| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 74 | 8.3x | 17.2x | Top tier | |
Growth | 60 | 13.2% | 7.1% | Around median | |
Quality | 75 | 7.2% | 4.5% | Top tier | |
Safety | 54 | 3.3x | 2.6x | Around median | |
Capital Return | 78 | 4.08% | 0.19% | Top tier | |
Momentum | 27 | -19.0% | 0.5% | Bottom tier | |
Sentiment | 1 | 1 | 3 | Bottom tier |
The floor: what the company is worth if growth stopped today
65% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.29% as of 2026-09-30. Estimates computed from company data and analyst targets, 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 operates through two complementary businesses: the Consumer segment, which sells spices, seasoning mixes, sauces, and products under brands such as McCormick, French's, Frank's, Cholula, Ducros, and Kamis, and the Flavor Solutions segment, which develops flavors and solutions for food manufacturers, private-label brands, fast-growing innovators, and foodservice customers. Growth relies on pricing, distribution, and innovation in flavor products, alongside the development of customized solutions for health and wellness trends, energy- or protein-rich beverages, and snacks. In fiscal Q2 2026 ended 2026-05-31, Consumer segment sales increased 20% in constant currency, while Flavor Solutions sales increased 6% in constant currency.
Fiscal Q2 2026 revenue was approximately $1.9 billion, up 16.7% year over year from $1.7 billion in fiscal Q2 2025 ended 2025-05-31. Net income was $150.1 million and diluted earnings per share were 0.56, while operating cash flow reached $379.8 million. Gross margin expanded to 40.2% from 37.5%, but operating margin declined to 14.3% from 14.8%, reflecting gross profit benefits from McCormick de Mexico, a tariff refund, pricing, and productivity, offset by higher technology, brand marketing, and logistics expenses. For the last 12 months through 2026-05-31, the company generated revenue of $7.4 billion, net income of $1.6 billion, and free cash flow of $999.5 million.
Q2 FY2026
Last 12 months to 2026-05-31
When: 2026-10-06
Fiscal Q3 2026 adjusted operating income growth at the 10% year-over-year threshold
When: Fiscal Q4 2026
Consumer segment volume growth at the 0% threshold
When: Fiscal 2026
The indicative value from analyst targets, which is low confidence, is a median of $83 within a range of $82 to $94; it prices in expected growth and is inherently inclined toward optimism. The consensus average is $86.33 with a Neutral recommendation. The discounted cash flow model estimates a value of $59 within a range of $45 to $82 and at a discount rate of 8.9%; it measures the cash generated by the company and is inherently inclined toward conservatism. The industry-multiple value is $37 within a range of $26 to $58, based on next year's earnings and a median multiple of 11.0 for 41 companies, and therefore values McCormick similarly to its peers. The no-growth value is $23 and represents current after-tax operating profit if it remains constant forever at a discount rate of 8.9%. The methods agree on a descending order starting with analyst targets, followed by discounted cash flow, the industry multiple, and then no growth, but the wide differences among them reflect what each method measures and how much it depends on continued growth and operational improvement.
Figures in the text are as of 2026-10-02; the live price is shown at the top of the page.
Revenue was $1.9 billion in fiscal Q2 2026 ended 2026-05-31, up 16.7% year over year from $1.7 billion. Net income was $150.1 million and diluted earnings per share were 0.56, while operating cash flow reached $379.8 million. Gross margin expanded to 40.2%, while operating margin declined to 14.3% from 14.8% a year earlier.
Gross margin increased by 2.7 percentage points year over year to 40.2% in fiscal Q2 2026 ended 2026-05-31. Management attributed the improvement to McCormick de Mexico, a tariff refund, selective pricing, and the continuous improvement program, offset by higher commodity costs. The tariff refund alone contributed 1.4 percentage points, while the underlying expansion cited by management was 1.3 percentage points.
Flavor Solutions grew organically by 3% in fiscal Q2 2026 ended
Automated analysis for informational purposes only — not investment advice.
Annual gross margin expansion at the 1.0 percentage point threshold
Management expects an operating margin of 21% for the combined company at closing before any synergies, followed by a range of 23% to 25% after adding synergies. The transaction targets a mid-to-high single-digit contribution to adjusted earnings per share during the first 12 months after closing and a mid-to-high teens contribution in the third year. Planning involves more than 200 people and 20 functional teams, and transition service agreements may continue for up to two years after closing. The company also expects $1.5 billion to $2 billion to be available for debt repayment during the first two years after closing, after investments, synergy costs, and dividends.
The expected announcement on 2026-10-06 will test whether adjusted operating income growth in fiscal Q3 2026 entered the high-single-digit to low-double-digit guidance range. Consumer segment volume improvement in the Americas should also be monitored after its decline in fiscal Q2 2026, along with the continuation of Flavor Solutions organic growth, which was 3%. The report will also show whether margin expansion is continuing after the tariff refund contributed 1.4 percentage points in the prior quarter.
