McCormick & Company, Incorporated

Worth knowing

• Profit looks boosted by one-off gains. Reported profit is 1.2× operating cash profit (EBITDA), lifted by income outside the core business.Reported profit is 1.2× operating cash profit, lifted by income outside the core business.

  McCormick's reported profit is 1.2× its operating cash profit (EBITDA), which is unusual: normally it's the other way round. Income outside the core business, such as interest on a large cash pile, gains on investments or asset sales, or tax items, has lifted net income, so its earnings-based valuation may look cheaper than the business alone justifies.McCormick's reported profit is 1.2× its operating cash profit, which is unusual: normally it's the other way round. Income outside the core business, such as interest on a large cash pile, gains on investments or asset sales, or tax items, has lifted net income, so its earnings-based valuation may look cheaper than the business alone justifies.

• Stock pay outran buybacks. Stock-based pay expense $157M vs $124M spent repurchasing shares over the 3 fiscal years to FY Nov 2025.

  Over three fiscal years McCormick recorded $157M of stock-based pay expense and spent $124M repurchasing shares (repurchases can include shares withheld to cover employees' taxes). Repurchases were smaller than the stock pay, so they did little to offset new employee shares.Over three fiscal years McCormick recorded $157M of stock-based pay expense and spent $124M repurchasing shares. Repurchases were smaller than the stock pay, so they did little to offset new employee shares.

• Valuation signals disagree. Cheaper than 90% of peers on earnings, but only 41% on operating cash profit (EBITDA).Cheaper than 90% of peers on earnings, but only 41% on operating cash profit.

  Relative to its earnings, McCormick looks cheaper than 90% of peers; relative to its operating cash profit (EBITDA), cheaper than only 41%. The valuation score blends the two, so look at which measure fits this business best.Relative to its earnings, McCormick looks cheaper than 90% of peers; relative to its operating cash profit, cheaper than only 41%. The valuation score blends the two, so look at which measure fits this business best.

• Annual revenue rose 5 years in a row. Fiscal-year revenue rose from $5.6B in FY Nov 2020 to $6.8B in FY Nov 2025.

  McCormick's fiscal-year revenue rose in each of the five years to FY Nov 2025, from $5.6B to $6.8B.