McCormick & Company

Methodology

McCormick's spice and flavor business generates highly predictable earnings from essential categories with clear brand leadership in consumer and flavor solutions segments. Pricing power and category stability provide visibility into sustainable earnings trajectories. The defensive business model makes this calculation reliable for understanding normalized profitability expectations.

Methodology

McCormick consistently commands premium PEG ratios reflecting exceptional category positions, pricing power in essential spices, and steady growth from flavor solutions for food manufacturers. While growth appears modest, the defensive characteristics and brand strength justify valuations above typical packaged food companies. Compare to McCormick's historical range and other branded food leaders.

Methodology

McCormick offers a substantial dividend with decades of consecutive increases, making it a dividend aristocrat and making PEGY analysis essential for total return evaluation. The dividend provides meaningful income alongside steady earnings growth. For this defensive food company, dividend reliability matters as much as growth in attracting long-term income investors.