Is the business good?
How good a business is MKC?
McCormick & Company earns 7.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
7.2%
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 8.2% · 12 months to Q2 2026
- Cash conversion
- 0.63×
Cash conversion · 0.72× a year ago · some of the reported profit has not turned into cash yet
- 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 from the cash flow statement.