GENERAL MILLS INC (GIS) Stock Fundamental Analysis
NYSE:GIS - New York Stock Exchange, Inc. - US3703341046 - Common Stock - Currency: USD
Overall GIS gets a fundamental rating of 5 out of 10. We evaluated GIS against 88 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 has a valuation in line with the averages, but it does not seem to be growing. Finally GIS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year GIS was profitable.
In the past year GIS had a positive cash flow from operations.
In the past 5 years GIS has always been profitable.
Each year in the past 5 years GIS had a positive operating cash flow.
1.2 Ratios
GIS has a better Return On Assets (7.82%) than 79.55% of its industry peers.
GIS has a better Return On Equity (27.62%) than 95.45% of its industry peers.
GIS has a better Return On Invested Capital (11.48%) than 84.09% of its industry peers.
GIS had an Average Return On Invested Capital over the past 3 years of 11.19%. This is above the industry average of 9.00%.
The last Return On Invested Capital (11.48%) for GIS is above the 3 year average (11.19%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.82% | ||
| ROE | 27.62% | ||
| ROIC | 11.48% |
ROA(3y)8.3%
ROA(5y)7.86%
ROE(3y)25.69%
ROE(5y)25.77%
ROIC(3y)11.19%
ROIC(5y)11.05%
1.3 Margins
With an excellent Profit Margin value of 13.03%, GIS belongs to the best of the industry, outperforming 93.18% of the companies in the same industry.
GIS's Profit Margin has improved in the last couple of years.
The Operating Margin of GIS (18.33%) is better than 93.18% of its industry peers.
GIS's Operating Margin has been stable in the last couple of years.
GIS has a Gross Margin of 35.38%. This is in the better half of the industry: GIS outperforms 79.55% of its industry peers.
GIS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.33% | ||
| PM (TTM) | 13.03% | ||
| GM | 35.38% |
OM growth 3Y-0.35%
OM growth 5Y1.11%
PM growth 3Y-0.88%
PM growth 5Y3.88%
GM growth 3Y-0.55%
GM growth 5Y0.17%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GIS is creating some value.
Compared to 1 year ago, GIS has less shares outstanding
The number of shares outstanding for GIS has been reduced compared to 5 years ago.
Compared to 1 year ago, GIS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.60 indicates that GIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.60, GIS is in line with its industry, outperforming 56.82% of the companies in the same industry.
GIS has a debt to FCF ratio of 5.73. This is a neutral value as GIS would need 5.73 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.73, GIS is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
GIS has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GIS (1.32) is worse than 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 5.73 | ||
| Altman-Z | 2.6 |
ROIC/WACC1.57
WACC7.31%
2.3 Liquidity
GIS has a Current Ratio of 0.67. 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 (0.67) than 81.82% of its industry peers.
A Quick Ratio of 0.44 indicates that GIS may have some problems paying its short term obligations.
GIS's Quick ratio of 0.44 is on the low side compared to the rest of the industry. GIS is outperformed by 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The earnings per share for GIS have decreased by -3.24% in the last year.
Measured over the past 5 years, GIS shows a small growth in Earnings Per Share. The EPS has been growing by 7.02% on average per year.
GIS shows a decrease in Revenue. In the last year, the revenue decreased by -2.62%.
The Revenue has been growing slightly by 3.32% on average over the past years.
EPS 1Y (TTM)-3.24%
EPS 3Y6.05%
EPS 5Y7.02%
EPS Q2Q%-14.53%
Revenue 1Y (TTM)-2.62%
Revenue growth 3Y3.09%
Revenue growth 5Y3.32%
Sales Q2Q%-5.04%
3.2 Future
GIS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.39% yearly.
The Revenue is expected to decrease by -0.77% on average over the next years.
EPS Next Y-6.3%
EPS Next 2Y-4.58%
EPS Next 3Y-1.42%
EPS Next 5Y1.39%
Revenue Next Year-2.4%
Revenue Next 2Y-1.89%
Revenue Next 3Y-1.28%
Revenue Next 5Y-0.77%
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
Based on the Price/Earnings ratio of 12.84, the valuation of GIS can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of GIS indicates a somewhat cheap valuation: GIS is cheaper than 72.73% of the companies listed in the same industry.
GIS is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.97, which indicates a correct valuation of GIS.
77.27% of the companies in the same industry are more expensive than GIS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, GIS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.84 | ||
| Fwd PE | 13.97 |
4.2 Price Multiples
GIS's Enterprise Value to EBITDA ratio is in line with the industry average.
75.00% of the companies in the same industry are more expensive than GIS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.72 | ||
| EV/EBITDA | 10.8 |
4.3 Compensation for Growth
GIS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.83
EPS Next 2Y-4.58%
EPS Next 3Y-1.42%
5. Dividend
5.1 Amount
GIS has a Yearly Dividend Yield of 4.17%, which is a nice return.
Compared to an average industry Dividend Yield of 4.36, GIS pays a better dividend. On top of this GIS pays more dividend than 84.09% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.52, GIS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
5.2 History
The dividend of GIS has a limited annual growth rate of 3.77%.
GIS has been paying a dividend for at least 10 years, so it has a reliable track record.
GIS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.77%
Div Incr Years4
Div Non Decr Years33
5.3 Sustainability
52.52% of the earnings are spent on dividend by GIS. This is a bit on the high side, but may be sustainable.
GIS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP52.52%
EPS Next 2Y-4.58%
EPS Next 3Y-1.42%
57.51
+1.04 (+1.84%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners83.24%
Inst Owner Change0.03%
Ins Owners0.26%
Ins Owner Change-0.11%
Market Cap31.49B
Analysts66.92
Price Target64.1 (11.46%)
Short Float %4.79%
Short Ratio5.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.17% |
Yearly Dividend2.38
Dividend Growth(5Y)3.77%
DP52.52%
Div Incr Years4
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.59%
Min EPS beat(2)3.36%
Max EPS beat(2)13.83%
EPS beat(4)4
Avg EPS beat(4)4.49%
Min EPS beat(4)0.06%
Max EPS beat(4)13.83%
EPS beat(8)7
Avg EPS beat(8)4.96%
EPS beat(12)11
Avg EPS beat(12)5.43%
EPS beat(16)14
Avg EPS beat(16)5.14%
Revenue beat(2)1
Avg Revenue beat(2)-1.22%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)0.93%
Revenue beat(4)1
Avg Revenue beat(4)-1.57%
Min Revenue beat(4)-3.84%
Max Revenue beat(4)0.93%
Revenue beat(8)2
Avg Revenue beat(8)-1.74%
Revenue beat(12)4
Avg Revenue beat(12)-1.04%
Revenue beat(16)7
Avg Revenue beat(16)-0.22%
PT rev (1m)-5.44%
PT rev (3m)-11.96%
EPS NQ rev (1m)-21.97%
EPS NQ rev (3m)-32.96%
EPS NY rev (1m)-4.07%
EPS NY rev (3m)-7.1%
Revenue NQ rev (1m)-2.82%
Revenue NQ rev (3m)-5.41%
Revenue NY rev (1m)-1.4%
Revenue NY rev (3m)-2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.84 | ||
| Fwd PE | 13.97 | ||
| P/S | 1.6 | ||
| P/FCF | 12.72 | ||
| P/OCF | 9.93 | ||
| P/B | 3.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.8 |
EPS(TTM)4.48
EY7.79%
EPS(NY)4.12
Fwd EY7.16%
FCF(TTM)4.52
FCFY7.86%
OCF(TTM)5.79
OCFY10.07%
SpS35.87
BVpS16.92
TBVpS-24.31
PEG (NY)N/A
PEG (5Y)1.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.82% | ||
| ROE | 27.62% | ||
| ROCE | 14.5% | ||
| ROIC | 11.48% | ||
| ROICexc | 11.72% | ||
| ROICexgc | 135.48% | ||
| OM | 18.33% | ||
| PM (TTM) | 13.03% | ||
| GM | 35.38% | ||
| FCFM | 12.61% |
ROA(3y)8.3%
ROA(5y)7.86%
ROE(3y)25.69%
ROE(5y)25.77%
ROIC(3y)11.19%
ROIC(5y)11.05%
ROICexc(3y)11.5%
ROICexc(5y)11.59%
ROICexgc(3y)142.43%
ROICexgc(5y)203.07%
ROCE(3y)14.09%
ROCE(5y)13.92%
ROICexcg growth 3Y-26.03%
ROICexcg growth 5Y9.28%
ROICexc growth 3Y-0.15%
ROICexc growth 5Y4.48%
OM growth 3Y-0.35%
OM growth 5Y1.11%
PM growth 3Y-0.88%
PM growth 5Y3.88%
GM growth 3Y-0.55%
GM growth 5Y0.17%
F-Score6
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 5.73 | ||
| Debt/EBITDA | 2.96 | ||
| Cap/Depr | 127.52% | ||
| Cap/Sales | 3.53% | ||
| Interest Coverage | 7.63 | ||
| Cash Conversion | 76.5% | ||
| Profit Quality | 96.8% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 2.6 |
F-Score6
WACC7.31%
ROIC/WACC1.57
Cap/Depr(3y)121.97%
Cap/Depr(5y)106.34%
Cap/Sales(3y)3.44%
Cap/Sales(5y)3.17%
Profit Quality(3y)94.44%
Profit Quality(5y)107.11%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.24%
EPS 3Y6.05%
EPS 5Y7.02%
EPS Q2Q%-14.53%
EPS Next Y-6.3%
EPS Next 2Y-4.58%
EPS Next 3Y-1.42%
EPS Next 5Y1.39%
Revenue 1Y (TTM)-2.62%
Revenue growth 3Y3.09%
Revenue growth 5Y3.32%
Sales Q2Q%-5.04%
Revenue Next Year-2.4%
Revenue Next 2Y-1.89%
Revenue Next 3Y-1.28%
Revenue Next 5Y-0.77%
EBIT growth 1Y-1.75%
EBIT growth 3Y2.72%
EBIT growth 5Y4.47%
EBIT Next Year8.65%
EBIT Next 3Y2.53%
EBIT Next 5Y2.37%
FCF growth 1Y-2.71%
FCF growth 3Y1.02%
FCF growth 5Y2.19%
OCF growth 1Y1.78%
OCF growth 3Y3.45%
OCF growth 5Y3.31%