McCormick: Despite The Growth, The Stock Remains Too Expensive
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Bela Lakos1.38K FollowersFollow5ShareSavePlay(9min)CommentsSummaryMcCormick remains a defensive play, showing organic sales growth despite weak consumer sentiment and challenging macroeconomic conditions.MKC has reduced tariff exposure to $70 million and continues to deliver strong dividend growth, appealing to income-focused investors.Valuation remains a concern, with MKC trading at a significant premium to sector and industry peers, despite some multiple contraction.I reiterate a hold rating, awaiting a 20–30% price decline, margin expansion, and APAC demand improvement before considering an upgrade. Jeremy Woodhouse/DigitalVision via Getty Images McCormick (MKC) is a well-known manufacturer and distributor of spices, seasoning mixes and condiments in the United States and internationally. I started covering the company back in October 2022, with a neutral rating, whichThis article was written byBela Lakos1.38K FollowersFollowPetroleum engineer with an enthusiasm for investing, accounting and personal finances.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Past performance is not an indicator of future performance. This post is illustrative and educational and is not a specific offer of products or services or financial advice. Information in this article is not an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. Expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.