McCormick & Company (MKC) AI Stock Analysis

• Market Cap: $18.43B
• Dividend Yield: 2.61%
• Average Volume (3M): 2.67M
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.17
• Revenue Growth: 1.64%
• EPS Growth: -1.83%
• Country: US
• Employees: 14,100
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.85
• Shares Outstanding: 253,239,900
• 10 Day Avg. Volume: 3,194,157
• 30 Day Avg. Volume: 2,671,133
• PEG Ratio: 1.70
• Price to Book (P/B): 3.98
• Price to Sales (P/S): 3.13
• P/FCF Ratio: 32.54
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 3.30
• Enterprise Value/Gross Profit: 8.64
• Enterprise Value/Ebitda: 16.86
• 1Y Price Target: $82.50
• Price Target Upside: 23.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 3.21
• Revenue Forecast (FY): $7.45B

• Rating: 77 Outperform
• Price Target: $76.00 ▲(13.37% Upside)

MKC scores well on financial performance (growth, cash flow improvement, and manageable leverage) and is supported by a stable, mixed-but-resilient earnings outlook. Technicals are moderately positive but not fully bullish due to being below the 200-day average, while valuation looks fair-to-slightly premium despite a supportive dividend. The Mexico majority-stake acquisition adds a modest strategic positive.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for McCormick's products, supporting long-term market position and financial stability.

Cash Flow Improvement

Improved cash flow enhances financial flexibility, allowing McCormick to invest in growth initiatives and manage debt effectively.

Innovation and Product Launches

Continuous innovation and product launches help McCormick capture consumer interest and expand its market share, driving long-term growth.

Negative Factors

Rising Commodity Costs

Persistent commodity cost increases can erode profit margins, challenging McCormick's ability to maintain profitability without price adjustments.

Impact of Tariffs

Tariffs significantly increase operational costs, potentially affecting McCormick's pricing strategies and competitive positioning in key markets.

Softness in China Food Service

Weak demand in China food service impacts revenue from a significant market, posing a challenge to McCormick's international growth strategy.

McCormick & Company Business Overview & Revenue Model

Company Description

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. This segment markets its products under the McCormick, French's, Frank's RedHot, Lawry's Cholula Hot Sauce, Gourmet Garden, Club House, and OLD BAY brands in the Americas; Ducros, Schwartz, Kamis, and Drogheria & Alimentari, and Vahiné brands in Europe, the Middle East, and Africa; McCormick and DaQiao brands in China; and McCormick, Aeroplane, and Gourmet Garden brands in Australia, as well as markets regional and ethnic brands, such as Zatarain's, Stubb's, Thai Kitchen, and Simply Asia. It also supplies its products under the private labels. This segment serves retailers comprising grocery, mass merchandise, warehouse clubs, discount and drug stores, and e-commerce retailers directly and indirectly through distributors and wholesale foodservice suppliers. The Flavor Solutions segment offers seasoning blends, spices and herbs, condiments, coating systems, and compound flavors to multinational food manufacturers and foodservice customers. It serves foodservice customers directly and indirectly through distributors. The company was founded in 1889 and is headquartered in Hunt Valley, Maryland.

How the Company Makes Money

McCormick & Company generates revenue through multiple streams, primarily from the sale of its spices, seasoning blends, and flavor solutions. The Consumer segment earns money by marketing and selling branded products directly to consumers through retail channels, while the Flavor Solutions segment focuses on providing tailored flavoring solutions to food manufacturers and restaurants. The company benefits from strong brand recognition, with popular products like McCormick, Lawry's, and Zatarain's. Additionally, McCormick has established partnerships with various food manufacturers and distributors, which help to expand its market reach. Factors contributing to its earnings include innovative product development, strategic acquisitions, and an increasing trend towards home cooking and flavor enhancement in food preparation.

McCormick & Company Financial Statement Overview

Summary

McCormick & Company demonstrates strong financial health with consistent revenue growth, solid profitability, and improving cash flow metrics. The company has effectively managed its debt levels, enhancing its financial stability. Minor concerns regarding operational margins exist, but the overall trajectory remains positive.

Income Statement

McCormick & Company shows strong financial performance with a consistent revenue growth rate, particularly a 6.69% increase in the TTM period. The company maintains healthy gross and net profit margins, indicating efficient cost management and profitability. However, there is a slight decline in EBIT and EBITDA margins compared to previous years, which could suggest rising operational costs or competitive pressures.

Balance Sheet

The balance sheet reflects a solid financial position with a manageable debt-to-equity ratio of 0.63 in the TTM period, showing improvement from previous years. The return on equity remains robust at 14.10%, indicating effective use of shareholders' equity. However, the equity ratio is not explicitly calculated, and the company should continue to monitor its leverage to maintain financial stability.

Cash Flow

The cash flow statement reveals a significant improvement in free cash flow growth, up by 43.77% in the TTM period, which enhances financial flexibility. The operating cash flow to net income ratio is relatively stable, supporting the company's ability to generate cash from operations. However, the free cash flow to net income ratio, while strong, indicates a slight dependency on net income for cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.79B	6.72B	6.66B	6.35B	6.32B	5.60B
Gross Profit	2.59B	2.59B	2.50B	2.27B	2.49B	2.30B
EBITDA	1.33B	1.32B	1.21B	1.16B	1.22B	1.18B
Net Income	778.00M	788.50M	680.60M	682.00M	755.30M	747.40M
Balance Sheet
Total Assets	13.25B	13.07B	12.86B	13.12B	12.91B	12.09B
Cash, Cash Equivalents and Short-Term Investments	94.90M	186.10M	166.60M	334.00M	351.70M	423.60M
Total Debt	4.36B	4.51B	4.59B	5.33B	5.39B	5.01B
Total Liabilities	7.46B	7.75B	7.78B	8.43B	8.48B	8.15B
Stockholders Equity	5.75B	5.29B	5.06B	4.68B	4.41B	3.93B
Cash Flow
Free Cash Flow	793.30M	647.00M	973.40M	389.50M	550.30M	816.00M
Operating Cash Flow	878.90M	921.90M	1.24B	651.50M	828.30M	1.04B
Investing Cash Flow	-252.10M	-269.00M	-260.50M	-146.40M	-908.60M	-1.03B
Financing Cash Flow	-755.50M	-583.10M	-1.18B	-487.20M	22.00M	220.90M

McCormick & Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 67.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MKC, the sentiment is Negative. The current price of 67.04 is below the 20-day moving average (MA) of 67.68, above the 50-day MA of 66.28, and below the 200-day MA of 69.24, indicating a neutral trend. The MACD of 0.34 indicates Positive momentum. The RSI at 49.60 is Neutral, neither overbought nor oversold. The STOCH value of 83.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MKC.

McCormick & Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MKC	77 Outperform	$18.43B	23.77	13.92%	2.61%	1.64%	-1.83%
HRL	68 Neutral	$13.60B	28.46	6.02%	4.82%	1.55%	-40.81%
GIS	66 Neutral	$24.33B	9.85	27.29%	5.19%	-5.65%	0.41%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CPB	60 Neutral	$8.02B	13.92	14.82%	5.64%	2.71%	4.90%
CAG	52 Neutral	$8.31B	-82.41	-1.16%	7.87%	-5.82%	-119.70%
SJM	49 Neutral	$11.18B	-9.09	-17.44%	4.45%	-0.66%	-326.55%

McCormick & Company Corporate Events

McCormick gains majority stake in McCormick de Mexico

On January 2, 2026, McCormick & Company completed the acquisition of an additional 25% ownership stake in its long-standing joint venture McCormick de Mexico S.A. de C.V. from Grupo Herdez for $750 million, raising its interest to 75% and securing majority control of the business formed in 1947. Funded through cash on hand and commercial paper, the deal is positioned to strengthen McCormick’s global flavor leadership, deepen its presence in the attractive Mexican market, and create a strategic platform for broader expansion across Latin America, with management highlighting the move as part of its strategy to drive shareholder value through acquisitions while expecting accretion to key financial metrics and only minimal impact on leverage.

The most recent analyst rating on (MKC) stock is a Buy with a $87.00 price target. To see the full list of analyst forecasts on McCormick & Company stock, see the MKC Stock Forecast page.