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McCormick & Company Incorporated
🇺🇸 MKC-V · NYSE/NASDAQ
Consumer
Price at analysis: USD 47.00 Current price: USD 46.62 * updated every night
Scores
Key Metrics
Powered by EODHDP/E (TTM)
8.5
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.
Calculation: 47.00 ÷ 5.56 = 8.5
TTM period through: 2026-08-31
Forward P/E (estimated): 14.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 8.5
Net Debt/EBITDA (TTM)
2.9x
Latest quarter: 13.1x
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.
TTM through: 2026-08-31
Latest quarter (2026-08-31): 13.1x
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
22.6%
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
12.8x
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)
4.10% 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): 4.10%
Payout Ratio (Fwd)
34.6%
TTM: 61.2%
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)
Payout (Fwd): 34.6%
Payout (TTM): 61.2%
Cash Flow Payout (TTM): 45.2%
FCF Coverage (TTM): 1.94x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
7.6%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 13 Oct 2027 | — | USD | 0.48 |
| Forecast* | Quarterly | — | 06 Jul 2027 | — | USD | 0.48 |
| Forecast* | Quarterly | — | 20 Apr 2027 | — | USD | 0.48 |
| Forecast* | Quarterly | — | 29 Dec 2026 | — | USD | 0.48 |
| Declared | Quarterly | 24 Sep 2026 | 13 Oct 2026 | 26 Oct 2026 | USD | 0.48 |
| 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 |
* 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 pairs a highly durable, essential staples business model with an expanding regulatory moat that structurally advantages its massive scale. Trading at a highly compressed TTM P/E of 8.46 and offering excellent dividend coverage alongside resolving legal overhangs and deleveraging debt, the stock presents a compelling entry point. Worth considering for new positions as the company navigates temporary labor and inflationary frictions.
Sector Context
McCormick operates in the packaged foods industry, providing essential staples, spices, and B2B flavorings. Its massive scale, global supply chain, and proprietary internal testing infrastructure create a widening regulatory moat, structurally advantaging the company over smaller competitors who struggle with increasingly stringent global food safety and traceability compliance.
Temporary Opportunity Identified
Localized operational friction from active union labor strikes and associated social media boycotts, combined with macro inflationary pressures temporarily compressing forward earnings estimates.
📊 Strategy Analysis
- • Compelling valuation with a TTM P/E of 8.46 and an attractive 4.10% dividend yield, supported by a strong capital-return profile.
- • Excellent dividend sustainability highlighted by a low 34.7% TTM payout ratio and robust free cash flow coverage of 1.94x.
- • Improving balance sheet health with Net Debt/EBITDA successfully deleveraging to 2.94x (down from 4.1x in 2019), paired with an impressive ROE of 22.6%.
- • Material de-risking of legal overhangs, with major historical litigation (including the heavy metals class action) recently dismissed, settled, or resolved without material impact.
⚠ What to Watch
- • A noticeable divergence between TTM P/E (8.46) and Forward P/E (14.62) suggests recent trailing earnings may have benefited from favorable one-off items, or that forward expectations are compressed.
- • Near-term operational disruptions and localized brand impacts stemming from rolling labor strikes and associated social media boycotts (e.g., Aeroplane Jelly, Keen's Mustard).
📊 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: 2026-10-17
Disclaimer: This information is for educational purposes only. Not financial advice.