McCormick & Company, Incorporated (MKC) Financial Ratios
30 years of historical data (1996–2025) · Consumer Defensive · Packaged Foods
EV/EBITDA
↓
12.24
↓-42% vs avg
5yr avg: 21.08
30Y Low9.6·High26.3
P/FCF
↓
16.60
↓-53% vs avg
5yr avg: 35.27
30Y Low12.3·High59.1
P/B Ratio
↓
2.26
↓-45% vs avg
5yr avg: 4.14
30Y Low3.2·High7.2
ROE
↓
14.2%
-7% vs avg
5yr avg: 15.3%
30Y Low9%·High37%
Debt/EBITDA
↓
3.02
↓-25% vs avg
5yr avg: 4.00
30Y Low1.4·High6.1
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
MKC Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
McCormick & Company, Incorporated trades at 16.5x earnings, 41% below its 5-year average of 28.0x, sitting at the 10th percentile of its historical range. Compared to the Consumer Defensive sector median P/E of 19.6x, the stock trades at a discount of 16%. On a free-cash-flow basis, the stock trades at 16.6x P/FCF, 53% below the 5-year average of 35.3x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $12.3B | $18.2B | $21.1B | $17.5B | $23.0B | $23.2B | $25.2B | $22.7B | $20.0B | $13.1B | $11.7B |
| Enterprise Value | $16.2B | $22.1B | $25.5B | $21.9B | $28.0B | $28.2B | $29.7B | $26.9B | $24.6B | $18.0B | $13.0B |
| P/E Ratio → | 16.55 | 23.03 | 26.85 | 25.73 | 33.80 | 30.65 | 33.63 | 32.30 | 21.43 | 27.47 | 24.65 |
| P/S Ratio | 1.80 | 2.66 | 3.14 | 2.63 | 3.62 | 3.67 | 4.49 | 4.24 | 3.77 | 2.77 | 2.65 |
| P/B Ratio | 2.26 | 3.15 | 3.98 | 3.44 | 4.90 | 5.23 | 6.39 | 6.57 | 6.29 | 5.10 | 7.13 |
| P/FCF | 16.60 | 24.54 | 32.67 | 17.97 | 59.09 | 42.09 | 30.83 | 29.36 | 30.67 | 20.73 | 23.15 |
| P/OCF | 12.78 | 18.89 | 22.93 | 14.14 | 35.33 | 27.96 | 24.16 | 23.97 | 24.36 | 16.09 | 17.74 |
P/E links to full P/E history page with 30-year chart
MKC EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
McCormick & Company, Incorporated's enterprise value stands at 12.2x EBITDA, 42% below its 5-year average of 21.1x. The Consumer Defensive sector median is 11.4x, placing the stock at a 7% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.23 | 3.79 | 3.29 | 4.41 | 4.46 | 5.31 | 5.02 | 4.64 | 3.80 | 2.95 |
| EV / EBITDA | 12.24 | 16.68 | 20.06 | 18.86 | 26.32 | 23.47 | 25.54 | 24.06 | 23.61 | 21.77 | 17.34 |
| EV / EBIT | 14.83 | 19.90 | 22.99 | 21.77 | 29.12 | 27.31 | 29.24 | 27.29 | 26.86 | 26.01 | 20.15 |
| EV / FCF | — | 29.81 | 39.35 | 22.51 | 71.91 | 51.24 | 36.45 | 34.75 | 37.73 | 28.38 | 25.78 |
MKC Profitability
Margins and return-on-capital ratios measuring operating efficiency
McCormick & Company, Incorporated earns an operating margin of 16.0%, above the Consumer Defensive sector average of 1.4%. Operating margins have expanded from 14.5% to 16.0% over the past 3 years, signaling improving operational efficiency. ROE of 14.2% is modest. ROIC of 8.5% represents adequate returns on invested capital versus a sector median of 5.5%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 37.9% | 37.9% | 38.5% | 37.6% | 35.8% | 39.5% | 41.1% | 40.1% | 39.5% | 37.9% | 41.5% |
| Operating Margin | 16.0% | 16.0% | 15.8% | 14.5% | 13.6% | 16.1% | 17.8% | 17.9% | 16.8% | 14.8% | 14.5% |
| Net Profit Margin | 11.5% | 11.5% | 11.7% | 10.2% | 10.7% | 12.0% | 13.3% | 13.1% | 17.6% | 10.1% | 10.7% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.2% | 14.2% | 15.2% | 13.9% | 14.9% | 18.1% | 20.2% | 21.2% | 32.4% | 22.7% | 28.4% |
| ROA | 6.0% | 6.0% | 6.1% | 5.2% | 5.2% | 6.0% | 6.7% | 6.8% | 9.0% | 6.4% | 10.4% |
| ROIC | 8.5% | 8.5% | 8.3% | 7.5% | 6.8% | 8.5% | 9.3% | 9.3% | 8.8% | 10.1% | 16.2% |
| ROCE | 10.7% | 10.7% | 10.6% | 9.9% | 8.9% | 10.8% | 11.6% | 11.6% | 10.7% | 12.0% | 19.9% |
MKC Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
McCormick & Company, Incorporated carries a Debt/EBITDA ratio of 3.0x, which is moderately leveraged (12% below the sector average of 3.4x). Net debt stands at $3.9B ($4.0B total debt minus $96M cash). Interest coverage of 5.6x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.69 | 0.69 | 0.85 | 0.90 | 1.13 | 1.22 | 1.27 | 1.25 | 1.48 | 1.96 | 0.88 |
| Debt / EBITDA | 3.02 | 3.02 | 3.55 | 3.95 | 5.00 | 4.49 | 4.30 | 3.87 | 4.51 | 6.09 | 1.93 |
| Net Debt / Equity | — | 0.68 | 0.81 | 0.87 | 1.06 | 1.14 | 1.16 | 1.21 | 1.45 | 1.88 | 0.81 |
| Net Debt / EBITDA | 2.95 | 2.95 | 3.41 | 3.81 | 4.69 | 4.19 | 3.94 | 3.73 | 4.42 | 5.87 | 1.77 |
| Debt / FCF | — | 5.27 | 6.68 | 4.55 | 12.82 | 9.15 | 5.62 | 5.39 | 7.05 | 7.65 | 2.63 |
| Interest Coverage | 5.57 | 5.57 | 5.06 | 4.63 | 5.79 | 7.43 | 7.37 | 5.80 | 5.10 | 7.27 | 11.45 |
MKC Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.70x is below 1.0, meaning current liabilities exceed current assets. The quick ratio of 0.28x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 0.65x to 0.70x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.70 | 0.70 | 0.74 | 0.65 | 0.70 | 0.68 | 0.68 | 0.72 | 0.74 | 0.83 | 1.00 |
| Quick Ratio | 0.28 | 0.28 | 0.31 | 0.28 | 0.30 | 0.31 | 0.34 | 0.35 | 0.35 | 0.42 | 0.47 |
| Cash Ratio | 0.03 | 0.03 | 0.06 | 0.05 | 0.10 | 0.11 | 0.14 | 0.07 | 0.05 | 0.10 | 0.08 |
| Asset Turnover | — | 0.52 | 0.51 | 0.52 | 0.48 | 0.49 | 0.46 | 0.52 | 0.52 | 0.46 | 0.95 |
| Inventory Turnover | 3.34 | 3.34 | 3.33 | 3.69 | 3.04 | 3.23 | 3.20 | 4.00 | 4.08 | 3.70 | 3.41 |
| Days Sales Outstanding | — | 33.56 | 31.89 | 32.19 | 32.97 | 31.75 | 34.44 | 34.33 | 35.66 | 42.83 | 38.49 |
MKC Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
McCormick & Company, Incorporated returns 4.0% to shareholders annually — split between a 3.7% dividend yield and 0.3% buyback yield. A payout ratio of 61.2% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 6.0% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.7% | 2.7% | 2.1% | 2.4% | 1.7% | 1.6% | 1.3% | 1.3% | 1.4% | 1.8% | 1.9% |
| Payout Ratio | 61.2% | 61.2% | 57.2% | 61.5% | 58.2% | 48.1% | 44.2% | 43.0% | 29.3% | 49.8% | 46.1% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.0% | 4.3% | 3.7% | 3.9% | 3.0% | 3.3% | 3.0% | 3.1% | 4.7% | 3.6% | 4.1% |
| FCF Yield | 6.0% | 4.1% | 3.1% | 5.6% | 1.7% | 2.4% | 3.2% | 3.4% | 3.3% | 4.8% | 4.3% |
| Buyback Yield | 0.3% | 0.2% | 0.3% | 0.2% | 0.2% | 0.0% | 0.2% | 0.4% | 0.3% | 1.1% | 2.1% |
| Total Shareholder Yield | 4.0% | 2.8% | 2.4% | 2.6% | 1.9% | 1.6% | 1.5% | 1.8% | 1.7% | 2.9% | 3.9% |
| Shares Outstanding | — | $269M | $270M | $270M | $270M | $270M | $269M | $268M | $267M | $257M | $256M |
Peer Comparison
Compare MKC with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 MKCYou | $12B | 16.5 | 12.2 | 16.6 | 37.9% | 16.0% | 14.2% | 8.5% | 3.0 |
 SJM | $10B | -8.4 | — | 12.6 | 38.8% | -7.7% | -17.9% | -3.4% | — |
 CHD | $22B | 31.4 | 18.3 | 20.6 | 44.7% | 17.4% | 17.6% | 13.9% | 1.7 |
 HRL | $11B | 23.8 | 13.8 | 21.3 | 15.6% | 5.9% | 6.0% | 5.3% | 2.9 |
 THS | $1B | 47.9 | 10.9 | 11.6 | 16.4% | 3.1% | 1.7% | 2.7% | 6.3 |
 KHC | $27B | -4.7 | — | 7.5 | 33.3% | -18.7% | -12.8% | -5.5% | — |
 CPB | $6B | 10.4 | 7.5 | 8.9 | 30.4% | 13.2% | 15.6% | 9.1% | 4.0 |
 CAG | $7B | 5.8 | 8.5 | 5.2 | 25.9% | 11.8% | 12.9% | 6.0% | 4.7 |
 GIS | $19B | 8.6 | 8.8 | 8.2 | 34.6% | 17.0% | 24.3% | 10.6% | 4.0 |
 K | $29B | 21.5 | 15.5 | 25.6 | 36.9% | 14.7% | 37.0% | 14.7% | 2.8 |
 MDLZ | $79B | 32.7 | 20.0 | 24.6 | 28.0% | 9.4% | 9.3% | 6.0% | 4.5 |
| Consumer Defensive Median | — | 19.6 | 11.4 | 15.7 | 40.1% | 1.4% | 6.8% | 5.5% | 3.4 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
Full MKC Stock Analysis
Analyst consensus, bull case, AI-generated risk factors, and peer comparison — all in one place.
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Start ComparisonMKC — Frequently Asked Questions
Quick answers to the most common questions about buying MKC stock.
What is McCormick & Company, Incorporated's P/E ratio?
McCormick & Company, Incorporated's current P/E ratio is 16.5x. The historical average is 24.0x. This places it at the 10th percentile of its historical range.
What is McCormick & Company, Incorporated's EV/EBITDA?
McCormick & Company, Incorporated's current EV/EBITDA is 12.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.8x.
What is McCormick & Company, Incorporated's ROE?
McCormick & Company, Incorporated's return on equity (ROE) is 14.2%. The historical average is 23.7%.
Is MKC stock overvalued?
Based on historical data, McCormick & Company, Incorporated is trading at a P/E of 16.5x. This is at the 10th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is McCormick & Company, Incorporated's dividend yield?
McCormick & Company, Incorporated's current dividend yield is 3.70% with a payout ratio of 61.2%.
What are McCormick & Company, Incorporated's profit margins?
McCormick & Company, Incorporated has 37.9% gross margin and 16.0% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does McCormick & Company, Incorporated have?
McCormick & Company, Incorporated's Debt/EBITDA ratio is 3.0x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.