GENERAL MILLS INC (GIS)
US3703341046 - Common Stock
Taking everything into account, GIS scores 5 out of 10 in our fundamental rating. GIS was compared to 92 industry peers in the Food Products industry. GIS has an excellent profitability rating, but there are concerns on its financial health. GIS has a valuation in line with the averages, but it does not seem to be growing. GIS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year GIS was profitable.
In the past year GIS had a positive cash flow from operations.
Each year in the past 5 years GIS has been profitable.
GIS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GIS has a Return On Assets of 7.81%. This is amongst the best in the industry. GIS outperforms 81.32% of its industry peers.
With an excellent Return On Equity value of 23.85%, GIS belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
GIS has a Return On Invested Capital of 10.90%. This is amongst the best in the industry. GIS outperforms 87.91% of its industry peers.
GIS had an Average Return On Invested Capital over the past 3 years of 11.06%. This is above the industry average of 8.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.81% | ||
| ROE | 23.85% | ||
| ROIC | 10.9% |
ROA(3y)8.1%
ROA(5y)7.44%
ROE(3y)25.07%
ROE(5y)25.42%
ROIC(3y)11.06%
ROIC(5y)10.67%
1.3 Margins
The Profit Margin of GIS (12.07%) is better than 89.01% of its industry peers.
In the last couple of years the Profit Margin of GIS has remained more or less at the same level.
GIS's Operating Margin of 16.46% is amongst the best of the industry. GIS outperforms 92.31% of its industry peers.
In the last couple of years the Operating Margin of GIS has declined.
GIS has a Gross Margin of 33.93%. This is amongst the best in the industry. GIS outperforms 84.62% of its industry peers.
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 | 16.46% | ||
| PM (TTM) | 12.07% | ||
| GM | 33.93% |
OM growth 3Y-4.06%
OM growth 5Y-1.69%
PM growth 3Y1.42%
PM growth 5Y-0.95%
GM growth 3Y-2.57%
GM growth 5Y-1.14%
2. Health
2.1 Basic Checks
GIS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
GIS has less shares outstanding than it did 1 year ago.
GIS has less shares outstanding than it did 5 years ago.
GIS has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.91 indicates that GIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
GIS has a Altman-Z score of 2.91. This is in the better half of the industry: GIS outperforms 67.03% of its industry peers.
GIS has a debt to FCF ratio of 6.06. This is a slightly negative value and a sign of low solvency as GIS would need 6.06 years to pay back of all of its debts.
GIS's Debt to FCF ratio of 6.06 is fine compared to the rest of the industry. GIS outperforms 70.33% of its industry peers.
A Debt/Equity ratio of 1.08 is on the high side and indicates that GIS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.08, GIS is doing worse than 74.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 6.06 | ||
| Altman-Z | 2.91 |
ROIC/WACC1.49
WACC7.34%
2.3 Liquidity
GIS has a Current Ratio of 0.72. This is a bad value and indicates that GIS is not financially healthy enough and could expect problems in meeting its short term obligations.
GIS has a Current ratio of 0.72. This is amonst the worse of the industry: GIS underperforms 91.21% of its industry peers.
GIS has a Quick Ratio of 0.72. This is a bad value and indicates that GIS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.41, GIS is doing worse than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
GIS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.42%.
The Earnings Per Share has been growing slightly by 6.69% on average over the past years.
GIS shows a small growth in Revenue. In the last year, the Revenue has grown by 5.79%.
The Revenue has been growing slightly by 5.01% on average over the past years.
EPS 1Y (TTM)5.42%
EPS 3Y6%
EPS 5Y6.69%
EPS growth Q2Q-1.8%
Revenue 1Y (TTM)5.79%
Revenue growth 3Y4.46%
Revenue growth 5Y5.01%
Revenue growth Q2Q3.97%
3.2 Future
Based on estimates for the next years, GIS will show a small growth in Earnings Per Share. The EPS will grow by 5.62% on average per year.
The Revenue is expected to grow by 2.05% on average over the next years.
EPS Next Y5.16%
EPS Next 2Y5.23%
EPS Next 3Y5.09%
EPS Next 5Y5.62%
Revenue Next Year1.84%
Revenue Next 2Y1.83%
Revenue Next 3Y1.69%
Revenue Next 5Y2.05%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
A Price/Earnings ratio of 15.44 indicates a correct valuation of GIS.
Compared to the rest of the industry, the Price/Earnings ratio of GIS indicates a somewhat cheap valuation: GIS is cheaper than 75.82% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GIS to the average of the S&P500 Index (24.54), we can say GIS is valued slightly cheaper.
GIS is valuated correctly with a Price/Forward Earnings ratio of 13.88.
Based on the Price/Forward Earnings ratio, GIS is valued a bit cheaper than the industry average as 79.12% of the companies are valued more expensively.
GIS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.22, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 13.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GIS is valued a bit cheaper than the industry average as 60.44% of the companies are valued more expensively.
GIS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GIS is cheaper than 74.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.94 | ||
| EV/EBITDA | 12.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of GIS may justify a higher PE ratio.
PEG (NY)2.99
PEG (5Y)2.31
EPS Next 2Y5.23%
EPS Next 3Y5.09%
5. Dividend
5.1 Amount
GIS has a Yearly Dividend Yield of 3.55%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.44, GIS pays a better dividend. On top of this GIS pays more dividend than 85.71% of the companies listed in the same industry.
GIS's Dividend Yield is a higher than the S&P500 average which is at 2.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
5.2 History
The dividend of GIS has a limited annual growth rate of 2.20%.
GIS has paid a dividend for at least 10 years, which is a reliable track record.
GIS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.2%
Div Incr Years4
Div Non Decr Years12
5.3 Sustainability
GIS pays out 53.58% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of GIS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP53.58%
EPS Next 2Y5.23%
EPS Next 3Y5.09%
GENERAL MILLS INC
NYSE:GIS (12/11/2023, 3:06:47 PM)
After market: 66.08 0 (0%)66.08
+0.61 (+0.93%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap38.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.44 | ||
| Fwd PE | 13.88 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.99
PEG (5Y)2.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.81% | ||
| ROE | 23.85% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.46% | ||
| PM (TTM) | 12.07% | ||
| GM | 33.93% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)5.42%
EPS 3Y6%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.79%
Revenue growth 3Y4.46%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y