McCormick & Company, Incorporated

NYSE:MKC Stock Report

Market Cap: US$19.1b

McCormick Valuation

Is MKC 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 MKC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MKC ($71.76) is trading below our estimate of fair value ($96.13)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

MKC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.5x
Enterprise Value/EBITDA19.2x
PEG Ratio3.5x

Price to Earnings Ratio vs Peers

How does MKC's PE Ratio compare to its peers?

The above table shows the PE ratio for MKC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.8x
K Kellanova
24.4x13.3%US$18.9b
HRL Hormel Foods
23.4x8.7%US$18.6b
CAG Conagra Brands
14.7x8.0%US$14.0b
CPB Campbell Soup
16.5x11.0%US$12.6b
MKC McCormick
27x7.6%US$19.1b

Price-To-Earnings vs Peers: MKC is expensive based on its Price-To-Earnings Ratio (27x) compared to the peer average (19.8x).


Price to Earnings Ratio vs Industry

How does MKC's PE Ratio compare vs other companies in the US Food Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: MKC is expensive based on its Price-To-Earnings Ratio (27x) compared to the US Food industry average (16.4x).


Price to Earnings Ratio vs Fair Ratio

What is MKC'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.

MKC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27x
Fair PE Ratio20.8x

Price-To-Earnings vs Fair Ratio: MKC is expensive based on its Price-To-Earnings Ratio (27x) compared to the estimated Fair Price-To-Earnings Ratio (20.8x).


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 MKC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$71.76
US$75.47
+5.2%
10.0%US$92.00US$62.00n/a17
Apr ’25US$76.62
US$74.41
-2.9%
10.7%US$92.00US$57.00n/a17
Mar ’25US$67.81
US$71.06
+4.8%
11.1%US$87.00US$57.00n/a17
Feb ’25US$68.69
US$71.40
+3.9%
11.4%US$87.00US$57.00n/a16
Jan ’25US$68.42
US$74.59
+9.0%
10.8%US$87.00US$59.00n/a16
Dec ’24US$65.99
US$74.89
+13.5%
11.0%US$87.00US$59.00n/a15
Nov ’24US$64.11
US$74.82
+16.7%
11.1%US$87.00US$59.00n/a15
Oct ’24US$75.64
US$85.00
+12.4%
12.7%US$100.00US$63.00n/a15
Sep ’24US$80.46
US$86.23
+7.2%
14.1%US$100.00US$63.00n/a13
Aug ’24US$88.05
US$85.57
-2.8%
13.9%US$100.00US$63.00n/a14
Jul ’24US$87.23
US$84.36
-3.3%
14.5%US$100.00US$63.00n/a14
Jun ’24US$87.58
US$77.32
-11.7%
12.4%US$97.00US$63.00n/a13
May ’24US$88.41
US$78.16
-11.6%
13.5%US$97.00US$63.00n/a13
Apr ’24US$83.21
US$77.32
-7.1%
12.4%US$97.00US$63.00US$76.6213
Mar ’24US$72.97
US$74.93
+2.7%
12.3%US$90.00US$62.00US$67.8113
Feb ’24US$75.62
US$74.69
-1.2%
12.1%US$90.00US$62.00US$68.6913
Jan ’24US$82.89
US$78.69
-5.1%
12.5%US$95.00US$62.00US$68.4213
Dec ’23US$85.73
US$78.77
-8.1%
13.1%US$96.00US$62.00US$65.9913
Nov ’23US$78.59
US$77.50
-1.4%
12.5%US$96.00US$62.00US$64.1112
Oct ’23US$71.27
US$81.25
+14.0%
12.6%US$98.00US$62.00US$75.6412
Sep ’23US$84.79
US$85.25
+0.5%
11.3%US$98.00US$62.00US$80.4612
Aug ’23US$87.73
US$86.33
-1.6%
12.1%US$100.00US$62.00US$88.0512
Jul ’23US$82.67
US$88.17
+6.6%
13.6%US$109.00US$63.00US$87.2312
Jun ’23US$90.72
US$93.00
+2.5%
14.2%US$110.00US$63.00US$87.5812
May ’23US$100.57
US$93.00
-7.5%
14.2%US$110.00US$63.00US$88.4112
Apr ’23US$101.92
US$90.71
-11.0%
13.1%US$105.00US$63.00US$83.2112

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


Discover undervalued companies

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.