GENERAL MILLS INC (GIS) Stock Fundamental Analysis
USA - NYSE:GIS - US3703341046 - Common Stock
48.39 USD
+0.68 (+1.43%)
48.41 USD
+0.02 (+0.04%)
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
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.
GIS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GIS has a Return On Assets of 8.84%. This is amongst the best in the industry. GIS outperforms 89.66% of its industry peers.
GIS's Return On Equity of 30.71% is amongst the best of the industry. GIS outperforms 95.40% of its industry peers.
GIS has a better Return On Invested Capital (10.30%) than 85.06% 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 28.34%.
| 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
With an excellent Profit Margin value of 15.24%, GIS belongs to the best of the industry, outperforming 94.25% 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.
The Operating Margin of GIS (16.84%) is better 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 34.39%. This is in the better half of the industry: GIS outperforms 78.16% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GIS is 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.
The debt/assets ratio for GIS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.43 indicates that GIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
GIS has a Altman-Z score (2.43) which is in line with 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 71.26% 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 has a worse Debt to Equity ratio (1.29) than 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 6.87 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.57
WACC6.58%
2.3 Liquidity
A Current Ratio of 0.66 indicates that GIS may have some problems paying its short term obligations.
GIS has a worse Current ratio (0.66) than 87.36% of its industry peers.
A Quick Ratio of 0.40 indicates that GIS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.40, GIS is doing worse than 79.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
The earnings per share for GIS have decreased strongly by -11.11% in the last year.
GIS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.12% yearly.
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
Based on estimates for the next years, GIS will show a small growth in Earnings Per Share. The EPS will grow by 0.42% on average per year.
The Revenue is expected to decrease by -0.04% on average over the next years.
EPS Next Y-12.36%
EPS Next 2Y-4.6%
EPS Next 3Y-1.27%
EPS Next 5Y0.42%
Revenue Next Year-4.69%
Revenue Next 2Y-2.59%
Revenue Next 3Y-1.06%
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.
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
With a Price/Earnings ratio of 12.10, GIS is valued correctly.
Based on the Price/Earnings ratio, GIS is valued a bit cheaper than 78.16% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.42. GIS is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 12.63, 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 78.16% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. GIS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.1 | ||
| Fwd PE | 12.63 |
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.
78.16% 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 | 12.31 | ||
| EV/EBITDA | 10.42 |
4.3 Compensation for Growth
The decent profitability rating of GIS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.87
EPS Next 2Y-4.6%
EPS Next 3Y-1.27%
5. Dividend
5.1 Amount
GIS has a Yearly Dividend Yield of 5.11%, which is a nice return.
Compared to an average industry Dividend Yield of 5.09, GIS pays a better dividend. On top of this GIS pays more dividend than 85.06% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.11% |
5.2 History
The dividend of GIS has a limited annual growth rate of 4.26%.
GIS has been paying a dividend for at least 10 years, so it has 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-4.6%
EPS Next 3Y-1.27%
48.39
+0.68 (+1.43%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners86.7%
Inst Owner Change-0.06%
Ins Owners0.28%
Ins Owner Change3.85%
Market Cap25.81B
Analysts65.38
Price Target55.63 (14.96%)
Short Float %5.58%
Short Ratio4.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.11% |
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)-6.13%
EPS NQ rev (3m)-6.68%
EPS NY rev (1m)0.15%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)-0.8%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.1 | ||
| Fwd PE | 12.63 | ||
| P/S | 1.35 | ||
| P/FCF | 12.31 | ||
| P/OCF | 9.59 | ||
| P/B | 2.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.42 |
EPS(TTM)4
EY8.27%
EPS(NY)3.83
Fwd EY7.92%
FCF(TTM)3.93
FCFY8.12%
OCF(TTM)5.04
OCFY10.43%
SpS35.91
BVpS17.82
TBVpS-24.82
PEG (NY)N/A
PEG (5Y)3.87
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%
ROICexcg growth 3Y-15.78%
ROICexcg 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 | 2.43 |
F-Score4
WACC6.58%
ROIC/WACC1.57
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-12.36%
EPS Next 2Y-4.6%
EPS Next 3Y-1.27%
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-1.06%
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%