McCormick & Company, Incorporated [NYSE:MKC]: Analyst Rating and Earnings
Equities traders often pay a significant amount of attention to what top market analysts have to say about a potential stock investment. In regards to McCormick & Company, Incorporated [MKC], the most recent average analyst recommendation we can read comes from the fiscal quarter ending in November. On average, stock market experts give MKC an Hold rating. Its stock price has been found in the range of 29.22 to 111.36. This is compared to its latest closing price of $123.64.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for McCormick & Company, Incorporated [MKC] is sitting at 2.73. This is compared to 1 month ago, when its average rating was 3.00.
For the quarter ending in Nov-18 McCormick & Company, Incorporated [MKC] generated $1.5 billion in sales. That’s 3.41% lower than the average estimate of $1.55 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes on this company’s next financial results, which are scheduled to be made public on Tue 26 Mar (In 53 Days).
Fundamental Analysis of McCormick & Company, Incorporated [MKC]
Now let’s turn to look at profitability: with a current Operating Margin for McCormick & Company, Incorporated [MKC] sitting at +17.48 and its Gross Margin at +43.91, this company’s Net Margin is now 17.30%. These measurements indicate that McCormick & Company, Incorporated [MKC] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 12.22, and its Return on Invested Capital has reached 9.60%. Its Return on Equity is 32.57, and its Return on Assets is 9.04. These metrics all suggest that McCormick & Company, Incorporated is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, McCormick & Company, Incorporated [MKC] has generated a Total Debt to Total Equity ratio of 148.11. Similarly, its Total Debt to Total Capital is 59.70, while its Total Debt to Total Assets stands at 45.79. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 127.82, and its Long-Term Debt to Total Capital is 51.52. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 18.83 and its Total Debt to EBITDA Value is 4.28. The Enterprise Value to Sales for this firm is now 3.82, and its Total Debt to Enterprise Value stands at 0.19. McCormick & Company, Incorporated [MKC] has a Price to Book Ratio of 6.25, a Price to Cash Flow Ratio of 24.33 and P/E Ratio of 17.53. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, McCormick & Company, Incorporated [MKC] earns $466,284 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 10.08 and its Total Asset Turnover is 0.52. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.35 and its Current Ratio is 0.74. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
Let’s now turn our attention to trading performance: McCormick & Company, Incorporated [MKC] has 134.77M shares outstanding, amounting to a total market cap of $16.66B. Its stock price has been found in the range of 99.49 to 156.00. At its current price, it has moved by -21.24% from its 52-week high, and it has moved 23.49% from its 52-week low.
This stock’s Beta value is currently 0.29, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 27.30. This stock, according to these metrics, is currently Oversold.
Conclusion: Is McCormick & Company, Incorporated [MKC] a Reliable Buy?
McCormick & Company, Incorporated [MKC] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.