GENERAL MILLS INC (GIS)
US3703341046 - Common Stock
GIS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 is valued correctly, 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.
In the past year GIS had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 7.56%, GIS is in the better half of the industry, outperforming 78.65% of the companies in the same industry.
The Return On Equity of GIS (25.91%) is better than 94.38% of its industry peers.
GIS's Return On Invested Capital of 11.54% is amongst the best of the industry. GIS outperforms 88.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GIS is above the industry average of 8.93%.
The last Return On Invested Capital (11.54%) for GIS is above the 3 year average (11.19%), which is a sign of increasing profitability.
| 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
GIS has a Profit Margin of 12.14%. This is amongst the best in the industry. GIS outperforms 91.01% 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 94.38% of its industry peers.
In the last couple of years the Operating Margin of GIS has remained more or less at the same level.
With a decent Gross Margin value of 34.65%, GIS is doing good in the industry, outperforming 79.78% of the companies in the same industry.
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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GIS is still creating some value.
The number of shares outstanding for GIS has been reduced compared to 1 year ago.
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 2.78 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 the better half of the industry, outperforming 60.67% 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.
With a decent Debt to FCF ratio value of 4.80, GIS is doing good in the industry, outperforming 70.79% of the companies in the same industry.
GIS has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.26, GIS is doing worse than 79.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 4.8 | ||
| Altman-Z | 2.78 |
ROIC/WACC1.54
WACC7.5%
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: 85.39% of the companies in the same industry are doing better.
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 has a worse Quick ratio (0.39) than 83.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
GIS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.14%.
GIS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.02% yearly.
GIS shows a decrease in Revenue. In the last year, the revenue decreased by -2.37%.
The Revenue has been growing slightly by 3.32% on average over the past years.
EPS 1Y (TTM)5.14%
EPS 3Y6.05%
EPS 5Y7.02%
EPS Q2Q%-1.83%
Revenue 1Y (TTM)-2.37%
Revenue growth 3Y3.09%
Revenue growth 5Y3.32%
Sales Q2Q%-1.15%
3.2 Future
Based on estimates for the next years, GIS will show a small growth in Earnings Per Share. The EPS will grow by 6.91% on average per year.
The Revenue is expected to grow by 2.64% on average over the next years.
EPS Next Y0.89%
EPS Next 2Y2.49%
EPS Next 3Y3.66%
EPS Next 5Y6.91%
Revenue Next Year-0.22%
Revenue Next 2Y-0.04%
Revenue Next 3Y0.09%
Revenue Next 5Y2.64%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
A Price/Earnings ratio of 14.25 indicates a correct 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 77.53% of the companies listed in the same industry.
GIS is valuated cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.50, GIS is valued correctly.
Based on the Price/Forward Earnings ratio, GIS is valued a bit cheaper than 79.78% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.82. GIS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 13.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIS is valued a bit cheaper than 61.80% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GIS is valued a bit cheaper than 75.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.82 | ||
| EV/EBITDA | 11.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GIS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)16.02
PEG (5Y)2.03
EPS Next 2Y2.49%
EPS Next 3Y3.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.71%, GIS has a reasonable but not impressive dividend return.
GIS's Dividend Yield is rather good when compared to the industry average which is at 3.80. GIS pays more dividend than 82.02% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, GIS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
5.2 History
The dividend of GIS has a limited annual growth rate of 3.77%.
GIS has paid a dividend for at least 10 years, which is 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
56.29% 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 more than its dividend. This makes the dividend growth sustainable.
DP56.29%
EPS Next 2Y2.49%
EPS Next 3Y3.66%
GENERAL MILLS INC
NYSE:GIS (11/21/2024, 8:04:00 PM)
After market: 63.9416 -0.18 (-0.28%)64.12
+0.32 (+0.5%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap35.60B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 13.5 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)16.02
PEG (5Y)2.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 25.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.92% | ||
| PM (TTM) | 12.14% | ||
| GM | 34.65% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)5.14%
EPS 3Y6.05%
EPS 5Y
EPS Q2Q%
EPS Next Y0.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.37%
Revenue growth 3Y3.09%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y