MKC-VMcCormick & Company, Incorporated
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.5×).
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
Margin-driven, fat margins on slower asset turns. ROE 18% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is MKC-V?
McCormick & Company, Incorporated earns 7.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 1.8 points below what the capital costs: growth destroys value
- Operating margin
- 15%
Operating margin · Packaged Foods median 7.6% · 12 months to Q2 2026
- Cash conversion
- 1.46×
Cash conversion · 0.94× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.07%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 18% |
| FY2021 | 16% |
| FY2022 | 14% |
| FY2023 | 14% |
| FY2024 | 16% |
| FY2025 | 16% |
Details›
- Gross margin12 months to Q2 2026
- 39%
- Operating margin12 months to Q2 2026
- 15%
- Net margin12 months to Q2 2026
- 22%
- Free cash flow margin
- 14%
- Revenue, trailing twelve months
- $7.39B
- Free cash flow, trailing twelve months
- $1.02B
- Net income, trailing twelve months
- $1.62B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.