GENERAL MILLS INC (GRM.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:GRM • US3703341046
37.295 EUR
-0.27 (-0.72%)
Last: Jan 30, 2026, 01:43 PM
We assign a fundamental rating of 4 out of 10 to GRM. 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 it does not seem to be growing. GRM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year GRM was profitable.
- GRM had a positive operating cash flow in the past year.
- Each year in the past 5 years GRM has been profitable.
- GRM had a positive operating cash flow in each of the past 5 years.
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.
- Looking at the Return On Equity, with a value of 27.23%, GRM belongs to the top of the industry, outperforming 91.94% of the companies in the same industry.
- The Return On Invested Capital of GRM (9.65%) is better than 82.26% of its industry peers.
- GRM had an Average Return On Invested Capital over the past 3 years of 10.86%. This 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.
- GRM's Profit Margin has been stable in the last couple of years.
- The Operating Margin of GRM (15.95%) is better 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 has a Gross Margin (33.83%) which 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GRM is still creating some value.
- GRM has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for GRM has been reduced compared to 5 years ago.
- The debt/assets ratio for GRM is higher compared to a year ago.
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.
- Looking at the Altman-Z score, with a value of 2.37, GRM is in line with its industry, outperforming 56.45% of the companies in the same industry.
- 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.
- GRM's Debt to FCF ratio of 7.70 is in line compared to the rest of the industry. GRM outperforms 54.84% of its industry peers.
- A Debt/Equity ratio of 1.31 is on the high side and indicates that GRM has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.31, GRM is not doing good in the industry: 80.65% of the companies in the same industry are doing better.
| 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.
- GRM has a Current ratio of 0.66. This is amonst the worse of the industry: GRM underperforms 88.71% of its industry peers.
- 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.
- GRM has a Quick ratio of 0.39. This is in the lower half of the industry: GRM underperforms 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.
- Looking at the last year, GRM shows a decrease in Revenue. The Revenue has decreased by -5.65% in the last year.
- GRM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.03% yearly.
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.
- GRM is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.06% yearly.
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
- With a Price/Earnings ratio of 12.07, GRM is valued correctly.
- 74.19% of the companies in the same industry are more expensive than GRM, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.39, GRM is valued rather cheaply.
- A Price/Forward Earnings ratio of 11.83 indicates a reasonable valuation of GRM.
- 67.74% of the companies in the same industry are more expensive than GRM, based on the Price/Forward Earnings ratio.
- GRM is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.07 | ||
| Fwd PE | 11.83 |
4.2 Price Multiples
- GRM's Enterprise Value to EBITDA ratio is in line with the industry average.
- GRM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GRM is cheaper than 72.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.36 | ||
| 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)3.86
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.
- 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
- 52.10% of the earnings are spent on dividend by GRM. This is a bit on the high side, but may be sustainable.
- The dividend of GRM is growing, but the earnings are growing slower. 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 12.07 and the Price/Book (PB) ratio is 2.56.
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.