McCormick & Company, Incorporated (MKC)

FairStock Score: 80/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I see McCormick as a familiar consumer-defensive brand house: spices, seasonings, condiments, and sauces sold under names such as McCormick, French’s, Frank’s RedHot, Lawry’s, and OLD BAY. That portfolio is the main possible source of a moat, but the numbers must confirm it. In fiscal Q3 2026, the quarter ended 2026-08-31, revenue was $2.0B and net income was $97.6M, versus revenue of $1.7B and net income of $225.5M in fiscal Q3 2025, the quarter ended 2025-08-31. Sales rose, but profit fell sharply. FairStock classifies McCormick as a SLOW GROWER, citing 1.1% annual profit growth and 4.1% revenue growth over five years. Financial health is mixed: debt-to-equity is 0.65, ROE is 24.73%, ROCE is 5.14%, the Altman Z-Score is 1.35, and the Piotroski F-Score is 4/9. Trailing free cash flow is $925.9M, or a 7.2% FCF yield. At the 2026-10-26 close of $47.97, FairStock’s P/E is 7.98, P/B is 1.84, EV/EBITDA is 13.39, and its Graham Number is $59.33, giving an 18.89% margin of safety. The 3.94% dividend yield and 0.63 beta add defensive appeal. Even so, a low-looking P/E and a Graham discount do not erase falling quarterly profit and weak scores. I would want evidence that margins and returns improve before calling this a high-quality bargain rather than a statistically cheap slow grower.

In plain English: McCormick sells spices, seasonings, condiments, and sauces. It still makes cash and pays a dividend, but profit fell sharply in the latest quarter and the overall numbers are mixed. At the 2026-10-26 price, the shares looked cheaper than a simple value estimate, though the profit drop makes the bargain uncertain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-08-31) · fiscal Q2 2026 10-Q (period ended 2026-05-31) · fiscal Q1 2026 10-Q (period ended 2026-02-28) · fiscal Q3 2025 10-Q (period ended 2025-08-31) · FY2025 10-K (period ended 2025-11-30) · FY2024 10-K (period ended 2024-11-30) · FY2023 10-K (period ended 2023-11-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer