📊 MKC-V Key Takeaways
Is MKC-V a Good Investment? Thesis Analysis
McCormick demonstrates solid profitability with a 54.2% net margin and reasonable ROE of 14.6%, indicating effective capital deployment in a stable food ingredients market. However, concerning weaknesses in liquidity (0.76x current ratio), deteriorating cash flow generation (FCF of only $18.4M or 1.0% of revenue), and anemic revenue growth of 1.7% YoY suggest the company is facing operational headwinds that limit upside potential despite strong margins.
Why Buy MKC-V? Key Strengths
- Exceptionally high net profit margin of 54.2% demonstrates pricing power and operational efficiency
- Solid return on equity of 14.6% indicates effective capital management and shareholder value creation
- Healthy interest coverage ratio of 4.8x shows adequate debt servicing capacity
- Moderate leverage at 0.52x debt-to-equity provides financial flexibility
MKC-V Investment Risks to Consider
- Weak liquidity with current ratio of 0.76x below the 1.0x safety threshold, raising working capital concerns
- Severely depressed free cash flow of $18.4M (1.0% FCF margin) indicates minimal cash generation relative to revenue scale
- Anemic 1.7% revenue growth suggests market saturation or competitive pressures in the spice/seasonings industry
- Quick ratio of 0.56x indicates potential difficulty meeting short-term obligations without inventory liquidation
Key Metrics to Watch
- Operating cash flow trend - critical to assess if FCF weakness is structural or cyclical
- Revenue growth rate - must accelerate beyond 1.7% to justify current capital structure
- Current ratio improvement - liquidity must strengthen to reduce financial stress
- Working capital management - evaluate if rapid inventory or receivables turnover explains low liquidity ratios
MKC-V Financial Metrics
💡 AI Analyst Insight
The relatively thin 1.0% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
MKC-V Profitability Ratios
MKC-V vs Consumer Sector
How MCCORMICK & CO INC compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is MKC-V Overvalued or Undervalued?
Based on fundamental analysis, MCCORMICK & CO INC appears fundamentally strong relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
MKC-V Balance Sheet & Liquidity
MKC-V 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: MCCORMICK & CO INC's revenue has shown modest growth of 8% over the 5-year period. The most recent EPS of $2.52 reflects profitable operations.
MKC-V Growth Metrics (YoY)
MKC-V Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.6B | $162.3M | $0.60 |
| Q3 2025 | $1.7B | $223.1M | $0.83 |
| Q2 2025 | $1.6B | $175.0M | $0.65 |
| Q1 2025 | $1.6B | $162.3M | $0.60 |
| Q3 2024 | $1.7B | $170.1M | $0.63 |
| Q2 2024 | $1.6B | $152.1M | $0.56 |
| Q1 2024 | $1.6B | $139.1M | $0.52 |
| Q3 2023 | $1.6B | $170.1M | $0.63 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
MKC-V Capital Allocation
MKC-V SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for MCCORMICK & CO INC (CIK: 0000063754)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MKC-V
What is the AI rating for MKC-V?
MCCORMICK & CO INC (MKC-V) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are MKC-V's key strengths?
Claude: Exceptionally high net profit margin of 54.2% demonstrates pricing power and operational efficiency. Solid return on equity of 14.6% indicates effective capital management and shareholder value creation.
What are the risks of investing in MKC-V?
Claude: Weak liquidity with current ratio of 0.76x below the 1.0x safety threshold, raising working capital concerns. Severely depressed free cash flow of $18.4M (1.0% FCF margin) indicates minimal cash generation relative to revenue scale.
What is MKC-V's revenue and growth?
MCCORMICK & CO INC reported revenue of $1.9B.
Does MKC-V pay dividends?
MCCORMICK & CO INC pays dividends, with $128.9M distributed to shareholders in the trailing twelve months.
Where can I find MKC-V SEC filings?
Official SEC filings for MCCORMICK & CO INC (CIK: 0000063754) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MKC-V's EPS?
MCCORMICK & CO INC has a diluted EPS of $3.77.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MKC-V a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, MCCORMICK & CO INC has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MKC-V stock overvalued or undervalued?
Valuation metrics for MKC-V: ROE of 14.6% (sector avg: 18%), net margin of 54.2% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy MKC-V stock in 2026?
Our dual AI analysis gives MCCORMICK & CO INC a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is MKC-V's free cash flow?
MCCORMICK & CO INC's operating cash flow is $50.9M, with capital expenditures of $32.5M. FCF margin is 1.0%.
How does MKC-V compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 54.2% (avg: 8%), ROE 14.6% (avg: 18%), current ratio 0.76 (avg: 1.5).