McCormick & Company, Incorporated

LSE:0JZS Stock Report

Market Cap: US$21.0b

McCormick Valuation

Is 0JZS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0JZS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0JZS ($78.65) is trading below our estimate of fair value ($136)

Significantly Below Fair Value: 0JZS is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0JZS?

Key metric: As 0JZS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0JZS. This is calculated by dividing 0JZS's market cap by their current earnings.
What is 0JZS's PE Ratio?
PE Ratio26.5x
EarningsUS$792.60m
Market CapUS$21.00b

Price to Earnings Ratio vs Peers

How does 0JZS's PE Ratio compare to its peers?

The above table shows the PE ratio for 0JZS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.9x
ABF Associated British Foods
10.4x5.8%UK£15.1b
TATE Tate & Lyle
19.3x15.1%UK£3.0b
CWK Cranswick
23x8.2%UK£2.7b
PFD Premier Foods
15.1x6.5%UK£1.6b
0JZS McCormick
26.5x5.9%US$21.0b

Price-To-Earnings vs Peers: 0JZS is expensive based on its Price-To-Earnings Ratio (26.5x) compared to the peer average (16.9x).

Price to Earnings Ratio vs Industry

How does 0JZS's PE Ratio compare vs other companies in the European Food Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0JZS 26.5xIndustry Avg. 13.7xNo. of Companies20PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0JZS is expensive based on its Price-To-Earnings Ratio (26.5x) compared to the European Food industry average (13.3x).

Price to Earnings Ratio vs Fair Ratio

What is 0JZS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0JZS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.5x
Fair PE Ratio19.5x

Price-To-Earnings vs Fair Ratio: 0JZS is expensive based on its Price-To-Earnings Ratio (26.5x) compared to the estimated Fair Price-To-Earnings Ratio (19.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0JZS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$78.65
US$84.91
+8.0%
9.4%US$96.00US$67.00n/a16
Dec ’25US$78.41
US$84.78
+8.1%
9.4%US$96.00US$67.00n/a16
Nov ’25US$78.68
US$84.78
+7.8%
9.4%US$96.00US$67.00n/a16
Oct ’25US$82.87
US$82.07
-1.0%
11.5%US$95.00US$60.00n/a16
Sep ’25US$79.34
US$76.07
-4.1%
10.8%US$93.00US$60.00n/a16
Aug ’25US$77.73
US$75.38
-3.0%
10.0%US$93.00US$60.00n/a16
Jul ’25US$70.98
US$75.07
+5.8%
10.2%US$93.00US$60.00n/a16
Jun ’25US$71.85
US$75.20
+4.7%
10.0%US$92.00US$62.00n/a16
May ’25US$74.84
US$75.65
+1.1%
10.0%US$92.00US$62.00n/a17
Apr ’25US$76.95
US$74.41
-3.3%
10.7%US$92.00US$57.00n/a17
Mar ’25US$68.15
US$71.06
+4.3%
11.1%US$87.00US$57.00n/a17
Feb ’25US$68.36
US$71.40
+4.4%
11.4%US$87.00US$57.00n/a16
Jan ’25US$68.40
US$74.59
+9.0%
10.8%US$87.00US$59.00n/a16
Dec ’24US$65.46
US$74.89
+14.4%
11.0%US$87.00US$59.00US$78.4115
Nov ’24US$64.79
US$74.82
+15.5%
11.1%US$87.00US$59.00US$78.6815
Oct ’24US$75.51
US$85.00
+12.6%
12.7%US$100.00US$63.00US$82.8715
Sep ’24US$80.43
US$86.23
+7.2%
14.1%US$100.00US$63.00US$79.3413
Aug ’24US$88.56
US$85.57
-3.4%
13.9%US$100.00US$63.00US$77.7314
Jul ’24US$87.23
US$84.36
-3.3%
14.5%US$100.00US$63.00US$70.9814
Jun ’24US$87.44
US$77.32
-11.6%
12.4%US$97.00US$63.00US$71.8513
May ’24US$88.13
US$78.16
-11.3%
13.5%US$97.00US$63.00US$74.8413
Apr ’24US$82.76
US$77.32
-6.6%
12.4%US$97.00US$63.00US$76.9513
Mar ’24US$73.06
US$74.93
+2.6%
12.3%US$90.00US$62.00US$68.1513
Feb ’24US$74.77
US$74.69
-0.1%
12.1%US$90.00US$62.00US$68.3613
Jan ’24US$84.27
US$78.69
-6.6%
12.5%US$95.00US$62.00US$68.4013
Dec ’23US$85.97
US$78.77
-8.4%
13.1%US$96.00US$62.00US$65.4613

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 13:43
End of Day Share Price 2024/12/20 00:00
Earnings2024/08/31
Annual Earnings2023/11/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

McCormick & Company, Incorporated is covered by 32 analysts. 15 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John StaszakArgus Research Company
Ishan MajumdarBaptista Research
Andrew LazarBarclays