GENERAL MILLS INC (GRM.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:GRM • US3703341046
38.175 EUR
+0.61 (+1.62%)
Last: Jan 30, 2026, 05:18 PM
GRM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 62 industry peers in the Food Products industry. While GRM has a great profitability rating, there are quite some concerns on its financial health. GRM has a valuation in line with the averages, but it does not seem to be growing. Finally GRM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year GRM was profitable.
- In the past year GRM had a positive cash flow from operations.
- GRM had positive earnings in each of the past 5 years.
- In the past 5 years GRM always reported a positive cash flow from operatings.
1.2 Ratios
- GRM's Return On Assets of 7.79% is amongst the best of the industry. GRM outperforms 82.26% of its industry peers.
- GRM has a Return On Equity of 27.23%. This is amongst the best in the industry. GRM outperforms 91.94% of its industry peers.
- GRM's Return On Invested Capital of 9.65% is amongst the best of the industry. GRM outperforms 82.26% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for GRM is above the industry average of 7.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.79% | ||
| ROE | 27.23% | ||
| ROIC | 9.65% |
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
- With an excellent Profit Margin value of 13.51%, GRM belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
- GRM's Profit Margin has been stable in the last couple of years.
- GRM has a better Operating Margin (15.95%) than 88.71% of its industry peers.
- In the last couple of years the Operating Margin of GRM has remained more or less at the same level.
- The Gross Margin of GRM (33.83%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of GRM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.95% | ||
| PM (TTM) | 13.51% | ||
| GM | 33.83% |
OM growth 3Y-0.79%
OM growth 5Y0.02%
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
- GRM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for GRM has been reduced compared to 1 year ago.
- GRM has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, GRM has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.37 indicates that GRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- GRM has a Altman-Z score (2.37) which is comparable to the rest of the industry.
- The Debt to FCF ratio of GRM is 7.70, which is on the high side as it means it would take GRM, 7.70 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 7.70, GRM perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
- GRM has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of GRM (1.31) is worse than 80.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 7.7 | ||
| Altman-Z | 2.37 |
ROIC/WACC1.49
WACC6.48%
2.3 Liquidity
- GRM has a Current Ratio of 0.66. This is a bad value and indicates that GRM is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.66, GRM is doing worse than 88.71% of the companies in the same industry.
- GRM has a Quick Ratio of 0.66. This is a bad value and indicates that GRM is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of GRM (0.39) is worse than 79.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
- GRM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.43%.
- The Earnings Per Share has been growing slightly by 3.12% on average over the past years.
- Looking at the last year, GRM shows a decrease in Revenue. The Revenue has decreased by -5.65% in the last year.
- The Revenue has been growing slightly by 2.03% on average over the past years.
EPS 1Y (TTM)-20.43%
EPS 3Y2.23%
EPS 5Y3.12%
EPS Q2Q%-21.43%
Revenue 1Y (TTM)-5.65%
Revenue growth 3Y0.86%
Revenue growth 5Y2.03%
Sales Q2Q%-7.24%
3.2 Future
- Based on estimates for the next years, GRM will show a small growth in Earnings Per Share. The EPS will grow by 0.16% on average per year.
- The Revenue is expected to decrease by -0.06% on average over the next years.
EPS Next Y-11.89%
EPS Next 2Y-5.35%
EPS Next 3Y-1.68%
EPS Next 5Y0.16%
Revenue Next Year-4.51%
Revenue Next 2Y-2.63%
Revenue Next 3Y-1.13%
Revenue Next 5Y-0.06%
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
- Based on the Price/Earnings ratio of 12.35, the valuation of GRM can be described as correct.
- Based on the Price/Earnings ratio, GRM is valued a bit cheaper than 74.19% of the companies in the same industry.
- GRM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.30.
- With a Price/Forward Earnings ratio of 12.11, GRM is valued correctly.
- 67.74% of the companies in the same industry are more expensive than GRM, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. GRM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 12.11 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as GRM.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GRM indicates a somewhat cheap valuation: GRM is cheaper than 72.58% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.67 | ||
| EV/EBITDA | 10.45 |
4.3 Compensation for Growth
- GRM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.96
EPS Next 2Y-5.35%
EPS Next 3Y-1.68%
5. Dividend
5.1 Amount
- GRM has a Yearly Dividend Yield of 5.48%, which is a nice return.
- GRM's Dividend Yield is rather good when compared to the industry average which is at 2.38. GRM pays more dividend than 90.32% of the companies in the same industry.
- GRM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.48% |
5.2 History
- The dividend of GRM has a limited annual growth rate of 4.25%.
Dividend Growth(5Y)4.25%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- 52.10% of the earnings are spent on dividend by GRM. This is a bit on the high side, but may be sustainable.
- GRM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP52.1%
EPS Next 2Y-5.35%
EPS Next 3Y-1.68%
GENERAL MILLS INC / GRM.DE FAQ
What is the fundamental rating for GRM stock?
ChartMill assigns a fundamental rating of 4 / 10 to GRM.DE.
What is the valuation status for GRM stock?
ChartMill assigns a valuation rating of 5 / 10 to GENERAL MILLS INC (GRM.DE). This can be considered as Fairly Valued.
What is the profitability of GRM stock?
GENERAL MILLS INC (GRM.DE) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for GRM stock?
The Price/Earnings (PE) ratio for GENERAL MILLS INC (GRM.DE) is 12.35 and the Price/Book (PB) ratio is 2.62.
What is the earnings growth outlook for GENERAL MILLS INC?
The Earnings per Share (EPS) of GENERAL MILLS INC (GRM.DE) is expected to decline by -11.89% in the next year.