
Sustainable organic sales growth (Year three post-Unilever Foods close): “By year three, as synergies are realized, we expect sustainable organic sales growth of 3%-5%”
Operating margins (Year three post-Unilever Foods close): “operating margins are expected to expand to approximately 23%-25%”
No recent press releases.