GENERAL MILLS INC (GRM.DE) Stock Fundamental Analysis
FRA:GRM - Deutsche Boerse Ag - US3703341046 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to GRM. GRM was compared to 59 industry peers in the Food Products industry. GRM scores excellent on profitability, but there are concerns on its financial health. GRM has a correct valuation and a medium growth rate. Finally GRM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
GRM had positive earnings in the past year.
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 has a better Return On Assets (6.94%) than 77.97% of its industry peers.
The Return On Equity of GRM (24.95%) is better than 88.14% of its industry peers.
GRM has a better Return On Invested Capital (10.39%) than 86.44% 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 6.91%.
| 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
GRM has a better Profit Margin (11.78%) than 84.75% of its industry peers.
In the last couple of years the Profit Margin of GRM has remained more or less at the same level.
With an excellent Operating Margin value of 17.24%, GRM belongs to the best of the industry, outperforming 93.22% of the companies in the same industry.
GRM's Operating Margin has been stable in the last couple of years.
GRM's Gross Margin of 34.60% is in line compared to the rest of the industry. GRM outperforms 42.37% of its industry peers.
GRM'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), GRM is creating some value.
GRM has less shares outstanding than it did 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 2.47. 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.
Looking at the Altman-Z score, with a value of 2.47, GRM is in the better half of the industry, outperforming 61.02% of the companies in the same industry.
GRM has a debt to FCF ratio of 6.49. This is a slightly negative value and a sign of low solvency as GRM would need 6.49 years to pay back of all of its debts.
GRM's Debt to FCF ratio of 6.49 is in line compared to the rest of the industry. GRM outperforms 50.85% of its industry peers.
GRM has a Debt/Equity ratio of 1.45. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GRM (1.45) is worse than 86.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 6.49 | ||
| Altman-Z | 2.47 |
ROIC/WACC1.54
WACC6.73%
2.3 Liquidity
A Current Ratio of 0.67 indicates that GRM may have some problems paying its short term obligations.
GRM's Current ratio of 0.67 is on the low side compared to the rest of the industry. GRM is outperformed by 88.14% of its industry peers.
A Quick Ratio of 0.43 indicates that GRM may have some problems paying its short term obligations.
GRM has a worse Quick ratio (0.43) than 81.36% 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 GRM have decreased by -6.86% in the last year.
GRM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.12% yearly.
GRM shows a decrease in Revenue. In the last year, the revenue decreased by -1.87%.
The Revenue has been growing slightly by 2.03% on average over the past years.
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
GRM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.53% yearly.
The Revenue is expected to grow by 3.60% on average over the next years.
EPS Next Y-3.86%
EPS Next 2Y0.17%
EPS Next 3Y3.76%
EPS Next 5Y9.53%
Revenue Next Year-1.76%
Revenue Next 2Y-1.01%
Revenue Next 3Y-0.06%
Revenue Next 5Y3.6%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.05, which indicates a correct valuation of GRM.
Based on the Price/Earnings ratio, GRM is valued a bit cheaper than the industry average as 69.49% of the companies are valued more expensively.
GRM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 12.55, which indicates a correct valuation of GRM.
GRM's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, GRM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 12.55 |
4.2 Price Multiples
GRM's Enterprise Value to EBITDA ratio is in line with the industry average.
69.49% 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 | 12.13 | ||
| EV/EBITDA | 10.81 |
4.3 Compensation for Growth
GRM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.86
EPS Next 2Y0.17%
EPS Next 3Y3.76%
5. Dividend
5.1 Amount
GRM has a Yearly Dividend Yield of 4.75%, which is a nice return.
Compared to an average industry Dividend Yield of 3.27, GRM pays a better dividend. On top of this GRM pays more dividend than 84.75% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, GRM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
5.2 History
The dividend of GRM has a limited annual growth rate of 4.26%.
Dividend Growth(5Y)4.26%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
GRM pays out 58.33% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of GRM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.33%
EPS Next 2Y0.17%
EPS Next 3Y3.76%
FRA:GRM (7/11/2025, 7:00:00 PM)
43.385
-0.75 (-1.7%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners86.44%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap23.53B
Analysts66.15
Price Target53.49 (23.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.75% |
Yearly Dividend2.08
Dividend Growth(5Y)4.26%
DP58.33%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
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)-4.2%
PT rev (3m)-10.42%
EPS NQ rev (1m)-15.16%
EPS NQ rev (3m)-15.16%
EPS NY rev (1m)-0.47%
EPS NY rev (3m)-1.33%
Revenue NQ rev (1m)-2.59%
Revenue NQ rev (3m)-3.04%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.05 | ||
| Fwd PE | 12.55 | ||
| P/S | 1.43 | ||
| P/FCF | 12.13 | ||
| P/OCF | 9.53 | ||
| P/B | 3.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.81 |
EPS(TTM)3.6
EY8.3%
EPS(NY)3.46
Fwd EY7.97%
FCF(TTM)3.58
FCFY8.24%
OCF(TTM)4.55
OCFY10.49%
SpS30.39
BVpS14.35
TBVpS-21.06
PEG (NY)N/A
PEG (5Y)3.86
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 | 2.47 |
F-Score5
WACC6.73%
ROIC/WACC1.54
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-3.86%
EPS Next 2Y0.17%
EPS Next 3Y3.76%
EPS Next 5Y9.53%
Revenue 1Y (TTM)-1.87%
Revenue growth 3Y0.86%
Revenue growth 5Y2.03%
Sales Q2Q%-3.35%
Revenue Next Year-1.76%
Revenue Next 2Y-1.01%
Revenue Next 3Y-0.06%
Revenue Next 5Y3.6%
EBIT growth 1Y-8.02%
EBIT growth 3Y0.07%
EBIT growth 5Y2.04%
EBIT Next Year12.88%
EBIT Next 3Y6.02%
EBIT Next 5Y8.91%
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%