GENERAL MILLS INC (GIS) Stock Fundamental Analysis
NYSE:GIS - New York Stock Exchange, Inc. - US3703341046 - Common Stock - Currency: USD
Overall GIS gets a fundamental rating of 5 out of 10. We evaluated GIS against 91 industry peers in the Food Products industry. GIS has an excellent profitability rating, but there are concerns on its financial health. GIS has a correct valuation and a medium growth rate. Finally GIS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
GIS had positive earnings in the past year.
GIS had a positive operating cash flow in the past year.
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
GIS's Return On Assets of 6.94% is amongst the best of the industry. GIS outperforms 80.22% of its industry peers.
Looking at the Return On Equity, with a value of 24.95%, GIS belongs to the top of the industry, outperforming 95.60% of the companies in the same industry.
GIS's Return On Invested Capital of 10.39% is amongst the best of the industry. GIS outperforms 83.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GIS is significantly below the industry average of 28.40%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 24.95% | ||
| ROIC | 10.39% |
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 has a Profit Margin of 11.78%. This is amongst the best in the industry. GIS outperforms 91.21% of its industry peers.
GIS's Profit Margin has been stable in the last couple of years.
GIS has a better Operating Margin (17.24%) than 92.31% of its industry peers.
GIS's Operating Margin has been stable in the last couple of years.
The Gross Margin of GIS (34.60%) is better than 76.92% of its industry peers.
GIS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.24% | ||
| PM (TTM) | 11.78% | ||
| GM | 34.6% |
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
The debt/assets ratio for GIS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.49 indicates that GIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.49, GIS perfoms like the industry average, outperforming 58.24% of the companies in the same industry.
GIS has a debt to FCF ratio of 6.49. This is a slightly negative value and a sign of low solvency as GIS would need 6.49 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.49, GIS is in the better half of the industry, outperforming 74.73% of the companies in the same industry.
GIS has a Debt/Equity ratio of 1.45. This is a high value indicating a heavy dependency on external financing.
GIS has a Debt to Equity ratio of 1.45. This is amonst the worse of the industry: GIS underperforms 82.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 6.49 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.49
WACC6.97%
2.3 Liquidity
A Current Ratio of 0.67 indicates that GIS may have some problems paying its short term obligations.
GIS has a Current ratio of 0.67. This is amonst the worse of the industry: GIS underperforms 87.91% of its industry peers.
A Quick Ratio of 0.43 indicates that GIS may have some problems paying its short term obligations.
GIS has a Quick ratio of 0.43. This is amonst the worse of the industry: GIS underperforms 81.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The earnings per share for GIS have decreased by -6.86% 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.
Looking at the last year, GIS shows a decrease in Revenue. The Revenue has decreased by -1.87% in the last year.
GIS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.03% yearly.
EPS 1Y (TTM)-6.86%
EPS 3Y2.23%
EPS 5Y3.12%
EPS Q2Q%-26.73%
Revenue 1Y (TTM)-1.87%
Revenue growth 3Y0.86%
Revenue growth 5Y2.03%
Sales Q2Q%-3.35%
3.2 Future
The Earnings Per Share is expected to grow by 9.53% on average over the next years. This is quite good.
Based on estimates for the next years, GIS will show a small growth in Revenue. The Revenue will grow by 3.60% on average per year.
EPS Next Y-3.86%
EPS Next 2Y0.17%
EPS Next 3Y3.76%
EPS Next 5Y9.53%
Revenue Next Year-1.76%
Revenue Next 2Y-1.01%
Revenue Next 3Y-0.06%
Revenue Next 5Y3.6%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.62, which indicates a correct valuation of GIS.
72.53% of the companies in the same industry are more expensive than GIS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GIS to the average of the S&P500 Index (27.45), we can say GIS is valued rather cheaply.
A Price/Forward Earnings ratio of 13.13 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 75.82% of the companies listed in the same industry.
GIS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.62 | ||
| Fwd PE | 13.13 |
4.2 Price Multiples
GIS's Enterprise Value to EBITDA is on the same level as the industry average.
GIS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GIS is cheaper than 79.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.69 | ||
| EV/EBITDA | 11.01 |
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)4.04
EPS Next 2Y0.17%
EPS Next 3Y3.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.59%, GIS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.67, GIS pays a better dividend. On top of this GIS pays more dividend than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, GIS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
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
58.33% 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.
DP58.33%
EPS Next 2Y0.17%
EPS Next 3Y3.76%
53.15
-0.68 (-1.26%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners86.44%
Inst Owner Change-48.26%
Ins Owners0.24%
Ins Owner Change3.73%
Market Cap29.10B
Analysts66.15
Price Target61.41 (15.54%)
Short Float %5.14%
Short Ratio5.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
Yearly Dividend2.43
Dividend Growth(5Y)4.26%
DP58.33%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.21%
Min EPS beat(2)3.07%
Max EPS beat(2)3.36%
EPS beat(4)4
Avg EPS beat(4)5.08%
Min EPS beat(4)0.06%
Max EPS beat(4)13.83%
EPS beat(8)7
Avg EPS beat(8)4.84%
EPS beat(12)11
Avg EPS beat(12)4.87%
EPS beat(16)14
Avg EPS beat(16)4.93%
Revenue beat(2)0
Avg Revenue beat(2)-2.51%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)-1.66%
Revenue beat(4)1
Avg Revenue beat(4)-1.03%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)0.93%
Revenue beat(8)2
Avg Revenue beat(8)-1.47%
Revenue beat(12)3
Avg Revenue beat(12)-1.24%
Revenue beat(16)6
Avg Revenue beat(16)-0.48%
PT rev (1m)-3.22%
PT rev (3m)-4.2%
EPS NQ rev (1m)-15.16%
EPS NQ rev (3m)-15.16%
EPS NY rev (1m)-0.47%
EPS NY rev (3m)-1.33%
Revenue NQ rev (1m)-2.59%
Revenue NQ rev (3m)-3.04%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.62 | ||
| Fwd PE | 13.13 | ||
| P/S | 1.49 | ||
| P/FCF | 12.69 | ||
| P/OCF | 9.97 | ||
| P/B | 3.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.01 |
EPS(TTM)4.21
EY7.92%
EPS(NY)4.05
Fwd EY7.61%
FCF(TTM)4.19
FCFY7.88%
OCF(TTM)5.33
OCFY10.03%
SpS35.59
BVpS16.8
TBVpS-24.66
PEG (NY)N/A
PEG (5Y)4.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 24.95% | ||
| ROCE | 13.33% | ||
| ROIC | 10.39% | ||
| ROICexc | 10.54% | ||
| ROICexgc | 95.29% | ||
| OM | 17.24% | ||
| PM (TTM) | 11.78% | ||
| GM | 34.6% | ||
| FCFM | 11.77% |
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-Score5
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 6.49 | ||
| Debt/EBITDA | 3.42 | ||
| Cap/Depr | 116.01% | ||
| Cap/Sales | 3.21% | ||
| Interest Coverage | 7.08 | ||
| Cash Conversion | 74.85% | ||
| Profit Quality | 99.9% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 2.49 |
F-Score5
WACC6.97%
ROIC/WACC1.49
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)-6.86%
EPS 3Y2.23%
EPS 5Y3.12%
EPS Q2Q%-26.73%
EPS Next Y-3.86%
EPS Next 2Y0.17%
EPS Next 3Y3.76%
EPS Next 5Y9.53%
Revenue 1Y (TTM)-1.87%
Revenue growth 3Y0.86%
Revenue growth 5Y2.03%
Sales Q2Q%-3.35%
Revenue Next Year-1.76%
Revenue Next 2Y-1.01%
Revenue Next 3Y-0.06%
Revenue Next 5Y3.6%
EBIT growth 1Y-8.02%
EBIT growth 3Y0.07%
EBIT growth 5Y2.04%
EBIT Next Year12.88%
EBIT Next 3Y6.02%
EBIT Next 5Y8.91%
FCF growth 1Y-9.32%
FCF growth 3Y-5.85%
FCF growth 5Y-6.54%
OCF growth 1Y-11.64%
OCF growth 3Y-4.17%
OCF growth 5Y-4.51%