McCormick & Company, Incorporated (MKC) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+35.5%

$65.60

vs $48.43 price

Levered DCF

$49.44

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.81

Distress zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	22.59×	26.67×	25.52×	33.54×	30.33×	33.39×	31.94×	21.13×
P/B	3.11×	3.98×	3.44×	4.88×	5.2×	6.35×	6.52×	6.22×
P/S	2.61×	3.13×	2.61×	3.6×	3.63×	4.45×	4.2×	3.72×
EV / EBITDA	16.21×	19.27×	18.09×	23.95×	22.96×	24.96×	23.28×	22.8×
Gross margin	37.9%	38.5%	37.6%	35.8%	39.5%	41.1%	40.1%	39.5%
Operating margin	15.7%	15.8%	14.5%	13.6%	16.1%	17.8%	17.9%	16.8%
Net margin	11.5%	11.7%	10.2%	10.7%	12.0%	13.3%	13.1%	17.6%
Current ratio	0.7×	0.74×	0.65×	0.7×	0.68×	0.68×	0.72×	0.74×
Debt / equity	0.7×	0.85×	0.91×	1.14×	1.22×	1.28×	1.26×	1.48×
Interest coverage	5.46×	5.06×	4.63×	5.79×	7.43×	7.37×	5.8×	5.1×
Dividend yield	2.7%	2.1%	2.4%	1.7%	1.6%	1.3%	1.3%	1.4%
Payout ratio	61.2%	57.2%	61.5%	58.2%	48.1%	44.2%	43.0%	29.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	13.8%	14.9%	13.4%	14.6%	17.1%	19.0%	20.4%	29.4%
Return on invested capital	7.6%	7.7%	6.9%	6.1%	7.2%	7.9%	8.7%	10.0%
Return on assets	6.0%	6.0%	5.3%	5.2%	5.9%	6.2%	6.8%	9.1%
Free cash flow yield	4.2%	3.1%	5.6%	1.7%	2.4%	3.3%	3.4%	3.3%
Earnings yield	4.4%	3.7%	3.9%	3.0%	3.3%	3.0%	3.1%	4.7%
Enterprise value	$21.7B	$25.4B	$21.8B	$27.8B	$28B	$29.5B	$26.6B	$24.3B
Net debt / EBITDA	2.91×	3.28×	3.67×	4.29×	4.13×	3.88×	3.65×	4.31×
Cash conversion cycle (days)	35	32	33	48	43	34	29	44