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. 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.
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
Looking at the Return On Assets, with a value of 7.79%, GIS is in the better half of the industry, outperforming 78.82% of the companies in the same industry.
GIS has a better Return On Equity (28.29%) than 95.29% of its industry peers.
With an excellent Return On Invested Capital value of 11.59%, GIS belongs to the best of the industry, outperforming 85.88% of the companies in the same industry.
GIS had an Average Return On Invested Capital over the past 3 years of 11.19%. This is above the industry average of 9.02%.
The 3 year average ROIC (11.19%) for GIS is below the current ROIC(11.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.79% | ||
| ROE | 28.29% | ||
| ROIC | 11.59% |
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
The Profit Margin of GIS (13.08%) is better than 92.94% of its industry peers.
In the last couple of years the Profit Margin of GIS has grown nicely.
GIS has a Operating Margin of 18.57%. This is amongst the best in the industry. GIS outperforms 92.94% 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 better Gross Margin (35.27%) than 78.82% 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 | 18.57% | ||
| PM (TTM) | 13.08% | ||
| GM | 35.27% |
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
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.
GIS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GIS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.64 indicates that GIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GIS (2.64) is comparable to the rest of the industry.
GIS has a debt to FCF ratio of 5.19. This is a neutral value as GIS would need 5.19 years to pay back of all of its debts.
GIS's Debt to FCF ratio of 5.19 is fine compared to the rest of the industry. GIS outperforms 64.71% of its industry peers.
GIS has a Debt/Equity ratio of 1.38. This is a high value indicating a heavy dependency on external financing.
GIS has a worse Debt to Equity ratio (1.38) than 83.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 2.64 |
ROIC/WACC1.55
WACC7.5%
2.3 Liquidity
A Current Ratio of 0.92 indicates that GIS may have some problems paying its short term obligations.
The Current ratio of GIS (0.92) is worse than 76.47% of its industry peers.
GIS has a Quick Ratio of 0.92. 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 (0.67) than 65.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
GIS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.97%.
Measured over the past 5 years, GIS shows a small growth in Earnings Per Share. The EPS has been growing by 7.02% on average per year.
Looking at the last year, GIS shows a decrease in Revenue. The Revenue has decreased by -1.48% in the last year.
The Revenue has been growing slightly by 3.32% on average over the past years.
EPS 1Y (TTM)4.97%
EPS 3Y6.05%
EPS 5Y7.02%
EPS Q2Q%12%
Revenue 1Y (TTM)-1.48%
Revenue growth 3Y3.09%
Revenue growth 5Y3.32%
Sales Q2Q%1.96%
3.2 Future
GIS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.99% yearly.
Based on estimates for the next years, GIS will show a small growth in Revenue. The Revenue will grow by 0.06% on average per year.
EPS Next Y-2.26%
EPS Next 2Y0.76%
EPS Next 3Y2.39%
EPS Next 5Y2.99%
Revenue Next Year-0.41%
Revenue Next 2Y0.12%
Revenue Next 3Y-0.06%
Revenue Next 5Y0.06%
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.
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
The Price/Earnings ratio is 13.12, which indicates a correct valuation of GIS.
GIS's Price/Earnings ratio is a bit cheaper when compared to the industry. GIS is cheaper than 76.47% of the companies in the same industry.
GIS is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.29, the valuation of GIS can be described as correct.
Based on the Price/Forward Earnings ratio, GIS is valued a bit cheaper than 80.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, GIS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 13.29 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GIS.
77.65% 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 | 12.01 | ||
| EV/EBITDA | 10.49 |
4.3 Compensation for Growth
GIS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.87
EPS Next 2Y0.76%
EPS Next 3Y2.39%
5. Dividend
5.1 Amount
GIS has a Yearly Dividend Yield of 4.03%, which is a nice return.
Compared to an average industry Dividend Yield of 3.94, GIS pays a better dividend. On top of this GIS pays more dividend than 82.35% 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 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.03% |
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
GIS pays out 51.79% 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.
DP51.79%
EPS Next 2Y0.76%
EPS Next 3Y2.39%
61
+1.81 (+3.06%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners80.6%
Inst Owner Change4.3%
Ins Owners0.26%
Ins Owner Change0.48%
Market Cap33.63B
Analysts68
Price Target71.64 (17.44%)
Short Float %4.08%
Short Ratio4.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.03% |
Yearly Dividend2.38
Dividend Growth(5Y)3.77%
DP51.79%
Div Incr Years4
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.94%
Min EPS beat(2)0.06%
Max EPS beat(2)13.83%
EPS beat(4)4
Avg EPS beat(4)6.35%
Min EPS beat(4)0.06%
Max EPS beat(4)13.83%
EPS beat(8)7
Avg EPS beat(8)5.02%
EPS beat(12)11
Avg EPS beat(12)5.69%
EPS beat(16)13
Avg EPS beat(16)4.73%
Revenue beat(2)1
Avg Revenue beat(2)0.45%
Min Revenue beat(2)-0.02%
Max Revenue beat(2)0.93%
Revenue beat(4)2
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-3.84%
Max Revenue beat(4)1.6%
Revenue beat(8)3
Avg Revenue beat(8)-1.05%
Revenue beat(12)4
Avg Revenue beat(12)-0.85%
Revenue beat(16)8
Avg Revenue beat(16)0.02%
PT rev (1m)-1.61%
PT rev (3m)-6.11%
EPS NQ rev (1m)-13.74%
EPS NQ rev (3m)-14.63%
EPS NY rev (1m)-3.08%
EPS NY rev (3m)-3.12%
Revenue NQ rev (1m)-1.94%
Revenue NQ rev (3m)-2.71%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 13.29 | ||
| P/S | 1.69 | ||
| P/FCF | 12.01 | ||
| P/OCF | 9.39 | ||
| P/B | 3.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.49 |
EPS(TTM)4.65
EY7.62%
EPS(NY)4.59
Fwd EY7.52%
FCF(TTM)5.08
FCFY8.33%
OCF(TTM)6.5
OCFY10.65%
SpS36.1
BVpS16.69
TBVpS-21.72
PEG (NY)N/A
PEG (5Y)1.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.79% | ||
| ROE | 28.29% | ||
| ROCE | 14.56% | ||
| ROIC | 11.59% | ||
| ROICexc | 12.73% | ||
| ROICexgc | 136.82% | ||
| OM | 18.57% | ||
| PM (TTM) | 13.08% | ||
| GM | 35.27% | ||
| FCFM | 14.07% |
ROA(3y)8.3%
ROA(5y)7.86%
ROE(3y)25.69%
ROE(5y)25.77%
ROIC(3y)11.19%
ROIC(5y)11.05%
ROICexc(3y)11.5%
ROICexc(5y)11.59%
ROICexgc(3y)142.43%
ROICexgc(5y)203.07%
ROCE(3y)14.09%
ROCE(5y)13.92%
ROICexcg growth 3Y-26.03%
ROICexcg growth 5Y9.28%
ROICexc growth 3Y-0.15%
ROICexc growth 5Y4.48%
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%
F-Score6
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 5.19 | ||
| Debt/EBITDA | 2.99 | ||
| Cap/Depr | 140.54% | ||
| Cap/Sales | 3.93% | ||
| Interest Coverage | 9.43 | ||
| Cash Conversion | 84.25% | ||
| Profit Quality | 107.56% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 2.64 |
F-Score6
WACC7.5%
ROIC/WACC1.55
Cap/Depr(3y)121.97%
Cap/Depr(5y)106.34%
Cap/Sales(3y)3.44%
Cap/Sales(5y)3.17%
Profit Quality(3y)94.44%
Profit Quality(5y)107.11%
High Growth Momentum
Growth
EPS 1Y (TTM)4.97%
EPS 3Y6.05%
EPS 5Y7.02%
EPS Q2Q%12%
EPS Next Y-2.26%
EPS Next 2Y0.76%
EPS Next 3Y2.39%
EPS Next 5Y2.99%
Revenue 1Y (TTM)-1.48%
Revenue growth 3Y3.09%
Revenue growth 5Y3.32%
Sales Q2Q%1.96%
Revenue Next Year-0.41%
Revenue Next 2Y0.12%
Revenue Next 3Y-0.06%
Revenue Next 5Y0.06%
EBIT growth 1Y6.59%
EBIT growth 3Y2.72%
EBIT growth 5Y4.47%
EBIT Next Year13.05%
EBIT Next 3Y5.22%
EBIT Next 5Y3.72%
FCF growth 1Y14.39%
FCF growth 3Y1.02%
FCF growth 5Y2.19%
OCF growth 1Y18.63%
OCF growth 3Y3.45%
OCF growth 5Y3.31%