Latest Ratios: P/E Ratio 17.8x · EV/EBITDA 13.6x · ROE 14.2%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $14.0B | $18.1B | $20.9B | $17.4B | $22.7B | $23.4B | $24.8B | $22.6B | $20.0B | $13.1B | $11.8B |
| Enterprise Value | $17.9B | $22.0B | $25.2B | $21.8B | $27.7B | $28.4B | $29.2B | $26.8B | $24.6B | $18.0B | $13.2B |
| P/E Ratio → | 17.83 | 22.97 | 26.54 | 25.59 | 33.33 | 30.95 | 33.09 | 32.21 | 21.42 | 27.48 | 25.00 |
| P/S Ratio | 2.05 | 2.65 | 3.11 | 2.61 | 3.57 | 3.70 | 4.42 | 4.23 | 3.77 | 2.72 | 2.68 |
| P/B Ratio | 2.44 | 3.14 | 3.93 | 3.42 | 4.83 | 5.28 | 6.28 | 6.55 | 6.28 | 5.11 | 7.23 |
| P/FCF | 18.96 | 24.48 | 32.29 | 17.87 | 58.27 | 42.50 | 30.34 | 29.28 | 30.66 | 20.74 | 23.48 |
| P/OCF | 14.59 | 18.84 | 22.66 | 14.06 | 34.84 | 28.23 | 23.78 | 23.91 | 24.34 | 16.10 | 17.99 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.22 | 3.75 | 3.28 | 4.36 | 4.50 | 5.22 | 5.01 | 4.64 | 3.72 | 2.99 |
| EV / EBITDA | 13.56 | 16.65 | 19.87 | 18.78 | 26.02 | 23.66 | 25.11 | 24.01 | 23.60 | 21.78 | 17.57 |
| EV / EBIT | 16.43 | 19.86 | 22.76 | 21.67 | 28.79 | 27.53 | 28.75 | 27.23 | 26.85 | 26.02 | 20.41 |
| EV / FCF | — | 29.75 | 38.97 | 22.42 | 71.09 | 51.65 | 35.83 | 34.67 | 37.71 | 28.39 | 26.11 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 37.9% | 37.9% | 38.5% | 37.6% | 35.8% | 39.5% | 41.1% | 40.1% | 39.4% | 41.6% | 41.5% |
| Operating Margin | 16.0% | 16.0% | 15.8% | 14.5% | 13.6% | 16.1% | 17.8% | 17.9% | 16.8% | 14.5% | 14.5% |
| Net Profit Margin | 11.5% | 11.5% | 11.7% | 10.2% | 10.7% | 12.0% | 13.3% | 13.1% | 17.6% | 9.9% | 10.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.2% | 14.2% | 15.2% | 13.9% | 14.9% | 18.1% | 20.2% | 21.2% | 32.4% | 22.7% | 28.4% |
| ROA | 6.0% | 6.0% | 6.1% | 5.2% | 5.2% | 6.0% | 6.7% | 6.8% | 9.0% | 6.4% | 10.3% |
| ROIC | 8.5% | 8.5% | 8.3% | 7.5% | 6.8% | 8.5% | 9.3% | 9.3% | 8.8% | 10.1% | 16.2% |
| ROCE | 10.7% | 10.7% | 10.6% | 9.9% | 8.9% | 10.8% | 11.6% | 11.6% | 10.7% | 12.0% | 19.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.69 | 0.69 | 0.85 | 0.90 | 1.13 | 1.22 | 1.24 | 1.25 | 1.48 | 1.96 | 0.88 |
| Debt / EBITDA | 3.02 | 3.02 | 3.55 | 3.95 | 5.00 | 4.49 | 4.21 | 3.87 | 4.51 | 6.09 | 1.93 |
| Net Debt / Equity | — | 0.68 | 0.81 | 0.87 | 1.06 | 1.14 | 1.14 | 1.21 | 1.45 | 1.88 | 0.81 |
| Net Debt / EBITDA | 2.95 | 2.95 | 3.41 | 3.81 | 4.69 | 4.19 | 3.85 | 3.73 | 4.42 | 5.87 | 1.77 |
| Debt / FCF | — | 5.27 | 6.68 | 4.55 | 12.82 | 9.15 | 5.49 | 5.39 | 7.05 | 7.65 | 2.63 |
| Interest Coverage | 5.65 | 5.65 | 5.29 | 4.84 | 6.45 | 7.56 | 7.50 | 5.96 | 5.25 | 7.67 | 11.52 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.70 | 0.70 | 0.74 | 0.65 | 0.70 | 0.68 | 0.68 | 0.72 | 0.74 | 0.83 | 1.00 |
| Quick Ratio | 0.28 | 0.28 | 0.31 | 0.28 | 0.30 | 0.31 | 0.34 | 0.35 | 0.35 | 0.42 | 0.47 |
| Cash Ratio | 0.03 | 0.03 | 0.06 | 0.05 | 0.10 | 0.11 | 0.14 | 0.07 | 0.05 | 0.10 | 0.08 |
| Asset Turnover | — | 0.52 | 0.51 | 0.52 | 0.48 | 0.49 | 0.46 | 0.52 | 0.52 | 0.47 | 0.95 |
| Inventory Turnover | 3.34 | 3.34 | 3.33 | 3.69 | 3.04 | 3.23 | 3.20 | 4.00 | 4.09 | 3.56 | 3.41 |
| Days Sales Outstanding | — | 33.56 | 31.89 | 32.19 | 32.97 | 31.75 | 34.44 | 34.33 | 35.66 | 41.91 | 38.49 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.4% | 2.7% | 0.3% | 2.4% | 1.7% | 1.6% | 1.3% | 1.3% | 1.4% | 1.8% | 1.8% |
| Payout Ratio | 61.2% | 61.2% | 8.5% | 61.5% | 58.2% | 48.1% | 44.2% | 43.0% | 29.3% | 49.8% | 46.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.6% | 4.4% | 3.8% | 3.9% | 3.0% | 3.2% | 3.0% | 3.1% | 4.7% | 3.6% | 4.0% |
| FCF Yield | 5.3% | 4.1% | 3.1% | 5.6% | 1.7% | 2.4% | 3.3% | 3.4% | 3.3% | 4.8% | 4.3% |
| Buyback Yield | 0.2% | 0.2% | 0.3% | 0.2% | 0.2% | 0.0% | 0.2% | 0.5% | 0.4% | 1.0% | 2.0% |
| Total Shareholder Yield | 3.7% | 2.9% | 0.6% | 2.6% | 1.9% | 1.6% | 1.5% | 1.8% | 1.7% | 2.9% | 3.9% |
| Shares Outstanding | — | $269M | $270M | $270M | $270M | $270M | $269M | $268M | $267M | $257M | $256M |
Commodity Input Cost Volatility
According to current market data, MKC-V trades at a P/E of 17.37, which appears elevated relative to its 1.73% revenue growth, suggesting that investors are pricing in a defensive premium that may not be fully supported by the company's recent operational performance and decelerating top-line expansion.
The current valuation multiples, including an EV/EBITDA of 13.28, indicate that the market continues to grant McCormick a premium over lower-growth packaged food peers. However, this valuation warrants further investigation as the company's inability to drive significant volume growth may lead to a multiple compression if the market shifts its focus from brand equity to tangible earnings growth.
Based on reported financial figures, MKC-V's ROIC has remained consistently low, hovering near 1.7% to 2.6% over the last ten quarters, which indicates that the company is struggling to generate returns on invested capital that meaningfully exceed its cost of capital in the current environment.
The persistent gap between invested capital and returns suggests that recent acquisitions may not be delivering the expected synergies or that the core business is becoming increasingly capital-intensive. Investors should monitor whether management can improve asset utilization, as the current trend of decaying returns on capital may eventually erode long-term shareholder value.
As reported in recent quarterly filings, the company's cash conversion cycle remains volatile, with days inventory outstanding frequently exceeding 100 days, which suggests that McCormick faces ongoing challenges in optimizing its supply chain and managing the liquidity tied up in its global spice and ingredient inventory.
The high inventory levels relative to turnover indicate that the company may be holding excess stock to mitigate supply chain risks, which negatively impacts overall working capital efficiency. This reliance on high inventory buffers appears to be a structural drag on cash flow, potentially limiting the company's ability to deploy capital toward more productive growth initiatives.
Based on the company's reported current ratios, which have consistently remained below 1.0, specifically reaching 0.78 in 2026Q2, McCormick maintains a narrow liquidity buffer that may leave the firm vulnerable to sudden shocks in working capital requirements or unexpected operational cash outflows during periods of market stress.
The consistently low current and quick ratios suggest that the company operates with minimal excess liquidity, relying heavily on its ability to access credit markets for short-term needs. This posture appears risky given the inherent volatility in commodity input costs, which could necessitate rapid cash outlays that the current balance sheet may not be prepared to absorb.
The P/E ratio is frequently misapplied to McCormick's business model because it fails to account for the significant non-operating items and acquisition-related amortization that distort reported net income, often leading analysts to misinterpret the company's true underlying earnings power and cash-generating capability in the packaged food sector.
Investors should instead prioritize EV/EBITDA or Free Cash Flow yield to better assess the company's operational performance, as these metrics are less susceptible to the accounting noise inherent in McCormick's acquisition-heavy strategy. Relying solely on P/E may obscure the reality that the company's earnings quality is currently being pressured by rising interest expenses and integration costs.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying MKC-V stock.
McCormick & Company, Incorporated's current P/E ratio is 17.8x. The historical average is 24.3x. This places it at the 16th percentile of its historical range.
McCormick & Company, Incorporated's current EV/EBITDA is 13.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.7x.
McCormick & Company, Incorporated's return on equity (ROE) is 14.2%. The historical average is 23.7%.
Based on historical data, McCormick & Company, Incorporated is trading at a P/E of 17.8x. This is at the 16th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
McCormick & Company, Incorporated's current dividend yield is 3.43% with a payout ratio of 61.2%.
McCormick & Company, Incorporated has 37.9% gross margin and 16.0% operating margin. Operating margin between 10-20% is typical for established companies.
McCormick & Company, Incorporated's Debt/EBITDA ratio is 3.0x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.