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Company name McCormick & Company, Incorporated
Stock ticker MKC
Live stock price [stckqut]MKC[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Poor
P/E growth Fair
EBIT growth Poor

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $53.31
Target stock price (averages with growth) $61.24
Target stock price (averages with no growth) $56.18
Target stock price (manual assumptions) $55.04

The following company description is from Google Finance: http://www.google.com/finance?q=mkc

McCormick & Company, Incorporated manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the entire food industry, retail outlets, food manufacturers and foodservice businesses. The Company operates in two business segments: consumer and industrial. The Company’s sales, distribution and production facilities are located in North America and Europe. Additional facilities are based in China, Australia, Mexico, India, Singapore, Central America, Thailand and South Africa. The Company operates in two business segments: consumer and industrial. Its products are sold directly to customers and also through brokers, wholesalers and distributors. In May 2013, the Company has completed its purchase of China’s Wuhan Asia-Pacific Condiments Co.

 

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in McCormick & Company, Incorporated.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of McCormick & Company, Incorporated calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $70.15
  • Growth: 0.05
  • Current EPS (TTM): $3.02
  • P/E: 23
  • Future EPS Calc: $3.85
  • Future Stock Price Calc: $88.65
  • Target stock price: $55.04

I hope that this makes you a better investor. [/s2If]