GENERAL MILLS INC (GRM.DE) Stock Fundamental Analysis
FRA:GRM - Deutsche Boerse Ag - US3703341046 - Common Stock - Currency: EUR
Overall GRM gets a fundamental rating of 5 out of 10. We evaluated GRM against 60 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.
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.
GRM had positive earnings in each of the past 5 years.
GRM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 7.79%, GRM belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
With an excellent Return On Equity value of 28.29%, GRM belongs to the best of the industry, outperforming 96.49% of the companies in the same industry.
GRM's Return On Invested Capital of 11.59% is amongst the best of the industry. GRM outperforms 94.74% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GRM is above the industry average of 6.86%.
The last Return On Invested Capital (11.59%) for GRM is above the 3 year average (11.19%), which is a sign of increasing profitability.
| 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
GRM's Profit Margin of 13.08% is amongst the best of the industry. GRM outperforms 92.98% of its industry peers.
GRM's Profit Margin has improved in the last couple of years.
GRM's Operating Margin of 18.57% is amongst the best of the industry. GRM outperforms 89.47% of its industry peers.
In the last couple of years the Operating Margin of GRM has remained more or less at the same level.
Looking at the Gross Margin, with a value of 35.27%, GRM is in line with its industry, outperforming 47.37% of the companies in the same industry.
GRM'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
GRM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
GRM has less shares outstanding than it did 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 2.63 indicates that GRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.63, GRM is doing good in the industry, outperforming 68.42% of the companies in the same industry.
GRM has a debt to FCF ratio of 5.19. This is a neutral value as GRM would need 5.19 years to pay back of all of its debts.
GRM has a Debt to FCF ratio of 5.19. This is in the better half of the industry: GRM outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 1.38 is on the high side and indicates that GRM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.38, GRM is doing worse than 89.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 2.63 |
ROIC/WACC1.55
WACC7.48%
2.3 Liquidity
GRM has a Current Ratio of 0.92. This is a bad value and indicates that GRM is not financially healthy enough and could expect problems in meeting its short term obligations.
GRM's Current ratio of 0.92 is on the low side compared to the rest of the industry. GRM is outperformed by 75.44% of its industry peers.
A Quick Ratio of 0.67 indicates that GRM may have some problems paying its short term obligations.
With a Quick ratio value of 0.67, GRM is not doing good in the industry: 66.67% 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
The Earnings Per Share has been growing slightly by 4.97% over the past year.
Measured over the past 5 years, GRM shows a small growth in Earnings Per Share. The EPS has been growing by 7.02% on average per year.
Looking at the last year, GRM shows a decrease in Revenue. The Revenue has decreased by -1.48% in the last year.
GRM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.32% yearly.
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
GRM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.99% yearly.
GRM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.06% yearly.
EPS Next Y-1.75%
EPS Next 2Y1.06%
EPS Next 3Y2.53%
EPS Next 5Y2.99%
Revenue Next Year-0.31%
Revenue Next 2Y0.24%
Revenue Next 3Y-0.01%
Revenue Next 5Y0.06%
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
With a Price/Earnings ratio of 12.61, GRM is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of GRM indicates a somewhat cheap valuation: GRM is cheaper than 71.93% of the companies listed in the same industry.
GRM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.47.
The Price/Forward Earnings ratio is 12.71, which indicates a correct valuation of GRM.
The rest of the industry has a similar Price/Forward Earnings ratio as GRM.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, GRM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.61 | ||
| Fwd PE | 12.71 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GRM.
Based on the Price/Free Cash Flow ratio, GRM is valued a bit cheaper than 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.55 | ||
| EV/EBITDA | 10.42 |
4.3 Compensation for Growth
GRM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.8
EPS Next 2Y1.06%
EPS Next 3Y2.53%
5. Dividend
5.1 Amount
GRM has a Yearly Dividend Yield of 3.96%.
Compared to an average industry Dividend Yield of 3.24, GRM pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, GRM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
5.2 History
The dividend of GRM has a limited annual growth rate of 3.77%.
Dividend Growth(5Y)3.77%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
GRM pays out 51.79% 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.
DP51.79%
EPS Next 2Y1.06%
EPS Next 3Y2.53%
GENERAL MILLS INC
FRA:GRM (2/4/2025, 7:00:00 PM)
56.76
-1.49 (-2.56%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners80.6%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap31.29B
Analysts68
Price Target68.34 (20.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.96% |
Yearly Dividend2.38
Dividend Growth(5Y)3.77%
DP51.79%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.94%
Min EPS beat(2)0.06%
Max EPS beat(2)13.83%
EPS beat(4)4
Avg EPS beat(4)6.35%
Min EPS beat(4)0.06%
Max EPS beat(4)13.83%
EPS beat(8)7
Avg EPS beat(8)5.02%
EPS beat(12)11
Avg EPS beat(12)5.69%
EPS beat(16)13
Avg EPS beat(16)4.73%
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)-2.97%
PT rev (3m)-3.23%
EPS NQ rev (1m)-13.56%
EPS NQ rev (3m)-14.44%
EPS NY rev (1m)-2.58%
EPS NY rev (3m)-2.62%
Revenue NQ rev (1m)-1.85%
Revenue NQ rev (3m)-2.61%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.61 | ||
| Fwd PE | 12.71 | ||
| P/S | 1.62 | ||
| P/FCF | 11.55 | ||
| P/OCF | 9.03 | ||
| P/B | 3.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.42 |
EPS(TTM)4.5
EY7.93%
EPS(NY)4.47
Fwd EY7.87%
FCF(TTM)4.92
FCFY8.66%
OCF(TTM)6.29
OCFY11.08%
SpS34.93
BVpS16.15
TBVpS-21.01
PEG (NY)N/A
PEG (5Y)1.8
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 | 2.63 |
F-Score6
WACC7.48%
ROIC/WACC1.55
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 Y-1.75%
EPS Next 2Y1.06%
EPS Next 3Y2.53%
EPS Next 5Y2.99%
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 5Y0.06%
EBIT growth 1Y6.59%
EBIT growth 3Y2.72%
EBIT growth 5Y4.47%
EBIT Next Year13.13%
EBIT Next 3Y5.28%
EBIT Next 5Y3.72%
FCF growth 1Y14.39%
FCF growth 3Y1.02%
FCF growth 5Y2.19%
OCF growth 1Y18.63%
OCF growth 3Y3.45%
OCF growth 5Y3.31%