Processed and Packaged Goods

McCormick and Company, Inc.
It troubled me that I didn’t come up with a higher valuation for the stock. Then I looked at five year averages and found the return on a five year hold for the stock was 61%, roughly 12% per year. After that I looked at few y-o-y numbers and found that sales had grown 10%, earnings had grown 9%, and free cash flow had grown 16%. Then I compared those growth numbers to the 247% growth in debt and finally I felt better about my fair value number for the stock. But what I felt the best about was that I had no plans to buy the stock. So sprinkle some of THAT!!…on your pancakes Waldo.

McCormick and Company, Inc. (NYSE: MCK) – FYE 11/2017 – OVER VALUED – The stock is trading at levels above with my current $60 fair value estimate – Please See Linked Worksheet

The JM Smucker Company (NYSE: SJM) – FYE 04/2017 – FAIRLY VALUED – The stock is currently trading at levels in line with my $128 fair value estimate – Please See Linked Worksheet

Please note that worksheets are updated basis the most current SEC 10-K ANNUAL filing.