McCormick & MKC
McCormick & Company is a global manufacturer and distributor of spices, seasonings, sauces, and other flavor products for home and professional use, with a business model based on strong brands and an extensive distribution network. McCormick presents an acceptable financial health (5.35) with high debt (ND/EBITDA 3.17), but its valuation is attractive (P/E 7.98) and its dividend is solid (yield 4.00%). Negative earnings growth (-14.20%) weighs on the growth score.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
McCormick & Company is a global manufacturer and distributor of spices, seasonings, sauces, and other flavor products for home and professional use, with a business model based on strong brands and an extensive distribution network. McCormick presents an acceptable financial health (5.35) with high debt (ND/EBITDA 3.17), but its valuation is attractive (P/E 7.98) and its dividend is solid (yield 4.00%). Negative earnings growth (-14.20%) weighs on the growth score.
Score by category
| Category | Score |
|---|---|
| Financial health | 5.0 |
| Quality / Moat | 6.1 |
| Valuation | 7.3 |
| Growth | 5.0 |
| Dividend | 7.8 |
| Momentum | 3.0 |
| Risk & Context | 7.5 |
OVERALL SCORE: 6.2/10
Context and risks
The company has a net debt/EBITDA of 3.17, above the threshold of 3, and the rise in 10-year Treasury yields increases its financing cost. However, being a defensive consumer company, its sensitivity to rates is limited and no material impact on valuation is expected.
News considered in the analysis
- McCormick Likely to Keep Guidance at Fiscal Q3 Results, UBS Says — La confirmación de la guía por parte de UBS sugiere estabilidad, pero no aporta información nueva material.
- Earnings Preview: McCormick (MKC) Q3 Earnings Expected to Decline — La expectativa de caída de beneficios en el tercer trimestre es consistente con la tendencia de crecimiento de beneficios negativa ya reflejada en las notas.
- Did McCormick’s (MKC) FTSE All-World Removal Just Reframe Its Passive-Ownership Risk Profile? — La posible exclusión del índice FTSE All-World podría reducir la demanda pasiva, ejerciendo presión sobre el precio de la acción.
- 6 food manufacturers talk supply chain tactics — Artículo genérico sobre estrategias de cadena de suministro sin información específica sobre McCormick.
- General Mills (GIS) Surpasses Q1 Earnings and Revenue Estimates — Noticia sobre un competidor directo, sin impacto directo en McCormick.
Verdict: Hold: attractive valuation and solid dividend offset weak growth and high leverage.
Main risk: The main risk is the high leverage (ND/EBITDA 3.17) in a rising rate environment, which could pressure margins and cash generation if financing costs increase.
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