McCormick & Co (NYSE: MKC) is a global leader in the spice, seasoning, and flavoring industry. The company has a long history of innovation and product development, and its products are used in a wide variety of food and beverage applications.
In recent years, McCormick has been facing a number of challenges, including rising input costs, increased competition, and changes in consumer preferences. However, the company has also been taking steps to address these challenges, and its stock has performed well over the past year.
Here are 3 key figures to watch when evaluating McCormick & Co stock:
Revenue growth: McCormick's revenue has grown at a compound annual growth rate (CAGR) of 4.5% over the past 5 years. This growth has been driven by a combination of organic growth and acquisitions. In 2021, the company reported revenue of $5.6 billion, a 6.6% increase over the previous year.
Earnings per share (EPS): McCormick's EPS has grown at a CAGR of 6.5% over the past 5 years. This growth has been driven by a combination of revenue growth and margin expansion. In 2021, the company reported EPS of $3.45, a 9.4% increase over the previous year.
Dividend yield: McCormick has a long history of paying dividends to shareholders. The company's dividend yield has averaged 2.5% over the past 5 years. In 2021, the company declared a dividend of $1.60 per share, a 6.3% increase over the previous year.
Valuation:
McCormick & Co stock is currently trading at a price-to-earnings (P/E) ratio of 25. This is above the average P/E ratio for the food and beverage industry, which is currently around 20. However, McCormick's stock is also trading at a discount to its 5-year average P/E ratio of 28.
Risks:
McCormick & Co faces a number of risks, including:
Opportunities:
McCormick & Co has a number of opportunities to grow its business, including:
Conclusion:
McCormick & Co stock is a solid investment for investors seeking exposure to the food and beverage industry. The company has a long history of innovation and product development, and its products are used in a wide variety of food and beverage applications. McCormick also has a number of opportunities to grow its business in the future.
Metric | Value |
---|---|
Revenue growth | 4.5% CAGR |
Earnings per share (EPS) | 6.5% CAGR |
Dividend yield | 2.5% |
Year | Revenue | EPS |
---|---|---|
2017 | $4.9 billion | $2.74 |
2018 | $5.1 billion | $2.91 |
2019 | $5.3 billion | $3.08 |
2020 | $5.5 billion | $3.19 |
2021 | $5.6 billion | $3.45 |
Year | Dividend Yield |
---|---|
2017 | 2.3% |
2018 | 2.4% |
2019 | 2.5% |
2020 | 2.6% |
2021 | 2.7% |
Metric | Value |
---|---|
Price-to-earnings (P/E) ratio | 25 |
5-year average P/E ratio | 28 |
Risk | Opportunity |
---|---|
Rising input costs | New product development |
Increased competition | International expansion |
Changes in consumer preferences | E-commerce |
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