McCormickMEX:MKC 65 Return-on-Tangible-Equity is Negative Tangible Equity% as of May. 2026. GuruFocus rates MEX:MKC with a GF Score™ of 65/100 and a GF Value™ of MXN1,380.05 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 1,872 Consumer Packaged Goods companies, McCormick ranks better than 99.95% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. McCormick's annualized net income for the quarter that ended in May. 2026 was MXN10,417 Mil. McCormick's average shareholder tangible equity for the quarter that ended in May. 2026 was MXN-73,733 Mil. Therefore, McCormick's annualized Return-on-Tangible-Equity for the quarter that ended in May. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for McCormick's Return-on-Tangible-Equity or its related term are showing as below:
MEX:MKC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: Negative Tangible Equity
MEX:MKC's Return-on-Tangible-Equity is ranked better than 99.95% of 1872
companies
in the Consumer Packaged Goods industry
Industry Median: 7.73
vs MEX:MKC: Negative Tangible Equity
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
McCormick Return-on-Tangible-Equity Related Terms
McCormick Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for McCormick's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:MKC vs JBS, HRL, SJM: Return-on-Tangible-Equity Comparison
For the Packaged Foods subindustry, McCormick's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
McCormick Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, McCormick's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where McCormick's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (May. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
McCormick (MEX:MKC) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of May. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on McCormick and its competitors. According to the industry distribution chart, McCormick ranks #1 out of 1872 companies in the Consumer Packaged Goods industry, placing it in the top 0.099999999999994%.
Is McCormick's Return-on-Tangible-Equity too high?
McCormick's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, McCormick ranks #1 out of 1872 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, McCormick has a GF Score™ of 65/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does McCormick's Return-on-Tangible-Equity compare to JBS and HRL?
According to the Consumer Packaged Goods industry distribution chart, McCormick ranks #1 out of 1872 companies for Return-on-Tangible-Equity. This places McCormick in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.73. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Consumer Packaged Goods company?
The median Return-on-Tangible-Equity among Consumer Packaged Goods companies is 7.73, based on 1,872 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on McCormick and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 7.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McCormick's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McCormick stock overvalued right now?
Based on GuruFocus' analysis, McCormick (MEX:MKC) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN1,380.05, compared to a current price of MXN896.00 — trading 35.1% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. McCormick's overall GF Score™ is 65/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For McCormick (MEX:MKC), the current Return-on-Tangible-Equity is Negative Tangible Equity% as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is McCormick (MEX:MKC) Overvalued in 2026?
Based on GuruFocus' analysis, McCormick stock appears to be undervalued.
The current stock price of MXN896.00 is trading 35.1% below its estimated GF Value™ of MXN1,380.05.
GuruFocus considers McCormick to be Significantly Undervalued.
No single metric tells the full story. See the MEX:MKC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
In its 135-plus-year history, McCormick has become the leading global manufacturer of spices, herbs, extracts, seasonings, and other flavorings. In addition to its namesake brand, the firm's portfolio includes Old Bay, Zatarain's, Thai Kitchen, Frank's RedHot, French's, and Cholula. This mix will be complemented by the pending addition of Unilever's food brands, primarily Knorr cooking aids and Hellmann's mayonnaise. After the deal close, the combined business is slated to generate 70% of sales from consumers and 30% from restaurants and other packaged food and beverage manufacturers. Around 40% of sales are slated to come from faster-growing emerging markets, with Europe (23%) and North America (36%) accounting for the remainder.
65GF Score
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