McCormick & Company Inc (MKC) Stock Analysis
Verdict: HOLD
Acquisition of Unilever food assets and activist entry signal a pivot to scale that offsets stagnant 1.6% US organic revenue growth.
Investment score: 64/100
Analysis as of
Is McCormick & Company Inc stock worth reviewing? The TradeMates thesis
The TradeMates model sees a 'Buy' opportunity based on extreme valuation disconnect and a transformational M&A catalyst.
7-factor investment score
- Valuation: 85/100 (weight 20%)
- Financial Health: 60/100 (weight 15%)
- Technical Momentum: 35/100 (weight 15%)
- Earnings Quality: 75/100 (weight 15%)
- Insider Sentiment: 55/100 (weight 10%)
- Analyst Consensus: 70/100 (weight 10%)
- Risk-Adjusted Return: 70/100 (weight 15%)
McCormick & Company Inc opportunities and risks
What speaks for MKC
- Deep Relative Valuation Discount
What speaks against MKC
- Balance Sheet Over-Leveraging
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| MKC | 7.8x | 1.8x | 13.6x | 37.9% | 23.1% | 6.4% |
| KHC | n/a | 1.1x | n/a | 33.3% | -23.0% | 14.0% |
| TSN | 44.9x | 0.4x | 11.0x | 6.5% | 0.8% | 6.0% |
| GIS | 8.5x | 1.0x | 10.4x | 33.0% | 12.1% | 8.9% |
| HRL | 29.3x | 1.1x | 15.6x | 15.7% | 3.8% | 5.1% |
| SJM | n/a | 1.4x | 36.8x | 33.5% | -1.5% | 9.3% |
| Peer median | 8.5x | 1.1x | 11.0x | 33.0% | 0.8% | 8.9% |
Frequently asked questions about McCormick & Company Inc (MKC)
Is MKC stock a good investment?
The TradeMates model rates McCormick & Company Inc as HOLD with an investment score of 64/100. The TradeMates model sees a 'Buy' opportunity based on extreme valuation disconnect and a transformational M&A catalyst. This is algorithmic model output, not personal investment advice.
Is MKC stock a buy?
The TradeMates model verdict for MKC is HOLD with an investment score of 64/100. Treat this as a model signal to review, not a personal buy recommendation.