McCormick reported 1.9% organic sales growth on higher prices in its fiscal third quarter. This came alongside a 70-basis-point increase in adjusted gross margin to 17.7%, as cost savings offset inflation in inputs and freight costs.
We see the merits of McCormick's technology modernization effort (buoying future sales growth), as it is replacing a system that has been in place since the early 2000s, when the firm was less than half the size it is now.
Cost pressures (particularly labor, transportation, and tariffs) have yet to subside, capping near-term profits.
|
Metric
|
MKC
|
UL
|
KHC
|
|---|---|---|---|
Price/Earnings (Normalized) | 13.92 | 17.58 | 9.28 |
Price/Book Value | 1.70 | 6.94 | 0.74 |
Price/Sales | 1.61 | 2.43 | 1.07 |
Price/Cash Flow | 11.09 | 19.21 | 6.87 |
|
Metric
|
MKC
|
UL
|
KHC
|
|---|---|---|---|
Quick Ratio | 0.29 | 0.57 | 0.57 |
Current Ratio | 0.78 | 0.74 | 1.06 |
Interest Coverage | 5.29 | — | −4.59 |
|
Metric
|
MKC
|
UL
|
KHC
|
|---|---|---|---|
Return on Assets (Normalized) | 5.88% | — | 3.58% |
Return on Equity (Normalized) | 13.73% | — | 7.08% |
Return on Invested Capital (Normalized) | 8.89% | — | 5.47% |
|
1-Day Chart
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Name
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Price
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Morningstar Rating for Stocks
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Capital Allocation
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United States