GENERAL MILLS INC (GIS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GIS - US3703341046 - Common Stock
47.86 USD
-0.85 (-1.75%)
47.9 USD
+0.04 (+0.08%)
Taking everything into account, GIS scores 4 out of 10 in our fundamental rating. GIS was compared to 87 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.
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.
Each year in the past 5 years GIS had a positive operating cash flow.
1.2 Ratios
GIS has a Return On Assets of 8.84%. This is amongst the best in the industry. GIS outperforms 92.05% of its industry peers.
GIS has a Return On Equity of 30.71%. This is amongst the best in the industry. GIS outperforms 97.73% of its industry peers.
With an excellent Return On Invested Capital value of 10.30%, GIS belongs to the best of the industry, outperforming 88.64% 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 28.52%.
| 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
GIS's Profit Margin of 15.24% is amongst the best of the industry. GIS outperforms 96.59% of its industry peers.
GIS's Profit Margin has been stable in the last couple of years.
GIS has a better Operating Margin (16.84%) than 95.45% of its industry peers.
GIS's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 34.39%, GIS is doing good in the industry, outperforming 77.27% of the companies in the same industry.
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 | 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
GIS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
GIS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GIS has less shares outstanding
Compared to 1 year ago, GIS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.42 indicates that GIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GIS (2.42) is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 6.87, GIS is in the better half of the industry, outperforming 71.59% of the companies in the same industry.
GIS has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external 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 80.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 6.87 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.55
WACC6.66%
2.3 Liquidity
A Current Ratio of 0.66 indicates that GIS may have some problems paying its short term obligations.
GIS's Current ratio of 0.66 is on the low side compared to the rest of the industry. GIS is outperformed by 87.50% of its industry peers.
A Quick Ratio of 0.40 indicates that GIS may have some problems paying its short term obligations.
GIS has a worse Quick ratio (0.40) than 82.95% of its industry peers.
| 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%.
GIS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.12% yearly.
The Revenue has decreased by -3.26% in the past 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)-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
The Earnings Per Share is expected to grow by 0.42% on average over the next years.
GIS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.04% yearly.
EPS Next Y-12.43%
EPS Next 2Y-4.57%
EPS Next 3Y-1.11%
EPS Next 5Y0.42%
Revenue Next Year-4.72%
Revenue Next 2Y-2.6%
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
A Price/Earnings ratio of 11.96 indicates a reasonable valuation of GIS.
79.55% 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 (26.39), we can say GIS is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.48, GIS is valued correctly.
Based on the Price/Forward Earnings ratio, GIS is valued a bit cheaper than 77.27% of the companies in the same industry.
GIS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 12.48 |
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 rather cheap valuation: GIS is cheaper than 81.82% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.18 | ||
| EV/EBITDA | 10.35 |
4.3 Compensation for Growth
The decent profitability rating of GIS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.83
EPS Next 2Y-4.57%
EPS Next 3Y-1.11%
5. Dividend
5.1 Amount
GIS has a Yearly Dividend Yield of 5.01%, which is a nice return.
Compared to an average industry Dividend Yield of 2.34, GIS pays a better dividend. On top of this GIS pays more dividend than 84.09% 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 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.01% |
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
GIS pays out 45.62% 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.
DP45.62%
EPS Next 2Y-4.57%
EPS Next 3Y-1.11%
47.86
-0.85 (-1.75%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners86.14%
Inst Owner Change-0.62%
Ins Owners0.28%
Ins Owner Change3.85%
Market Cap25.53B
Revenue(TTM)19.16B
Net Income(TTM)2.92B
Analysts65.38
Price Target55.47 (15.9%)
Short Float %5.53%
Short Ratio4.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.01% |
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)-0.29%
PT rev (3m)-2.07%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)-6.29%
EPS NY rev (1m)0%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.97 | ||
| Fwd PE | 12.48 | ||
| P/S | 1.33 | ||
| P/FCF | 12.18 | ||
| P/OCF | 9.49 | ||
| P/B | 2.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.35 |
EPS(TTM)4
EY8.36%
EPS(NY)3.83
Fwd EY8.01%
FCF(TTM)3.93
FCFY8.21%
OCF(TTM)5.04
OCFY10.54%
SpS35.91
BVpS17.82
TBVpS-24.82
PEG (NY)N/A
PEG (5Y)3.83
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 | 2.42 |
F-Score4
WACC6.66%
ROIC/WACC1.55
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-4.57%
EPS Next 3Y-1.11%
EPS Next 5Y0.42%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y0.86%
Revenue growth 5Y2.03%
Sales Q2Q%-6.82%
Revenue Next Year-4.72%
Revenue Next 2Y-2.6%
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 Year4.25%
EBIT Next 3Y2.67%
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 6 / 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.