McCormick & Company, IncorporatedMKCNYSE
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Executive Summary

Latest Data: Nov 2025
Consumer DefensivePackaged Foods
$19.2BLarge Cap

A mid-sized company, with solid profitability valued in line with the market.

Key Investment Themes
Mature business (2% growth)
Solid 12% profitability

Business Narrative

McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry. It operates in two segments, Consumer and Flavor Solutions. The Consumer segment offers spices, herbs, and seasonings, as well as condiments and sauces, and desserts.

Consumer DefensivePackaged Foods
Mature & Stable
high confidence
Revenue Mix
Single segment business
Bull Case
  • +Solid profitability with room for margin expansion

Company at a Glance

Revenue Growth
2%
Profit Margin
12%
Free Cash Flow
$740M
P/E Ratio
24.3x
-12% vs 5Y avg
IN-LINE

Business Performance

Business Scale
Revenue$6.8B
Net Income$789M
Profitability Quality
Gross Margin38%
Operating Margin16%
Net Margin12%
Growth Trajectory
Revenue Growth
2%
EPS Growth
0%
FCF Growth
14%

Key Highlights

Watch Areas

  • Current liabilities exceed current assets

Financial Health

Liquidity
Concern
Current Ratio0.70
<1.0 = Weak
Cash & Equivalents$96M
Leverage
Strong
Debt / Equity0.70
<1.0 = Low leverage
Interest Coverage5.57x
≥5x = Comfortable
Efficiency
Concern
Return on Equity13.8%
8-15% = Fair
Return on Capital7.9%
<8% = Weak

Valuation Assessment

Market Cap
$19.2B
Large Cap
P/E (TTM)
24.3x
In-line
vs 5Y avg: 27.7x (-12%)
P/S (TTM)
2.8x
In-line
vs 5Y avg: 3.1x (-10%)
EV/EBITDA
18.0x
In-line
vs 5Y avg: 20.1x
(-10%)
P/E Historical Range (5Y)
Min: 22.6xAvg: 27.7xNow: 24.3xMax: 33.5x
P/S Historical Range (5Y)
Min: 2.6xAvg: 3.1xNow: 2.8xMax: 3.6x
EV/EBITDA Historical Range (5Y)
Min: 16.2xAvg: 20.1xNow: 18.0xMax: 23.9x

Valuation Corridor

FAIR
FCF Yield
4.6%
vs Cost of Capital ~8.0% = Moderate
P/E Corridor (5Y)24.3x
22.6xFair: 23.5x-32.0x33.5x
P/S Corridor (5Y)2.8x
2.6xFair: 2.6x-3.6x3.6x
EV/EBITDA Corridor (5Y)18.0x
16.2xFair: 16.8x-23.4x23.9x

Detailed Financials

Comprehensive financial statement data for deep analysis

MetricNov 21Nov 22Nov 23Nov 24Nov 25
Return on Equity
-
-
-
-
-
Return on Invested Capital
-
-
-
-
-
Gross Margin
39.5%
35.8%9.3%
37.6%4.9%
38.5%2.6%
37.9%1.7%
Operating Margin
16.1%
13.6%15.4%
14.5%6.3%
15.8%9.1%
16.0%1.2%
Net Margin
12.0%
10.7%10.2%
10.2%4.9%
11.7%14.8%
11.5%1.6%
Earnings Yield
-
-
-
-
-
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