McCormick & Company (MKC) AI Stock Analysis

• Market Cap: $17.63B
• Dividend Yield: 2.69%
• Average Volume (3M): 2.55M
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.20
• Revenue Growth: 0.89%
• EPS Growth: 4.85%
• Country: US
• Employees: 14,100
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.69
• Shares Outstanding: 253,041,200
• 10 Day Avg. Volume: 2,802,147
• 30 Day Avg. Volume: 2,545,777
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 3.55
• Enterprise Value/Gross Profit: 9.22
• Enterprise Value/Ebitda: 18.09
• 1Y Price Target: $82.56
• Price Target Upside: 25.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 69 Neutral
• Price Target: $77.00 ▲(17.20% Upside)

McCormick & Company's overall stock score reflects strong financial performance and positive earnings call insights, tempered by technical analysis indicating a bearish trend and valuation concerns. The company's strategic initiatives and stable outlook support a moderately positive assessment, though technical and valuation factors suggest caution.

Positive Factors

Market Expansion

The acquisition increases McCormick's stake to 75%, enhancing market leadership in Mexico and providing a platform for further expansion in Latin America.

Revenue Growth

Consistent organic sales growth indicates strong market demand and effective sales strategies, supporting long-term revenue expansion.

Innovation and Distribution

Ongoing innovation and distribution expansion enhance product reach and customer engagement, driving sustainable growth.

Negative Factors

Flavor Solutions Challenges

Volume declines in the Flavor Solutions segment may indicate competitive pressures or shifting customer preferences, impacting segment performance.

Cash Flow Reduction

A significant reduction in cash flow from operations could constrain future investments and limit financial flexibility.

Gross Profit Margin Pressure

Flat gross profit margins amidst cost pressures may affect profitability and require strategic cost management to sustain margins.

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 generates revenue primarily through the sale of its spices, seasonings, and flavor products across its Consumer and Flavor Solutions segments. The Consumer segment earns revenue from retail sales of branded products to grocery chains and supermarkets, while the Flavor Solutions segment derives income from supplying custom flavors and seasonings to food manufacturers and food service industries. Key revenue streams include product sales, particularly in high-demand categories such as organic and gourmet spices, as well as strategic partnerships with major food companies that enhance distribution and market penetration. Additionally, McCormick benefits from ongoing trends toward home cooking and increased interest in diverse flavors, which drive consumer demand for its extensive product lines.

McCormick & Company Financial Statement Overview

Summary

McCormick & Company demonstrates strong financial performance with solid margins and operational efficiency. The income statement shows consistent revenue growth and profitability, while the balance sheet reflects moderate leverage and a strong equity base. Cash flow management is adequate, though a decline in free cash flow growth highlights areas for improvement.

Income Statement

McCormick & Company shows solid performance in its income statement with a stable gross profit margin of approximately 38.5% TTM and a consistent net profit margin around 11.5% TTM. Revenue growth is moderate, with a 1.3% increase in TTM compared to the previous period. EBIT and EBITDA margins are healthy at 15.8% and 19.7% respectively, indicating operational efficiency. The company is maintaining a strong profitability profile, although the net income has slightly decreased compared to the previous annual report.

Balance Sheet

The balance sheet of McCormick & Company reflects a moderate risk profile with a debt-to-equity ratio of 0.80, indicating moderate leverage. The equity ratio stands at 42.5%, showcasing a solid equity foundation. However, the return on equity is relatively stable at 13.8% TTM, which suggests effective utilization of equity. While debt levels are manageable, further reduction could enhance financial stability.

Cash Flow

The cash flow statement indicates a mixed picture. The operating cash flow to net income ratio is robust at 1.01, demonstrating good cash generation from operations. However, free cash flow growth has declined by 14.7% in TTM, posing a potential concern for future investments. The free cash flow to net income ratio is sound at 0.71, suggesting reasonable cash conversion. Overall, cash flow management remains adequate, though improvements could bolster financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.74B	6.72B	6.66B	6.35B	6.32B	5.60B
Gross Profit	2.60B	2.59B	2.50B	2.27B	2.49B	2.30B
EBITDA	1.32B	1.32B	1.21B	1.16B	1.22B	1.18B
Net Income	775.60M	788.50M	680.60M	682.00M	755.30M	747.40M
Balance Sheet
Total Assets	13.19B	13.07B	12.86B	13.12B	12.91B	12.09B
Cash, Cash Equivalents and Short-Term Investments	124.10M	186.10M	166.60M	334.00M	351.70M	423.60M
Total Debt	4.45B	4.51B	4.59B	5.33B	5.39B	5.01B
Total Liabilities	7.56B	7.75B	7.78B	8.43B	8.48B	8.15B
Stockholders Equity	5.60B	5.29B	5.06B	4.68B	4.41B	3.93B
Cash Flow
Free Cash Flow	551.80M	647.00M	973.40M	389.50M	550.30M	816.00M
Operating Cash Flow	781.80M	921.90M	1.24B	651.50M	828.30M	1.04B
Investing Cash Flow	-244.10M	-269.00M	-260.50M	-146.40M	-908.60M	-1.03B
Financing Cash Flow	-553.80M	-583.10M	-1.18B	-487.20M	22.00M	220.90M

McCormick & Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 65.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 65.7 is below the 20-day moving average (MA) of 67.66, below the 50-day MA of 69.43, and below the 200-day MA of 74.26, indicating a bearish trend. The MACD of -1.45 indicates Positive momentum. The RSI at 41.00 is Neutral, neither overbought nor oversold. The STOCH value of 30.51 is Neutral, 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
CAG	71 Outperform	$8.68B	7.57	12.90%	7.70%	-3.64%	231.77%
MKC	69 Neutral	$17.63B	22.82	14.19%	2.69%	0.89%	4.85%
GIS	67 Neutral	$26.72B	9.48	30.60%	4.81%	-3.26%	25.58%
CPB	67 Neutral	$9.56B	15.99	15.43%	4.80%	6.40%	6.17%
HRL	63 Neutral	$13.60B	18.02	9.33%	4.66%	0.65%	-3.76%
SJM	54 Neutral	$11.65B	-7.96	-24.63%	3.97%	2.54%	-293.39%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

McCormick & Company Corporate Events

McCormick Expands Stake in Mexican Subsidiary

On August 21, 2025, McCormick & Company announced a definitive agreement to acquire an additional 25% ownership in McCormick de Mexico for $750 million, increasing its stake to 75%. This acquisition aims to enhance McCormick’s market leadership in Mexico’s condiment and sauce sector and provides a strategic platform for expansion across Latin America. The transaction is expected to be accretive to McCormick’s net sales, operating margin, and earnings per share in the first year, while leveraging the strong brand loyalty and market presence of McCormick de Mexico.