GENERAL MILLS INC (GRM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GRM - US3703341046 - Common Stock
37.1 EUR
-0.57 (-1.51%)
Taking everything into account, GRM scores 4 out of 10 in our fundamental rating. GRM was compared to 62 industry peers in the Food Products industry. GRM scores excellent on profitability, but there are concerns on its financial health. GRM has a valuation in line with the averages, but on the other hand it scores bad on growth. GRM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- GRM had positive earnings in the past year.
- In the past year GRM had a positive cash flow from operations.
- Each year in the past 5 years GRM has been profitable.
- Each year in the past 5 years GRM had a positive operating cash flow.
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 has a better Return On Invested Capital (9.65%) than 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
- The Profit Margin of GRM (13.51%) is better than 93.55% of its industry peers.
- In the last couple of years the Profit Margin of GRM has remained more or less at the same level.
- 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.
- GRM's Gross Margin of 33.83% is in line compared to the rest of the industry. GRM outperforms 48.39% of its industry peers.
- GRM's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GRM is creating some value.
- The number of shares outstanding for GRM has been reduced compared to 1 year ago.
- Compared to 5 years ago, GRM has less shares outstanding
- Compared to 1 year ago, GRM has a worse debt to assets ratio.
2.2 Solvency
- GRM has an Altman-Z score of 2.37. This is not the best score and indicates that GRM is in the grey zone with still only limited risk for bankruptcy at the moment.
- GRM has a Altman-Z score of 2.37. This is comparable to the rest of the industry: GRM outperforms 56.45% of its industry peers.
- GRM has a debt to FCF ratio of 7.70. This is a slightly negative value and a sign of low solvency as GRM would need 7.70 years to pay back of all of its debts.
- The Debt to FCF ratio of GRM (7.70) is comparable to the rest of the industry.
- GRM has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
- GRM has a Debt to Equity ratio of 1.31. This is amonst the worse of the industry: GRM underperforms 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
- A Current Ratio of 0.66 indicates that GRM may have some problems paying its short term obligations.
- With a Current ratio value of 0.66, GRM is not doing good in the industry: 88.71% of the companies in the same industry are doing better.
- 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%.
- Measured over the past 5 years, GRM shows a small growth in Earnings Per Share. The EPS has been growing by 3.12% on average per year.
- GRM shows a decrease in Revenue. In the last year, the revenue decreased by -5.65%.
- Measured over the past years, GRM shows a small growth in Revenue. The Revenue has been growing by 2.03% on average per year.
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
- GRM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.16% yearly.
- 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
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- 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 12.01, which indicates a correct valuation of GRM.
- 75.81% of the companies in the same industry are more expensive than GRM, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.60. GRM is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 11.78, which indicates a very decent valuation of GRM.
- Based on the Price/Forward Earnings ratio, GRM is valued a bit cheaper than the industry average as 64.52% of the companies are valued more expensively.
- GRM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.01 | ||
| Fwd PE | 11.78 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GRM is on the same level as its industry peers.
- 72.58% of the companies in the same industry are more expensive than GRM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.29 | ||
| EV/EBITDA | 10.47 |
4.3 Compensation for Growth
- The excellent profitability rating of GRM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.84
EPS Next 2Y-5.35%
EPS Next 3Y-1.68%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.48%, GRM is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.38, GRM pays a better dividend. On top of this GRM pays more dividend than 90.32% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, GRM pays a better dividend.
| 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
- GRM pays out 52.10% of its income as dividend. 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 6 / 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 12.01 and the Price/Book (PB) ratio is 2.54.
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.