GENERAL MILLS INC (GRM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GRM - US3703341046 - Common Stock
37.1 EUR
-0.57 (-1.51%)
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 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
- 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
- GRM has a Return On Assets of 7.79%. This is amongst the best in 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.
- The Average Return On Invested Capital over the past 3 years for GRM 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.
- Looking at the Operating Margin, with a value of 15.95%, GRM belongs to the top of the industry, outperforming 88.71% of the companies in the same industry.
- In the last couple of years the Operating Margin of GRM has remained more or less at the same level.
- The Gross Margin of GRM (33.83%) 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GRM is creating some value.
- The number of shares outstanding for GRM has been reduced compared to 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
- GRM has an Altman-Z score of 2.37. 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 has a Altman-Z score (2.37) which is comparable to the rest of the industry.
- The Debt to FCF ratio of GRM is 7.70, which is on the high side as it means it would take GRM, 7.70 years of fcf income to pay off all of its debts.
- GRM has a Debt to FCF ratio (7.70) which is comparable to the rest of the industry.
- 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's Current ratio of 0.66 is on the low side compared to the rest of the industry. GRM is outperformed by 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's Quick ratio of 0.39 is on the low side compared to the rest of the industry. GRM is outperformed by 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.
- The Earnings Per Share has been growing slightly by 3.12% on average over the past years.
- GRM shows a decrease in Revenue. In the last year, the revenue decreased by -5.65%.
- The Revenue has been growing slightly by 2.03% on average over the past years.
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
- Based on estimates for the next years, GRM will show a small growth in Earnings Per Share. The EPS will grow by 0.16% on average per year.
- 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
- Based on the Price/Earnings ratio of 12.01, the valuation of GRM can be described as correct.
- Based on the Price/Earnings ratio, GRM is valued a bit cheaper than the industry average as 75.81% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of GRM to the average of the S&P500 Index (28.39), we can say GRM is valued rather cheaply.
- GRM is valuated reasonably with a Price/Forward Earnings ratio of 11.78.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of GRM indicates a somewhat cheap valuation: GRM is cheaper than 64.52% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, GRM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.01 | ||
| Fwd PE | 11.78 |
4.2 Price Multiples
- GRM's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, GRM is valued a bit cheaper than 72.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.29 | ||
| EV/EBITDA | 10.47 |
4.3 Compensation for Growth
- The excellent profitability rating of GRM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.84
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.
- GRM's earnings are growing slower than its dividend. 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 12.01 and the Price/Book (PB) ratio is 2.54.
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.