GENERAL MILLS INC (GIS) Stock Fundamental Analysis
USA - NYSE:GIS - US3703341046 - Common Stock
46.65 USD
+0.43 (+0.93%)
46.8 USD
+0.15 (+0.32%)
We assign a fundamental rating of 4 out of 10 to GIS. GIS was compared to 86 industry peers in the Food Products industry. While GIS belongs to the best of the industry regarding profitability, there are concerns on its financial health. GIS is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
GIS had positive earnings in the past year.
GIS had a positive operating cash flow in the past year.
In the past 5 years GIS has always been profitable.
In the past 5 years GIS always reported a positive cash flow from operatings.
1.2 Ratios
GIS has a Return On Assets of 8.84%. This is amongst the best in the industry. GIS outperforms 90.70% of its industry peers.
The Return On Equity of GIS (30.71%) is better than 97.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.30%, GIS belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
GIS had an Average Return On Invested Capital over the past 3 years of 10.86%. This is significantly below the industry average of 28.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.84% | ||
| ROE | 30.71% | ||
| ROIC | 10.3% |
ROA(3y)7.71%
ROA(5y)7.84%
ROE(3y)25.45%
ROE(5y)25.35%
ROIC(3y)10.86%
ROIC(5y)11.02%
1.3 Margins
Looking at the Profit Margin, with a value of 15.24%, GIS belongs to the top of the industry, outperforming 94.19% of the companies in the same industry.
In the last couple of years the Profit Margin of GIS has remained more or less at the same level.
The Operating Margin of GIS (16.84%) is better than 93.02% of its industry peers.
In the last couple of years the Operating Margin of GIS has remained more or less at the same level.
The Gross Margin of GIS (34.39%) is better than 79.07% of its industry peers.
In the last couple of years the Gross Margin of GIS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.84% | ||
| PM (TTM) | 15.24% | ||
| GM | 34.39% |
OM growth 3Y-0.78%
OM growth 5Y0.01%
PM growth 3Y-6.16%
PM growth 5Y-0.98%
GM growth 3Y0.86%
GM growth 5Y-0.37%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GIS is still creating some value.
GIS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for GIS has been reduced compared to 5 years ago.
The debt/assets ratio for GIS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.40 indicates that GIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
GIS has a Altman-Z score (2.40) which is comparable to the rest of the industry.
GIS has a debt to FCF ratio of 6.87. This is a slightly negative value and a sign of low solvency as GIS would need 6.87 years to pay back of all of its debts.
The Debt to FCF ratio of GIS (6.87) is better than 70.93% of its industry peers.
A Debt/Equity ratio of 1.29 is on the high side and indicates that GIS has dependencies on debt financing.
GIS has a worse Debt to Equity ratio (1.29) than 80.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 6.87 | ||
| Altman-Z | 2.4 |
ROIC/WACC1.56
WACC6.6%
2.3 Liquidity
GIS has a Current Ratio of 0.66. This is a bad value and indicates that GIS is not financially healthy enough and could expect problems in meeting its short term obligations.
GIS has a worse Current ratio (0.66) than 87.21% of its industry peers.
GIS has a Quick Ratio of 0.66. This is a bad value and indicates that GIS is not financially healthy enough and could expect problems in meeting its short term obligations.
GIS's Quick ratio of 0.40 is on the low side compared to the rest of the industry. GIS is outperformed by 79.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
GIS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.11%.
GIS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.12% yearly.
Looking at the last year, GIS shows a decrease in Revenue. The Revenue has decreased by -3.26% in the last year.
The Revenue has been growing slightly by 2.03% on average over the past years.
EPS 1Y (TTM)-11.11%
EPS 3Y2.23%
EPS 5Y3.12%
EPS Q2Q%-19.63%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y0.86%
Revenue growth 5Y2.03%
Sales Q2Q%-6.82%
3.2 Future
GIS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.42% yearly.
GIS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.04% yearly.
EPS Next Y-12.43%
EPS Next 2Y-4.52%
EPS Next 3Y-1.3%
EPS Next 5Y0.42%
Revenue Next Year-4.69%
Revenue Next 2Y-2.59%
Revenue Next 3Y-1.12%
Revenue Next 5Y-0.04%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.66, which indicates a very decent valuation of GIS.
Compared to the rest of the industry, the Price/Earnings ratio of GIS indicates a somewhat cheap valuation: GIS is cheaper than 77.91% of the companies listed in the same industry.
GIS is valuated cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.15, the valuation of GIS can be described as correct.
Based on the Price/Forward Earnings ratio, GIS is valued a bit cheaper than 79.07% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 33.72. GIS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.66 | ||
| Fwd PE | 12.15 |
4.2 Price Multiples
GIS's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GIS indicates a rather cheap valuation: GIS is cheaper than 82.56% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.87 | ||
| EV/EBITDA | 10.12 |
4.3 Compensation for Growth
The decent profitability rating of GIS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.73
EPS Next 2Y-4.52%
EPS Next 3Y-1.3%
5. Dividend
5.1 Amount
GIS has a Yearly Dividend Yield of 5.31%, which is a nice return.
GIS's Dividend Yield is rather good when compared to the industry average which is at 5.21. GIS pays more dividend than 83.72% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, GIS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.31% |
5.2 History
The dividend of GIS has a limited annual growth rate of 4.26%.
GIS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)4.26%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
45.62% of the earnings are spent on dividend by GIS. This is a bit on the high side, but may be sustainable.
The dividend of GIS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.62%
EPS Next 2Y-4.52%
EPS Next 3Y-1.3%
46.65
+0.43 (+0.93%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners86.7%
Inst Owner Change-1.36%
Ins Owners0.28%
Ins Owner Change3.79%
Market Cap24.88B
Revenue(TTM)19.16B
Net Income(TTM)2.92B
Analysts65.38
Price Target55.63 (19.25%)
Short Float %5.41%
Short Ratio4.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.31% |
Yearly Dividend2.43
Dividend Growth(5Y)4.26%
DP45.62%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.8%
Min EPS beat(2)3.07%
Max EPS beat(2)4.53%
EPS beat(4)4
Avg EPS beat(4)6.19%
Min EPS beat(4)3.07%
Max EPS beat(4)13.83%
EPS beat(8)8
Avg EPS beat(8)5.44%
EPS beat(12)11
Avg EPS beat(12)4.45%
EPS beat(16)14
Avg EPS beat(16)4.55%
Revenue beat(2)0
Avg Revenue beat(2)-1.27%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)-0.89%
Revenue beat(4)1
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)0.93%
Revenue beat(8)2
Avg Revenue beat(8)-1.51%
Revenue beat(12)3
Avg Revenue beat(12)-1.24%
Revenue beat(16)5
Avg Revenue beat(16)-0.84%
PT rev (1m)0%
PT rev (3m)-1.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.33%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.66 | ||
| Fwd PE | 12.15 | ||
| P/S | 1.3 | ||
| P/FCF | 11.87 | ||
| P/OCF | 9.25 | ||
| P/B | 2.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.12 |
EPS(TTM)4
EY8.57%
EPS(NY)3.84
Fwd EY8.23%
FCF(TTM)3.93
FCFY8.43%
OCF(TTM)5.04
OCFY10.81%
SpS35.91
BVpS17.82
TBVpS-24.82
PEG (NY)N/A
PEG (5Y)3.73
Graham Number40.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.84% | ||
| ROE | 30.71% | ||
| ROCE | 12.88% | ||
| ROIC | 10.3% | ||
| ROICexc | 10.71% | ||
| ROICexgc | 187.52% | ||
| OM | 16.84% | ||
| PM (TTM) | 15.24% | ||
| GM | 34.39% | ||
| FCFM | 10.94% |
ROA(3y)7.71%
ROA(5y)7.84%
ROE(3y)25.45%
ROE(5y)25.35%
ROIC(3y)10.86%
ROIC(5y)11.02%
ROICexc(3y)11.08%
ROICexc(5y)11.42%
ROICexgc(3y)120.36%
ROICexgc(5y)166.96%
ROCE(3y)13.69%
ROCE(5y)13.98%
ROICexgc growth 3Y-15.78%
ROICexgc growth 5Y-18.87%
ROICexc growth 3Y-3.26%
ROICexc growth 5Y-1.02%
OM growth 3Y-0.78%
OM growth 5Y0.01%
PM growth 3Y-6.16%
PM growth 5Y-0.98%
GM growth 3Y0.86%
GM growth 5Y-0.37%
F-Score4
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 6.87 | ||
| Debt/EBITDA | 3.25 | ||
| Cap/Depr | 110.48% | ||
| Cap/Sales | 3.1% | ||
| Interest Coverage | 6.25 | ||
| Cash Conversion | 71.48% | ||
| Profit Quality | 71.81% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | 2.4 |
F-Score4
WACC6.6%
ROIC/WACC1.56
Cap/Depr(3y)127.4%
Cap/Depr(5y)114.04%
Cap/Sales(3y)3.51%
Cap/Sales(5y)3.29%
Profit Quality(3y)93.9%
Profit Quality(5y)97.6%
High Growth Momentum
Growth
EPS 1Y (TTM)-11.11%
EPS 3Y2.23%
EPS 5Y3.12%
EPS Q2Q%-19.63%
EPS Next Y-12.43%
EPS Next 2Y-4.52%
EPS Next 3Y-1.3%
EPS Next 5Y0.42%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y0.86%
Revenue growth 5Y2.03%
Sales Q2Q%-6.82%
Revenue Next Year-4.69%
Revenue Next 2Y-2.59%
Revenue Next 3Y-1.12%
Revenue Next 5Y-0.04%
EBIT growth 1Y-9.08%
EBIT growth 3Y0.07%
EBIT growth 5Y2.04%
EBIT Next Year5.08%
EBIT Next 3Y2.66%
EBIT Next 5Y2.69%
FCF growth 1Y3.4%
FCF growth 3Y-5.85%
FCF growth 5Y-6.54%
OCF growth 1Y-2.78%
OCF growth 3Y-4.17%
OCF growth 5Y-4.51%
GENERAL MILLS INC / GIS FAQ
What is the fundamental rating for GIS stock?
ChartMill assigns a fundamental rating of 4 / 10 to GIS.
Can you provide the valuation status for GENERAL MILLS INC?
ChartMill assigns a valuation rating of 6 / 10 to GENERAL MILLS INC (GIS). This can be considered as Fairly Valued.
How profitable is GENERAL MILLS INC (GIS) stock?
GENERAL MILLS INC (GIS) has a profitability rating of 7 / 10.
Can you provide the financial health for GIS stock?
The financial health rating of GENERAL MILLS INC (GIS) is 3 / 10.
What is the expected EPS growth for GENERAL MILLS INC (GIS) stock?
The Earnings per Share (EPS) of GENERAL MILLS INC (GIS) is expected to decline by -12.43% in the next year.