| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 74 | 8.5x | 17.8x | Top tier | |
Growth | 71 | 9.5% | 7.1% | Top tier | |
Quality | 61 | 8.3% | 4.5% | Around median | |
Safety | 61 | 2.6x | 2.6x | Around median | |
Capital Return | 52 | 3.61% | 2.12% | Around median | |
Momentum | 18 | -24.3% | 2.9% | Bottom tier | |
Sentiment | 92 | 8 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
McCormick & Company operates through a flavor-focused portfolio divided between the Consumer segment and the Flavor Solutions segment. The Consumer segment sells spices, mixes, sauces, and mustard under brands including McCormick, Cholula, French's, Frank's, Ducros, and Kamis, while Flavor Solutions supplies flavors and product development solutions to packaged consumer goods companies, private-label brands, restaurants, and foodservice operators. This model gives the company diversified sources of demand across home cooking, beverages, sports nutrition, snacks, and branded foodservice.
In Q2 of fiscal 2026, revenue was $1.9 billion, gross profit was $778.2 million, net income was $150.1 million, and reported earnings per share were $0.56. These figures equate to an approximate gross margin of 41% based on rounded revenue, while management stated that gross margin increased by 270 basis points, including 140 basis points related to a tariff refund, and that the underlying improvement was 130 basis points. Adjusted earnings per share were $0.80, up 16% year over year, including approximately $0.07 from the tariff refund.
Sales in Q2 of fiscal 2026 increased by 14% in constant currency, supported by a 12% contribution from the McCormick Mexico transaction and organic growth of 2% led by pricing. Consumer segment sales increased by 20% in constant currency, but its organic growth was limited to 1%, while Flavor Solutions sales increased by 6% in constant currency, including 3% organic growth split evenly between volume and price. Adjusted operating income increased by 30%, with Consumer segment income growing by 33% and Flavor Solutions income by 26%.
The analyst consensus on MKC is Neutral, with an average price target of $58.75 and a range between $52 and $68, compared with a 52-week range between $44.82 and $72.41. The average target is approximately 19% below the annual range high, while the highest target is approximately 6% below it, reflecting a conservative valuation despite improving margins and cash flow. The wide target range remains appropriate for the risks of weak Consumer volumes, integration costs, and inflation versus Flavor Solutions momentum and the expected synergies from the Unilever Foods transaction.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
McCormick sales increased by 14% in constant currency, including 12% from the McCormick Mexico transaction and 2% organic growth led by pricing. Adjusted operating income grew by 30%, and adjusted earnings per share increased by 16% to $0.80. The tariff refund contributed approximately 140 basis points to gross margin expansion and approximately $0.07 to adjusted earnings per share.
In Q2 of fiscal 2026, price sensitivity, a wider gap versus alternatives, and increased competition from private-label and branded products led to a volume decline in the Americas. Pricing contributed 3%, but it only offset the volume decline, leaving organic growth in the region flat. The company responded with new price and package architecture, targeted promotions and assortments, precision marketing, and expanded distribution and innovation in brands such as Cholula and McCormick.
Flavor Solutions grew by 6% in constant currency in Q2 of fiscal 2026, including 3% organic growth split evenly between volume and price. In the Americas, organic growth was 4%, supported by packaged consumer goods companies, fast-growing innovators, and branded foodservice. The majority of development requests were related to health and wellness, including energy, hydration, and protein beverages, protein- and fiber-rich snacks, and sugar-free beverages.
Automated analysis for informational purposes only — not investment advice.
On the June 25, 2026 call, management said approximately 80% of Unilever Foods operates as a standalone organization and that ten markets represent approximately 75% of combined sales. The company is targeting an operating margin of 21% at closing before synergies, followed by a range of 23% to 25% after adding synergies. It expects mid-to-high single-digit adjusted accretion to earnings per share during the first 12 months after closing and mid-to-high teens accretion in the third year, but transition service agreements may extend for up to two years.
Operating cash flow was $431 million in the first half of fiscal 2026, compared with $161 million in the comparable period, supported by profitability and improved working capital. The company returned $258 million to shareholders through dividends and spent $75 million on capital expenditures, while the leverage ratio was approximately 2.9 times at the end of Q2 of fiscal 2026. After the Unilever Foods transaction closes, management expects to generate between $1.5 billion and $2 billion to repay debt during the first two years, with a long-term leverage target of between two and three times.
The analyst consensus is Neutral, and the average price target is $58.75, with a low target of $52 and a high target of $68. The average target is below the 52-week range high of $72.41, and the highest target also remains below that high. This valuation balances Flavor Solutions growth and margin expansion against weak Consumer volumes, inflationary pressures, and Unilever Foods integration risks.
