Mccormick Intrinsic Value Calculation – McCormick Misses Q4 Earnings Estimate by $0.14 Per Share
January 30, 2023
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Mccormick Intrinsic Value Calculation – MCCORMICK ($NYSE:MKC): McCormick & Company, Inc. is a global leader in the production and distribution of spices, seasonings and flavors. The company’s stock (MKC) is listed on the New York Stock Exchange. Recently, McCormick reported its fourth-quarter earnings results, which fell short of the expectations of analysts. The company attributed the lower-than-expected results to higher-than-anticipated costs related to investments in its sustainability initiatives, as well as higher taxes and other expenses.
The company has also actively returned capital to shareholders through share repurchases and dividends, with total returns of more than $1 billion over the past five years. Looking ahead, McCormick expects to continue to benefit from its investments in innovation, sustainability and technology. The company is confident that its portfolio of iconic brands will help drive continued growth, despite any potential headwinds from macroeconomic factors.
Stock Price
This resulted in a 5.8% drop in the stock price from the prior closing of $78.0 to the current $73.5. Media coverage has been mostly neutral on the news. The company is focused on providing flavorful food solutions to all types of consumers, from home cooks to professional chefs. The $0.14 miss on Q4 earnings was largely attributed to higher product costs and increased investments in marketing and sales initiatives. Despite the miss, McCormick‘s core business remains strong and the company is optimistic about future growth opportunities.
The company has a long history of success and is well-positioned to continue delivering top-line growth and profitability in the future. With their global presence and broad customer base, McCormick is well-positioned to capitalize on potential opportunities presented by new trends in the food industry. Overall, while the Q4 earnings miss was disappointing, there is still optimism surrounding McCormick & Company’s long-term prospects. The company has a strong foundation and is well-positioned to take advantage of future growth opportunities. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Mccormick. More…
| Total Revenues | Net Income | Net Margin |
| 6.39k | 693.7 | 11.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Mccormick. More…
| Operations | Investing | Financing |
| 705.5 | -133.5 | -498.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Mccormick. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.94k | 8.33k | 17.11 |
Key Ratios Snapshot
Some of the financial key ratios for Mccormick are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.5% | -1.3% | 15.2% |
| FCF Margin | ROE | ROA |
| 7.1% | 13.2% | 4.7% |
VI Analysis – Mccormick Intrinsic Value Calculation
MCCORMICK is a company with strong fundamentals, which reflect its long term potential and growth. This is made easy to understand with the VI app, which allows investors to quickly analyze the company’s financials and performance. According to the VI Line, the intrinsic value of MCCORMICK shares is estimated to be around $99.5. Currently, the stock is traded at $73.5, making it a 26% undervalued investment. This discrepancy between its current price and its intrinsic value implies that MCCORMICK is trading at a discount and provides an opportunity for investors to buy it at a lower price than its true worth. As such, MCCORMICK could be a great investment for those looking for long term growth. More…
VI Peers
The competition in the spice and flavoring industry is heating up. McCormick & Co Inc, the world’s largest spice company, is facing stiff competition from Nestle SA, Kellogg Co, and Campbell Soup Co. all of which are looking to gain a larger share of the $5 billion global market. While McCormick has long been the leader in the space, its competitors are quickly catching up, thanks to their strong brands and deep pockets.
– Nestle SA ($LTS:0RR6)
Nestle SA is a Swiss multinational food and drink processing conglomerate. The company has a market cap of 298.21B as of 2022 and a Return on Equity of 14.82%. The company was founded in 1866 by Henri Nestle and is headquartered in Vevey, Switzerland. Nestle SA is the world’s largest food company, with over 2,000 brands and operations in 189 countries. The company’s products include baby food, bottled water, cereals, coffee, dairy products, ice cream, pet food, and snacks.
– Kellogg Co ($NYSE:K)
Kellogg Co is a publicly traded company with a market capitalization of 26.13 billion as of 2022. The company has a return on equity of 33.71%. Kellogg Co is engaged in the manufacture and marketing of cereal and convenience foods, including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and veggie foods. The company’s products are marketed under the Kellogg’s, Keebler, Pop-Tarts, Eggo, Cheez-It, Nutri-Grain, Rice Krispies, Murray, Austin, Morningstar Farms, and Kashi brand names.
– Campbell Soup Co ($NYSE:CPB)
Campbell Soup Company is a food and beverage company. It is engaged in manufacturing and marketing branded convenience food products. The company offers soups, sauces, beverages, biscuits, confectioneries, and prepared dishes. It operates through the following segments: Americas Simple Meals and Beverages; Global Biscuits and Snacks; and Campbell Fresh. The Americas Simple Meals and Beverages segment includes soups and sauces in the United States, as well as simple meals, shelf-stable beverages and organic products in the United States and Canada. The Global Biscuits and Snacks segment comprises biscuits, cookies, crackers, salty snacks, and other snacks in Australia, Asia Pacific, Canada, Europe, and Latin America. The Campbell Fresh segment offers refrigerated soups, pasta, sauces, sandwiches, Bolthouse Farms beverages and salad dressings, refrigerated and frozen juices, carrots, and organic salads in the United States. The company was founded by Joseph A. Campbell in 1869 and is headquartered in Camden, NJ.
Summary
Investing analysis of McCormick & Company, Inc. reveals a mixed picture. The company recently reported fourth quarter earnings that missed analyst estimates by $0.14 per share. This resulted in a drop in the stock price on the same day. Currently, the media coverage of the company is mostly neutral.
This could be an opportunity for investors to look into the company’s fundamentals and make an informed decision about whether to invest in the stock. As always, it is important to do your own research before investing in any company.
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