GENERAL MILLS INC (GRM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GRM - US3703341046 - Common Stock
37.67 EUR
+0.36 (+0.95%)
Taking everything into account, GRM scores 4 out of 10 in our fundamental rating. GRM was compared to 62 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. 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's Return On Assets of 7.79% is amongst the best of the industry. GRM outperforms 82.26% of its industry peers.
- GRM has a better Return On Equity (27.23%) than 91.94% of its industry peers.
- 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
- With an excellent Profit Margin value of 13.51%, GRM belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
- In the last couple of years the Profit Margin of GRM has remained more or less at the same level.
- GRM has a better Operating Margin (15.95%) than 88.71% of its industry peers.
- GRM's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 33.83%, GRM is in line with its industry, outperforming 48.39% of the companies in the same 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
- 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.
- 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.
- The Altman-Z score of GRM (2.37) is comparable to the rest of the 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.
- GRM has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
- GRM has a Debt to Equity ratio of 1.31. This is amonst the worse of the industry: GRM underperforms 80.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 7.7 | ||
| Altman-Z | 2.37 |
ROIC/WACC1.49
WACC6.48%
2.3 Liquidity
- A Current Ratio of 0.66 indicates that GRM may have some problems paying 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 worse Quick ratio (0.39) than 79.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
- The earnings per share for GRM have decreased strongly by -20.43% in the last year.
- 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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 12.15 indicates a correct valuation of GRM.
- GRM's Price/Earnings ratio is a bit cheaper when compared to the industry. GRM is cheaper than 75.81% of the companies in the same industry.
- When comparing the Price/Earnings ratio of GRM to the average of the S&P500 Index (28.60), we can say GRM is valued rather cheaply.
- With a Price/Forward Earnings ratio of 11.91, the valuation of GRM can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, GRM is valued a bit cheaper than 64.52% of the companies in the same industry.
- GRM is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.15 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as GRM.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GRM indicates a somewhat cheap valuation: GRM is cheaper than 74.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.45 | ||
| EV/EBITDA | 10.39 |
4.3 Compensation for Growth
- GRM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.89
EPS Next 2Y-5.35%
EPS Next 3Y-1.68%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.48%, GRM is a good candidate for dividend investing.
- GRM's Dividend Yield is rather good when compared to the industry average which is at 2.38. GRM pays more dividend than 90.32% of the companies 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
- GRM pays out 52.10% 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.
DP52.1%
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 12.15 and the Price/Book (PB) ratio is 2.57.
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.