McCormick & Company, Incorporated (MKC) AI Stock Analysis

McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and flavor solutions. It operates through two segments: Consumer and Flavor Solutions. The Consumer segment offers spices, herbs, sauces, and dessert items under brands such as McCormick, French's, Frank's RedHot, Lawry's, Zatarain's, Stubb's, and Thai Kitchen to retail and e-commerce channels across the Americas, Europe, the Middle East, Africa, China, and Australia. The Flavor Solutions segment delivers custom seasoning blends, compound flavors, coating systems, and condiments directly and through distributors to multinational food manufacturers and foodservice operators globally.

McCormick grew annual revenue from $6.32B in FY2021 to $6.84B in FY2025, representing a 5-year compound annual growth rate of 4.1%. Net income increased from $755.3M in FY2021 to $789.4M in FY2025, while diluted earnings per share shifted from $3.05 to $3.00. Over this span, gross margin moved from 39.5% in FY2021 to 37.9% in FY2025, and operating margin closed FY2025 at 15.7%. For the trailing twelve months ended August 31, 2026, revenue stood at $7.69B with a profit margin of 19.4%. In the latest quarter, year-over-year revenue grew 17.4%, though quarterly earnings fell 57.1%.

As of August 31, 2026, McCormick held $331.1M in cash and short-term investments against total debt of $4.25B, resulting in net debt of $3.92B. Shareholders' equity was $7.00B against total assets of $16.65B, yielding a debt-to-equity ratio of 0.61 and a current ratio of 0.66. In FY2025, the company generated $962.2M in operating cash flow and $740.4M in free cash flow. Capital allocation in FY2025 included $221.8M in capital expenditures, $483.0M paid in dividends, and $34.8M allocated to share buybacks.

Trading at $46.35, McCormick carries a market capitalization of $12.47B and an enterprise value of $22.60B. Its trailing price-to-earnings multiple of 8.4x sits below the median of its S&P 500 Consumer Defensive peers at 23.5x, while its forward P/E of 14.3x compares to the peer median of 15.3x. McCormick's enterprise value-to-EBITDA ratio is 17.1x, above the peer median of 13.3x. Over the past year, the stock fell 27.9%, trailing the S&P 500 return of 16.8%, and over five years it fell 34.4% compared to an 83.0% gain for the index.

McCormick pays a quarterly dividend with an annualized forward rate of $1.92 per share, offering a dividend yield of 4.14%. The payout ratio stands at 60.4%. McCormick has paid dividends for 43 consecutive years and generated a 5-year annualized dividend growth rate of 7.6%. Its last ex-dividend date was October 13, 2026.

Wall Street coverage includes 4 Strong Buy, 3 Buy, and 8 Hold ratings, with no Sell or Strong Sell recommendations. The mean price target of $54.85 represents an upside of 18.3% over the last close of $46.35. For the fiscal year ending November 30, 2026, analysts project revenue of $7.92B and EPS of $3.09. For the following fiscal year, 12 analysts estimate revenue of $8.15B and EPS of $3.22. McCormick exceeded earnings per share expectations in 3 of the last 4 quarters.

This page is an AI-written research summary of McCormick & Company, Incorporated (MKC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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