By examining forward-looking signals between McCormick Company and ConAgra, you can assess how market fluctuations impact their stock prices. This comparison helps determine if combining these stocks in your portfolio can reduce market risk. Additionally, you might consider a pair trading strategy, where you take a long position in ConAgra and a short position in McCormick Company. For more details, visit our
pair correlation module.
Now, let's look at asset utilization. This metric shows the revenue generated for every dollar of assets a company holds. McCormick Company has an asset utilization ratio of 51.8%, meaning it earns $0.52 for each dollar of assets. A higher ratio indicates greater efficiency in using assets for daily operations.
Main Points
Investing in McCormick & Co. (MKC) offers a stable addition to your portfolio, with a net asset value of
12.86B and a price-to-sales ratio of 3.31X, indicating a solid market position in the packaged foods industry. Despite a slight dip in quarterly revenue growth at -0.01, the company's strong fundamentals and a last dividend paid of 1.62 make it a compelling choice for long-term investors.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in McCormick Company. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on McCormick Company, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is McCormick Company's Liquidity
McCormick Company
financial leverage refers to using borrowed capital as a funding source to finance McCormick Company Incorporated ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. McCormick Company financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to McCormick Company's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of McCormick Company's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between McCormick Company's total debt and its cash.
A Deeper Perspective On McCormick Company
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now take a look at McCormick Company revenue. Based on the latest financial disclosure, McCormick Company Incorporated reported 6.66
B of revenue. This is much higher than that of the Food Products family and significantly higher than that of the
Consumer Staples category.
The revenue for all United States etfs is notably lower than that of the entity. As for ConAgra Foods we see revenue of 12.05
B, which is much higher than that of the Consumer Staples
| McCormick | 6.66 Billion |
| Sector | 0.0 |
| ConAgra | 12.05 Billion |
In the world of investing, diversification is key. McCormick & Co. (MKC), a stalwart in the packaged foods industry, offers a compelling case for portfolio optimization. With a market capitalization of $22.11 billion and a forward price-to-earnings ratio of 26.60, McCormick demonstrates stability and growth potential. Despite a modest five-year return of 1.54%, the company's robust revenue of $6.66 billion and a net income of $680.6 million underscore its profitability. For investors seeking a blend of steady income and growth, McCormick's strong market position and consistent performance make it a worthy consideration alongside ConAgra Foods..
Will McCormick Company growth be viable after the surge?
McCormick Company Incorporated's ETF has recently posted a risk-adjusted performance of 0.21, prompting questions about its future growth potential after a recent surge. This figure suggests that while the ETF has somewhat balanced returns with risk, investors should proceed with caution. The modest performance number hints at possible volatility ahead, making it essential for investors to keep a close eye on market conditions and company updates before making further investments.
McCormick's ETF exhibits relatively low volatility, with a skewness of -0.94 and kurtosis of 1.5. Understanding market volatility trends can help investors time their market entries and exits. Using volatility indicators effectively allows traders to assess McCormick's ETF risk against market fluctuations during both bullish and bearish periods.
Increased volatility in bear markets can impact the ETF's price, causing stress for investors and often leading them to rebalance their portfolios by purchasing different financial instruments as prices decline.Given McCormick's recent 2% rise, it's essential to consider the broader context before making any investment decisions. The company, known for its spices and seasonings, operates in both consumer and flavor solutions segments, providing a stable revenue stream. With a total stockholder equity of over
$5 billion and cash and short-term investments amounting to
$166.6 million, McCormick demonstrates financial robustness. However, the stock's forward price-to-earnings ratio of 26.5957 suggests it may be relatively expensive compared to its earnings potential. While the analyst consensus leans towards a "Buy," it's crucial to weigh this against the possible downside price of $79.62. Investors should keep an eye on these factors to gauge whether McCormick's ascent is sustainable or if caution is warranted..
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of McCormick Company Incorporated. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
[email protected]
