Mccormick & Co Inc's market capitalization of $24,985,317,519 is ahead of 91.48% of US-listed equities.
MKC's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 540.63 -- higher than 93.55% of US-listed equities with positive expected earnings growth.
Of note is the ratio of Mccormick & Co Inc's sales and general administrative expense to its total operating expenses; 86.55% of US stocks have a lower such ratio.
If you're looking for stocks that are quantitatively similar to Mccormick & Co Inc, a group of peers worth examining would be ADM, K, SWK, DGX, and HSY.
McCormick & Company, Incorporated (MKC) Company Bio
McCormick & Company manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the entire food industry – retail outlets, food manufacturers and foodservice businesses. The company was founded in 1889 and is based in Sparks, Maryland.
MKC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Mccormick & Co Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Mccormick & Co Inc ranked in the 37th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Mccormick & Co Inc, consider:
The company's balance sheet shows it gets 86% of its capital from equity, and 14% of its capital from debt. Notably, its equity weight is greater than 64.79% of US equities in the Consumer Defensive sector yielding a positive free cash flow.
MKC's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 27.23% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as MKC, try KMB, AGFS, WMT, CWGL, and CHD.
It's been a long, long time since the packaged foods category, was really thought of as a growth opportunity, but with COVID-19 leading to major changes in consumer behavior, that's what we have ... at least for the moment. Therein lies one of the key issues for McCormick & Company...
Stephen Simpson, CFA on Seeking Alpha | October 1, 2020
McCormick & Company (MKC) reports sales rose 9% in FQ3 on a constant-currency basis with significant consumer segment growth partially offset by a low single digit sales decline in the flavor solutions segment. Adjusted operating income was up 6% during the quarter on a constant-currency basis. Operating income was 19.1%...
"We've gained market share in most of our categories, and this isn't just a U.S. phenomena. This is happening around the world. It's going to drive growth for a long time to come," McCormick CEO Lawrence Kurzius told CNBC.