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Mccormick & Co-Non Vtg Shrs

MKCAbove bandExpectations · demanding

Held by 2 superinvestors.

Price$48.712026-10-22 close · Yahoo Finance
Holders2
Total value$3.4M

SEC 10-K · fundamentals

Business quality

As of 2025-11-30

Valuation basis: trailing twelve months to 2026-08-31 — latest 10-K plus unaudited 10-Q filings.

Revenue growth
+1.7%
Net margin
11.5%
ROE
13.8%
FCF margin
10.8%
Revenue $5.60B → $6.84B · 6y
What makes a business high quality

Valuation · value band

Above band

$35/ sh · growth-anchored intrinsic value
margin of safety
fair value
above fair value
$49
cheaperpricier

Zero-growth floor

$14

Central IV

$35

Optimistic top

$39

Mccormick & Co-Non Vtg Shrs (MKC): Two methods value the business — a conservative owner-earnings DCF and a growth-credited Greenwald estimate, $14–$39 / sh. Today’s price ($49, as of 2026-10-22) sits above the band, above the central read of about $35.

The middle figure is the main read. The right end is the optimistic case under the same conservative caps — not an absolute ceiling.

Revenue growth 1% (lower of historical trend and fundamental cap, capped by moat) · moat 10 yr · discount 11.7% · Zero-growth downside $14

Price as of 2026-10-22 · yahoo · DGS10 5.1% @ 2026-10-21.

Method & numbers

Buybacks over the years shown roughly only offset stock-based-compensation dilution — read them as maintaining the share count, not a net return of capital.

A conservative intrinsic-value band (zero-growth floor to growth-capped DCF) plus a tangible asset floor — not investment advice, not a buy/sell signal, and not a price target.

Owner-earnings DCF $29.70 – $39.40 · Greenwald $37.70 – $37.71 (neutral $37.70) · zero-growth base $37.70 · reproduction $5.92

Moat Franchise (moat) · terminal value 36% of present value · owner-earnings yield 8% vs 10Y 5.1%.

Graham earnings-power value (normalized NOPAT)$14.11 – $21.12 / sh

Normalized NOPAT = average operating margin over the years shown × latest-year revenue × (1 − normalized tax); then + D&A − maintenance capex (write A). Unlevered (pre-interest, attributable to all capital). Capitalized at the 9–11% rate band (read as a WACC proxy). Enterprise → equity bridge applied: + cash − total debt.

Years: TTM 2026-08-31, 2024, 2023, 2022, 2021

v1 simplifications: Maintenance capex (degraded) deducted in full cash (write A): EPV = (NOPAT + D&A − maintenance capex) / WACC; no tax shield on the capex term. Maintenance-capex methods diverge by 162% (> 50%); estimate is degraded. Share-based compensation is left as a real expense (not added back). Operating margin is below its multi-year average (cyclical/declining): normalized margin capped at the latest year — no peak-margin capitalization (audit #2).

Buffett owner-earnings value$31.33 – $37.70 / sh

Owner earnings = average net income + average D&A − maintenance capex (zero-growth floor; no ΔNWC). Levered (starts from net income, already after interest — an equity-holder stream). Capitalized at the 9.8–11.8% band (9–11% base + 0.8pp leverage premium). No enterprise→equity bridge: the capitalized result is already equity value (subtracting debt would double-count interest).

Years: TTM 2026-08-31, 2024, 2023, 2022, 2021

v1 simplifications: Owner earnings = net income + D&A − maintenance capex (degraded); the working-capital change is excluded (maintenance ΔNWC ≈ 0; growth ΔNWC is carried in growth value, not double-counted). Maintenance-capex methods diverge by 162% (> 50%); estimate is degraded. One-time items are not separately normalized (multi-year averaging smooths them partially). Share-based compensation is left as a real expense (not added back); see the SBC/OE disclosure. Capitalized at the 9–11% base band plus a 0.8pp leverage premium (cost of equity rises with leverage — MM Proposition II). Net debt is about 4.7 years of owner earnings, adding 0.8pp of cost-of-equity risk premium.

Reproduction value = tangible net assets $-4.26B + capitalized R&D $223.30M（FY 2026, 2024, 2023, 2022） = $5.92 / sh. Reproduction value = intangible-inclusive net reproduction (tangible net assets + acquired-intangible reset proxy + capitalized R&D), ÷ diluted shares; tangible net assets alone are negative for this asset-light franchise.

Moat reading: Franchise test compares earnings power (EPV) against reproduction value (tangible net assets + capitalized R&D). EPV well above reproduction value signals a moat; near it, a commodity; below it, value destruction. A directional reading, not a verdict.

Assumes a narrow moat · competitive-advantage period ≈ 10 years.

Growth value: if the moat holds for 10 yr at ROIIC ≈ 7%, $0.00–$0.01 / sh (neutral $0.00). Conservative, not a forecast.

Window TTM 2026-08-31, FY 2024, 2023, 2022, 2021 · discount band 9%–11% · normalized tax 21% (Average effective tax rate over 5 year(s), capped at the statutory 21%.) · diluted shares.

Baseline 9%–11%, net debt ≈ 4.7 years of owner earnings → +0.8pp cost-of-equity premium → effective 9.8%–11.8%.

Owner-earnings DCF: growth g₁ 1% · OE FY TTM 2026-08-31, 2024, 2023, 2022, 2021 · Discount band: 10.47%–12.84% (DGS10 +4.5% to a 12% strict end, each +0.84pp for leverage premium, as of 2026-10-21). No enterprise→equity bridge: owner earnings already flow to shareholders (post-interest), so no net cash is added and no debt subtracted — matching the engine owner-earnings lamp. Two-method midpoint gap 7%.

Valuation basis: trailing twelve months to 2026-08-31 — latest 10-K plus unaudited 10-Q filings.

What the price is betting

Today's price pencils in about 7.5% a year in owner-earnings for the next few years. Revenue actually grew 3.6% a year.

The market wants it well ahead of its own track record.

How to read intrinsic value

SEC 13F · holders

Superinvestors Holding This Security

2 holders · $3.4M combined

Q2 2026: 0 opened · 1 added · 1 trimmed · 0 exited

Q3 2026 filings arriving: 2 of 94.

Holders 3 → 2 · last 8 quarters

SEC 13F · notes

Written summary

Mccormick & Co-Non Vtg Shrs (MKC) is held by 2 of the superinvestors tracked on Compounder, with a combined $3.4M in reported 13F value. The largest position belongs to Thomas Russo, where it makes up 0.0% of the portfolio.

Other notable holders by value include Ray Dalio (0.0% of its book).

In the quarter ended 2026-06-30, 0 of the tracked filers opened a new position in MKC, 1 added to existing ones, 1 trimmed, and 0 sold out entirely.

Holder counts and values reflect the most recent SEC Form 13F filings, through the quarter ended 2026-06-30. Source: SEC EDGAR. A 13F shows only long US-listed positions and can lag the real portfolio by up to 45 days, so this is disclosed long ownership, not a complete picture.

How to read a 13F

SEC 13F · co-ownership

Also held by these investors

Investors holding Mccormick & Co-Non Vtg Shrs (MKC) also commonly hold →

MKC's price is not below its intrinsic value. See current strike-zone stocks

Also on

Sources· SEC EDGAR 13F as of 2026-06-30 · filed 2026-08-14· Yahoo Finance as of 2026-10-22· SEC 10-K + 10-Q (XBRL) as of 2026-08-31 · filed 2026-10-01·FRED 10-year Treasury (DGS10) as of 2026-10-21

Educational data only — not investment advice. 13F positions are self-reported and can lag up to 45 days.

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