GENERAL MILLS INC (GIS) Stock Fundamental Analysis
NYSE:GIS - New York Stock Exchange, Inc. - US3703341046 - Common Stock - Currency: USD
GIS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 89 industry peers in the Food Products industry. GIS has an excellent profitability rating, but there are concerns on its financial health. GIS has a decent growth rate and is not valued too expensively. GIS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year GIS was profitable.
GIS had a positive operating cash flow in the past year.
GIS had positive earnings in each of the past 5 years.
In the past 5 years GIS always reported a positive cash flow from operatings.
1.2 Ratios
GIS has a better Return On Assets (6.94%) than 80.90% of its industry peers.
GIS has a Return On Equity of 24.95%. This is amongst the best in the industry. GIS outperforms 95.51% of its industry peers.
GIS has a Return On Invested Capital of 10.39%. This is amongst the best in the industry. GIS outperforms 84.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GIS is significantly below the industry average of 29.14%.
| 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
GIS has a Profit Margin of 11.78%. This is amongst the best in the industry. GIS outperforms 92.13% of its industry peers.
In the last couple of years the Profit Margin of GIS has remained more or less at the same level.
Looking at the Operating Margin, with a value of 17.24%, GIS belongs to the top of the industry, outperforming 92.13% of the companies in the same industry.
GIS's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 34.60%, GIS is doing good in the industry, outperforming 76.40% of the companies in the same industry.
In the last couple of years the Gross Margin of GIS has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GIS is still creating some value.
GIS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GIS has less shares outstanding
The debt/assets ratio for GIS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.44 indicates that GIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.44, GIS perfoms like the industry average, outperforming 58.43% of the companies in the same industry.
The Debt to FCF ratio of GIS is 6.49, which is on the high side as it means it would take GIS, 6.49 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.49, GIS is in the better half of the industry, outperforming 75.28% of the companies in the same industry.
GIS has a Debt/Equity ratio of 1.45. This is a high value indicating a heavy dependency on external financing.
GIS's Debt to Equity ratio of 1.45 is on the low side compared to the rest of the industry. GIS is outperformed by 82.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 6.49 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.52
WACC6.82%
2.3 Liquidity
A Current Ratio of 0.67 indicates that GIS may have some problems paying its short term obligations.
With a Current ratio value of 0.67, GIS is not doing good in the industry: 87.64% of the companies in the same industry are doing better.
A Quick Ratio of 0.43 indicates that GIS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.43, GIS is doing worse than 80.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
The earnings per share for GIS have decreased by -6.86% in the last year.
The Earnings Per Share has been growing slightly by 3.12% on average over the past years.
GIS shows a decrease in Revenue. In the last year, the revenue decreased by -1.87%.
Measured over the past years, GIS shows a small growth in Revenue. The Revenue has been growing by 2.03% on average per year.
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
GIS 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 3.61% on average over the next years.
EPS Next Y-12.32%
EPS Next 2Y-4.48%
EPS Next 3Y-0.8%
EPS Next 5Y9.53%
Revenue Next Year-4.11%
Revenue Next 2Y-2.25%
Revenue Next 3Y-0.73%
Revenue Next 5Y3.61%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 11.81 indicates a reasonable valuation of GIS.
75.28% of the companies in the same industry are more expensive than GIS, based on the Price/Earnings ratio.
GIS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.11.
GIS is valuated correctly with a Price/Forward Earnings ratio of 13.47.
Based on the Price/Forward Earnings ratio, GIS is valued a bit cheaper than the industry average as 74.16% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.78, GIS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.81 | ||
| Fwd PE | 13.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GIS is on the same level as its industry peers.
79.78% of the companies in the same industry are more expensive than GIS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.76 | ||
| EV/EBITDA | 10.47 |
4.3 Compensation for Growth
The decent profitability rating of GIS may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.78
EPS Next 2Y-4.48%
EPS Next 3Y-0.8%
5. Dividend
5.1 Amount
GIS has a Yearly Dividend Yield of 4.87%, which is a nice return.
Compared to an average industry Dividend Yield of 4.72, GIS pays a better dividend. On top of this GIS pays more dividend than 85.39% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, GIS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.87% |
5.2 History
The dividend of GIS has a limited annual growth rate of 4.26%.
GIS has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.26%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
GIS pays out 58.33% of its income as dividend. This is a bit on the high side, but may be sustainable.
GIS's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP58.33%
EPS Next 2Y-4.48%
EPS Next 3Y-0.8%
NYSE:GIS (8/14/2025, 3:04:01 PM)
49.725
0 (-0.01%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners87.31%
Inst Owner Change-0.54%
Ins Owners0.28%
Ins Owner Change3.74%
Market Cap26.97B
Analysts66.15
Price Target56.64 (13.91%)
Short Float %5.73%
Short Ratio5.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.87% |
Yearly Dividend2.43
Dividend Growth(5Y)4.26%
DP58.33%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-7.76%
PT rev (3m)-10.73%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)-15.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.31%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)-2.39%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-2.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.81 | ||
| Fwd PE | 13.47 | ||
| P/S | 1.38 | ||
| P/FCF | 11.76 | ||
| P/OCF | 9.24 | ||
| P/B | 2.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.47 |
EPS(TTM)4.21
EY8.47%
EPS(NY)3.69
Fwd EY7.42%
FCF(TTM)4.23
FCFY8.5%
OCF(TTM)5.38
OCFY10.82%
SpS35.92
BVpS16.96
TBVpS-24.9
PEG (NY)N/A
PEG (5Y)3.78
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 | 2.44 |
F-Score5
WACC6.82%
ROIC/WACC1.52
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-12.32%
EPS Next 2Y-4.48%
EPS Next 3Y-0.8%
EPS Next 5Y9.53%
Revenue 1Y (TTM)-1.87%
Revenue growth 3Y0.86%
Revenue growth 5Y2.03%
Sales Q2Q%-3.35%
Revenue Next Year-4.11%
Revenue Next 2Y-2.25%
Revenue Next 3Y-0.73%
Revenue Next 5Y3.61%
EBIT growth 1Y-8.02%
EBIT growth 3Y0.07%
EBIT growth 5Y2.04%
EBIT Next Year4.84%
EBIT Next 3Y3.38%
EBIT Next 5Y8.93%
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%