GENERAL MILLS INC (GIS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GIS - US3703341046 - Common Stock
47.05 USD
+0.05 (+0.11%)
47.05 USD
0 (0%)
GIS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 87 industry peers in the Food Products industry. GIS scores excellent on profitability, but there are concerns on its financial health. GIS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year GIS was profitable.
GIS had a positive operating cash flow in the past year.
Each year in the past 5 years GIS has been profitable.
In the past 5 years GIS always reported a positive cash flow from operatings.
1.2 Ratios
GIS's Return On Assets of 7.79% is amongst the best of the industry. GIS outperforms 90.80% 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.
The Return On Invested Capital of GIS (9.65%) is better than 88.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GIS is significantly below the industry average of 28.50%.
| 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
Looking at the Profit Margin, with a value of 13.51%, GIS belongs to the top of the industry, outperforming 96.55% 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.
With an excellent Operating Margin value of 15.95%, GIS belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
GIS's Operating Margin has been stable in the last couple of years.
GIS has a Gross Margin of 33.83%. This is in the better half of the industry: GIS outperforms 77.01% 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
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.
GIS has a worse debt/assets ratio than last year.
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 7.70. This is a slightly negative value and a sign of low solvency as GIS would need 7.70 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 7.70, GIS is doing good in the industry, outperforming 67.82% 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: 80.46% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 7.7 | ||
| Altman-Z | 2.4 |
ROIC/WACC1.46
WACC6.62%
2.3 Liquidity
A Current Ratio of 0.66 indicates that GIS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.66, GIS is doing worse than 87.36% of the companies in the same industry.
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 81.61% 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 for GIS have decreased strongly by -20.43% 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 3.12% on average per year.
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
The Earnings Per Share is expected to grow by 0.42% on average over the next years.
Based on estimates for the next years, GIS will show a decrease in Revenue. The Revenue will decrease by -0.04% on average per year.
EPS Next Y-12.33%
EPS Next 2Y-5.16%
EPS Next 3Y-1.49%
EPS Next 5Y0.42%
Revenue Next Year-4.57%
Revenue Next 2Y-2.59%
Revenue Next 3Y-1.09%
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
With a Price/Earnings ratio of 12.72, GIS is valued correctly.
GIS's Price/Earnings ratio is a bit cheaper when compared to the industry. GIS is cheaper than 77.01% of the companies in the same industry.
When comparing the Price/Earnings ratio of GIS to the average of the S&P500 Index (26.92), we can say GIS is valued rather cheaply.
The Price/Forward Earnings ratio is 12.42, which indicates a correct valuation of GIS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GIS indicates a somewhat cheap valuation: GIS is cheaper than 75.86% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.46. GIS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.72 | ||
| Fwd PE | 12.42 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GIS.
72.41% 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 | 14.08 | ||
| EV/EBITDA | 10.77 |
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)4.07
EPS Next 2Y-5.16%
EPS Next 3Y-1.49%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.19%, GIS is a good candidate for dividend investing.
GIS's Dividend Yield is rather good when compared to the industry average which is at 2.42. GIS pays more dividend than 83.91% of the companies in the same industry.
GIS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.19% |
5.2 History
The dividend of GIS has a limited annual growth rate of 4.25%.
GIS has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.25%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
GIS pays out 52.10% of its income as dividend. 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%
47.05
+0.05 (+0.11%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners86.14%
Inst Owner Change-0.62%
Ins Owners0.28%
Ins Owner Change2.44%
Market Cap25.10B
Revenue(TTM)18.78B
Net Income(TTM)2.54B
Analysts65.38
Price Target54.72 (16.3%)
Short Float %5.53%
Short Ratio4.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.19% |
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)-1.64%
PT rev (3m)-3.39%
EPS NQ rev (1m)-8.13%
EPS NQ rev (3m)-8.02%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-1.3%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.72 | ||
| Fwd PE | 12.42 | ||
| P/S | 1.34 | ||
| P/FCF | 14.08 | ||
| P/OCF | 10.64 | ||
| P/B | 2.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.77 |
EPS(TTM)3.7
EY7.86%
EPS(NY)3.79
Fwd EY8.05%
FCF(TTM)3.34
FCFY7.1%
OCF(TTM)4.42
OCFY9.4%
SpS35.2
BVpS17.47
TBVpS-24.95
PEG (NY)N/A
PEG (5Y)4.07
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 | 2.4 |
F-Score3
WACC6.62%
ROIC/WACC1.46
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 5Y0.42%
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-0.04%
EBIT growth 1Y-18.94%
EBIT growth 3Y0.06%
EBIT growth 5Y2.04%
EBIT Next Year5.14%
EBIT Next 3Y2.64%
EBIT Next 5Y2.69%
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.
Can you provide the valuation status for GENERAL MILLS INC?
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.
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 -12.33% in the next year.