Business Description
McCormick & Company, Incorporated manufactures, markets, and distributes spices, seasoning mixes, condiments, and other flavorful products to the food industry. It operates in two segments, Consumer and Flavor Solutions. The Consumer segment offers spices, herbs, and seasonings, as well as condiments and sauces, and desserts. This segment markets its products under the McCormick, French's, Frank's RedHot, Lawry's Cholula Hot Sauce, Gourmet Garden, Club House, and OLD BAY brands in the Americas; Ducros, Schwartz, Kamis, and Drogheria & Alimentari, and Vahiné brands in Europe, the Middle East, and Africa; McCormick and DaQiao brands in China; and McCormick, Aeroplane, and Gourmet Garden brands in Australia, as well as markets regional and ethnic brands, such as Zatarain's, Stubb's, Thai Kitchen, and Simply Asia. It also supplies its products under the private labels. This segment serves retailers comprising grocery, mass merchandise, warehouse clubs, discount and drug stores, and e-commerce retailers directly and indirectly through distributors and wholesale foodservice suppliers. The Flavor Solutions segment offers seasoning blends, spices and herbs, condiments, coating systems, and compound flavors to multinational food manufacturers and foodservice customers. It serves foodservice customers directly and indirectly through distributors. The company was founded in 1889 and is headquartered in Hunt Valley, Maryland.
Business History
Generated: Jun 7, 2026 1:57pmPrice Overview
Last updated: Jun 7, 2026 1:54pm (5d ago)Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 2.94
Total Equity: $5.74B
Shares: 269,300,000
Total Debt: $4.00B
Cash: $95.90M
EBITDA: $1.34B
Total Debt: $4.00B
Cash: $95.90M
Revenue: $6.84B
Revenue: $6.84B
Revenue: $6.84B
Total Equity: $5.74B
Tax Rate: 19.9%
Equity: $5.74B
Total Debt: $4.00B
Cash: $95.90M
Current Liabilities: $3.06B
Long-Term Debt: $3.11B
Total Debt: $4.00B
Total Equity: $5.74B
Shares: 269,300,000
Shares: 269,300,000
CapEx: -$221.80M
Shares: 269,300,000
Stock Price: $47.24
Net Income: $789.40M
Industry Benchmarks
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 3, 2026 8:30pm (9d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $6.3B | $6.4B | $6.7B | $6.7B | $6.8B |
| Cost of Revenue | $3.8B | $4.1B | $4.2B | $4.1B | $4.2B |
| Gross Profit | $2.5B | $2.3B | $2.5B | $2.6B | $2.6B |
| Operating Expenses | $1.5B | $1.4B | $1.5B | $1.5B | $1.5B |
| Operating Income | $1.0B | $863.6M | $963.0M | $1.1B | $1.1B |
| Net Income | $755.3M | $682.0M | $680.6M | $788.5M | $789.4M |
| EBITDA | $1.2B | $1.2B | $1.2B | $1.3B | $1.3B |
| EPS | $2.83 | $2.54 | $2.54 | $2.94 | $2.94 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 3, 2026 8:25pm (9d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $351.7M | $334.0M | $166.6M | $186.1M | $95.9M |
| Total Current Assets | $2.2B | $2.4B | $2.0B | $2.1B | $2.1B |
| Total Assets | $12.9B | $13.1B | $12.9B | $13.1B | $13.2B |
| Current Liabilities | $3.2B | $3.4B | $3.1B | $2.9B | $3.1B |
| Long-Term Debt | $4.0B | $3.6B | $3.3B | $3.6B | $3.1B |
| Total Liabilities | $8.5B | $8.4B | $7.8B | $7.8B | $7.4B |
| Total Equity | $4.4B | $4.7B | $5.1B | $5.3B | $5.7B |
| Retained Earnings | $2.8B | $3.0B | $3.2B | $3.5B | $3.8B |
Cash Flow (Annual)
Last updated: Jun 3, 2026 8:30pm (9d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $828.3M | $651.5M | $1.2B | $921.9M | $962.2M |
| Capital Expenditure | -$278.0M | -$262.0M | -$263.9M | -$274.9M | -$221.8M |
| Free Cash Flow | $550.3M | $389.5M | $973.4M | $647.0M | $740.4M |
| Acquisitions (net) | -$641.0M | $95.2M | $1.0M | $0 | -$34.1M |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | -$8.6M | -$38.8M | -$35.7M | -$53.1M | -$34.8M |
| Net Change in Cash | -$71.9M | -$17.7M | -$167.4M | $19.5M | -$90.2M |
Analyst Estimates (Annual)
Last updated: Jun 7, 2026 1:55pm (5d ago)| Metric | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|
| Revenue |
$8.2B $8.1B – $8.2B
|
$8.5B $8.5B – $8.5B
|
$8.9B $8.8B – $9.0B
|
$8.8B $8.7B – $8.9B
|
| EBITDA |
$1.5B $1.5B – $1.6B
|
$1.6B $1.6B – $1.6B
|
$1.7B $1.7B – $1.7B
|
$1.7B $1.7B – $1.7B
|
| Net Income |
$891.9M $870.5M – $981.3M
|
$971.0M $930.2M – $1.0B
|
$1.2B $1.1B – $1.2B
|
$1.3B $1.2B – $1.3B
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 3, 2026 8:30pm (9d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +0.5% | +4.9% | +0.9% | +1.7% |
| Gross Profit Growth | -8.8% | +10.0% | +3.5% | +0.0% |
| Operating Income Growth | -14.9% | +11.5% | +10.1% | +3.0% |
| Net Income Growth | -9.7% | -0.2% | +15.9% | +0.1% |
| EBITDA Growth | -4.6% | +3.8% | +9.1% | +1.8% |
Insider Trading (Recent)
Last updated: Jun 7, 2026 1:59pm (5d ago)All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-04-28 | Sheppard Valarie L | J-Other | 3.29 | $51.81 | $170 |
| 2026-04-27 | PRESTON MARGARET M V | J-Other | 276.60 | $0.00 | $0 |
| 2026-04-28 | THOMAS TERRY S | J-Other | 3.78 | $51.81 | $196 |
| 2026-04-28 | Foust Andrew | J-Other | 51.87 | $51.81 | $2,687 |
| 2026-04-28 | Foust Andrew | J-Other | 3.16 | $51.81 | $164 |
| 2026-04-28 | BRAMMAN ANNE L | J-Other | 24.09 | $51.81 | $1,248 |
| 2026-06-08 | Tapiero Jacques | A-Award | 210.04 | $0.00 | $0 |
| 2026-04-27 | Tapiero Jacques | J-Other | 22.60 | $0.00 | $0 |
| 2026-06-02 | Piper Sarah | A-Award | 54.50 | $0.00 | $0 |
| 2026-06-02 | Foley Brendan M | A-Award | 53.82 | $0.00 | $0 |
| 2026-04-08 | GOMEZ SADES TABATA LORENA | 0.00 | $0.00 | $0 | |
| 2026-06-01 | Hoots Cindy L | A-Award | 527.00 | $47.52 | $25,043 |
| 2026-06-01 | Hoots Cindy L | 0.00 | $0.00 | $0 | |
| 2026-05-18 | Foley Brendan M | A-Award | 53.68 | $0.00 | $0 |
| 2026-04-28 | Foley Brendan M | J-Other | 5.00 | $51.34 | $257 |
| 2026-05-18 | Piper Sarah | A-Award | 54.36 | $0.00 | $0 |
| 2026-04-28 | Piper Sarah | J-Other | 20.90 | $51.81 | $1,083 |
| 2026-05-04 | Piper Sarah | A-Award | 52.86 | $0.00 | $0 |
| 2026-04-27 | Piper Sarah | J-Other | 41.81 | $0.00 | $0 |
| 2026-04-28 | Foley Brendan M | J-Other | 288.00 | $51.40 | $14,803 |
Dividend History (Last 20)
Last updated: Jun 3, 2026 8:25pm (9d ago)| Date | Dividend | Declaration | Record | Payment |
|---|---|---|---|---|
| 2026-04-20 | $0.48 | 2026-04-08 | 2026-04-20 | 2026-04-27 |
| 2025-12-29 | $0.48 | 2025-11-18 | 2025-12-29 | 2026-01-12 |
| 2025-10-14 | $0.45 | 2025-09-30 | 2025-10-14 | 2025-10-27 |
| 2025-07-07 | $0.45 | 2025-06-24 | 2025-07-07 | 2025-07-21 |
| 2025-04-07 | $0.45 | 2025-03-26 | 2025-04-07 | 2025-04-21 |
| 2024-12-30 | $0.45 | 2024-11-19 | 2024-12-30 | 2025-01-13 |
| 2024-10-07 | $0.42 | 2024-09-24 | 2024-10-07 | 2024-10-21 |
| 2024-07-08 | $0.42 | 2024-06-25 | 2024-07-08 | 2024-07-22 |
| 2024-04-05 | $0.42 | 2024-03-27 | 2024-04-08 | 2024-04-22 |
| 2023-12-28 | $0.42 | 2023-11-28 | 2023-12-29 | 2024-01-08 |
| 2023-10-06 | $0.39 | 2023-09-28 | 2023-10-10 | 2023-10-24 |
| 2023-07-07 | $0.39 | 2023-06-27 | 2023-07-10 | 2023-07-24 |
| 2023-04-06 | $0.39 | 2023-03-29 | 2023-04-10 | 2023-04-24 |
| 2022-12-29 | $0.39 | 2022-11-29 | 2022-12-30 | 2023-01-09 |
| 2022-10-07 | $0.37 | 2022-09-29 | 2022-10-11 | 2022-10-25 |
| 2022-07-08 | $0.37 | 2022-06-28 | 2022-07-11 | 2022-07-25 |
| 2022-04-08 | $0.37 | 2022-03-30 | 2022-04-11 | 2022-04-25 |
| 2021-12-30 | $0.37 | 2021-11-30 | 2021-12-31 | 2022-01-10 |
| 2021-10-08 | $0.34 | 2021-09-28 | 2021-10-12 | 2021-10-26 |
| 2021-07-09 | $0.34 | 2021-06-29 | 2021-07-12 | 2021-07-26 |
Narrative Economics
Delvantic AI Findings
The Q1 FY26 print (Feb 2026) showing $1.02B net income on $1.87B revenue — a 54.2% net margin — is almost certainly a one-time gain (likely a divestiture, tax benefit, or pension/legal settlement), not operating performance. Strip that out and the trailing four quarters look like ~$6.94B revenue with normalized NI closer to $830M, not the inflated TTM the 7.7x P/E implies. Real P/E on operating earnings is ~15-16x, which is roughly in line with where staples like CAG and CPB trade and a discount to KHC peers — not the screaming bargain the headline ratio suggests. The synthesis model's $50.32 fair value (6.5% upside) is probably the most honest number on this page; the 7.7 P/E is a data artifact and anyone anchoring to it is being misled.
The underlying trajectory is genuinely mediocre but not broken. Revenue grew 1.3% CAGR over five years, FY25 revenue of $6.84B was up just 1.8% YoY, and the quarterly sequence shows organic acceleration is modest at best — Q4 FY25 ($1.85B) was actually flat versus Q4 FY24 ($1.80B), about 2.8% growth, hardly the "accelerating" trend the revenue confidence signal claims. Gross margin held at 37.9% and operating margin at ~16%, which validates the pricing-power thesis but also caps the upside: there's no margin expansion story left when you're already a category leader running mature unit economics. The FCF deterioration flagged by Market Forces (-12.8% CAGR) is real and matters — FY25 FCF of $740M against a $12.7B market cap is a ~5.8% yield, decent but not cheap given the 2.7% dividend already consumes a chunk and growth capex is climbing.
The Market Forces "managed decline / value trap" verdict overshoots. McCormick isn't losing share catastrophically; volumes are soft industry-wide as consumers digest 2022-2024 price hikes, and spices/flavorings have structurally lower private-label penetration than center-store categories. But the Narrative layer is closer to right — this is a boring compounder priced approximately fairly, with no catalyst. The contrarian case worth taking seriously is on the balance sheet: total debt is blank in the tile but McCormick carries ~$3.5B+ from the RB Foods/Frank's deal, and a 0.70 current ratio with only $96M cash means refinancing risk if rates stay elevated. That's the real bear case, not "managed decline." The "Significant Insider Buying" signal is noise — those are 50-share director award grants, not conviction purchases. Whoever tagged that should recalibrate.
I dissent mildly from the "slight upside" synthesis — not on direction, but on conviction. Fair value is probably $48-52 on normalized earnings of ~$2.95-3.05/share at a 16-17x multiple appropriate for a 2% grower with durable brands and refinancing overhang. At $47.24 you're getting maybe 5-8% upside plus a 2.7% dividend — a 8-11% total return profile that's fine for a defensive sleeve but not compelling against a 4%+ risk-free rate. The pre-flight model's framing of this as a "40% decline from highs" repricing is correct directionally but the stock isn't done de-rating if FCF keeps slipping and the debt stack needs refinancing into 2026-2027. I'd want $42 or a clear FCF inflection before sizing up. The Q1 FY26 anomaly needs to be reconciled before anyone trades off that 54% margin — that's the single biggest unresolved item in this file and none of the prior models flagged it.
GPT Critique
In reviewing McCormick & Company, several key aspects from the raw data stand out. The February 2026 quarter shows a remarkable net income of $1.02 billion on $1.87 billion revenue, resulting in a 54.2% net margin. This is an anomaly in contrast to the historical data where net margins hovered around 10-13%. Such a spike suggests a non-recurring event, likely a divestiture or tax benefit, which inflates the trailing P/E to an unsustainable 7.7x. Meanwhile, the company's revenue growth remains tepid with a 1.3% CAGR over five years, reflecting a slow but steady growth typical of mature consumer staples firms. The balance sheet reveals a concerningly low cash position of $95.9 million, juxtaposed with significant debt levels, heightening refinancing risks in a rising interest rate environment.
I agree with Opus's assertion that the Q1 FY26 net income figure is an anomaly distorting the financial metrics. The real P/E aligns more closely with 15-16x once normalized earnings are considered, which is consistent with industry peers. The current valuation, therefore, is not the bargain it superficially appears to be. Furthermore, I concur with Opus's view that McCormick operates as a "boring compounder," priced adequately given its defensive nature and consistent, albeit slow, revenue growth. The market's narrative of McCormick as a steady, if unexciting, staple is justified by its predictable cash flow and stable margins.
However, I diverge from Opus in downplaying the "Significant Insider Buying" signal. While Opus dismisses it as noise, the presence of insider activity, regardless of size, can sometimes indicate confidence in the company's future prospects, especially in a mature firm like McCormick. Additionally, while Opus identifies refinancing risk as a critical bear case, I believe the company's strong operating cash flow of $962.2 million provides some cushion against potential debt challenges, assuming stable operating conditions.
A skeptic might argue that both analyses overestimate McCormick's ability to navigate macroeconomic headwinds without impact. The consistent margin maintenance could be challenged by increasing pressure from private-label competitors and shifts in consumer preferences toward fresh and unbranded products. Additionally, the potential for further interest rate hikes could exacerbate refinancing pressures beyond current projections.
Advanced Analysis Forensic deep-dive · two lenses
The two lenses tell a clean, consistent story: this is a Strong-quality (+21) branded staples franchise trading at a Modestly Cheap (-13) price — meaning the market already knows it's good. Margins have rebuilt, earnings quality is pristine (OCF/NI 1.25x, clean accruals), and dilution isn't a problem. But 2% revenue CAGR, flat net income, and $3.9B of net debt against $96M of cash mean I shouldn't pay a premium multiple, and at $47 with deserved value around $50 and an EPV floor near $39, I'm not being paid enough to take the leverage risk. The anchored-PE bull number ($64) is doing too much work in the FV stack — I discount it heavily.
My play: starter position only if I must own it, but honestly I'd rather sit on hands and let the tape come to me. I want MKC sub-$42 (the value lens's attractive-below) before I'd call it a real pitch — that's roughly 11% lower and would give me a ~20% gap to deserved value, which actually compensates for the balance sheet. Below $42 I scale in 1/3, 1/3, 1/3 down to ~$38 (the EPV floor) and build to a full 3-4% staples sleeve position. Between $42 and $48, I'm flat or holding a tracking 50bps. Above $50 it's a pass — the bull case is in the price and there's no growth to bail me out. Catalysts that flip me aggressive: a guide-down selloff, a credit-spread-driven multiple compression, or a private-label scare that overshoots. Catalyst that flips me out entirely: any sign they lever up further for M&A without a clear synergy story.
Revenue grew from $6.32B (2021) to $6.84B (2025) — a 2.0% CAGR, which is real but unspectacular even for a defensive staple. Operating margin compressed from 16.1% (2021) to a 13.6% trough in 2022 under input-cost pressure, then recovered to 16.0% in 2025, showing pricing power eventually flowed through. Net income ($789M) is essentially flat to 2021 ($755M), so per-share earnings growth has come almost entirely from operating recovery rather than expansion. FCF of $740M on $6.84B revenue (~10.8% conversion) is healthy, and OCF/NI of 1.25x with negative accruals (-1.4% of assets) and a Beneish M of -2.46 indicate the reported earnings are backed by cash, not accounting stretch.
The balance sheet is the main caveat: net debt of ~$3.9B against $96M of liquid cash, with $890M of short-term debt exceeding that cash. Altman Z of 2.14 sits in the grey zone — not distress, but no fortress either. FCF of $740M comfortably services this, so survival is not in question, but financial flexibility is constrained. Dilution is a non-issue (diluted share count -0.1% CAGR, SBC just 0.7% of revenue), though buybacks at only 60% of SBC means capital return is being absorbed by debt service and dividends rather than shrinking the float.
The insider tape shows mostly routine A-Awards and J-Other administrative entries; the single $25K 'buy' by Hoots is small and looks tied to an award. I would not characterize this as meaningful insider conviction either way — it's normal compensation activity at a mature staples company.
Verify before trusting this (6)
- Maturity schedule and rates on the $3.9B gross debt, particularly the $890M short-term portion
- Volume vs price decomposition of the 2025 revenue growth — is volume actually growing or is it all pricing?
- Consumer segment vs Flavor Solutions segment trends — which is driving the margin recovery
- Goodwill/intangibles on the balance sheet (legacy of FONA/Cholula/Frank's deals) and any impairment risk
- Customer concentration in Flavor Solutions (large CPG/QSR buyers)
- Whether the Hoots $25K transaction is an open-market buy or award-related
The composite fair value of $51.40 and signal-adjusted FV of $50.32 against a $47.24 price implies a ~7% gap — real but not a fat pitch. The anchored-PE method ($64.12) is the optimistic outlier and assumes MKC re-rates to its historical multiple despite 2% revenue growth and flat net income; I'd discount that input. The EPV floor at $38.67 is more sobering and reflects what the cash flows are worth without growth credit — and given $3.9B of net debt against $96M cash, the equity is more sensitive to that floor than the headline FV suggests.
Netting it out, deserved value sits around $48-$52 for a mature, durable, but leveraged staples name. Earnings quality is high (no haircut needed), and the business quality argues for the upper half of that range, but the balance sheet and lack of growth argue against paying a premium multiple. At $47.24 you're getting a small discount, not a bargain. The bull case (pricing power, category dominance) is largely in the price already; the bear case (private label, fresh-food shift, stretched balance sheet limiting M&A) caps the multiple. This is 'modestly cheap' bordering on fairly valued — not the kind of mispricing that screams.
Verify before trusting this (4)
- Forward guidance on organic volume growth — is the 2% revenue CAGR accelerating or decelerating?
- Deleveraging pace and any commentary on resumed M&A capacity
- Gross margin trajectory — is the pricing-led margin rebuild sustaining or rolling over as commodity tailwinds fade?
- Private-label share gains in core US spice category