$78.75
arrow_drop_up0.62%Is MKC a Buy or Sell based on AI Analysis?
Fundamental Analysis
McCormick & Co Inc-MD (MKC) shows solid financial health with a market capitalization of $17.22B and an enterprise value of $22.62B. The company has a price-to-earnings (P/E) ratio of 27.17, which indicates that investors are willing to pay $27.17 for every $1 of the company's earnings. McCormick & Co Inc-MD also boasts a healthy dividend yield of 2.48%, with annual dividends per share of $1.56. Additionally, the company has a return on equity (ROE) of 13.91%, indicating that it is efficient in generating profits from shareholders' equity. Furthermore, McCormick & Co Inc-MD has a strong balance sheet, with assets of $12.86B and liabilities of $7.78B, resulting in a solid equity of $5.06B. In terms of profitability, McCormick & Co Inc-MD has a net margin of 9.37% and an operating margin of 17.91%, showcasing efficient cost management and profit generation. The company's free cash flow margin of 14.61% indicates that it has healthy cash flow from its operations. With a current ratio of 0.65 and a quick ratio of 0.28, McCormick & Co Inc-MD may face some liquidity challenges in meeting short-term obligations, but its ability to generate strong profits and cash flows offsets this concern. Additionally, the company's debt-to-equity ratio of 0.92 suggests that it has a balanced approach towards debt financing, which is crucial for long-term sustainability and growth. Overall, McCormick & Co Inc-MD's fundamental analysis highlights a financially stable and well-performing company in the Consumer Defensive sector.
Positive Development
McCormick & Co. Inc. has been recognized on the 2024 Barron's 100 Most Sustainable Companies list, indicating its commitment to sustainability and ethical practices. The company's stock has shown resilience in the face of market volatility, outperforming the market in some instances. The company has been included in several analysts' "best dividend aristocrats" lists, suggesting a strong investment case. The company's gross margin is relatively high at 0.4001, indicating efficient operations.
Negative Development
Despite the company's resilience, its stock price has experienced some downward movement in recent weeks, indicating potential investor concerns. The company's long-term debt-to-total-capital ratio is relatively high at 0.3526, suggesting that it may struggle to meet its debt obligations in the long term. The company's net debt-to-total-capital ratio is also relatively high at 0.8388, suggesting that the company may struggle to meet its debt obligations in the short term. The company's payout ratio is relatively high at 0.6149, suggesting that it may not have sufficient profits to reinvest in the business or pay dividends to shareholders.
Technical Analysis
McCormick & Co Inc-MD is currently showing a neutral technical rating, with one buy indicator, six hold indicators, and one sell indicator for the month. The stock's price is currently at $68.48, with a delta price of $0.67 and a delta price percent of 0.98806. The stock has a beta of 0.74, indicating that it is less volatile than the market average. Additionally, the stock has a technical buy indicator based on the Average True Range (ATR), suggesting potential buying opportunities in the near term. In terms of market performance, McCormick & Co Inc-MD is scoring moderately across various market factors. The company has a market score of 59, with market ownership, market growth, and market dividends scores of 37, 49, and 40 respectively. The stock also has a benchmark market score of 53, indicating its performance relative to market benchmarks. Overall, McCormick & Co Inc-MD is showing steady technical indicators and market performance, making it a stock worth monitoring for potential investment opportunities.
Conclusion and recommendation
Based on the data provided, McCormick & Co Inc-MD (MKC) appears to be a stable and profitable company in the Consumer Defensive sector. With a market cap of $17.22B and a solid revenue growth of 4.91%, the company shows strong financial performance. Additionally, McCormick & Co Inc-MD has a dividend yield of 2.48% and a payout ratio of 59.11%, indicating a commitment to providing returns to shareholders. The company's financial health is further supported by a net margin of 9.37% and a return on equity of 13.91%. Overall, McCormick & Co Inc-MD presents a promising investment opportunity for those seeking steady growth and income. In conclusion, McCormick & Co Inc-MD showcases strong fundamentals and a positive outlook for the future. Investors looking for a reliable company in the Consumer Defensive sector may find MKC to be a compelling option. With a solid track record of performance, consistent dividend payments, and a focus on shareholder value, McCormick & Co Inc-MD is well-positioned for long-term success. It is recommended for investors to conduct further research and analysis to determine if MKC aligns with their investment goals and risk tolerance.