GENERAL MILLS INC (GIS) Stock Fundamental Analysis
NYSE:GIS - New York Stock Exchange, Inc. - US3703341046 - Common Stock
Taking everything into account, GIS scores 5 out of 10 in our fundamental rating. GIS was compared to 91 industry peers in the Food Products industry. GIS scores excellent on profitability, but there are concerns on its financial health. GIS has a valuation in line with the averages, but on the other hand it scores bad on growth. 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
The Return On Assets of GIS (7.79%) is better than 79.07% of its industry peers.
GIS has a better Return On Equity (28.29%) than 96.51% of its industry peers.
The Return On Invested Capital of GIS (11.59%) is better than 87.21% of its industry peers.
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
With an excellent Profit Margin value of 13.08%, GIS belongs to the best of the industry, outperforming 91.86% of the companies in the same industry.
GIS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 18.57%, GIS belongs to the top of the industry, outperforming 93.02% of the companies in the same industry.
GIS's Operating Margin has been stable in the last couple of years.
GIS's Gross Margin of 35.27% is fine compared to the rest of the industry. GIS outperforms 79.07% of its industry peers.
GIS's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GIS is still 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
GIS has an Altman-Z score of 2.65. This is not the best score and indicates that GIS is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.65, GIS is in line with its industry, outperforming 55.81% of the companies in the same 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.
The Debt to FCF ratio of GIS (5.19) is better than 63.95% of its industry peers.
A Debt/Equity ratio of 1.38 is on the high side and indicates that GIS has dependencies on debt financing.
With a Debt to Equity ratio value of 1.38, GIS is not doing good in the industry: 81.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 2.65 |
ROIC/WACC1.53
WACC7.56%
2.3 Liquidity
A Current Ratio of 0.92 indicates that GIS may have some problems paying its short term obligations.
GIS has a Current ratio of 0.92. This is in the lower half of the industry: GIS underperforms 75.58% of its industry peers.
A Quick Ratio of 0.67 indicates that GIS may have some problems paying its short term obligations.
With a Quick ratio value of 0.67, GIS is not doing good in the industry: 65.12% of the companies in the same industry are doing better.
| 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%.
The Earnings Per Share has been growing slightly by 7.02% on average over the past years.
The Revenue has decreased by -1.48% in the past 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
The Earnings Per Share is expected to grow by 3.08% on average over the next years.
GIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.10% yearly.
EPS Next Y0.85%
EPS Next 2Y2.4%
EPS Next 3Y3.66%
EPS Next 5Y3.08%
Revenue Next Year-0.31%
Revenue Next 2Y0.24%
Revenue Next 3Y-0.01%
Revenue Next 5Y0.1%
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
Based on the Price/Earnings ratio of 12.92, the valuation of GIS can be described as correct.
Based on the Price/Earnings ratio, GIS is valued a bit cheaper than the industry average as 75.58% of the companies are valued more expensively.
GIS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 12.67 indicates a correct valuation of GIS.
Based on the Price/Forward Earnings ratio, GIS is valued a bit cheaper than the industry average as 76.74% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.44. GIS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.92 | ||
| Fwd PE | 12.67 |
4.2 Price Multiples
GIS's Enterprise Value to EBITDA ratio is in line with the industry average.
75.58% 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 | 11.82 | ||
| EV/EBITDA | 10.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GIS does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of GIS may justify a higher PE ratio.
PEG (NY)15.15
PEG (5Y)1.84
EPS Next 2Y2.4%
EPS Next 3Y3.66%
5. Dividend
5.1 Amount
GIS has a Yearly Dividend Yield of 4.06%, which is a nice return.
Compared to an average industry Dividend Yield of 3.86, GIS pays a better dividend. On top of this GIS pays more dividend than 86.05% 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 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
5.2 History
The dividend of GIS has a limited annual growth rate of 3.77%.
GIS has been paying a dividend for at least 10 years, so it has a reliable track record.
GIS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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 2Y2.4%
EPS Next 3Y3.66%
GENERAL MILLS INC
NYSE:GIS (1/21/2025, 8:04:00 PM)
After market: 60.06 0 (0%)60.06
+0.43 (+0.72%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners80.6%
Inst Owner Change0.58%
Ins Owners0.26%
Ins Owner Change0.48%
Market Cap33.11B
Analysts68
Price Target72.81 (21.23%)
Short Float %4.09%
Short Ratio5.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.06% |
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)6.99%
Min EPS beat(2)0.06%
Max EPS beat(2)13.91%
EPS beat(4)4
Avg EPS beat(4)6.37%
Min EPS beat(4)0.06%
Max EPS beat(4)13.91%
EPS beat(8)7
Avg EPS beat(8)5.03%
EPS beat(12)11
Avg EPS beat(12)5.7%
EPS beat(16)13
Avg EPS beat(16)4.74%
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)-3.69%
PT rev (3m)-4.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)0%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.92 | ||
| Fwd PE | 12.67 | ||
| P/S | 1.66 | ||
| P/FCF | 11.82 | ||
| P/OCF | 9.24 | ||
| P/B | 3.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.6 |
EPS(TTM)4.65
EY7.74%
EPS(NY)4.74
Fwd EY7.89%
FCF(TTM)5.08
FCFY8.46%
OCF(TTM)6.5
OCFY10.82%
SpS36.1
BVpS16.69
TBVpS-21.72
PEG (NY)15.15
PEG (5Y)1.84
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 | 2.65 |
F-Score6
WACC7.56%
ROIC/WACC1.53
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 Y0.85%
EPS Next 2Y2.4%
EPS Next 3Y3.66%
EPS Next 5Y3.08%
Revenue 1Y (TTM)-1.48%
Revenue growth 3Y3.09%
Revenue growth 5Y3.32%
Sales Q2Q%1.96%
Revenue Next Year-0.31%
Revenue Next 2Y0.24%
Revenue Next 3Y-0.01%
Revenue Next 5Y0.1%
EBIT growth 1Y6.59%
EBIT growth 3Y2.72%
EBIT growth 5Y4.47%
EBIT Next Year13.13%
EBIT Next 3Y5.28%
EBIT Next 5Y3.8%
FCF growth 1Y14.39%
FCF growth 3Y1.02%
FCF growth 5Y2.19%
OCF growth 1Y18.63%
OCF growth 3Y3.45%
OCF growth 5Y3.31%