McCormick & Company
McCormick & Company, Incorporated manufactures, markets, and distributes herbs, 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 c…
McCormick & Company, Incorporated manufactures, markets, and distributes herbs, 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, sauces, and desserts. This segment markets its products under the McCormick, French's, Frank's RedHot, Lawry's, Cholula Hot Sauce, Club House, Gourmet Garden, and OLD BAY brands in the Americas; Ducros, Schwartz, Kamis, LA Drogheria, and Vahiné brands in Europe, the Middle East, and Africa; and McCormick and DaQiao brands in the Asia/Pacific (APAC), as well as desserts under the Aeroplane brand; and packaged chilled herbs under the Gourmet Garden brand. Its authentic regional brands include Zatarain's, Stubb's, Thai Kitchen, and Simply Asia. The company also supplies its products under private labels. This segment serves retailers, including 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, 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.Looks undervalued
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price below modeled range
Showing the EPS-based Gordon proxy you selected on the company card, using 3.26% growth, 2.4% terminal growth and 9.2% discount. The range varies these assumptions slightly; it is illustrative, not investment advice.
Assumptions: growth 3.26%, discount rate 9.20%, terminal growth 2.40% (sector defaults). See a worked example.
Blended growth assumption: 3.3% (sector default 5.3%, own revenue history 2.0%, analyst revenue consensus 2.9%).
5-year outlook: relative outlook of about 6.0% a year (High confidence), anchored to a 7% market return and adjusted for how this company ranks against others. A ranking aid, not a prediction. See the full forecast.
Analyst consensus expects revenue growth of 2.9% a year; the growth assumption used is 3.3%.
Adjust assumptions
Show the recommended model instead
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — USD 39.17 (-21.7%)
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EPS-based Gordon proxy
— USD 83.32 (+66.4%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— USD 39.17 (-21.7%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— USD 37.22 (-25.6%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— USD 44.75 (-10.6%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— USD 39.10 (-21.9%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— USD 102.87 (+105.5%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 63.75 | 21.5% |
| Base USD 83.32 | 39.9% |
| Bull USD 97.68 | 48.8% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 72 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +4.9% a year | 12 / 20 |
| Balance sheet | net debt 2.9x EBITDA | 10 / 20 |
| Margins | EBITDA margin 17% | 10 / 20 |
Peers in Consumer Staples
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| MKC (this company) | USD 50.06 | -27.8% | 9.0 | 1.9 | 3.8% | 72 |
| ORK.OL Orkla ASA | NOK 103.30 | 31.4% | 14.7 | 2.4 | 9.7% | 82 |
| WN.TO George Weston Limited | CAD 109.72 | 26.2% | 39.8 | 9.1 | 1.2% | 72 |
| KHC Kraft Heinz | USD 25.32 | 25.2% | – | 0.8 | 6.3% | 36 |
| CA.PA Carrefour SA | EUR 13.59 | 24.1% | 29.1 | 0.8 | 8.7% | 72 |
| ABF.L Associated British Foods plc | GBP 19.83 | 19.1% | 15.0 | 1.2 | 3.2% | 82 |
| ADM Archer Daniels Midland | USD 70.47 | 16.8% | 13.7 | 1.4 | 3.0% | 64 |
| AXFO.ST Axfood AB | SEK 281.90 | 8.5% | 24.8 | 8.1 | 3.1% | 70 |
| DLTR Dollar Tree | USD 137.94 | 0.3% | 16.3 | 7.7 | – | 72 |
| Peer median | 16.3 | 1.9 | ||||
Dividends
Paid in the last 12 months: USD 1.92 per share · yield 3.84% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 1.440 |
| 2025 | 1.830 |
| 2024 | 1.710 |
| 2023 | 1.590 |
| 2022 | 1.500 |
| 2021 | 1.390 |
Trailing 12-month financials
TTM through 31 Aug 2026 · quarterly EODHD data · data downloaded 06 Nov 2026 13:11
| Revenue | USD 7,685,700,000 |
|---|---|
| EBITDA | USD 1,330,900,000 |
| EBIT | USD 1,058,600,000 |
| Net income | USD 1,490,500,000 |
| Free cash flow | USD 925,900,000 |
| Capital expenditures | USD 214,900,000 |
| Debt | USD 4,246,300,000 |
| Cash | USD 331,100,000 |
| Working capital | USD -1,515,200,000 |
| Shares outstanding | 269,400,000 |
| Reported dividends per share | USD 1.8849 |