Stock fact sheet · data as of
McCormick & Company, Incorporated (MKC): fair value, margin of safety and Wheel Score
Consumer Defensive · Packaged Foods · United States · High Yield Income
Is MKC undervalued?
McCormick & Company, Incorporated (MKC) closed at 45.71 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 73.06, which puts the price 37% below it. 8 of the 9 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
There is a wide gap between DDM (28.25) and Graham Growth (148.41). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files MKC under High Yield Income: a dividend yield above 4%.
Nine valuation models for MKC
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 63.34 | +39% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 56.91 | +24% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 148.41 | +225% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 52.37 | +15% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 51.28 | +12% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 115.14 | +152% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 80.37 | +76% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 28.25 | -38% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 61.50 | +35% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -19.68 | -143% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 53.50 | +17% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
McCormick & Company, Incorporated scores 5 of 9 on the Piotroski F-score: a middling result that falls one point short of the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. On durability MKC scores 6.3/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are moderate - ROIC 8.1%, ROE 13.8%, ROA 6.0% - with debt at 0.70 times equity and a free-cash-flow yield of 7.5%.
The dividend yield is high at 4.20% (payout ratio 34%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Consumer 60%, Flavor Solutions 40% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 8.1% |
|---|---|---|---|
| GLS Moat | 6.3 / 10 | ROE | 13.8% |
| Debt / equity | 0.70 | ROA | 6.0% |
| Free-cash-flow yield | 7.5% | Payout ratio | 34% |
| Institutions | 10 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 81: Prime
With a Wheel Score of 81, McCormick & Company, Incorporated sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 25/25, Health 11/20, Moat 9/15, Premium 16/20, Stability 20/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.
Implied volatility is 31% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (16 of 20 points). Chain open interest is 44,581 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 5.3M shares a day on a market cap of $12.3B, with a beta of 0.64 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 37% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 9 / 15 | moat 6.3/10 | |
| Premium | 16 / 20 | implied volatility 31% | |
| Stability | 20 / 20 | 5.3M shares/day, $12.3B cap, beta 0.64 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
No upcoming earnings date is recorded for MKC in the nightly calendar.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Packaged Foods
The 12 companies below are the closest to McCormick & Company, Incorporated by market cap within the Packaged Foods industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| SJM The J. M. Smucker Company | 121.84 | 80.04 | -52% | 56Fair | $13.0B |
| MICC The Magnum Ice Cream Company N.V. | 18.44 | 21.79 | +15% | 76Good | $11.3B |
| HRL Hormel Foods Corporation | 20.19 | 16.39 | -23% | 54Fair | $11.1B |
| DAR Darling Ingredients Inc. | 60.87 | 63.96 | +5% | 81Prime | $9.6B |
| GIS General Mills, Inc. | 32.88 | 60.70 | +46% | 45Weak | $17.6B |
| LW Lamb Weston Holdings, Inc. | 54.21 | 39.77 | -36% | 63Fair | $7.5B |
| SFD Smithfield Foods, Inc. | 18.30 | 34.73 | +47% | 78Good | $7.2B |
| PPC Pilgrim's Pride Corporation | 29.01 | 65.35 | +56% | 82Prime | $6.9B |
| CAG Conagra Brands, Inc. | 14.18 | 26.09 | +46% | 45Weak | $6.8B |
| INGR Ingredion Incorporated | 97.27 | 228.28 | +57% | 82Prime | $6.1B |
| CPB Campbell Soup Company | 19.84 | 26.87 | +26% | 77Good | $5.9B |
| KHC The Kraft Heinz Company | 23.28 | 35.95 | +35% | 45Weak | $27.6B |
⚖ Compare MKC with 7 of them All Consumer Defensive stocks →
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about MKC
Is MKC undervalued right now?
By the GLS models, yes: at 45.71 the stock is 37% below the average fair value of 73.06 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of MKC and what does it mean?
MKC scores 81 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for MKC?
73.06 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does McCormick & Company, Incorporated report earnings next?
No upcoming earnings date is recorded for MKC in our calendar as of 16 Oct 2026; the Calendars page is refreshed every morning.
Does MKC have listed options, and how liquid are they?
Yes. The nightly snapshot found 246 listed contracts with 44,581 open interest across all expiries and implied volatility of 31% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.