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 56 industry peers in the Food Products industry. GRM has an excellent profitability rating, 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
In the past year GRM was profitable.
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
The Return On Assets of GRM (7.82%) is better than 80.36% of its industry peers.
Looking at the Return On Equity, with a value of 27.62%, GRM belongs to the top of the industry, outperforming 91.07% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.48%, GRM belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
GRM had an Average Return On Invested Capital over the past 3 years of 11.19%. This is above the industry average of 7.10%.
The 3 year average ROIC (11.19%) for GRM is below the current ROIC(11.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.82% | ||
| ROE | 27.62% | ||
| ROIC | 11.48% |
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 13.03% is amongst the best of the industry. GRM outperforms 89.29% of its industry peers.
GRM's Profit Margin has improved in the last couple of years.
The Operating Margin of GRM (18.33%) is better than 87.50% 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 (35.38%) 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 | 18.33% | ||
| PM (TTM) | 13.03% | ||
| GM | 35.38% |
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
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.
Compared to 5 years ago, GRM has less shares outstanding
GRM has a worse debt/assets ratio than last year.
2.2 Solvency
GRM has an Altman-Z score of 2.57. 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's Altman-Z score of 2.57 is fine compared to the rest of the industry. GRM outperforms 66.07% of its industry peers.
GRM has a debt to FCF ratio of 5.73. This is a neutral value as GRM would need 5.73 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.73, GRM is in line with its industry, outperforming 50.00% of the companies in the same industry.
GRM has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
GRM has a Debt to Equity ratio of 1.32. This is amonst the worse of the industry: GRM underperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 5.73 | ||
| Altman-Z | 2.57 |
ROIC/WACC1.59
WACC7.23%
2.3 Liquidity
GRM has a Current Ratio of 0.67. 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 0.67 is on the low side compared to the rest of the industry. GRM is outperformed by 91.07% of its industry peers.
GRM has a Quick Ratio of 0.67. 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 worse Quick ratio (0.44) than 83.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
GRM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.24%.
The Earnings Per Share has been growing slightly by 7.02% on average over the past years.
GRM shows a decrease in Revenue. In the last year, the revenue decreased by -2.62%.
GRM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.32% yearly.
EPS 1Y (TTM)-3.24%
EPS 3Y6.05%
EPS 5Y7.02%
EPS Q2Q%-14.53%
Revenue 1Y (TTM)-2.62%
Revenue growth 3Y3.09%
Revenue growth 5Y3.32%
Sales Q2Q%-5.04%
3.2 Future
GRM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.39% yearly.
The Revenue is expected to decrease by -0.77% on average over the next years.
EPS Next Y-6.3%
EPS Next 2Y-4.58%
EPS Next 3Y-1.42%
EPS Next 5Y1.39%
Revenue Next Year-2.41%
Revenue Next 2Y-2.05%
Revenue Next 3Y-1.42%
Revenue Next 5Y-0.77%
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
GRM is valuated correctly with a Price/Earnings ratio of 12.44.
Based on the Price/Earnings ratio, GRM is valued a bit cheaper than 64.29% of the companies in the same industry.
When comparing the Price/Earnings ratio of GRM to the average of the S&P500 Index (28.79), we can say GRM is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.53, GRM is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as GRM.
GRM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.44 | ||
| Fwd PE | 13.53 |
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.
GRM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GRM is cheaper than 66.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.31 | ||
| EV/EBITDA | 10.56 |
4.3 Compensation for Growth
The excellent profitability rating of GRM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.77
EPS Next 2Y-4.58%
EPS Next 3Y-1.42%
5. Dividend
5.1 Amount
GRM has a Yearly Dividend Yield of 4.26%, which is a nice return.
Compared to an average industry Dividend Yield of 3.21, GRM pays a better dividend. On top of this GRM pays more dividend than 83.93% of the companies listed in the same industry.
GRM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
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 52.52% of its income as dividend. 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.
DP52.52%
EPS Next 2Y-4.58%
EPS Next 3Y-1.42%
FRA:GRM (4/25/2025, 7:00:00 PM)
49.025
-1.3 (-2.59%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners83.24%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap26.85B
Analysts66.92
Price Target55.65 (13.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
Yearly Dividend2.09
Dividend Growth(5Y)3.77%
DP52.52%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.59%
Min EPS beat(2)3.36%
Max EPS beat(2)13.83%
EPS beat(4)4
Avg EPS beat(4)4.49%
Min EPS beat(4)0.06%
Max EPS beat(4)13.83%
EPS beat(8)7
Avg EPS beat(8)4.96%
EPS beat(12)11
Avg EPS beat(12)5.43%
EPS beat(16)14
Avg EPS beat(16)5.14%
Revenue beat(2)1
Avg Revenue beat(2)-1.22%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)0.93%
Revenue beat(4)1
Avg Revenue beat(4)-1.57%
Min Revenue beat(4)-3.84%
Max Revenue beat(4)0.93%
Revenue beat(8)2
Avg Revenue beat(8)-1.74%
Revenue beat(12)4
Avg Revenue beat(12)-1.04%
Revenue beat(16)7
Avg Revenue beat(16)-0.22%
PT rev (1m)-14.42%
PT rev (3m)-20.99%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-32.96%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-7.1%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-5.41%
Revenue NY rev (1m)-1.41%
Revenue NY rev (3m)-2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.44 | ||
| Fwd PE | 13.53 | ||
| P/S | 1.55 | ||
| P/FCF | 12.31 | ||
| P/OCF | 9.62 | ||
| P/B | 3.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.56 |
EPS(TTM)3.94
EY8.04%
EPS(NY)3.62
Fwd EY7.39%
FCF(TTM)3.98
FCFY8.12%
OCF(TTM)5.1
OCFY10.4%
SpS31.59
BVpS14.89
TBVpS-21.41
PEG (NY)N/A
PEG (5Y)1.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.82% | ||
| ROE | 27.62% | ||
| ROCE | 14.5% | ||
| ROIC | 11.48% | ||
| ROICexc | 11.72% | ||
| ROICexgc | 135.48% | ||
| OM | 18.33% | ||
| PM (TTM) | 13.03% | ||
| GM | 35.38% | ||
| FCFM | 12.61% |
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 | 1.32 | ||
| Debt/FCF | 5.73 | ||
| Debt/EBITDA | 2.96 | ||
| Cap/Depr | 127.52% | ||
| Cap/Sales | 3.53% | ||
| Interest Coverage | 7.63 | ||
| Cash Conversion | 76.5% | ||
| Profit Quality | 96.8% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 2.57 |
F-Score6
WACC7.23%
ROIC/WACC1.59
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)-3.24%
EPS 3Y6.05%
EPS 5Y7.02%
EPS Q2Q%-14.53%
EPS Next Y-6.3%
EPS Next 2Y-4.58%
EPS Next 3Y-1.42%
EPS Next 5Y1.39%
Revenue 1Y (TTM)-2.62%
Revenue growth 3Y3.09%
Revenue growth 5Y3.32%
Sales Q2Q%-5.04%
Revenue Next Year-2.41%
Revenue Next 2Y-2.05%
Revenue Next 3Y-1.42%
Revenue Next 5Y-0.77%
EBIT growth 1Y-1.75%
EBIT growth 3Y2.72%
EBIT growth 5Y4.47%
EBIT Next Year8.65%
EBIT Next 3Y2.53%
EBIT Next 5Y2.37%
FCF growth 1Y-2.71%
FCF growth 3Y1.02%
FCF growth 5Y2.19%
OCF growth 1Y1.78%
OCF growth 3Y3.45%
OCF growth 5Y3.31%