GENERAL MILLS INC (GIS) Stock Fundamental Analysis
USA - NYSE:GIS - US3703341046 - Common Stock
49.56 USD
+0.55 (+1.12%)
49.65 USD
+0.09 (+0.18%)
GIS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 89 industry peers in the Food Products industry. While GIS belongs to the best of the industry regarding profitability, there are concerns on its financial health. GIS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year GIS was profitable.
GIS had a positive operating cash flow in the past year.
Each year in the past 5 years GIS has been profitable.
Each year in the past 5 years GIS had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.94%, GIS belongs to the best of the industry, outperforming 83.15% of the companies in the same industry.
GIS's Return On Equity of 24.95% is amongst the best of the industry. GIS outperforms 94.38% of its industry peers.
GIS has a better Return On Invested Capital (10.39%) than 83.15% 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 28.32%.
| 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
Looking at the Profit Margin, with a value of 11.78%, GIS belongs to the top of the industry, outperforming 92.13% of the companies in the same industry.
GIS's Profit Margin has been stable in the last couple of years.
The Operating Margin of GIS (17.24%) is better than 93.26% 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 (34.60%) than 78.65% 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
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.
GIS has a worse debt/assets ratio than last year.
2.2 Solvency
GIS has an Altman-Z score of 2.42. 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 2.42, GIS is in line with its industry, outperforming 58.43% of the companies in the same industry.
The Debt to FCF ratio of GIS is 6.49, which is on the high side as it means it would take GIS, 6.49 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.49, GIS is doing good in the industry, outperforming 71.91% 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 worse Debt to Equity ratio (1.45) than 82.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 6.49 | ||
| Altman-Z | 2.42 |
ROIC/WACC1.56
WACC6.64%
2.3 Liquidity
A Current Ratio of 0.67 indicates that GIS may have some problems paying its short term obligations.
GIS's Current ratio of 0.67 is on the low side compared to the rest of the industry. GIS is outperformed by 87.64% of its industry peers.
GIS has a Quick Ratio of 0.67. 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 (0.43) than 79.78% 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.
GIS shows a decrease in Revenue. In the last year, the revenue decreased by -1.87%.
Measured over the past years, GIS shows a small growth in Revenue. The Revenue has been growing by 2.03% on average per year.
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 0.77% 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 0.05% yearly.
EPS Next Y-12.48%
EPS Next 2Y-4.4%
EPS Next 3Y-0.88%
EPS Next 5Y0.77%
Revenue Next Year-4.16%
Revenue Next 2Y-2.26%
Revenue Next 3Y-0.8%
Revenue Next 5Y0.05%
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 11.77, which indicates a very decent valuation of GIS.
GIS's Price/Earnings ratio is a bit cheaper when compared to the industry. GIS is cheaper than 76.40% of the companies in the same industry.
GIS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
Based on the Price/Forward Earnings ratio of 13.45, the valuation of GIS can be described as correct.
Based on the Price/Forward Earnings ratio, GIS is valued a bit cheaper than 73.03% of the companies in the same industry.
GIS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 13.45 |
4.2 Price Multiples
GIS's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, GIS is valued a bit cheaper than the industry average as 78.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.56 | ||
| EV/EBITDA | 10.27 |
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)3.77
EPS Next 2Y-4.4%
EPS Next 3Y-0.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.82%, GIS is a good candidate for dividend investing.
GIS's Dividend Yield is rather good when compared to the industry average which is at 5.03. GIS pays more dividend than 85.39% of the companies 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 | 4.82% |
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.
The dividend of GIS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP58.33%
EPS Next 2Y-4.4%
EPS Next 3Y-0.88%
49.56
+0.55 (+1.12%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners87.31%
Inst Owner Change-3.13%
Ins Owners0.28%
Ins Owner Change3.74%
Market Cap26.50B
Analysts65.38
Price Target56.64 (14.29%)
Short Float %6.17%
Short Ratio5.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.82% |
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)0%
PT rev (3m)-10%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-13.08%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)-9.4%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-2.08%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-2.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.77 | ||
| Fwd PE | 13.45 | ||
| P/S | 1.36 | ||
| P/FCF | 11.56 | ||
| P/OCF | 9.08 | ||
| P/B | 2.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.27 |
EPS(TTM)4.21
EY8.49%
EPS(NY)3.68
Fwd EY7.43%
FCF(TTM)4.29
FCFY8.65%
OCF(TTM)5.46
OCFY11.01%
SpS36.44
BVpS17.2
TBVpS-25.26
PEG (NY)N/A
PEG (5Y)3.77
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 | 2.42 |
F-Score5
WACC6.64%
ROIC/WACC1.56
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-12.48%
EPS Next 2Y-4.4%
EPS Next 3Y-0.88%
EPS Next 5Y0.77%
Revenue 1Y (TTM)-1.87%
Revenue growth 3Y0.86%
Revenue growth 5Y2.03%
Sales Q2Q%-3.35%
Revenue Next Year-4.16%
Revenue Next 2Y-2.26%
Revenue Next 3Y-0.8%
Revenue Next 5Y0.05%
EBIT growth 1Y-8.02%
EBIT growth 3Y0.07%
EBIT growth 5Y2.04%
EBIT Next Year4.84%
EBIT Next 3Y2.93%
EBIT Next 5Y3.06%
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%