MKC

McCormick & Company, IncorporatConsumer Defensive / Packaged FoodsINTACT

McCormick & Company, Incorporated manufactures, markets, and distributes herbs, spices, seasoning mixes, condiments, and other flavorful products to the food industry. It operates in two segments, Consumer and Flavor Solutions. The Consumer segment offers spices, herbs, and seasonings, as well as condiments, sauces, and desserts. This segment markets its products under the McCormick, French's, Frank's RedHot, Lawry's, Cholula Hot Sauce, Club House, Gourmet Garden, and OLD BAY brands in the Americas; Ducros, Schwartz, Kamis, LA Drogheria, and Vahiné brands in Europe, the Middle East, and Africa; and McCormick and DaQiao brands in the Asia/Pacific (APAC), as well as desserts under the Aeroplane brand; and packaged chilled herbs under the Gourmet Garden brand. Its authentic regional brands include Zatarain's, Stubb's, Thai Kitchen, and Simply Asia. The company also supplies its products under private labels. This segment serves retailers, including grocery, mass merchandise, warehouse clubs, discount and drug stores, and e-commerce retailers directly and indirectly through distributors and wholesale foodservice suppliers. The Flavor Solutions segment offers seasoning blends, spices, herbs, condiments, coating systems, and compound flavors to multinational food manufacturers and foodservice customers. It serves foodservice customers directly and indirectly through distributors. The company was founded in 1889 and is headquartered in Hunt Valley, Maryland.

Share Price
$51.32
52W: $44.82 - $72.41
DCF Fair Value
$43.55
-17.8% Premium
P/E (TTM)
8.5x
ROIC
13.1%
Operating Margin
17.4%
FCF Yield
5.2%
Debt / Equity
0.65x
Piotroski Score
7/9
Altman Z-Score
3.5
Market Cap
$13.8B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($43.55)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$43.55
MOS Buy Target (-25%)
$32.66
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$51.32
DCF Fair Value
$43.48
-18% Premium
$714M
$100M$714M (Reported)$50,000M
8.7%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$4,600M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$6.6B
PV of Terminal Value
$9.0B
Implied Enterprise Value
$15.6B
Implied Equity Value
$11.0B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$776$844$917$997$1,084$1,132$1,183$1,237$1,292$1,350
Present Value (PV)$712$710$708$706$704$675$647$621$595$570

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number+13.5%
$59.32

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $6.01BVPS: $26.02
Revised Graham Formula+56.9% MoS
$119.00

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings5.2% Yield
$2.67 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $0.7BYield: 5.2%

Reverse DCF: Market Growth Expectation

MODEST BARRIER
4.5% CAGR (Next 10 Yrs)

At the current price of $51.32, the market is assuming the business will compound Free Cash Flow at 4.5% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
✓ Low market hurdle: Easy for a wide-moat compounder to beat.
Autonomous Thesis Underwriting

Surveil MKC with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for McCormick & Company, Incorporat. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 17.4% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: McCormick & Company, Incorporat (MKC) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for McCormick & Company, Incorporat.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, McCormick & Company, Incorporat has an estimated DCF intrinsic fair value of $43.55 per share compared to its current market price of $51.32. This represents an estimated 17.8% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $59.32.

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