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Opinions Christine Poole
McCormick & CoMKCCOMMENTApr 19, 2016
Stock price when the opinion was issued
As of Jun 15, 2026. Market Open.
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They report Tuesday. It still trades at a premium multiple when the packaged goods sector has fallen out of favour. Is -10% this year and well off its highs. Spices are a great trade-down for consumers wanting to save money in food. This could bounce, but he doesn't trust this sector. Food is a tough business.
MKC has a market cap of $21B, a yield of 2.2%, historically low to mid-single digit sales and earnings growth rates, and forward earnings margin estimates are quite positive. Its balance sheet is strong, free cash flows are healthy, and its debt levels have been coming down over the years. Over the past 20 years, it has a roughly 10% total return CAGR, and while it has largely been flat over the past several years, we feel that in the coming years it can help an investors' portfolio with downside protection. We would be comfortable holding, or slowly averaging into MKC here.
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Premium contentMcCormick & company, incorporated (nyse: mkc) is a global leader in flavor and one of the most respected and familiar names in the industry. in business for more than 125 years, mccormick manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the entire food industry—retail outlets, food manufacturers and food service businesses. the mccormick name represents a trusted source of flavor in millions of kitchens around the globe—in homes and in restaurants.
Hasn’t looked at this recently. A global spice maker, and really plays into the whole ethnicity and how diversified everyone is getting. A consumers’ product company, and typically there is a steadier defensive earnings stream associated with these companies. Trading at a fairly high multiple.