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McCormick & Company Incorporated
🇺🇸 MKC-V · NYSE/NASDAQ · US5797801074
Consumer
Scores
Key Metrics
Powered by EODHDP/E (TTM)
9.0
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Net Debt/EBITDA (TTM)
3.3x
Latest quarter: 12.9x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
Latest quarter (2026-05-31): 12.9x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
24.7%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
13.6x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
3.52% TTM
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM, last 12 months): 3.52%
Payout Ratio (Fwd)
31.5% TTM
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 06 Jul 2027 | — | USD | 0.48 |
| Forecast* | Quarterly | — | 20 Apr 2027 | — | USD | 0.48 |
| Forecast* | Quarterly | — | 29 Dec 2026 | — | USD | 0.48 |
| Forecast* | Quarterly | — | 14 Oct 2026 | — | USD | 0.45 |
| Paid | Quarterly | 23 Jun 2026 | 06 Jul 2026 | 20 Jul 2026 | USD | 0.48 |
| Paid | Quarterly | 08 Apr 2026 | 20 Apr 2026 | 27 Apr 2026 | USD | 0.48 |
| Paid | Quarterly | 18 Nov 2025 | 29 Dec 2025 | 12 Jan 2026 | USD | 0.48 |
| Paid | Quarterly | 30 Sep 2025 | 14 Oct 2025 | 27 Oct 2025 | USD | 0.45 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
² Type not provided by EODHD — inferred from historical payment data.
Summary
McCormick offers an elite combination of market dominance, stellar dividend coverage, and an uncommonly high 3.49% forward yield for the consumer staples sector. The company's massive scale turns tightening global sourcing regulations into a structural advantage over smaller peers, making it a highly defensive, cash-generative asset. Worth considering for new positions as it trades at an attractive entry valuation.
Sector Context
McCormick operates as the dominant leader in the global spices, seasonings, and flavorings market within the Packaged Foods sector. For DGI investors, it represents an essential consumer staple that produces resilient cash flows, fortified by immense scale that transforms tightening industry regulations into an impenetrable competitive moat.
Temporary Opportunity Identified
The stock's valuation has been suppressed by temporary administrative noise, minor class-action settlements over product labeling, and investor hesitation regarding near-term compliance costs for tightening global supply chain regulations.
📊 Strategy Analysis
- • Exceptional regulatory moat: Stricter traceability (EUDR) and sterilization (EtO) regulations act as structural tailwinds for McCormick's massive scale while squeezing out smaller, undercapitalized discount peers.
- • Outstanding dividend safety with a Free Cash Flow coverage of 2.43x and a comfortable payout ratio near 31%.
- • Elite profitability metrics including an ROE of 24.73% and consistent deleveraging (Net Debt/EBITDA down to 3.3x from 4.1x).
- • Extensive history of dividend increases (40 consecutive years) combined with an unusually high forward yield of 3.49% for this quality of business.
⚠ What to Watch
- • A noticeable discrepancy between the TTM P/E (8.99) and Forward P/E (15.17) suggests recent trailing earnings may include favorable one-off items that will normalize.
- • Net Debt/EBITDA of 3.30x remains slightly above the conservative 3.0x target threshold, requiring continued disciplined capital allocation.
- • Recurring minor legal headwinds and class-action settlements (e.g., product labeling and slack-fill claims) require ongoing administrative attention and generate negative publicity.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-08-15
Disclaimer: This information is for educational purposes only. Not financial advice.