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McCormick & Company, Incorporated

MKC
49
Packaged Foods · Consumer Defensive
Also trades as: 0JZS.L
Price
$53.16
+0.20 (+0.38%)
Market Cap
$14.29B
Winston Score
49
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 10, 2026 · filings through May 31, 2026

McCormick & Company makes spices, seasonings, and flavorings used in kitchens and restaurants around the world. Its products include spice blends, hot sauces, marinades, and condiments sold under well-known brands like McCormick, Frank's RedHot, and French's. The company sells to two main groups: everyday consumers buying products at grocery stores, and large food manufacturers that use McCormick ingredients inside their own packaged foods.

McCormick earns money through direct product sales in both its consumer segment and its business-to-business flavor solutions segment. It operates globally, with significant revenue from North America and growing sales in Europe and Asia, and reported roughly $6 billion in annual revenue. Its competitive advantage comes from strong brand recognition, long-standing relationships with food manufacturers, and a wide distribution network — but the company faces real pressure from private-label spice brands and rising input costs that can squeeze its profit margins over time.

Winston Score History

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+16.7% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-13.8% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (2%)

Research and development spending

Insider Activity

1.3%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$331M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

McCormick & Company, Incorporated is a rare growth stock that's already generating positive cash flow while growing at 17%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

0.2% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 269.9M (2021) → 269.3M (2025)

Score breakdown

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Quality

Gross Margin
40.2%
Healthy — 40.2% gross margin
Operating Margin
14.3%
Healthy — 14.3% operating margin
ROCE
2.3%
Weak — 2.3% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+9.5%
Steady sales growth (+9.5% YoY)
EPS YoY
+109.0%
Earnings growing fast (+109.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
76%
Modest — 76% of profit becomes cash
FCF Margin
13.4%
Converts sales into free cash efficiently (13.4%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
0.71
Moderate — manageable debt (0.71)
Interest Cover
5.48x
Adequate interest coverage (5.5x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
8.8x
Attractive valuation — P/E 8.8

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
-5.6
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend Yield
3.60%
Moderate income — 3.60% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+6.8%
Dividend growing modestly (6.8% YoY)

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