GENERAL MILLS INC (GRM.DE) Stock Fundamental Analysis
FRA:GRM - Deutsche Boerse Ag - US3703341046 - Common Stock - Currency: EUR
Taking everything into account, GRM scores 5 out of 10 in our fundamental rating. GRM was compared to 57 industry peers in the Food Products industry. GRM scores excellent on profitability, but there are concerns on its financial health. GRM is valued correctly, but it does not seem to be growing.
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.
Each year in the past 5 years GRM had a positive operating cash flow.
1.2 Ratios
GRM has a better Return On Assets (7.79%) than 86.21% of its industry peers.
The Return On Equity of GRM (28.29%) is better than 94.83% of its industry peers.
GRM's Return On Invested Capital of 11.59% is amongst the best of the industry. GRM outperforms 94.83% of its industry peers.
GRM had an Average Return On Invested Capital over the past 3 years of 11.19%. This is above the industry average of 7.01%.
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 91.38% of its industry peers.
GRM's Profit Margin has improved in the last couple of years.
GRM has a Operating Margin of 18.57%. This is amongst the best in the industry. GRM outperforms 89.66% of its industry peers.
GRM's Operating Margin has been stable in the last couple of years.
GRM has a Gross Margin (35.27%) which is in line with its industry peers.
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 | 18.57% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GRM is creating some value.
Compared to 1 year ago, GRM has less shares outstanding
GRM has less shares outstanding than it did 5 years ago.
GRM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.71 indicates that GRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
GRM's Altman-Z score of 2.71 is fine compared to the rest of the industry. GRM outperforms 68.97% of its industry peers.
The Debt to FCF ratio of GRM is 5.19, which is a neutral value as it means it would take GRM, 5.19 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GRM (5.19) is comparable to the rest of the industry.
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 89.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.38 | ||
| Debt/FCF | 5.19 | ||
| Altman-Z | 2.71 |
ROIC/WACC1.56
WACC7.42%
2.3 Liquidity
A Current Ratio of 0.92 indicates that GRM may have some problems paying its short term obligations.
GRM has a Current ratio of 0.92. This is amonst the worse of the industry: GRM underperforms 81.03% of its industry peers.
A Quick Ratio of 0.67 indicates that GRM may have some problems paying its short term obligations.
GRM has a Quick ratio of 0.67. This is in the lower half of the industry: GRM underperforms 67.24% of its industry peers.
| 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.
The Earnings Per Share has been growing slightly by 7.02% on average over the past years.
Looking at the last year, GRM shows a decrease in Revenue. The Revenue has decreased by -1.48% in the last year.
Measured over the past years, GRM shows a small growth in Revenue. The Revenue has been growing by 3.32% on average per year.
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
Based on estimates for the next years, GRM will show a small growth in Earnings Per Share. The EPS will grow by 2.99% on average per year.
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-2.33%
EPS Next 2Y0.36%
EPS Next 3Y1.98%
EPS Next 5Y2.99%
Revenue Next Year-1.01%
Revenue Next 2Y-0.63%
Revenue Next 3Y-0.33%
Revenue Next 5Y0.06%
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 13.75, 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 62.07% 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 29.35.
With a Price/Forward Earnings ratio of 14.03, GRM is valued correctly.
GRM's Price/Forward Earnings ratio is in line with the industry average.
GRM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 14.03 |
4.2 Price Multiples
60.34% of the companies in the same industry are cheaper than GRM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GRM indicates a somewhat cheap valuation: GRM is cheaper than 68.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.58 | ||
| EV/EBITDA | 11.1 |
4.3 Compensation for Growth
The excellent profitability rating of GRM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.96
EPS Next 2Y0.36%
EPS Next 3Y1.98%
5. Dividend
5.1 Amount
GRM has a Yearly Dividend Yield of 3.86%. Purely for dividend investing, there may be better candidates out there.
GRM's Dividend Yield is a higher than the industry average which is at 3.35.
GRM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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
51.79% of the earnings are spent on dividend by GRM. 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 2Y0.36%
EPS Next 3Y1.98%
FRA:GRM (3/7/2025, 7:00:00 PM)
58.84
+2.24 (+3.96%)
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 Cap32.43B
Analysts68
Price Target65.02 (10.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
Yearly Dividend2.19
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)-4.85%
PT rev (3m)-8.91%
EPS NQ rev (1m)-1.92%
EPS NQ rev (3m)-15.42%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)-3.18%
Revenue NQ rev (1m)-1.27%
Revenue NQ rev (3m)-3.17%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 14.03 | ||
| P/S | 1.77 | ||
| P/FCF | 12.58 | ||
| P/OCF | 9.83 | ||
| P/B | 3.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.1 |
EPS(TTM)4.28
EY7.27%
EPS(NY)4.19
Fwd EY7.13%
FCF(TTM)4.68
FCFY7.95%
OCF(TTM)5.98
OCFY10.17%
SpS33.25
BVpS15.37
TBVpS-20
PEG (NY)N/A
PEG (5Y)1.96
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 | 2.71 |
F-Score6
WACC7.42%
ROIC/WACC1.56
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-2.33%
EPS Next 2Y0.36%
EPS Next 3Y1.98%
EPS Next 5Y2.99%
Revenue 1Y (TTM)-1.48%
Revenue growth 3Y3.09%
Revenue growth 5Y3.32%
Sales Q2Q%1.96%
Revenue Next Year-1.01%
Revenue Next 2Y-0.63%
Revenue Next 3Y-0.33%
Revenue Next 5Y0.06%
EBIT growth 1Y6.59%
EBIT growth 3Y2.72%
EBIT growth 5Y4.47%
EBIT Next Year13.05%
EBIT Next 3Y5.22%
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%