McCormick (MKC) earnings: what to expect

9:05 am ET, 26 Sep 2018

McCormick & Company, Incorporated (MKC) shares are trading at $132.67, up 0.29%.  The company is announcing its quarterly earnings results on Thursday before the market opens. What's driving MKC stock price? What's MKC stock price forecast?

McCormick & Company manufactures and distributes seasoning mixes, condiments, and other flavorful products to the food industry. The favorable impact from currency rates, Frank’s and French’s acquisition in 2017, and the price increase will help stronger revenues this year. The company expects its revenue to grow by 13-15% in 2018.

Investors are betting on the stock because of its diversified revenue base. On the other hand, some bearish investors feel that the company’s valuation is high at the current price level. The last quarter’s revenue rose 19% to $1.33 billion and the earnings per share were $1.02 compared to $0.82 for the same period last year.

The third-quarter results will be released before market open on September 27, 2018. Analysts expect the company to earn $1.27 per share on revenue of $1.36 billion. The company beat analyst estimates in the previous four quarters.

What is the sentiment towards the MKC stock? Our technical analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is positive;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, McCormick & Company (MKC) returned +4.96%.

McCormick & Company (MKC) forward P/E ratio is 24.73, and it's high compared to its industry peers' P/E ratios.

McCormick & Company (MKC) average analyst price target ($112.43) is -15.26% below its current price ($132.67).

For the latest price and information on McCormick & Company, Incorporated, please visit Finstead and search for "MKC price" or "MKC news".

McCormick & Company, Incorporated (MKC) Stock Guide

Updated at: 7:57 am ET, 17 Sep 2020

Before we start: if you're looking for MKC stock price, you can quickly find it out by visiting Finny and typing "MKC quote". If you're looking for a quick scoop on MKC stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "MKC". You'll get all this info in one place. Or you can just type "MKC news" to get the latest stock news.

Looking to buy or sell McCormick & Company, Incorporated (MKC)? Interested in getting the full scoop on MKC, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this MKC stock guide, we'll address key questions about MKC, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are MKC earnings?
2. What is MKC dividend?
3. What is MKC dividend yield?
4. What is MKC stock forecast (i.e., prediction)?
5. MKC buy or sell? What is MKC Finny Score?
6. What are the reasons to buy MKC? Why should I buy MKC stock?
7. What are the reasons to sell MKC? Why should I sell MKC stock?
8. What are MKC key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are MKC earnings?

MKC trailing 12-month earnings per share (EPS) is $5.56.

2. What is MKC dividend?

MKC forward dividend is $2.48.

3. What is MKC dividend yield?

MKC forward dividend yield is 1.2%.

Analyst Predictions

4. What is MKC stock forecast (i.e., prediction)?

Based on MKC analyst price targets, MKC stock forecast is $171.11 (for a year from now). That means the average analyst price target for MKC stock is $171.11. The prediction is based on 14 analyst estimates.

The low price target for MKC is $121.00, while the high price target is $205.00.

MKC analyst rating is Hold.

Analysis

5. MKC buy or sell? What is MKC Finny Score?

#{finnyScore:15}Our quantitative analysis shows 2 reasons to buy and 11 reasons to sell MKC, resulting in Finny Score of 15.

6. What are the reasons to buy MKC? Why should I buy MKC stock?

Here are the reasons to buy MKC stock:

  • Seventy-five percent of McCormick's gourmet range is now organic, and the shift has been viewed favorably, as the firm received expanded shelf space for the offering at four of the top 10 U.S. retailers.
  • McCormick doesn't just let new products speak for themselves, as marketing spending has jumped more than 50% the past five years, which we view as a plus.
  • In our view, acquiring Garden Gourmet is strategic in that it provides McCormick another means to expand its shelf space in the perimeter of the store, which has been winning out at the expense of center-of-the-store categories.
  • MKC quarterly revenue growth was 7.60%, higher than the industry and sector average revenue growth (0.87% and 1.12%, respectively). See MKC revenue growth chart.
  • MKC forward dividend yield is 1.20%, higher than the industry (0.62%) and sector (0.62%) forward dividend yields. See MKC forward dividend chart.

7. What are the reasons to sell MKC? Why should I sell MKC stock?

Let's look at the reasons to sell MKC stock (i.e., the bear case):

  • Even though oil prices have waned, cost inflation for pepper (which is up more than 5 times since 2010), dairy ingredients, vanilla, onion, and nuts plagued McCormick's costs, and the firm anticipates cost inflation in the midsingle digits in 2017.
  • McCormick's branded fare can be priced at double private-label offerings in the U.K., above the 20%-50% premium afforded in other global markets, which could spur trade-down if consumers fail to see the added value.
  • Competition isn't just from lower-priced value offerings but also from premium-priced products, which are gaining traction.
  • MKC stock price ($198.68) is close to the 52-week high ($210.57). Perhaps now is a good time to sell? See MKC price chart.
  • MKC profitability is declining. The YoY profit margin change was -0.83 percentage points. See MKC profitability chart.
  • MKC forward P/E ratio is 36.64, which is high compared to its industry peers’ P/E ratios. See MKC forward P/E ratio chart.
  • MKC Price/Book ratio is 7.52, which is high compared to its industry peers’ P/B ratios. See MKC forward Price/Book ratio chart.
  • MKC Price/Sales ratio is 5.05, which is high compared to its industry peers’ P/S ratios. See MKC forward Price/Sales ratio chart.
  • MKC PEG ratio (P/E adjusted for growth) is 7.13, which is high compared to its industry peers’ PEG ratios. See MKC PEG chart.
  • MKC average analyst price target ($171.11) is below its current price ($198.68). See MKC price target chart.
  • MKC short interest (days to cover the shorts) ratio is 5.21. The stock garners more short interest than the average industry, sector or S&P 500 stock. See MKC short interest ratio chart.
  • MKC cash to debt ratio is 0.04, lower than the average industry (0.12) and sector (0.11) cash to debt ratio. See MKC cash to debt chart.
  • MKC Enterprise Value/Revenue multiple is 5.85, which is high compared to its industry peers’ Enterprise Value/Revenue multiples. See MKC Enterprise Value/Revenue chart.
  • MKC Enterprise Value/EBITDA multiple is 26.84, which is high compared to its industry peers’ Enterprise Value/EBITDA ratios. See MKC Enterprise Value/EBITDA chart.

Key Stats

8. What are MKC key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for MKC:

Metrics MKC
Price $195.36
Average Price Target / Upside $171.11 / -12.41%
Average Analyst Rating Hold
Forward Dividend Yield 1.20%
Industry Packaged Foods
Sector Consumer Defensive
Number of Employees 11,600
Market Cap $27.42B
Forward P/E Ratio 36.64
Price/Book Ratio 5.05
Revenue (TTM) $5.43B
YoY Quarterly Revenue Growth 7.60%
Profit Margin 13.74%

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