McCormick & Company Inc. (MKC) Stock

McCormick & Company Inc. trades at a P/E ratio of 26.59, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 24.94 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 3.61 indicates a premium valuation even accounting for growth.

With a beta of 0.68, McCormick & Company Inc. is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 3.66 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

McCormick & Company Inc. achieves a profit margin of 11.50%, meaning it retains $11.50 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 15.70% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 14.10% and ROA at 5.19%, the company achieves moderate returns on invested capital.

McCormick & Company Inc.'s revenue grew by 1.00% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 4.40% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against MISCELLANEOUS FOOD PREPARATIONS & KINDRED PRODUCTS industry averages for proper context.

McCormick & Company Inc. offers a dividend yield of 2.36%, paying $1.74 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of 7/7/2025.

The dividend sustainability can be assessed through the payout ratio - McCormick & Company Inc. pays $1.74 per share in dividends against earnings of $2.87 per share, resulting in a payout ratio of 60.63%. This high payout ratio of 60-90% leaves limited earnings for reinvestment. While currently sustainable, there's less buffer for dividend growth or protection during earnings downturns. The next dividend payment is scheduled for 7/21/2025.

McCormick & Company Inc. has a market capitalization of $20.49B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 253.04M shares outstanding, the company's ownership is relatively concentrated. As a participant in the MISCELLANEOUS FOOD PREPARATIONS & KINDRED PRODUCTS industry, it competes with other firms in this sector.

McCormick & Company Inc.'s book value per share is $20.87, while the current stock price is $71.88, resulting in a price-to-book (P/B) ratio of 3.44. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

16 analysts cover MKC with 31% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $83.07 implies 15.6% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:1 Strong Buy, 4 Buy, 10 Hold, 01 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

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