GENERAL MILLS INC (GIS)
US3703341046 - Common Stock
Taking everything into account, GIS scores 5 out of 10 in our fundamental rating. GIS was compared to 90 industry peers in the Food Products industry. While GIS has a great profitability rating, there are quite some 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
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.
GIS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GIS (7.56%) is better than 77.78% of its industry peers.
Looking at the Return On Equity, with a value of 25.91%, GIS belongs to the top of the industry, outperforming 95.56% of the companies in the same industry.
The Return On Invested Capital of GIS (11.54%) is better than 87.78% 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 8.88%.
The 3 year average ROIC (11.19%) for GIS is below the current ROIC(11.54%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 25.91% | ||
| ROIC | 11.54% |
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
The Profit Margin of GIS (12.14%) is better than 91.11% of its industry peers.
GIS's Profit Margin has improved in the last couple of years.
The Operating Margin of GIS (17.92%) is better than 92.22% of its industry peers.
GIS's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 34.65%, GIS is doing good in the industry, outperforming 78.89% of the companies in the same industry.
GIS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.92% | ||
| PM (TTM) | 12.14% | ||
| GM | 34.65% |
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
GIS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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 2.78 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 2.78, GIS is in line with its industry, outperforming 57.78% of the companies in the same industry.
GIS has a debt to FCF ratio of 4.80. This is a neutral value as GIS would need 4.80 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.80, GIS is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 1.26 is on the high side and indicates that GIS has dependencies on debt financing.
The Debt to Equity ratio of GIS (1.26) is worse than 78.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 4.8 | ||
| Altman-Z | 2.78 |
ROIC/WACC1.52
WACC7.61%
2.3 Liquidity
A Current Ratio of 0.66 indicates that GIS may have some problems paying its short term obligations.
The Current ratio of GIS (0.66) is worse than 83.33% of its industry peers.
A Quick Ratio of 0.39 indicates that GIS may have some problems paying its short term obligations.
The Quick ratio of GIS (0.39) is worse than 82.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.97% over the past year.
The Earnings Per Share has been growing slightly by 7.02% on average over the past years.
GIS shows a decrease in Revenue. In the last year, the revenue decreased by -1.18%.
The Revenue has been growing slightly by 3.32% on average over the past years.
EPS 1Y (TTM)4.97%
EPS 3Y6.05%
EPS 5Y7.02%
EPS Q2Q%12%
Revenue 1Y (TTM)-1.18%
Revenue growth 3Y3.09%
Revenue growth 5Y3.32%
Sales Q2Q%1.96%
3.2 Future
GIS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.26% yearly.
The Revenue is expected to grow by 0.35% on average over the next years.
EPS Next Y0.85%
EPS Next 2Y2.4%
EPS Next 3Y3.66%
EPS Next 5Y4.26%
Revenue Next Year-0.23%
Revenue Next 2Y-0.16%
Revenue Next 3Y0.16%
Revenue Next 5Y0.35%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.68, GIS is valued correctly.
GIS's Price/Earnings ratio is a bit cheaper when compared to the industry. GIS is cheaper than 77.78% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.73, GIS is valued rather cheaply.
The Price/Forward Earnings ratio is 13.42, which indicates a correct valuation of GIS.
Based on the Price/Forward Earnings ratio, GIS is valued a bit cheaper than 78.89% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GIS to the average of the S&P500 Index (22.83), we can say GIS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.68 | ||
| Fwd PE | 13.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GIS is on the same level as its industry peers.
GIS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GIS is cheaper than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.72 | ||
| EV/EBITDA | 11.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of GIS may justify a higher PE ratio.
PEG (NY)16.05
PEG (5Y)1.95
EPS Next 2Y2.4%
EPS Next 3Y3.66%
5. Dividend
5.1 Amount
GIS has a Yearly Dividend Yield of 3.75%.
Compared to an average industry Dividend Yield of 3.78, GIS pays a better dividend. On top of this GIS pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, GIS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.77%
Div Incr Years4
Div Non Decr Years33
5.3 Sustainability
56.29% 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 around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP56.29%
EPS Next 2Y2.4%
EPS Next 3Y3.66%
GENERAL MILLS INC
NYSE:GIS (12/20/2024, 8:14:48 PM)
After market: 63.61 0 (0%)63.61
-0.4 (-0.62%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners80.6%
Inst Owner Change-1.47%
Ins Owners0.26%
Ins Owner Change5.97%
Market Cap35.31B
Analysts66.4
Price Target75.6 (18.85%)
Short Float %3.83%
Short Ratio5.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
Dividend Growth(5Y)3.77%
DP56.29%
Div Incr Years4
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.39%
Min EPS beat(2)0.06%
Max EPS beat(2)0.72%
EPS beat(4)4
Avg EPS beat(4)4.68%
Min EPS beat(4)0.06%
Max EPS beat(4)10.8%
EPS beat(8)7
Avg EPS beat(8)3.57%
EPS beat(12)10
Avg EPS beat(12)4%
EPS beat(16)13
Avg EPS beat(16)4.36%
Revenue beat(2)0
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-3.84%
Max Revenue beat(2)-0.02%
Revenue beat(4)1
Avg Revenue beat(4)-1.78%
Min Revenue beat(4)-4.84%
Max Revenue beat(4)1.6%
Revenue beat(8)2
Avg Revenue beat(8)-1.23%
Revenue beat(12)4
Avg Revenue beat(12)-0.7%
Revenue beat(16)8
Avg Revenue beat(16)0%
PT rev (1m)-0.91%
PT rev (3m)8.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.09%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.44%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.68 | ||
| Fwd PE | 13.42 | ||
| P/S | 1.78 | ||
| P/FCF | 12.72 | ||
| P/OCF | 9.95 | ||
| P/B | 3.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.68 |
EPS(TTM)4.65
EY7.31%
EPS(NY)4.74
Fwd EY7.45%
FCF(TTM)5
FCFY7.86%
OCF(TTM)6.39
OCFY10.05%
SpS35.67
BVpS16.71
TBVpS-22.51
PEG (NY)16.05
PEG (5Y)1.95
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 25.91% | ||
| ROCE | 14.5% | ||
| ROIC | 11.54% | ||
| ROICexc | 11.77% | ||
| ROICexgc | 114.64% | ||
| OM | 17.92% | ||
| PM (TTM) | 12.14% | ||
| GM | 34.65% | ||
| FCFM | 14.02% |
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-Score5
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 4.8 | ||
| Debt/EBITDA | 2.85 | ||
| Cap/Depr | 139.2% | ||
| Cap/Sales | 3.9% | ||
| Interest Coverage | 7.65 | ||
| Cash Conversion | 86.47% | ||
| Profit Quality | 115.52% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 2.78 |
F-Score5
WACC7.61%
ROIC/WACC1.52
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)4.97%
EPS 3Y6.05%
EPS 5Y7.02%
EPS Q2Q%12%
EPS Next Y0.85%
EPS Next 2Y2.4%
EPS Next 3Y3.66%
EPS Next 5Y4.26%
Revenue 1Y (TTM)-1.18%
Revenue growth 3Y3.09%
Revenue growth 5Y3.32%
Sales Q2Q%1.96%
Revenue Next Year-0.23%
Revenue Next 2Y-0.16%
Revenue Next 3Y0.16%
Revenue Next 5Y0.35%
EBIT growth 1Y6.33%
EBIT growth 3Y2.72%
EBIT growth 5Y4.47%
EBIT Next Year15.89%
EBIT Next 3Y6.2%
EBIT Next 5Y4.65%
FCF growth 1Y-0.13%
FCF growth 3Y1.02%
FCF growth 5Y2.19%
OCF growth 1Y6.4%
OCF growth 3Y3.45%
OCF growth 5Y3.31%