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McCormick & Company
(NYSE:MKC)
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Rating:71Outperform
Price Target:
$54.00
▼(-0.88% Downside)
Action:Upgraded
Date:10/02/26
MKC scores well primarily due to solid underlying financial performance (strong profitability with improving scale) and very attractive valuation (low P/E and high dividend yield). These positives are partially offset by very weak technical signals (broad downtrend and bearish momentum) and guidance risks highlighted on the earnings call, including Consumer Americas volume softness, cost inflation, and potential near-term supply constraints.
Positive Factors
Brand and Market Share Gains
Share gains across several categories and geographies indicate that McCormick’s brands remain competitive and relevant with consumers. Continued gains can support distribution, pricing power and repeat demand, reinforcing the company’s market position over the next several quarters.
Negative Factors
Consumer Americas Volume Pressure
Persistent volume weakness in the Americas can limit organic growth even when pricing remains positive. Competitive activity, value-conscious consumers and slower recovery in core categories may require further marketing and trade investment, putting pressure on sustainable mix and earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Brand and Market Share Gains
Share gains across several categories and geographies indicate that McCormick’s brands remain competitive and relevant with consumers. Continued gains can support distribution, pricing power and repeat demand, reinforcing the company’s market position over the next several quarters.
Read all positive factors
McCormick & Company Key Performance Indicators (KPIs)
Any
Net Sales by Segment
Shows revenue generated by each business unit, providing insight into which segments are contributing most to growth and how the company is diversifying its income streams.
Shows revenue generated by each business unit, providing insight into which segments are contributing most to growth and how the company is diversifying its income streams.
Data provided by:
The Fly
The FlyMcCormick & Company (MKC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.95B
Dividend Yield3.99%
Average Volume (3M)4.26M
Price to Earnings (P/E)8.7
Beta (1Y)0.34
Revenue Growth13.23%
EPS Growth91.32%
CountryUS
Employees14,100
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)5.55
Shares Outstanding254,541,610
10 Day Avg. Volume4,232,098
30 Day Avg. Volume4,255,094
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)3.11
Price to Sales (P/S)2.61
P/FCF Ratio24.08
Enterprise Value/Market Cap1.53
Enterprise Value/Revenue2.59
Enterprise Value/Gross Profit6.62
Enterprise Value/Ebitda14.94
Forecast
1Y Price Target
$52.89Price Target Upside-2.92% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)3.09
Revenue Forecast (FY)$7.94B
McCormick & Company Business Overview & Revenue Model
Company Description
McCormick & Company, Incorporated is a global leader in the manufacture, marketing, and distribution of a wide array of flavorful products, including spices, seasoning mixes, and condiments, to the food industry. Its operations are divided into tw...
How the Company Makes Money
McCormick makes money by selling flavor products through two main revenue streams tied to its operating segments. (1) Consumer segment revenue is generated from the sale of branded and private-label spices, herbs, seasonings, and condiments to ret...
McCormick & Company Earnings Call Summary
Earnings Call Date:Oct 01, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
The call was positive overall. Strong sales growth, margin expansion, operating income growth, cash generation, share gains, regional momentum, productivity savings, maintained 2026 guidance and progress on the Unilever Foods transaction significantly outweighed the stated challenges. The main pressures were weaker Consumer Americas volumes, slower recipe mix recovery, soft QSR and CPG demand, higher inflation and freight costs, a potential fourth-quarter packaging constraint, and a higher tax rate.Positive Updates
Strong Third-Quarter Sales Growth
Total sales grew 17% in constant currency, including 2% organic growth, with the remaining growth driven by the acquisition contribution from McCormick de Mexico.
Negative Updates
Consumer Americas Volume Pressure
Consumer organic sales in the Americas were flat, with a 2% pricing contribution offset by volume decline. Volumes were pressured by the macro environment, softer category consumption and a value-conscious consumer environment.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Sales Growth
Total sales grew 17% in constant currency, including 2% organic growth, with the remaining growth driven by the acquisition contribution from McCormick de Mexico.
Read all positive updates
Company Guidance
For fiscal 2026, McCormick expects full year organic growth to reflect stable volumes and positive pricing contributions, with organic growth between the low end and midpoint of its guidance range, including approximately a 30 basis point impact from the supply constraint; the constraint may have a negative impact of up to 1 point on total company volume growth for the fourth quarter. Cost inflation is now expected at 6% to 7%, while full year gross margin expansion remains 100 to 120 basis points versus 2025, with the company now expecting to be at the high end of the range; fourth-quarter margin is expected to face year-over-year compression. Operating income growth and earnings per share are expected to be at the midpoint of the range for the year, with fourth-quarter earnings per share impacted by lapping a favorable tax rate in the prior year of 23.9%. The global 10% tariff assumption remains unchanged, and Canadian tariffs are not expected to have a meaningful impact on this year's results; at the close of Unilever Foods, the company expects industry-leading operating margins of 21%, 100% free cash flow conversion from net income before any synergies, $1.5 billion to $2 billion available to pay down debt within the first 2 years and delever to 3x, and a longer-term leverage ratio target of 2x to 3x.McCormick & Company Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
74
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.69B | 6.84B | 6.72B | 6.66B | 6.35B | 6.32B |
| Gross Profit | 3.00B | 2.59B | 2.59B | 2.50B | 2.27B | 2.49B |
| EBITDA | 1.33B | 1.34B | 1.32B | 1.21B | 1.16B | 1.22B |
| Net Income | 1.49B | 789.40M | 788.50M | 680.60M | 682.00M | 755.30M |
Balance Sheet | ||||||
| Total Assets | 16.65B | 13.20B | 13.07B | 12.86B | 13.12B | 12.91B |
| Cash, Cash Equivalents and Short-Term Investments | 331.10M | 95.90M | 186.10M | 166.60M | 334.00M | 351.70M |
| Total Debt | 4.25B | 4.00B | 4.51B | 4.59B | 5.33B | 5.39B |
| Total Liabilities | 9.06B | 7.43B | 7.75B | 7.78B | 8.43B | 8.48B |
| Stockholders Equity | 7.00B | 5.74B | 5.29B | 5.06B | 4.68B | 4.41B |
Cash Flow | ||||||
| Free Cash Flow | 925.90M | 740.40M | 647.00M | 973.40M | 389.50M | 550.30M |
| Operating Cash Flow | 1.14B | 962.20M | 921.90M | 1.24B | 651.50M | 828.30M |
| Investing Cash Flow | -944.10M | -255.20M | -269.00M | -260.50M | -146.40M | -908.60M |
| Financing Cash Flow | 27.70M | -840.90M | -583.10M | -1.18B | -487.20M | 22.00M |
McCormick & Company Technical Analysis
Negative
54.48
Price Trends
49.44
Negative
49.67
Negative
52.83
Negative
Market Momentum
-0.38
Negative
54.54
Neutral
81.15
Negative
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 54.48 is above the 20-day moving average (MA) of 45.87, above the 50-day MA of 49.44, and above the 200-day MA of 52.83, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 81.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MKC.
McCormick & Company Risk Analysis
McCormick & Company disclosed 41 risk factors in its most recent earnings report. McCormick & Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
McCormick & Company Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $12.95B | 8.67 | 22.32% | 3.99% | 13.23% | 91.32% | |
67 Neutral | $13.88B | 60.46 | 4.06% | 3.40% | 5.08% | ― | |
66 Neutral | $6.04B | 10.29 | 13.46% | 3.44% | -1.38% | -10.81% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
53 Neutral | $29.41B | -8.67 | -8.44% | 6.45% | -1.62% | 36.06% | |
52 Neutral | $18.39B | -20.84 | -10.69% | 7.10% | -4.49% | -131.46% | |
47 Neutral | $7.09B | -3.73 | -26.28% | 8.24% | -1.80% | -323.82% |
* Consumer Defensive Sector Average
MKC
McCormick & Company
48.12
-16.67
-25.73%
CAG
Conagra Brands
14.86
-2.28
-13.32%
GIS
General Mills
34.39
-10.78
-23.87%
SJM
JM Smucker
129.98
29.35
29.17%
INGR
Ingredion
95.70
-18.06
-15.88%
KHC
Kraft Heinz
24.80
0.85
3.55%
McCormick & Company Corporate Events
Executive/Board Changes
McCormick Announces Audit Chair Transition After Director Resignation
Neutral
Aug 28, 2026
On August 25, 2026, McCormick Company announced that director Anne Bramman, who also serves as Chair of the Audit Committee, intends to resign from the Board due to time commitments associated with her new role as Executive Vice President and Chi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.