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%)
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 is valued correctly, but it does not seem to be growing.
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.
GIS had positive earnings in each of the past 5 years.
GIS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GIS (7.79%) is better than 90.80% of its industry peers.
GIS's Return On Equity of 27.23% is amongst the best of the industry. GIS outperforms 96.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 9.65%, GIS belongs to the top of the industry, outperforming 88.51% 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 28.02%.
| 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
GIS's Profit Margin of 13.51% is amongst the best of the industry. GIS outperforms 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 has a better Operating Margin (15.95%) than 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 33.83%. This is in the better half of the industry: GIS outperforms 75.86% of its industry peers.
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 | 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
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 2.37 indicates that GIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
GIS's Altman-Z score of 2.37 is in line compared to the rest of the industry. GIS outperforms 56.32% of its industry peers.
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.
GIS has a better Debt to FCF ratio (7.70) than 67.82% of its industry peers.
A Debt/Equity ratio of 1.31 is on the high side and indicates that GIS has dependencies on debt financing.
GIS has a worse Debt to Equity ratio (1.31) than 78.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 7.7 | ||
| Altman-Z | 2.37 |
ROIC/WACC1.47
WACC6.57%
2.3 Liquidity
GIS has a Current 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.
Looking at the Current ratio, with a value of 0.66, GIS is doing worse than 86.21% of the companies in the same industry.
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 80.46% 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.
The Revenue has decreased by -5.65% in the past year.
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 0.16% on average over the next years.
GIS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.06% yearly.
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
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.
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
GIS is valuated correctly with a Price/Earnings ratio of 12.05.
Compared to the rest of the industry, the Price/Earnings ratio of GIS indicates a somewhat cheap valuation: GIS is cheaper than 79.31% of the companies listed in the same industry.
GIS is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.78, the valuation of GIS can be described as very reasonable.
GIS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GIS is cheaper than 77.01% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, GIS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 11.78 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GIS indicates a somewhat cheap valuation: GIS is cheaper than 75.86% of the companies listed 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.
Compared to an average industry Dividend Yield of 2.46, GIS pays a better dividend. On top of this GIS pays more dividend than 83.91% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.90, 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 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.
GIS's earnings are growing slower than its dividend. 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%
Ins Owners0.28%
Ins Owner Change0.04%
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.