MKC Value Scorecard - McCormick & Company

Value Scorecard · run 2026-10-18

13 value checks: 12 scored 1 to 5, plus moat evidence

45/60

moderate value score

Earnings & returns

EPS Trend

4/5

Diluted EPS: $2.52 (2022), $2.52 (2023), $2.92 (2024), $2.93 (2025). It rose every year but one and ended above 2022; the framework scores that as 4.

ROE Trend

3/5

ROE (net income / common equity): 14.6% (2022), 13.4% (2023), 14.9% (2024), 13.8% (2025). Median 14.2%, lowest 13.4%; the framework scores a median 10-15% as 3.

ROIC

3/5

ROIC of 10.6%: operating income of $1.07B divided by $10.14B of capital (total assets $13.20B minus current liabilities $3.06B), fiscal year to Nov 30, 2025, as filed in the 10-K (SEC EDGAR). The framework scores 10-15% as 3.

Profit Margins

4/5

Net margin of 19.4%; the framework scores 10-20% as 4; gross margin 38.9%, operating margin 17.8%.

Balance sheet & cash

Debt-to-Equity

4/5

Debt-to-equity of 0.66; the framework scores 0.3-0.8 as 4 (total debt $5.02B, total cash $331.10M).

Free Cash Flow

4/5

Free cash flow (operating cash flow minus capital expenditure): $389.50M (2022), $973.40M (2023), $647.00M (2024), $740.40M (2025). It rose every year but one and ended above 2022; the framework scores that as 4.

Retained Earnings

5/5

Retained earnings, as filed in the 10-Ks (SEC EDGAR): $3.02B (2022), $3.25B (2023), $3.54B (2024), $3.82B (2025). It rose every year; the framework scores that as 5.

Valuation models

Graham IV

5/5

IV = EPS x (8.5 + 2g) x (4.4 / Y) = $5.53 x (8.5 + 2 x 7.8) x (4.4 / 4.5) = $130.31. Current price $46.35; price is 64.4% below the model value.

DCF Value

2/5

FCF/share = $2.915, stage 1 growth = 1.3% for 5 years, terminal growth = 3%, discount rate = 10%. Stage 1 PV = $11.46, PV of terminal value = $28.41, DCF value = $39.87. Current price $46.35; price is 16.3% above the model value.

Margin of Safety

3/5

Graham value $130.31 (price is 64.4% below the model value); DCF value $39.87 (price is 16.3% above the model value).

Price-to-Book

3/5

P/B of 1.78; the framework scores 1.5-3.0 as 3.

Business quality

Moat Evidence

Not scored

A moat (a brand, a network, switching costs, patents, scale, a licence) is not a number in the filings, so Valerius doesn’t score it. Below are the figures and the words moat analysis starts from, from the company’s own 10-K filings. The conclusion is yours.

Return on capital, each year

Above 15% in 1 of 10 years (2016-2025); lowest 8.3%, highest 19.9%.

Gross margin, each year

Between 35.8% and 41.5% over 10 years (a range of 5.7 points).

Competition, in the company’s own words · 10-K filed Jan 22, 2026

Each segment operates in highly competitive markets around the world. In this environment, our growth strategies include customer engagement and product innovation based on consumer insights. In the Consumer segment, we are building brand recognition and loyalty through advertising and promotions. In our Flavor Solutions segment, we differentiate ourselves through culinary and consumer-inspired flavor development, as well as the breadth of our product offering and customer engagement.

The opening of the company’s “Competition” section in its 10-K, quoted word for word, not summarized or edited. It is the company’s own description, not Valerius’s view, and may include the company’s expectations. Open the filing.

Return on capital = operating income / (total assets − current liabilities), the ROIC row’s definition; 15% is the framework’s return threshold. Gross margin = gross profit / revenue. Both from each year’s 10-K via SEC EDGAR. Moat analysis commonly looks at whether returns and margins held up over many years. These figures don’t say whether the company has an advantage, what it is, or whether it will last.

Capital Allocation

5/5

Capital allocation, 2022-2025: dividends or buybacks paid in every year (pass); $1.91B paid out against $2.75B of free cash flow (pass); total debt $5.33B to $4.16B, down 21.8%, 3.1x EBITDA (pass: not up more than 10%); shares outstanding 0.27B to 0.27B, up 0.1% (pass). 4 of 4 tests passed; the framework scores that as 5.

Filings

Company notices to the SEC

Not scored

Three kinds of event the company reported to the SEC in the last 5 years, from its filings on SEC EDGAR.

These are events the company reported to the SEC. An auditor change or a late filing can have many causes; each date links to the filing, where the company explains it. Valerius does not score these.

How the Graham and DCF values were calculated

  Graham Formula:
    IV = EPS x (8.5 + 2g) x (4.4 / Y)
    EPS = $5.53, g = 7.8%, Y = 4.5
    IV = $130.31
    Current price $46.35 vs Graham value $130.31 — price is 64.4% below the model value.

  DCF:
    FCF/share = $2.915
    Stage 1 growth = 1.3% for 5 years | terminal growth = 3.0% | discount rate = 10.0%
      Y1: $2.953 → PV $2.684
      Y2: $2.991 → PV $2.472
      Y3: $3.030 → PV $2.277
      Y4: $3.070 → PV $2.097
      Y5: $3.110 → PV $1.931
    Stage 1 PV sum = $11.46
    Terminal value at end of Y5 = $45.75
    PV of terminal value = $28.41
    DCF value = $39.87
    Current price $46.35 vs DCF value $39.87 — price is 16.3% above the model value.

Data from yfinance summary figures and financial statements, and from the company’s 10-K filings via SEC EDGAR; computed at a price of $46.35. Every score is calculated from the figures by the framework’s fixed rules, and the explanation beside it is generated from the same figures: Graham value, DCF value, margin of safety, ROIC, profit margins, debt-to-equity, price-to-book, EPS trend, ROE trend, free cash flow, retained earnings and capital allocation. No AI is involved in this scorecard. The moat is shown as evidence, without a score. Read each score with the figures beside it. Intrinsic value calculations are model outputs based on stated assumptions, not predictions.

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