McCormick & Company AI Stock Analysis
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McCormick & Company (MKC) AI Stock Analysis
McCormick & Company
(NYSE:MKC)
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.
McCormick & Company Key Performance Indicators (KPIs)
Net Sales by SegmentShows 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.
Flavor Solutions is the clear growth engine—steady, accelerating sales supported by broad customer wins, reformulation demand and acquisition contribution—now driving total volume growth even as Consumer remains seasonal and only recently stabilized into 2026. Consumer’s recent strength looks more pricing- and acquisition-driven than volume-led, and management flags U.S. spices share pressure and Americas volume softness. Key risks: H2 must deliver organic volume recovery (not just price/acquisitions) and margins must hold once one-time tariff benefits fade.
The FlyMcCormick & Company (MKC) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $12.64B
- Dividend Yield
- 4.09%
- Average Volume (3M)
- 3.57M
- Price to Earnings (P/E)
- 8.5
- Beta (1Y)
- 0.32
- Revenue Growth
- 13.23%
- EPS Growth
- 91.32%
- Country
- US
- Employees
- 14,100
- Sector
- Consumer Defensive
- Sector Strength
- 62
- Industry
- Packaged Foods
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 two p...
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 retail...
McCormick & Company Earnings Call Summary
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.
Q3-2026 Updates
Positive Updates
Negative 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
Overall fundamentals are solid but not without quality questions. Income statement strength (healthy gross/EBIT margins and improving TTM revenue growth) is partly offset by concerns about sustainability of the unusually high TTM net margin and mixed cash-flow momentum (FCF down ~8.7% TTM and modest cash conversion/coverage), despite solid absolute OCF/FCF.
Income Statement
82Very PositiveBalance Sheet
74PositiveCash Flow
63Positive| 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
Price Trends
Market Momentum
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 46.96 is below the 20-day moving average (MA) of 47.64, below the 50-day MA of 47.51, and below the 200-day MA of 51.66, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 47.64 is Neutral, neither overbought nor oversold. The STOCH value of 20.55 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.
Latest Risks Added
3 New RisksMcCormick & Company Peers Comparison
Overall Rating
- MKC71Outperform
SJM64Neutral
INGR63Neutral
KHC58Neutral
GIS48Neutral
CAG47Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| MKC | 71Outperform | $12.64B | 8.46 | 22.32% | 4.09% | 13.23% | 91.32% |
| SJM | 64Neutral | $14.17B | 61.72 | 4.06% | 3.35% | 5.08% | ― |
| INGR | 63Neutral | $5.86B | 10.59 | 12.58% | 3.49% | -0.98% | -12.90% |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
| KHC | 58Neutral | $29.73B | -8.60 | -8.91% | 6.37% | -1.53% | 21.36% |
| GIS | 48Neutral | $18.35B | -20.80 | -10.69% | 7.11% | -4.49% | -131.46% |
| CAG | 47Neutral | $7.03B | -3.70 | -26.28% | 7.13% | -1.80% | -323.82% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| MKC | McCormick & Company Inc | 46.96 | -15.36 | -24.65% | |
| CAG | Conagra Brands | 14.73 | -1.27 | -7.97% | |
| GIS | General Mills Inc | 34.32 | -9.62 | -21.89% | |
| SJM | J.M. Smucker Company | 132.69 | 30.21 | 29.48% | |
| INGR | Ingredion | 94.14 | -9.47 | -9.14% | |
| KHC | Kraft Heinz Co | 25.11 | 2.19 | 9.55% |
McCormick & Company Corporate Events
McCormick Announces Audit Chair Transition After Director Resignation
NeutralOn 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 Chief...
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.
Date of analysis: Oct 02, 2026