KabuDo

NYSE: MKC · Packaged Foods & Meats

McCormick & Company

McCormick & Company, based in Hunt Valley, Maryland, is a global leader in flavor: it makes and sells herbs, spices, seasoning mixes, condiments and other flavor products to retailers (Consumer segment, $3,950 million of fiscal 2025 sales) and to food manufacturers and foodservice businesses (Flavor Solutions, $2,890 million). It says it is the global brand leader in spices and seasonings and one of the brand leaders in condiments and sauces. Fiscal 2025 net sales (year ended November 30, 2025) rose 1.7% to $6,840 million and net income was $789 million. PepsiCo accounted for about 12% of sales, and the top three Flavor Solutions customers for 49% of that segment. On January 2, 2026, McCormick paid $750 million to raise its stake in McCormick de Mexico to 75%. It has about 14,100 employees and has raised its dividend every year.

Last updated

Analysis last edited: November 6, 2026 · Financial data fetched: October 29, 2026 13:33 (SEC EDGAR) · Source 10-K filed: January 22, 2026

Built on10-K FY2025 · filed 2026-01-2210-Q (quarter ended 2026-08-31) · filed 2026-10-01Proxy statement (2026)

Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

01

At a glanceFrom SEC data

Eight headline measures, each placed among the companies covered on this site.

Revenue growth
4.1%

Higher than 19% of 372 non-financial companies

Average yearly growth over the years shown

Operating margin
15.7%

Higher than 39% of 311 non-financial companies

Latest fiscal year (FY2025)

ROIC minus WACC
+1.6 pts

Higher than 44% of 311 non-financial companies

Return on capital above (or below) its estimated cost

Net debt ÷ EBITDA
3.3x

Higher than 76% of 304 non-financial companies

Below 0 means more cash than debt

Cash conversion
1.22x

Higher than 25% of 349 non-financial companies

Operating cash flow ÷ net income

Dividend raises
5 of 5

Years the dividend per share rose, of the last 5

P/E today
9.0x

Latest close 2026-11-04; trailing 12 months to 2026-08-31

Beta
0.47

Above 1 = moves more than the market

Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.

02

Valuation todayFrom SEC data

Price-based measures at the latest close, next to the same measures at the last fiscal year-end.

Share price$49.92close on 2026-11-04

Market cap$13.4B

P/E today
9.0x

At FY2025 year-end: 23.0x

Earnings: trailing 12 months to 2026-08-31

P/B today
2.3x

At FY2025 year-end: 3.2x

Book value at FY2025 year-end

EV/EBITDA today
13.6x

At FY2025 year-end: 17.2x

EBITDA for FY2025

FCF yield today
5.5%

At FY2025 year-end: 4.1%

Free cash flow for FY2025

Dividend yield today
3.7%

Dividends per share for FY2025

“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.

03

What changed since last earningsFrom SEC data

The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.

Quarter ended Aug 31, 2026.

  • Revenue↑ +17.4%$1.72B → $2.02B (vs. a year earlier)
  • Operating margin↓ −6.0 pts16.7% → 10.7% (vs. a year earlier)
  • Net income↓ −56.7%$226M → $98M (vs. a year earlier)
  • Diluted EPS↓ −57.1%$0.84 → $0.36 (vs. a year earlier)
  • Cash→ −0.0%$331M → $331M (vs. previous quarter-end)
  • Long-term debt↑ +2.0%$3.61B → $3.68B (vs. previous quarter-end)

Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.

04

Company profileFrom SEC dataShow

Legal name
MCCORMICK & CO INC
Headquarters
HUNT VALLEY, MD
Incorporated in
Maryland
Fiscal year end
11/30
Exchange & ticker
NYSE: MKC
Industry
Packaged Foods & Meats
CIK
63754

Workforce (as of FY2025 year-end)

  • Employees

    14,100

Source: Form 10-K (FY2025) cover page and business description

05

Earnings calendarFrom SEC dataShow

When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.

Next report

Q4 FY2026

Quarter end: November 2026. In past years, Q4 results were released 53–56 days after quarter end (Jan 22, 2026; Jan 23, 2025; Jan 25, 2024). No date has been announced in the sources this site uses.

Reporting pattern

  • Fiscal year ends around November 30.
  • Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
  • Earnings releases came 25–56 days after quarter end over the last 12 quarters.
QuarterQuarter endedEarnings release (8-K)Report filed (10-Q / 10-K)
Q3 FY2026Aug 31, 2026Oct 1, 2026 (+31 days)Oct 1, 2026 10-Q (+31 days)
Q2 FY2026May 31, 2026Jun 25, 2026 (+25 days)Jun 25, 2026 10-Q (+25 days)
Q1 FY2026Feb 28, 2026Mar 31, 2026 (+31 days)Mar 31, 2026 10-Q (+31 days)
Q4 FY2025Nov 30, 2025Jan 22, 2026 (+53 days)Jan 22, 2026 10-K (+53 days)
Q3 FY2025Aug 31, 2025Oct 7, 2025 (+37 days)Oct 7, 2025 10-Q (+37 days)
Q2 FY2025May 31, 2025Jun 26, 2025 (+26 days)Jun 26, 2025 10-Q (+26 days)
Q1 FY2025Feb 28, 2025Mar 25, 2025 (+25 days)Mar 25, 2025 10-Q (+25 days)
Q4 FY2024Nov 30, 2024Jan 23, 2025 (+54 days)Jan 23, 2025 10-K (+54 days)
Q3 FY2024Aug 31, 2024Oct 1, 2024 (+31 days)Oct 1, 2024 10-Q (+31 days)
Q2 FY2024May 31, 2024Jun 27, 2024 (+27 days)Jun 27, 2024 10-Q (+27 days)
Q1 FY2024Feb 29, 2024Mar 26, 2024 (+26 days)Mar 26, 2024 10-Q (+26 days)
Q4 FY2023Nov 30, 2023Jan 25, 2024 (+56 days)Jan 25, 2024 10-K (+56 days)

Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.

06

Flagship products & servicesSite analysis

  • Consumer

    Spices and seasonings

    Branded herbs, spices and seasoning mixes (global brand leader).

  • Consumer

    Condiments and sauces

    Condiment and sauce brands.

  • Flavor Solutions

    Custom flavors

    Seasonings and flavors for food manufacturers and restaurants.

From the Form 10-K, FY2025, year ended 2025-11-30.

U.S., worldwide and country/regional share of flagship products/services

Only shares the company itself states (in its filings or press releases, sometimes citing a research firm) are shown. Scope and timing vary by figure — treat these as approximate.

  • Spices and seasonings

    Global spices and seasonings

    U.S. share

    —

    Not disclosed

    Worldwide share

    Global brand leader

    Company-disclosed

    “Within the spices and seasoning category, we are the brand leader globally.”

Sources:

Company-stated position from the 10-K.

07

Recent strategic focusSite analysis

Recent developments.

  1. McCormick de Mexico

    Raised ownership to 75% for $750M on January 2, 2026 as a platform for Latin America.

    Source: Form 10-K (FY2025, year ended 2025-11-30)

Capex ÷ D&A (FY2025)

0.96x

Roughly matches depreciation — mostly maintenance/replacement

formulacapital expenditures ÷ depreciation & amortization

e.g.$222M ÷ $231M = 0.96x

termsCapital expenditures (capex) · Depreciation & amortization (D&A)

R&D-to-revenue ratio (FY2025)

1.6%

formularesearch & development expense ÷ revenue × 100

e.g.$106M ÷ $6,840M × 100 = 1.6%

termsResearch & development (R&D) · Revenue (net sales)

M&A spend (6-year total)

$1.54B

Latest year: $34M

Cash-flow-statement spending on acquisitions, net of cash acquired

Where the money goes, over time

Unit: $M. Capex went from $225M in FY2020 to $222M in FY2025

  • Capex
  • R&D
  • M&A spend

formulacapital expenditures ÷ depreciation & amortization

termsCapital expenditures (capex) · Depreciation & amortization (D&A)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-01-22

08

Key figures at a glanceFrom SEC data

FY2020–FY2025, 6 years.

Revenue (FY2025)

$6.84B

As reported in the 10-K

Revenue CAGR (5 years)

+4.1%

formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1

e.g.($6,840M ÷ $5,601M) ^ (1÷5) − 1 = 4.1%

termsCAGR · ^ (exponent) · Revenue (net sales)

Operating margin (FY2025)

15.7%▼caution

-2.2pt vs. 5 years ago

formulaoperating income ÷ revenue × 100

e.g.$1,071M ÷ $6,840M × 100 = 15.7%

termsOperating income · Revenue (net sales)

ROE (FY2025)

14.3%▲favorable

6-year average: 15.9%

As reported in the 10-K

P/B (FY2025 end)

3.16x

formulafiscal year-end closing price ÷ book value per share

e.g.$67.48 ÷ $21.37 = 3.16x

termsP/B · BVPS

Period-end (fiscal year-end) value, not today's P/B

EV/EBITDA (FY2025 end)

17.2x

formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)

e.g.($18,112M + $4,348M − $96M) ÷ ($1,071M + $231M) = 17.2x

termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)

Period-end (fiscal year-end) value, not today's multiple

  • ―

    Revenue grew +4.1% a year over 5 years (modest growth)

    From $5.6B in FY2020 to $6.84B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.

  • ▼

    Operating margin declined: 17.8% → 15.7%

    How much operating profit is left per $100 of revenue. It moved -2.2 points over 5 years — pricing power, cost control, and product mix all show up here.

  • ―

    Equity ratio is 43.5% (a middling level)

    The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).

  • ▲

    Free cash flow was positive in 6 of 6 years

    Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.

  • ▲

    ROE averaged 15.9% over 6 years (latest: 14.3%)

    How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.

09

Business modelSite analysis

Sources herbs, spices and other ingredients globally, processes them into branded consumer products and custom flavor solutions, and sells to retailers, food and beverage manufacturers and restaurants.

How money and goods flow at McCormick & Company
  1. 01 what it draws on

    Inputs & resources

    • About 14,100 full-time employees
    • Global sourcing of herbs, spices and ingredients
    • Brands and flavor R&D
  2. 02 what it does

    Activities

    • Consumer: branded spices, seasonings, condiments
    • Flavor Solutions: custom flavors for food makers and foodservice
    • Joint ventures incl. McCormick de Mexico
  3. 03 who it serves

    Customers

    • Retailers
    • Food and beverage manufacturers (PepsiCo ≈12% of sales)
    • Foodservice businesses
  4. 04 how money comes in

    How it earns

    • Consumer $3,950M (FY2025)
    • Flavor Solutions $2,890M

How the business makes money

  • Fiscal years end November 30.
  • Top three Flavor Solutions customers = 49% of that segment’s sales.
  • Major facilities in North America, Europe and China.

Government & regulation around the business

Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.

McCormick faces FDA pressure to drop synthetic dyes and tariff costs.

  • Approvals & licenses

    FDA synthetic dye phase-out

    In April 2025 the FDA called on industry to phase out petroleum-based synthetic dyes.

    Constrains the businessTouches: Activities

    Source: Form 10-K (FY2025)

  • Trade & export rules

    Tariffs and trade rules

    Commodity costs including tariffs lowered gross margin by 60 basis points.

    Constrains the businessTouches: Inputs & resources

    Source: Form 10-K (FY2025)

Revenue by segment (FY2025)

Unit: $M — bar length = revenue, (%) = share of total company revenue

  • Consumer

    3,950.3 (58%)
  • Flavor Solutions

    2,890 (42%)

Source: Form 10-K (FY2025, year ended 2025-11-30) Net sales by segment; total $6,840M.

10

Contract structureSite analysisShow

Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.

11

Alliances & capital tiesSite analysisShow

Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.

12

Customers & suppliersSite analysis

Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.

Customers

Retailers, food and beverage manufacturers and foodservice.

Named by the company

Suppliers

Growers and suppliers of herbs, spices and ingredients worldwide.

Named by the company

No single material supplier is named.

13

Competitors & peersSite analysis

Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.

The 10-K says there are numerous competitive brands of spices, seasonings, condiments and sauces, without naming them.

Competitors named in the 10-K

Peer group the company chose

Compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.

Peer group from the 2026 proxy statement.

Source: Proxy statement (2026)

Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.

14

Six years of financialsFrom SEC data

Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.

Revenue over time

Unit: $M

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-01-22

Profit over time (operating → net)

Unit: $M

  • Operating income
  • Pretax income
  • Net income

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-01-22

Margins over time

Unit: %

  • Operating margin
  • Net margin

formulaoperating income ÷ revenue × 100

termsOperating income · Revenue (net sales)

formulanet income attributable to the company ÷ revenue × 100

termsNet income (attributable to the company)

Cash flow over time

Unit: $M (below zero = cash went out)

  • Operating CF
  • Investing CF
  • Free CF

formulacash flow from operations − capital expenditures

termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-01-22

Financial stability & capital efficiency

Unit: %

  • Equity ratio
  • ROE

formulatotal equity ÷ total assets × 100 (as reported in the 10-K)

termsStockholders’ equity · Total assets

formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)

termsNet income (attributable to the company) · Stockholders’ equity

Earnings per share (EPS) and dividend per share

Unit: $

  • EPS
  • Dividend per share

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-01-22

Line itemFY202010-K on EDGAR ↗FY202110-K on EDGAR ↗FY202210-K on EDGAR ↗FY202310-K on EDGAR ↗FY202410-K on EDGAR ↗FY202510-K on EDGAR ↗
Income statement ($M)
Revenue5,6016,3186,3516,6626,7246,840
Operating income1,0001,0158649631,0601,071
Pretax income882896813799898913
Net income (attributable)747755682681789789
Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100—12.8%0.5%4.9%0.9%1.7%
Operating margincalcoperating income ÷ revenue × 10017.8%16.1%13.6%14.5%15.8%15.7%
Net margincalcnet income attributable to the company ÷ revenue × 10013.3%12.0%10.7%10.2%11.7%11.5%
Balance sheet ($M)
Total assets12,09012,90613,12512,86213,07013,200
Total equity3,9404,4264,6995,0845,3175,768
Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable5,7505,8146,3744,6814,7734,348
Equity ratio32.5%34.2%35.7%39.3%40.5%43.5%
ROE19.0%18.1%15.0%14.0%15.2%14.3%
Cash flow ($M)
Operating CF1,0418286521,237922962
Investing CF-1,026-909-146-260-269-255
Financing CF22122-487-1,184-583-841
Free cash flowcalccash flow from operations − capital expenditures816550390973647740
Cash and equivalents42435233416718696
Per share & other
EPS ($)2.782.802.522.522.922.93
BVPS ($)——17.4618.8819.7421.37
Dividend per share ($)1.271.391.501.591.711.83
Payout ratiocalcdividend per share ÷ diluted EPS × 10045.7%49.6%59.5%63.1%58.6%62.5%
P/E (x)33.630.733.825.726.923.0
EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)26.223.827.118.820.217.2
P/B (x)calcfiscal year-end closing price ÷ book value per share——4.883.433.973.16

P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.

Last 8 quarters

Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.

Quarter endedRevenueOperating incomeNet incomeDiluted EPS
2026-08-31$2.02B+17.4%$217M-24.8%$98M-56.7%$0.36
2026-05-31$1.94B+16.7%$276M+12.4%$150M-14.2%$0.56
2026-02-28$1.87B+16.7%$228M+1.0%$1.02B+526.1%$3.77
2025-11-30 †$1.85B+2.9%$311M+1.6%$227M+5.3%—
2025-08-31$1.72B$289M$226M$0.84
2025-05-31$1.66B$246M$175M$0.65
2025-02-28$1.61B$225M$162M$0.60
2024-11-30 †$1.8B$306M$215M—

† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.

15

Is ROIC above WACC?From SEC data

ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.

ROIC (FY2025)

8.4%

formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)

e.g.$1,071M × (1 − 21%) ÷ $10,103M × 100 = 8.4%

termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity

WACC (this site’s estimate)

6.77%

formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight

e.g.Equity weight: $18.11B ÷ ($18.11B + $4.35B) = 80.6%

e.g.Debt weight: $4.35B ÷ ($18.11B + $4.35B) = 19.4%

e.g.WACC: 7.5% × 80.6% + 4.5% × (1 − 21%) × 19.4% = 6.77%

termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization

ROIC − WACC

+1.6pt▲favorable

Earning more than the cost of capital (ROIC > WACC in 5 of 6 years)

formulaROIC − WACC (positive means the business earns more than its cost of capital)

termsROIC · WACC

How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 5.7%–8.2% and ROIC − WACC runs +0.2 to +2.7 points. The sign holds across this range. This describes the latest year and does not predict future value creation.

WACC 6.77% is this site’s estimate under the assumptions below (not a figure the company has published)

Risk-free rate
4.95% (10-year Treasury, 2026-11-03)
β
0.47 (price-derived adjusted beta, but correlation with the market is low (R² 0.01), so reliability is limited)
Equity risk premium
5.5%
Cost of equity
7.54%
Cost of debt
4.51%
Tax rate
21% (effective rate, FY2023–FY2025)
Capital structure (equity : debt)
81% : 19%
→ Change assumptions and recalculate

ROIC over time, vs. WACC

Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red

  • ROIC (above WACC)
  • ROIC (below WACC)
  • WACC 6.77%

formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)

termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity

formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight

termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization

Try different WACC assumptions

β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).

Initial β: 0.47 (price-derived adjusted beta. Raw β 0.20, R² 0.01, 130 weeks)

formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)

e.g.0.67 × 0.204 + 0.33 = 0.467

termsβ (beta)

Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.

Cost of equity7.54%

formularisk-free rate + β × equity risk premium

e.g.5.0% + 0.47 × 5.5% = 7.5%

termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)

Market value of equity$18.11B

formulafiscal year-end closing price × shares outstanding (= market cap)

termsMarket capitalization · Market value of equity

Interest-bearing debt$4.35B
Cost of debt4.51%

formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)

termsInterest-bearing debt · Risk-free rate

Capital structure (equity weight : debt weight)81% : 19%

16

What the price implies (DCF)From SEC data

A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.

Growth the price implies (price on 2026-11-04)

2.6%

Perpetual FCF growth: g = r − FCF ÷ EV = 6.8% − 4.2%

Past FCF growth (FY2020–FY2025)

-1.9%

Compound annual rate, 5 years

Past revenue growth (FY2020–FY2025)

+4.1%

Compound annual rate, 5 years

Inputs (FY2025): free cash flow $740M (operating CF − capex); enterprise value $17.65B = market cap $13.4B (latest close, 2026-11-04) + debt $4.35B − cash and short-term investments $96M; r = WACC of 6.8% using this page’s default assumptions (β 0.47, risk-free 5.0%, market premium 5.5%).

Three WACC scenarios

The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.

Try your own assumptions

V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.

Theoretical enterprise value

$17.63B

FCF $740M ÷ (6.8% − 2.6%)

Theoretical ÷ actual enterprise value

1.00x

Below 1x: these assumptions value the business below the market did

How sensitive the answer is

Theoretical ÷ actual enterprise value for each combination of r and g.

g \ r4.8%5.8%6.8%7.8%8.8%
0%0.87x0.72x0.62x0.54x0.48x
2%1.50x1.10x0.87x0.72x0.62x
4%5.24x2.33x1.50x1.10x0.87x
6%——5.24x2.33x1.50x
8%————5.24x

A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.

17

Earnings qualityFrom SEC dataShow

The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.

  • ✓

    Operating CF ÷ net income: averages 1.28x

    Profit is backed by cash coming in.

  • ✓

    Accrual ratio (latest): -1.3%

    A small share of profit rests on accounting estimates.

  • ✓

    Core-earnings share (operating income ÷ pretax income): 117%

    Most profit comes from core operations.

  • ✓

    Days sales outstanding: 34 → 32 days

    No major slowdown in collecting on sales.

Operating CF vs. net income

Unit: $M — operating CF above net income means profit is backed by cash

  • Operating CF
  • Net income

formulacash flow from operations ÷ net income attributable to the company

termsCash flow from operations (operating CF) · Net income (attributable to the company)

formula(net income − operating CF) ÷ average total assets × 100

termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-01-22

Profit bridge (FY2025)

Unit: $M — what moved profit from operating income to net income

  • Profit (each stage)
  • Pushed profit up
  • Pushed profit down

formulaoperating income ÷ income before income taxes × 100

termsOperating income · Income before income taxes (pretax income)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-01-22

Receivables & inventory days

Unit: days — days grow when receivables or inventory build up faster than sales

  • Days sales outstanding
  • Days inventory outstanding

formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365

termsAccounts receivable · Revenue (net sales)

formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365

termsInventory · Cost of revenue (COGS)

Worked examples (latest period)

formulacash flow from operations ÷ net income attributable to the company

e.g.$962M ÷ $789M = 1.22x

termsCash flow from operations (operating CF) · Net income (attributable to the company)

formulaoperating income ÷ income before income taxes × 100

e.g.$1,071M ÷ $913M × 100 = 117%

termsOperating income · Income before income taxes (pretax income)

formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365

e.g.($587M + $629M) ÷ 2 ÷ $6,840M × 365 = 32 days

termsAccounts receivable · Revenue (net sales)

formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365

e.g.($1,240M + $1,272M) ÷ 2 ÷ $4,248M × 365 = 108 days

termsInventory · Cost of revenue (COGS)

18

Who holds the sharesFrom SEC dataShow

How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.

Institutions, insiders and everyone else — non-voting common shares, 13F holdings as of 2026-06-30

“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.

Held by 13F filers
94.4%
Directors & officers (shares)
<1%

of non-voting shares

Everyone else (est.)
5.6%

individuals and other non-13F holders

Directors & officers (voting power)
10.6%

of all votes, across share classes

Institutional-ownership rank
131 of 416

1 = most institutional; 31% of covered companies have more

Beta (adjusted)
0.47

above 1 = swings more than the market

  • 239.9M shares reported by 951 13F filers ÷ 254.1M non-voting common shares outstanding on 2026-05-31. Option positions are excluded.
  • Only the listed non-voting common shares are counted; other share classes (often held by founders) are not in this figure.
  • Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days. The voting figure is their share of McCormick's voting Common Stock.
  • A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.

Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-02-18 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-05-31)

19

Strengths & weaknessesSite analysis

Strengths

  1. 1. Category leadership

    Global brand leader in spices and seasonings.

    Evidence: Form 10-K (FY2025, year ended 2025-11-30)

  2. 2. Steady profit

    Operating income stayed between $864M and $1,071M every year fiscal 2020–2025.

    Evidence: Form 10-K (FY2025, year ended 2025-11-30)

  3. 3. Dividend growth

    Dividends per share rose every year from $1.27 (2020) to $1.83 (2025).

    Evidence: Form 10-K (FY2025, year ended 2025-11-30)

Weaknesses

  1. 1. Slow growth

    Net sales grew only from $6,318M (FY2021) to $6,840M (FY2025).

    Evidence: Form 10-K (FY2025, year ended 2025-11-30)

  2. 2. Customer concentration

    PepsiCo was about 12% of sales; top three Flavor Solutions customers 49% of the segment.

    Evidence: Form 10-K (FY2025, year ended 2025-11-30)

  3. 3. Debt for acquisitions

    Debt of about $4.3B; the McCormick de Mexico deal added $750M of spending in 2026.

    Evidence: Form 10-K (FY2025, year ended 2025-11-30)

20

What draws investors to itSite analysis

Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.

P/E (FY2025)

23.0x

Price at fiscal year-end ÷ diluted EPS

Dividend yield (FY2025)

2.71%

Dividends per share ÷ fiscal year-end price

Payout ratio (FY2025)

62%

Dividends per share ÷ diluted EPS

FCF yield (FY2025)

4.1%

(Operating CF − capex) ÷ market cap

  1. 1. Defensive staples

    Spices and flavors are steady-demand products.

    What has to hold
    Pricing power holds.
    The other side
    Slow growth.

    Evidence: Form 10-K (FY2025, year ended 2025-11-30)

  2. 2. Dividend growth

    Long record of dividend increases.

    What has to hold
    Earnings grow.
    The other side
    Higher debt.

    Evidence: Form 10-K (FY2025, year ended 2025-11-30)

Shares combine Common Stock and Common Stock Non-Voting.

21

ResilienceSite analysisShow

How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.

1. Financial buffer (FY2025)

Cash & short-term investments ÷ debt due within a year

0.1x

$96M vs. $1.24B

Interest coverage (operating income ÷ interest expense)

5.5x

$1.07B vs. $196M

Free cash flow ÷ dividends paid

1.5x

$740M vs. $483M (FCF = operating CF − capex)

2. Worst year in the record, and the recovery

FigureWorst year-over-year changeBack to the prior level?
RevenueNo decline in the record—
Operating income-14.9% in FY2022 ($1.02B → $864M)Yes, by FY2024

Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.

3. Business resilience (from the 10-K)

  • Stable profit

    Net income stayed between $681M and $789M every year fiscal 2020–2025.

    Source: Form 10-K (FY2025, year ended 2025-11-30)

23

Risks (including geopolitical)Site analysis

Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.

Risk map

Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).

Impact
High
Med
24
13
Low
5
LowMedHigh

Likelihood →

"Company disclosure" vs. "this site’s assessment"

The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.

Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.

  1. 1Raw materials & energy

    Commodity costs

    Company disclosure (summarized from the 10-K)
    Herb, spice, dairy, packaging and other input costs.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood High
  2. 2Customer/supplier concentration

    Large customers

    Company disclosure (summarized from the 10-K)
    PepsiCo and other large food makers account for much of Flavor Solutions.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood Med
  3. 3Competition & technology shift

    Competition and private label

    Company disclosure (summarized from the 10-K)
    Numerous competitive brands and retailer private labels.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood High
  4. 4Geopolitics & supply chain

    Global sourcing and tariffs

    Company disclosure (summarized from the 10-K)
    Ingredients are sourced from many countries; tariffs affect costs.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood Med
  5. 5M&A & integration

    Acquisitions

    Company disclosure (summarized from the 10-K)
    Integrating McCormick de Mexico and other deals.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Low / Likelihood Med

24

What changed in the risk factorsFrom SEC data

Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.

New or substantially reworded (2)

  • Changes in global trade policies, including tariffs, have caused inflationary pressures and higher costs on certain raw materials and imports. Read more

    These actions have impacted our business through increased costs and uncertainty. If maintained, the tariffs, as well as related measures that have been taken and which could be taken by other countries in the future could pose a risk to our business and results of operations. The extent and duration of the tariffs and the resulting impact on general economic conditions and on our business are uncertain and depend on various factors, such as legal challenges to the applicability of these tariffs, negotiations between affected countries, the responses of other countries or regions, exemptions, exclusions or other relief that may be granted, availability and cost of alternative sources of supply, and demand for our products in affected markets.

  • Changes in the political conditions in markets in which we manufacture, sell or distribute our products, as well as changing geopolitical conditions, including conflicts, may be difficult to predict and may adversely affect our business and financial results. Results of elections, referendums, sanctions or other political processes and pressures in certain markets in which our products are manufactured, sold or distributed have created and could continue to create uncertainty regarding how existing governmental policies, laws and regulations may change, including with respect to sanctions, taxes, tariffs, import and export controls and the general movement of goods, materials, services, capital, data and people between countries.

No longer in the text (2)

  • In the U.S., for example, the CCPA imposes requirements on companies that do business in California and collect personal information from certain individuals, including notice, consent and service provider requirements. Read more

    The CCPA also provides for civil penalties for companies that fail to comply with these requirements, as well as a private right of action for data breaches. Further, the California Privacy Rights Act (CPRA) went into full effect on January 1, 2023 (with a ‘look-back’ to January 1, 2022). The CPRA builds on the CCPA and among other things, requires the establishment of a dedicated agency to regulate privacy issues. In 2021, Virginia, Colorado, Connecticut and Utah adopted laws which have now taken effect introducing new privacy obligations, which have required us to develop additional compliance mechanisms and processes. Many other states are considering similar…

  • Similarly, outside of the U.S., there are various laws and regulations governing the collection, use, disclosure, transfer, or other processing of personal data. Read more

    For instance, the GDPR, which applies to the processing of personal data of individuals in the European Union, is wide-ranging in scope and imposes numerous requirements on companies that process personal data, including strict rules on the transfer of personal data to countries outside the European Union, including the U.S. Beyond GDPR, there are privacy and data security laws in a growing number of countries around the world (including in the United Kingdom as a result of Brexit). While many loosely follow GDPR as a model, other laws contain different or conflicting provisions. These laws may impact our ability to conduct our business activities and the costs associated with these activities.

Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Jan 22, 2026 ↗ with the 10-K filed Jan 23, 2025 ↗.

25

What to watch going forwardSite analysis

  • Consumer volume trends.
  • Input cost and tariff effects.
  • Integration of McCormick de Mexico.

26

Source documentsShow

This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.

Last updated

Analysis last edited: November 6, 2026 · Financial data fetched: October 29, 2026 13:33 (SEC EDGAR) · Source 10-K filed: January 22, 2026

Built on10-K FY2025 · filed 2026-01-22Proxy statement (2026)

Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

This page is this site’s own analysis based on public information, and does not represent McCormick & Company’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.