# McCormick & Company (MKC-V.US)

Canonical: https://gigainvestors.com/s/MKC-V

Analysis as of: 2026-10-16T07:35:31.065Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $47.12 per share; close as of 2026-10-15.

Estimated value: low $35.81 per share, central $41.86 per share, high $48.58 per share. Buy at or below the central value $41.86 per share. Valuation as of 2026-10-16T07:35:31.065Z; scenarios are not confidence intervals.

Expected annual return: 9.2% at the stated quote. About 9.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.08×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.14×

- FY2018: 0.17×

- FY2019: 0.18×

- FY2020: 0.18×

- FY2021: 0.16×

- FY2022: 0.14×

- FY2023: 0.14×

- FY2024: 0.16×

- FY2025: 0.16×

- LTM to May 2026: 0.16×

### moat: pass

- ROIC, median of available years: 19.9%

- ROIC, second-lowest year: 17.8%

- Typical minus recent gross margin: 1.5 pp

- Typical gross margin (annual median): 39.4%

- Recent gross margin (lower of latest and 3-year median): 37.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.9%

- ROIC including acquisitions, ten-year median: 8.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 40.9%

- FY2017: 18.3%

- FY2018: 27.5%

- FY2019: 25.2%

- FY2020: 23.7%

- FY2021: 19.7%

- FY2022: 15.5%

- FY2023: 17.8%

- FY2024: 19.6%

- FY2025: 20.2%

### economics: pass

- Owner earnings / net income, 5-yr: 0.97×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $3.5B

- Net income, five-year total: $3.6B

- Return on incremental invested capital: 129.1%

- Working capital / revenue, annual change: -0.7 pp

- Working capital / revenue, change between three-year averages: -5.4 pp

- Working capital / revenue, final three-year average: 9.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 0.92×

- FY2023: 1.00×

- FY2024: 0.93×

- FY2025: 1.01×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 27.5% vs 19.6%

- Per-share earnings: 1.84 to 2.92 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.4%

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: $6.3B

- Cumulative retained earnings: $2.8B

- Diluted shares, 10-year annual growth: 0.4%

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 5.9%

- Per-share value change: $1.08

- Per-share value, starting three-year median: $1.84

- Per-share value, ending three-year median: $2.92

- Buybacks concentrated in cheaper years (correlation): 0.49

- Average buyback yield: 0.5%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $6.9B

- Cumulative net income, 10 years: $7.0B

- ROIC, first three-year median: 27.5%

- ROIC, last three-year median: 19.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.84

- FY2017: $1.86

- FY2018: $3.50

- FY2019: $2.62

- FY2020: $2.78

- FY2021: $2.80

- FY2022: $2.52

- FY2023: $2.31

- FY2024: $2.92

- FY2025: $2.93

### accounting: pass

- Sloan accruals: -1.3%

- Receivables to sales index (DSRI): 1.05×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 4.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.22×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.50×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.0%

- FY2017: -3.3%

- FY2018: 1.1%

- FY2019: -2.4%

- FY2020: -2.4%

- FY2021: -0.6%

- FY2022: 0.2%

- FY2023: -4.8%

- FY2024: -1.0%

- FY2025: -1.3%

## Holders

## Price story

Down 54% since Apr 2022 · "McCormick Trims Outlook as Costs, Tariffs Weigh on Profit" (finance.yahoo.com, Oct 2025) · sales +8%

Story as of 2026-10-16T10:00:05.284Z; price observation 2026-10-15.

Price needs cash profits to grow 3.1% a year for ten years

- 2025-06-26: McCormick backs guidance amid plans to mitigate tariff impact ([finance.yahoo.com](https://finance.yahoo.com/news/mccormick-backs-guidance-amid-plans-111554505.html))

- 2025-10-07: Spices Giant McCormick Cuts Profit Outlook As Tariffs And Costs Bite ([finance.yahoo.com](https://finance.yahoo.com/news/spices-giant-mccormick-cuts-profit-124929193.html))

- 2026-01-22: Spice Maker McCormick Plans to Raise Prices Further to Offset Tariffs ([finance.yahoo.com](https://finance.yahoo.com/m/16abc59f-d5ca-394d-ad41-790478de44b4/spice-maker-mccormick-plans.html))

- 2026-06-25: McCormick Q2 Earnings Beat Estimates, Organic Sales Grow ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/mccormick-q2-earnings-beat-estimates-151000575.html))

- 2026-07-02: MKC Stock Outlook Hinges on Pricing Power and Flavor Demand Trends ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/mkc-stock-outlook-hinges-pricing-121700337.html))

### Sales · FY2025–2026

sales +8%; source https://www.sec.gov/Archives/edgar/data/63754/000006375426000037/mkc-20251130.htm; observed 2026-01-22.

- FY2017: $4.8B 

- FY2018: $5.3B 

- FY2019: $5.3B 

- FY2020: $5.6B 

- FY2021: $6.3B 

- FY2022: $6.4B 

- FY2023: $6.7B 

- FY2024: $6.7B 

- FY2025: $6.8B 

- FY2026: $7.4B 

### Gross margin · FY2025

gross margin 37.9%; source https://www.sec.gov/Archives/edgar/data/63754/000006375426000037/mkc-20251130.htm; observed 2026-01-22.

- FY2016: 41.5% 

- FY2017: 41.6% 

- FY2018: 39.4% 

- FY2019: 40.1% 

- FY2020: 41.1% 

- FY2021: 39.5% 

- FY2022: 35.8% 

- FY2023: 37.6% 

- FY2024: 38.5% 

- FY2025: 37.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in packaged foods; annual sales are USD 6.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/63754/000006375426000037/mkc-20251130.htm (filed 2026-01-22); FY2025: revenue 6840300000; grossProfit 2592200000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MKC-V.US: McCormick & Company, Incorporated manufactures, markets, and distributes herbs, spices, seasoning mixes, condiments, and other flavorful products to the food industry. It operates in two segments, Consumer and Flavor Solutions. The Consumer segment offers spices, herbs, and seasonings, as well as condiments, sauces, and desserts. This segment markets its products under the McCormick, French's, Frank's RedHot, Lawry's, Cholula Hot Sauce, Club House, Gourmet Garden, and OLD BAY brands in the Americas; Ducros, Schwartz, Kamis, LA Drogheria, and Vahiné brands in Europe, the Middle East, and Africa; and McCormick and DaQiao brands in the Asia/Pacific (APAC), as well as desserts under the Aeroplane brand; and packaged chilled herbs under the Gourmet Garden brand. Its authentic regional brands include Zatarain's, Stubb's, Thai Kitchen, and Simply Asia. The company also supplies its products under private labels. This segment serves retailers, including grocery, mass merchandise, warehouse clubs, discount and drug stores, and e-commerce retailers directly and indirectly through distributors and wholesale foodservice suppliers. The Flavor Solutions segment offers seasoning blends, spices, herbs, condiments, coating systems, and compound flavors to multinational food manufacturers and foodservice customers. It serves foodservice customers directly and indirectly through distributors. The company was founded in 1889 and is headquartered in Hunt Valley, Maryland.

### Why customers stay

Margins ranged from 37.6% to 38.5% during 2023–25; it earns 19.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-22); FY2023: grossProfit / revenue = 37.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-22); FY2024: grossProfit / revenue = 38.5%.

- Source: https://www.sec.gov/Archives/edgar/data/63754/000006375426000037/mkc-20251130.htm (filed 2026-01-22); FY2025: grossProfit / revenue = 37.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-22); 10-year return on capital observations [[2016,0.40891763845246176],[2017,0.1826017685688682],[2018,0.27479338842975204],[2019,0.2517662034533106],[2020,0.2367889283094235],[2021,0.1966686720737243],[2022,0.15527621614619114],[2023,0.17811841314533342],[2024,0.1960117579405985],[2025,0.2017931302644392]]; median 0.19923090116908176. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

"Pricing actions favorably impacted sales by 0.7%." (SEC filing, Jan 2026)

- Source: https://www.sec.gov/Archives/edgar/data/63754/000006375426000037/mkc-20251130.htm (filed 2026-01-22); Pricing actions favorably impacted sales by 0.7%.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 34.8 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-22); FY2016: growth capex 16448109.74811852; upkeep 137351890.25188148; owner earnings 443648109.7481185. Growth capex / owner earnings = 0.03707467559696567.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-22); FY2017: growth capex 57200000; upkeep 125200000; owner earnings 477400000. Growth capex / owner earnings = 0.11981566820276497.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-22); FY2018: growth capex 18400000; upkeep 150700000; owner earnings 933400000. Growth capex / owner earnings = 0.019712877651596315.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-22); FY2019: growth capex 7376514.062100142; upkeep 166323485.93789986; owner earnings 695176514.0621002. Growth capex / owner earnings = 0.010610994348754996.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-22); FY2020: growth capex 44007262.6224027; upkeep 181292737.3775973; owner earnings 731107262.6224027. Growth capex / owner earnings = 0.06019262134608458.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-22); FY2021: growth capex 91700000; upkeep 186300000; owner earnings 755300000. Growth capex / owner earnings = 0.12140871177015755.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-22); FY2022: growth capex 6342453.280469775; upkeep 255657546.71953022; owner earnings 626942453.2804698. Growth capex / owner earnings = 0.010116483972784033.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-22); FY2023: growth capex 63515699.51425731; upkeep 200384300.4857427; owner earnings 623115699.5142573. Growth capex / owner earnings = 0.10193243335671087.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-22); FY2024: growth capex 13639317.757117808; upkeep 261260682.2428822; owner earnings 736039317.7571177. Growth capex / owner earnings = 0.018530691809616865.

- Source: https://www.sec.gov/Archives/edgar/data/63754/000006375426000037/mkc-20251130.htm (filed 2026-01-22); FY2025: growth capex 0; upkeep 221800000; owner earnings 798900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-22); Dividend observations: [[2016,217800000],[2017,237600000],[2018,273400000],[2019,302200000],[2020,330100000],[2021,363300000],[2022,396700000],[2023,418500000],[2024,451000000],[2025,483000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/63754/000006375426000037/mkc-20251130.htm (filed 2026-01-22); FY2025: cash repurchases 34800000 USD.

### Are managers owners

Insiders own 18.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MKC-V.US SharesStats.PercentInsiders = 18.782 percentage points; cache date 2026-10-16.

### What could break it

"Issues regarding procurement of raw materials may negatively impact us." (SEC filing, Jan 2026)

- Source: https://www.sec.gov/Archives/edgar/data/63754/000006375426000037/mkc-20251130.htm (filed 2026-01-22); Issues regarding procurement of raw materials may negatively impact us.

### What the price says

The price assumes cash profits grow 3.1% yearly over ten years; actual growth was 7.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-22); Ten-year compound average after fade. Initial solved rate 0.03174273424304197. Price 47.12; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.4960235570237137 → FY2025 2.9654788418708242. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $47.74 per share

- 2016-11: $46.25 per share

- 2016-12: $46.55 per share

- 2017-01: $47.75 per share

- 2017-02: $48.73 per share

- 2017-03: $48.75 per share

- 2017-04: $49.77 per share

- 2017-05: $51.84 per share

- 2017-06: $48.82 per share

- 2017-07: $47.61 per share

- 2017-08: $47.67 per share

- 2017-09: $51.32 per share

- 2017-10: $49.89 per share

- 2017-11: $51.11 per share

- 2017-12: $50.25 per share

- 2018-01: $54.53 per share

- 2018-02: $54.23 per share

- 2018-03: $52.91 per share

- 2018-04: $52.85 per share

- 2018-05: $50.60 per share

- 2018-06: $57.90 per share

- 2018-07: $58.64 per share

- 2018-08: $62.28 per share

- 2018-09: $65.46 per share

- 2018-10: $71.70 per share

- 2018-11: $74.96 per share

- 2018-12: $69.41 per share

- 2019-01: $61.80 per share

- 2019-02: $67.93 per share

- 2019-03: $74.78 per share

- 2019-04: $76.91 per share

- 2019-05: $78.00 per share

- 2019-06: $77.49 per share

- 2019-07: $78.86 per share

- 2019-08: $81.35 per share

- 2019-09: $78.13 per share

- 2019-10: $80.32 per share

- 2019-11: $84.40 per share

- 2019-12: $85.54 per share

- 2020-01: $81.99 per share

- 2020-02: $72.38 per share

- 2020-03: $71.22 per share

- 2020-04: $78.29 per share

- 2020-05: $87.75 per share

- 2020-06: $88.83 per share

- 2020-07: $97.49 per share

- 2020-08: $102.15 per share

- 2020-09: $97.66 per share

- 2020-10: $89.38 per share

- 2020-11: $92.00 per share

- 2020-12: $95.57 per share

- 2021-01: $90.61 per share

- 2021-02: $84.42 per share

- 2021-03: $89.12 per share

- 2021-04: $90.81 per share

- 2021-05: $88.74 per share

- 2021-06: $88.03 per share

- 2021-07: $84.16 per share

- 2021-08: $85.62 per share

- 2021-09: $82.38 per share

- 2021-10: $81.24 per share

- 2021-11: $86.65 per share

- 2021-12: $95.39 per share

- 2022-01: $99.78 per share

- 2022-02: $94.71 per share

- 2022-03: $100.00 per share

- 2022-04: $101.77 per share

- 2022-05: $92.95 per share

- 2022-06: $83.03 per share

- 2022-07: $87.55 per share

- 2022-08: $84.22 per share

- 2022-09: $73.18 per share

- 2022-10: $80.25 per share

- 2022-11: $84.00 per share

- 2022-12: $82.17 per share

- 2023-01: $74.42 per share

- 2023-02: $75.97 per share

- 2023-03: $82.60 per share

- 2023-04: $86.70 per share

- 2023-05: $86.70 per share

- 2023-06: $86.60 per share

- 2023-07: $88.11 per share

- 2023-08: $82.25 per share

- 2023-09: $78.88 per share

- 2023-10: $64.25 per share

- 2023-11: $64.49 per share

- 2023-12: $68.00 per share

- 2024-01: $68.00 per share

- 2024-02: $67.65 per share

- 2024-03: $77.42 per share

- 2024-04: $75.55 per share

- 2024-05: $72.27 per share

- 2024-06: $69.00 per share

- 2024-07: $77.05 per share

- 2024-08: $79.20 per share

- 2024-09: $82.54 per share

- 2024-10: $78.50 per share

- 2024-11: $77.49 per share

- 2024-12: $75.80 per share

- 2025-01: $77.03 per share

- 2025-02: $82.41 per share

- 2025-03: $82.05 per share

- 2025-04: $76.69 per share

- 2025-05: $72.34 per share

- 2025-06: $75.51 per share

- 2025-07: $70.74 per share

- 2025-08: $70.12 per share

- 2025-09: $66.72 per share

- 2025-10: $63.97 per share

- 2025-11: $67.31 per share

- 2025-12: $68.01 per share

- 2026-01: $61.67 per share

- 2026-02: $70.80 per share

- 2026-03: $50.38 per share

- 2026-04: $50.62 per share

- 2026-05: $47.52 per share

- 2026-06: $50.50 per share

- 2026-07: $50.95 per share

- 2026-08: $54.20 per share

- 2026-09: $47.94 per share

- 2026-10: $47.12 per share

## Annual estimated value (USD per share)

- FY2016: low $19.94 per share, central $23.90 per share, high $27.81 per share

- FY2017: low $21.05 per share, central $24.37 per share, high $28.27 per share

- FY2018: low $22.22 per share, central $25.82 per share, high $30.02 per share

- FY2019: low $22.60 per share, central $26.29 per share, high $30.54 per share

- FY2020: low $31.70 per share, central $37.10 per share, high $42.98 per share

- FY2021: low $35.18 per share, central $41.25 per share, high $47.86 per share

- FY2022: low $35.13 per share, central $41.07 per share, high $47.65 per share

- FY2023: low $33.31 per share, central $39.01 per share, high $45.36 per share

- FY2024: low $30.87 per share, central $36.14 per share, high $42.01 per share

- FY2025: low $31.24 per share, central $36.62 per share, high $42.60 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:15.727Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/63754/000006375426000037/mkc-20251130.htm); period 2025-11-30, filed 2026-01-22.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.