GENERAL MILLS INC (GIS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GIS - US3703341046 - Common Stock
44.6 USD
+0.68 (+1.55%)
44.5 USD
-0.1 (-0.22%)
Overall GIS gets a fundamental rating of 4 out of 10. We evaluated GIS against 87 industry peers in the Food Products industry. While GIS has a great profitability rating, there are quite some 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.
In the past year GIS had a positive cash flow from operations.
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 better Return On Assets (7.79%) than 89.66% of its industry peers.
With an excellent Return On Equity value of 27.23%, GIS belongs to the best of the industry, outperforming 96.55% of the companies in the same industry.
GIS's Return On Invested Capital of 9.65% is amongst the best of the industry. GIS outperforms 87.36% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GIS is significantly below the industry average of 27.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.79% | ||
| ROE | 27.23% | ||
| ROIC | 9.65% |
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
The Profit Margin of GIS (13.51%) is better than 96.55% of its industry peers.
In the last couple of years the Profit Margin of GIS has remained more or less at the same level.
GIS's Operating Margin of 15.95% is amongst the best of the industry. GIS outperforms 93.10% of its industry peers.
GIS's Operating Margin has been stable in the last couple of years.
GIS has a better Gross Margin (33.83%) than 74.71% of its industry peers.
GIS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.95% | ||
| PM (TTM) | 13.51% | ||
| GM | 33.83% |
OM growth 3Y-0.79%
OM growth 5Y0.02%
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
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
GIS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GIS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.37 indicates that GIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GIS (2.37) is comparable to the rest of the industry.
The Debt to FCF ratio of GIS is 7.70, which is on the high side as it means it would take GIS, 7.70 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.70, GIS is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
GIS has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.31, GIS is not doing good in the industry: 79.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 7.7 | ||
| Altman-Z | 2.37 |
ROIC/WACC1.47
WACC6.57%
2.3 Liquidity
A Current Ratio of 0.66 indicates that GIS may have some problems paying its short term obligations.
With a Current ratio value of 0.66, GIS is not doing good in the industry: 87.36% of the companies in the same industry are doing better.
A Quick Ratio of 0.39 indicates that GIS may have some problems paying its short term obligations.
GIS has a worse Quick ratio (0.39) than 81.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
GIS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.43%.
The Earnings Per Share has been growing slightly by 3.12% on average over the past years.
GIS shows a decrease in Revenue. In the last year, the revenue decreased by -5.65%.
Measured over the past years, GIS shows a small growth in Revenue. The Revenue has been growing by 2.03% on average per year.
EPS 1Y (TTM)-20.43%
EPS 3Y2.23%
EPS 5Y3.12%
EPS Q2Q%-21.43%
Revenue 1Y (TTM)-5.65%
Revenue growth 3Y0.86%
Revenue growth 5Y2.03%
Sales Q2Q%-7.24%
3.2 Future
GIS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.16% yearly.
The Revenue is expected to decrease by -0.06% on average over the next years.
EPS Next Y-12.33%
EPS Next 2Y-5.16%
EPS Next 3Y-1.49%
EPS Next 5Y0.16%
Revenue Next Year-4.57%
Revenue Next 2Y-2.59%
Revenue Next 3Y-1.09%
Revenue Next 5Y-0.06%
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
A Price/Earnings ratio of 12.05 indicates a correct valuation of GIS.
79.31% of the companies in the same industry are more expensive than GIS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.19. GIS is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.78, which indicates a very decent valuation of GIS.
77.01% of the companies in the same industry are more expensive than GIS, based on the Price/Forward Earnings ratio.
GIS is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 11.78 |
4.2 Price Multiples
GIS's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, GIS is valued a bit cheaper than 73.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.35 | ||
| EV/EBITDA | 10.4 |
4.3 Compensation for Growth
GIS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.86
EPS Next 2Y-5.16%
EPS Next 3Y-1.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.56%, GIS is a good candidate for dividend investing.
GIS's Dividend Yield is rather good when compared to the industry average which is at 2.47. GIS pays more dividend than 83.91% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, GIS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.56% |
5.2 History
The dividend of GIS has a limited annual growth rate of 4.25%.
GIS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)4.25%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
52.10% 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.
DP52.1%
EPS Next 2Y-5.16%
EPS Next 3Y-1.49%
44.6
+0.68 (+1.55%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners86.24%
Inst Owner Change0.35%
Ins Owners0.28%
Ins Owner Change0.27%
Market Cap23.79B
Revenue(TTM)18.78B
Net Income(TTM)2.54B
Analysts68
Price Target54.72 (22.69%)
Short Float %5.58%
Short Ratio4.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.56% |
Yearly Dividend2.43
Dividend Growth(5Y)4.25%
DP52.1%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.3%
Min EPS beat(2)4.53%
Max EPS beat(2)6.07%
EPS beat(4)4
Avg EPS beat(4)4.25%
Min EPS beat(4)3.07%
Max EPS beat(4)6.07%
EPS beat(8)8
Avg EPS beat(8)5.3%
EPS beat(12)11
Avg EPS beat(12)4.76%
EPS beat(16)15
Avg EPS beat(16)5.33%
Revenue beat(2)1
Avg Revenue beat(2)-0.12%
Min Revenue beat(2)-0.89%
Max Revenue beat(2)0.66%
Revenue beat(4)1
Avg Revenue beat(4)-1.31%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)0.66%
Revenue beat(8)3
Avg Revenue beat(8)-0.82%
Revenue beat(12)4
Avg Revenue beat(12)-1.14%
Revenue beat(16)5
Avg Revenue beat(16)-0.97%
PT rev (1m)-1.35%
PT rev (3m)-1.64%
EPS NQ rev (1m)-8.06%
EPS NQ rev (3m)-8.19%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 11.78 | ||
| P/S | 1.27 | ||
| P/FCF | 13.35 | ||
| P/OCF | 10.08 | ||
| P/B | 2.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.4 |
EPS(TTM)3.7
EY8.3%
EPS(NY)3.79
Fwd EY8.49%
FCF(TTM)3.34
FCFY7.49%
OCF(TTM)4.42
OCFY9.92%
SpS35.2
BVpS17.47
TBVpS-24.95
PEG (NY)N/A
PEG (5Y)3.86
Graham Number38.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.79% | ||
| ROE | 27.23% | ||
| ROCE | 12.06% | ||
| ROIC | 9.65% | ||
| ROICexc | 9.92% | ||
| ROICexgc | 155.16% | ||
| OM | 15.95% | ||
| PM (TTM) | 13.51% | ||
| GM | 33.83% | ||
| FCFM | 9.49% |
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)120.35%
ROICexgc(5y)166.93%
ROCE(3y)13.69%
ROCE(5y)13.98%
ROICexgc growth 3Y-15.77%
ROICexgc growth 5Y-18.86%
ROICexc growth 3Y-3.27%
ROICexc growth 5Y-1.02%
OM growth 3Y-0.79%
OM growth 5Y0.02%
PM growth 3Y-6.16%
PM growth 5Y-0.98%
GM growth 3Y0.86%
GM growth 5Y-0.37%
F-Score3
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 7.7 | ||
| Debt/EBITDA | 3.44 | ||
| Cap/Depr | 105.6% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 4.96 | ||
| Cash Conversion | 66.63% | ||
| Profit Quality | 70.27% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 2.37 |
F-Score3
WACC6.57%
ROIC/WACC1.47
Cap/Depr(3y)127.4%
Cap/Depr(5y)114.04%
Cap/Sales(3y)3.51%
Cap/Sales(5y)3.29%
Profit Quality(3y)93.91%
Profit Quality(5y)97.6%
High Growth Momentum
Growth
EPS 1Y (TTM)-20.43%
EPS 3Y2.23%
EPS 5Y3.12%
EPS Q2Q%-21.43%
EPS Next Y-12.33%
EPS Next 2Y-5.16%
EPS Next 3Y-1.49%
EPS Next 5Y0.16%
Revenue 1Y (TTM)-5.65%
Revenue growth 3Y0.86%
Revenue growth 5Y2.03%
Sales Q2Q%-7.24%
Revenue Next Year-4.57%
Revenue Next 2Y-2.59%
Revenue Next 3Y-1.09%
Revenue Next 5Y-0.06%
EBIT growth 1Y-18.94%
EBIT growth 3Y0.06%
EBIT growth 5Y2.04%
EBIT Next Year5.14%
EBIT Next 3Y2.64%
EBIT Next 5Y2.57%
FCF growth 1Y-23.06%
FCF growth 3Y-5.85%
FCF growth 5Y-6.54%
OCF growth 1Y-23.23%
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.
What is the valuation status of GENERAL MILLS INC (GIS) stock?
ChartMill assigns a valuation rating of 5 / 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.
What is the financial health of GENERAL MILLS INC (GIS) stock?
The financial health rating of GENERAL MILLS INC (GIS) is 3 / 10.
Can you provide the expected EPS growth for GIS stock?
The Earnings per Share (EPS) of GENERAL MILLS INC (GIS) is expected to decline by -12.33% in the next year.