GENERAL MILLS INC (GIS) Stock Fundamental Analysis
USA - NYSE:GIS - US3703341046 - Common Stock
46.38 USD
-0.05 (-0.11%)
46.5 USD
+0.12 (+0.26%)
GIS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 87 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 on the other hand it scores bad on growth.
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 (8.84%) than 90.80% of its industry peers.
The Return On Equity of GIS (30.71%) is better than 97.70% of its industry peers.
With an excellent Return On Invested Capital value of 10.30%, GIS belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GIS is significantly below the industry average of 28.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.84% | ||
| ROE | 30.71% | ||
| ROIC | 10.3% |
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 15.24%, GIS belongs to the top of the industry, outperforming 94.25% of the companies in the same industry.
GIS's Profit Margin has been stable in the last couple of years.
GIS's Operating Margin of 16.84% is amongst the best of the industry. GIS outperforms 93.10% of its industry peers.
In the last couple of years the Operating Margin of GIS has remained more or less at the same level.
GIS has a Gross Margin of 34.39%. This is in the better half of the industry: GIS outperforms 79.31% of its industry peers.
GIS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.84% | ||
| PM (TTM) | 15.24% | ||
| GM | 34.39% |
OM growth 3Y-0.78%
OM growth 5Y0.01%
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GIS is still creating some value.
GIS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GIS has less shares outstanding
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's Altman-Z score of 2.40 is in line compared to the rest of the industry. GIS outperforms 58.62% of its industry peers.
The Debt to FCF ratio of GIS is 6.87, which is on the high side as it means it would take GIS, 6.87 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GIS (6.87) is better than 70.11% of its industry peers.
A Debt/Equity ratio of 1.29 is on the high side and indicates that GIS has dependencies on debt financing.
GIS's Debt to Equity ratio of 1.29 is on the low side compared to the rest of the industry. GIS is outperformed by 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 6.87 | ||
| Altman-Z | 2.4 |
ROIC/WACC1.56
WACC6.6%
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 0.40 indicates that GIS may have some problems paying its short term obligations.
With a Quick ratio value of 0.40, GIS is not doing good in the industry: 79.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
GIS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.11%.
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 -3.26%.
GIS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.03% yearly.
EPS 1Y (TTM)-11.11%
EPS 3Y2.23%
EPS 5Y3.12%
EPS Q2Q%-19.63%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y0.86%
Revenue growth 5Y2.03%
Sales Q2Q%-6.82%
3.2 Future
GIS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.42% yearly.
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-12.43%
EPS Next 2Y-4.52%
EPS Next 3Y-1.09%
EPS Next 5Y0.42%
Revenue Next Year-4.69%
Revenue Next 2Y-2.59%
Revenue Next 3Y-1.11%
Revenue Next 5Y-0.04%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
GIS is valuated reasonably with a Price/Earnings ratio of 11.60.
77.01% of the companies in the same industry are more expensive than GIS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.03, GIS is valued rather cheaply.
The Price/Forward Earnings ratio is 12.08, which indicates a correct valuation of GIS.
Based on the Price/Forward Earnings ratio, GIS is valued a bit cheaper than the industry average as 78.16% of the companies are valued more expensively.
GIS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 12.08 |
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.
77.01% 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 | 11.8 | ||
| EV/EBITDA | 10.15 |
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)3.71
EPS Next 2Y-4.52%
EPS Next 3Y-1.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.19%, GIS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.24, GIS pays a better dividend. On top of this GIS pays more dividend than 83.91% of the companies listed in the same industry.
GIS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.19% |
5.2 History
The dividend of GIS has a limited annual growth rate of 4.26%.
GIS has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.26%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
45.62% 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.
DP45.62%
EPS Next 2Y-4.52%
EPS Next 3Y-1.09%
46.38
-0.05 (-0.11%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners86.7%
Inst Owner Change-0.54%
Ins Owners0.28%
Ins Owner Change3.85%
Market Cap24.74B
Revenue(TTM)19.16B
Net Income(TTM)2.92B
Analysts65.38
Price Target55.63 (19.94%)
Short Float %5.41%
Short Ratio4.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.19% |
Yearly Dividend2.43
Dividend Growth(5Y)4.26%
DP45.62%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.8%
Min EPS beat(2)3.07%
Max EPS beat(2)4.53%
EPS beat(4)4
Avg EPS beat(4)6.19%
Min EPS beat(4)3.07%
Max EPS beat(4)13.83%
EPS beat(8)8
Avg EPS beat(8)5.44%
EPS beat(12)11
Avg EPS beat(12)4.45%
EPS beat(16)14
Avg EPS beat(16)4.55%
Revenue beat(2)0
Avg Revenue beat(2)-1.27%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)-0.89%
Revenue beat(4)1
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)0.93%
Revenue beat(8)2
Avg Revenue beat(8)-1.51%
Revenue beat(12)3
Avg Revenue beat(12)-1.24%
Revenue beat(16)5
Avg Revenue beat(16)-0.84%
PT rev (1m)-1.78%
PT rev (3m)-1.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.33%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.6 | ||
| Fwd PE | 12.08 | ||
| P/S | 1.29 | ||
| P/FCF | 11.8 | ||
| P/OCF | 9.19 | ||
| P/B | 2.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.15 |
EPS(TTM)4
EY8.62%
EPS(NY)3.84
Fwd EY8.28%
FCF(TTM)3.93
FCFY8.47%
OCF(TTM)5.04
OCFY10.88%
SpS35.91
BVpS17.82
TBVpS-24.82
PEG (NY)N/A
PEG (5Y)3.71
Graham Number40.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.84% | ||
| ROE | 30.71% | ||
| ROCE | 12.88% | ||
| ROIC | 10.3% | ||
| ROICexc | 10.71% | ||
| ROICexgc | 187.52% | ||
| OM | 16.84% | ||
| PM (TTM) | 15.24% | ||
| GM | 34.39% | ||
| FCFM | 10.94% |
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)120.36%
ROICexgc(5y)166.96%
ROCE(3y)13.69%
ROCE(5y)13.98%
ROICexgc growth 3Y-15.78%
ROICexgc growth 5Y-18.87%
ROICexc growth 3Y-3.26%
ROICexc growth 5Y-1.02%
OM growth 3Y-0.78%
OM growth 5Y0.01%
PM growth 3Y-6.16%
PM growth 5Y-0.98%
GM growth 3Y0.86%
GM growth 5Y-0.37%
F-Score4
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 6.87 | ||
| Debt/EBITDA | 3.25 | ||
| Cap/Depr | 110.48% | ||
| Cap/Sales | 3.1% | ||
| Interest Coverage | 6.25 | ||
| Cash Conversion | 71.48% | ||
| Profit Quality | 71.81% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | 2.4 |
F-Score4
WACC6.6%
ROIC/WACC1.56
Cap/Depr(3y)127.4%
Cap/Depr(5y)114.04%
Cap/Sales(3y)3.51%
Cap/Sales(5y)3.29%
Profit Quality(3y)93.9%
Profit Quality(5y)97.6%
High Growth Momentum
Growth
EPS 1Y (TTM)-11.11%
EPS 3Y2.23%
EPS 5Y3.12%
EPS Q2Q%-19.63%
EPS Next Y-12.43%
EPS Next 2Y-4.52%
EPS Next 3Y-1.09%
EPS Next 5Y0.42%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y0.86%
Revenue growth 5Y2.03%
Sales Q2Q%-6.82%
Revenue Next Year-4.69%
Revenue Next 2Y-2.59%
Revenue Next 3Y-1.11%
Revenue Next 5Y-0.04%
EBIT growth 1Y-9.08%
EBIT growth 3Y0.07%
EBIT growth 5Y2.04%
EBIT Next Year5.08%
EBIT Next 3Y2.73%
EBIT Next 5Y2.69%
FCF growth 1Y3.4%
FCF growth 3Y-5.85%
FCF growth 5Y-6.54%
OCF growth 1Y-2.78%
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 -12.43% in the next year.