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McCormick & Company
(NYSE:MKC)
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Rating:69Neutral
Price Target:
$52.00
▼(-4.55% Downside)
Action:Downgraded
Date:09/26/26
MKC scores as a balanced opportunity: the biggest positives are solid financial performance (steady growth and improving cash generation) and attractive valuation (low P/E and ~4% yield). These are tempered by weak technical momentum (below key moving averages with negative MACD) and earnings-call risks tied to volume/share pressure and one-time tariff benefits that may not repeat.
Positive Factors
Diversified Flavor Platform
McCormick combines branded consumer products with customized solutions for manufacturers and foodservice operators. This diversified route to market broadens demand exposure, supports customer-specific innovation, and reduces reliance on any single channel, product category, or end market over the coming quarters.
Negative Factors
Acquisition Regulatory Risk
The CMA investigation introduces structural uncertainty around the timing, conditions, and potential completion of the Unilever Foods transaction. Any prolonged review or phase-two referral could delay expected synergies, accretion, and deleveraging benefits, complicating McCormick’s integration planning.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified Flavor Platform
McCormick combines branded consumer products with customized solutions for manufacturers and foodservice operators. This diversified route to market broadens demand exposure, supports customer-specific innovation, and reduces reliance on any single channel, product category, or end market over the coming quarters.
Read all positive factors
McCormick & Company Key Performance Indicators (KPIs)
Any
Net Sales by Geography
Reveals revenue distribution across various regions, indicating where the company is thriving and where it might face challenges or opportunities due to regional market dynamics.
Reveals revenue distribution across various regions, indicating where the company is thriving and where it might face challenges or opportunities due to regional market dynamics.
Data provided by:
The Fly
The FlyMcCormick & Company (MKC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.04B
Dividend Yield4.07%
Average Volume (3M)2.86M
Price to Earnings (P/E)7.7
Beta (1Y)0.36
Revenue Growth9.54%
EPS Growth108.44%
CountryUS
Employees14,100
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)6.02
Shares Outstanding254,055,150
10 Day Avg. Volume3,604,722
30 Day Avg. Volume2,859,833
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)3.11
Price to Sales (P/S)2.61
P/FCF Ratio24.09
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$61.17Price Target Upside12.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)3.08
Revenue Forecast (FY)$7.91B
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:Jun 25, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
The call conveyed a constructive financial and strategic picture: strong total sales (14% CC), meaningful margin expansion (270 bps reported; 130 bps underlying), robust Flavor Solutions momentum, improved cash flow ($431M H1) and clear integration planning and synergy targets for the Unilever Foods acquisition. Offsetting these positives were near-term Consumer volume pressures in the Americas, U.S. spices and seasonings share challenges, QSR foot traffic softness in some regions, higher SG&A phasing, and inflation/tax-related headwinds that compress near-term EPS cadence. Management provided targeted remediation plans and expects volumes to recover later in the year, which, together with acquisition accretion and margin actions, underpin confidence in the 2026 outlook.Positive Updates
Total Net Sales Growth
Total net sales grew 14% in constant currency in Q2 FY2026, driven primarily by the McCormick de Mexico acquisition (management cited a ~12% acquisition contribution) and approximately 2% organic sales growth.
Negative Updates
Consumer Volume Pressure in the Americas
Consumer organic sales in the Americas were essentially flat in the quarter, with pricing contributing ~3% but volumes declining due to shifting demand patterns and increased price sensitivity; management expects sequential volume improvement in Q3 and volume growth in Q4 but acknowledged near-term pressure.
Read all updates
Q2-2026 Updates
Positive
Negative
Total Net Sales Growth
Total net sales grew 14% in constant currency in Q2 FY2026, driven primarily by the McCormick de Mexico acquisition (management cited a ~12% acquisition contribution) and approximately 2% organic sales growth.
Read all positive updates
Company Guidance
The company reiterated its 2026 outlook and provided metric-driven guidance: full-year gross margin expansion of 100–120 basis points vs. 2025 (Q2 gross margin +270 bps, of which ~140 bps from a $28M tariff refund and underlying margin +130 bps), Q3 adjusted operating income growth in the high single-digits to low double-digits year-over-year, and continued expectation that pricing will contribute more to organic sales growth while Consumer volumes should improve in H2 and Flavor Solutions will drive total volume growth for the year; inflation is tracking toward the high end of mid-single digits (~6%), an additional $3M tariff refund is expected in H2 (bringing the FY tariff benefit to ~$31M and a Q2 contribution of ~$0.07 to adjusted EPS), Q2 adjusted EPS was $0.80 (+16% YoY) and adjusted tax rate in Q2 was 22.5%, SG&A was ~90 bps unfavorable in Q2, H1 cash flow from operations was $431M (vs. $161M prior year) with $75M capex and $258M returned as dividends, leverage was ~2.9x at quarter end, and on the Unilever Foods combination they expect ~21% operating margin at close with mid-to-high single-digit adjusted EPS accretion in year one and mid-to-high teens accretion by year three, plus $1.5–$2.0B available to pay down debt within the first two years and a longer-term target leverage of 2–3x.McCormick & Company Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.39B | 6.84B | 6.72B | 6.66B | 6.35B | 6.32B |
| Gross Profit | 2.85B | 2.59B | 2.59B | 2.50B | 2.27B | 2.49B |
| EBITDA | 1.37B | 1.34B | 1.32B | 1.21B | 1.16B | 1.22B |
| Net Income | 1.63B | 789.40M | 788.50M | 680.60M | 682.00M | 755.30M |
Balance Sheet | ||||||
| Total Assets | 16.48B | 13.20B | 13.07B | 12.86B | 13.12B | 12.91B |
| Cash, Cash Equivalents and Short-Term Investments | 331.20M | 95.90M | 186.10M | 166.60M | 334.00M | 351.70M |
| Total Debt | 4.93B | 4.00B | 4.51B | 4.59B | 5.33B | 5.39B |
| Total Liabilities | 8.90B | 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 | 1.16B | 740.40M | 647.00M | 973.40M | 389.50M | 550.30M |
| Operating Cash Flow | 1.23B | 962.20M | 921.90M | 1.24B | 651.50M | 828.30M |
| Investing Cash Flow | -955.10M | -255.20M | -269.00M | -260.50M | -146.40M | -908.60M |
| Financing Cash Flow | -95.30M | -840.90M | -583.10M | -1.18B | -487.20M | 22.00M |
McCormick & Company Technical Analysis
Negative
54.48
Price Trends
51.95
Negative
50.26
Negative
55.12
Negative
Market Momentum
-1.42
Positive
26.75
Positive
21.83
Neutral
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 49.97, above the 50-day MA of 51.95, and below the 200-day MA of 55.12, indicating a bearish trend. The MACD of -1.42 indicates Positive momentum. The RSI at 26.75 is Positive, neither overbought nor oversold. The STOCH value of 21.83 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $27.81B | -7.94 | -8.44% | 7.04% | -1.62% | 36.06% | |
69 Neutral | $13.04B | 7.71 | 25.58% | 4.07% | 9.54% | 108.44% | |
67 Neutral | $12.89B | 55.31 | 4.06% | 3.72% | 5.08% | ― | |
66 Neutral | $6.08B | 10.30 | 13.46% | 3.43% | -1.38% | -10.81% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
53 Neutral | $18.08B | -19.49 | -10.69% | 7.59% | -4.49% | -131.46% | |
47 Neutral | $6.76B | -3.38 | -26.28% | 9.11% | -1.80% | -323.82% |
* Consumer Defensive Sector Average
MKC
McCormick & Company
46.40
-19.24
-29.31%
CAG
Conagra Brands
13.44
-4.45
-24.85%
GIS
General Mills
32.16
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-32.62%
SJM
JM Smucker
118.91
14.68
14.09%
INGR
Ingredion
95.81
-23.01
-19.36%
KHC
Kraft Heinz
22.72
-1.88
-7.63%
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.