GENERAL MILLS INC (GIS) Stock Fundamental Analysis
USA - NYSE:GIS - US3703341046 - Common Stock
46.22 USD
-0.66 (-1.41%)
46.2 USD
-0.02 (-0.04%)
We assign a fundamental rating of 4 out of 10 to GIS. GIS was compared to 86 industry peers in the Food Products industry. While GIS has a great profitability rating, there are quite some concerns on its financial health. GIS has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In the past 5 years GIS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GIS (8.84%) is better than 90.70% of its industry peers.
With an excellent Return On Equity value of 30.71%, GIS belongs to the best of the industry, outperforming 97.67% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.30%, GIS belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
GIS had an Average Return On Invested Capital over the past 3 years of 10.86%. This is significantly below the industry average of 28.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.84% | ||
| ROE | 30.71% | ||
| ROIC | 10.3% |
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
Looking at the Profit Margin, with a value of 15.24%, GIS belongs to the top of the industry, outperforming 94.19% of the companies in the same industry.
GIS's Profit Margin has been stable in the last couple of years.
GIS has a Operating Margin of 16.84%. This is amongst the best in the industry. GIS outperforms 93.02% of its industry peers.
In the last couple of years the Operating Margin of GIS has remained more or less at the same level.
The Gross Margin of GIS (34.39%) is better than 79.07% 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 | 16.84% | ||
| PM (TTM) | 15.24% | ||
| GM | 34.39% |
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
GIS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for GIS has been reduced compared to 1 year ago.
The number of shares outstanding for GIS has been reduced compared to 5 years ago.
Compared to 1 year ago, GIS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.40 indicates that GIS is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.40, GIS is in line with its industry, outperforming 58.14% of the companies in the same industry.
The Debt to FCF ratio of GIS is 6.87, which is on the high side as it means it would take GIS, 6.87 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GIS (6.87) is better than 70.93% of its industry peers.
A Debt/Equity ratio of 1.29 is on the high side and indicates that GIS has dependencies on debt financing.
GIS has a worse Debt to Equity ratio (1.29) than 80.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 6.87 | ||
| Altman-Z | 2.4 |
ROIC/WACC1.57
WACC6.58%
2.3 Liquidity
A Current Ratio of 0.66 indicates that GIS may have some problems paying its short term obligations.
With a Current ratio value of 0.66, GIS is not doing good in the industry: 87.21% of the companies in the same industry are doing better.
GIS has a Quick Ratio of 0.66. 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 worse Quick ratio (0.40) than 79.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
GIS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.11%.
Measured over the past 5 years, GIS shows a small growth in Earnings Per Share. The EPS has been growing by 3.12% on average per year.
The Revenue has decreased by -3.26% in the past year.
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)-11.11%
EPS 3Y2.23%
EPS 5Y3.12%
EPS Q2Q%-19.63%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y0.86%
Revenue growth 5Y2.03%
Sales Q2Q%-6.82%
3.2 Future
GIS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.42% yearly.
GIS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.04% yearly.
EPS Next Y-12.43%
EPS Next 2Y-4.52%
EPS Next 3Y-1.3%
EPS Next 5Y0.42%
Revenue Next Year-4.69%
Revenue Next 2Y-2.59%
Revenue Next 3Y-1.12%
Revenue Next 5Y-0.04%
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
GIS is valuated reasonably with a Price/Earnings ratio of 11.55.
Based on the Price/Earnings ratio, GIS is valued a bit cheaper than the industry average as 77.91% of the companies are valued more expensively.
GIS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.28.
A Price/Forward Earnings ratio of 12.04 indicates a correct valuation of GIS.
79.07% of the companies in the same industry are more expensive than GIS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.61, GIS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 12.04 |
4.2 Price Multiples
GIS's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, GIS is valued cheaper than 82.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.76 | ||
| EV/EBITDA | 10.12 |
4.3 Compensation for Growth
GIS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.7
EPS Next 2Y-4.52%
EPS Next 3Y-1.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.31%, GIS is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.21, GIS pays a better dividend. On top of this GIS pays more dividend than 83.72% of the companies listed in the same industry.
GIS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.31% |
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 45.62% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of GIS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.62%
EPS Next 2Y-4.52%
EPS Next 3Y-1.3%
46.22
-0.66 (-1.41%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners86.7%
Inst Owner Change-1.36%
Ins Owners0.28%
Ins Owner Change3.79%
Market Cap24.65B
Revenue(TTM)19.16B
Net Income(TTM)2.92B
Analysts65.38
Price Target55.63 (20.36%)
Short Float %5.41%
Short Ratio4.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.31% |
Yearly Dividend2.43
Dividend Growth(5Y)4.26%
DP45.62%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.8%
Min EPS beat(2)3.07%
Max EPS beat(2)4.53%
EPS beat(4)4
Avg EPS beat(4)6.19%
Min EPS beat(4)3.07%
Max EPS beat(4)13.83%
EPS beat(8)8
Avg EPS beat(8)5.44%
EPS beat(12)11
Avg EPS beat(12)4.45%
EPS beat(16)14
Avg EPS beat(16)4.55%
Revenue beat(2)0
Avg Revenue beat(2)-1.27%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)-0.89%
Revenue beat(4)1
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)0.93%
Revenue beat(8)2
Avg Revenue beat(8)-1.51%
Revenue beat(12)3
Avg Revenue beat(12)-1.24%
Revenue beat(16)5
Avg Revenue beat(16)-0.84%
PT rev (1m)0%
PT rev (3m)-1.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.33%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 12.04 | ||
| P/S | 1.29 | ||
| P/FCF | 11.76 | ||
| P/OCF | 9.16 | ||
| P/B | 2.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.12 |
EPS(TTM)4
EY8.65%
EPS(NY)3.84
Fwd EY8.3%
FCF(TTM)3.93
FCFY8.5%
OCF(TTM)5.04
OCFY10.91%
SpS35.91
BVpS17.82
TBVpS-24.82
PEG (NY)N/A
PEG (5Y)3.7
Graham Number40.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.84% | ||
| ROE | 30.71% | ||
| ROCE | 12.88% | ||
| ROIC | 10.3% | ||
| ROICexc | 10.71% | ||
| ROICexgc | 187.52% | ||
| OM | 16.84% | ||
| PM (TTM) | 15.24% | ||
| GM | 34.39% | ||
| FCFM | 10.94% |
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%
ROICexgc growth 3Y-15.78%
ROICexgc 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-Score4
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 6.87 | ||
| Debt/EBITDA | 3.25 | ||
| Cap/Depr | 110.48% | ||
| Cap/Sales | 3.1% | ||
| Interest Coverage | 6.25 | ||
| Cash Conversion | 71.48% | ||
| Profit Quality | 71.81% | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.4 | ||
| Altman-Z | 2.4 |
F-Score4
WACC6.58%
ROIC/WACC1.57
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)-11.11%
EPS 3Y2.23%
EPS 5Y3.12%
EPS Q2Q%-19.63%
EPS Next Y-12.43%
EPS Next 2Y-4.52%
EPS Next 3Y-1.3%
EPS Next 5Y0.42%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y0.86%
Revenue growth 5Y2.03%
Sales Q2Q%-6.82%
Revenue Next Year-4.69%
Revenue Next 2Y-2.59%
Revenue Next 3Y-1.12%
Revenue Next 5Y-0.04%
EBIT growth 1Y-9.08%
EBIT growth 3Y0.07%
EBIT growth 5Y2.04%
EBIT Next Year5.08%
EBIT Next 3Y2.66%
EBIT Next 5Y2.69%
FCF growth 1Y3.4%
FCF growth 3Y-5.85%
FCF growth 5Y-6.54%
OCF growth 1Y-2.78%
OCF growth 3Y-4.17%
OCF growth 5Y-4.51%
GENERAL MILLS INC / GIS FAQ
What is the fundamental rating for GIS stock?
ChartMill assigns a fundamental rating of 4 / 10 to GIS.
Can you provide the valuation status for GENERAL MILLS INC?
ChartMill assigns a valuation rating of 5 / 10 to GENERAL MILLS INC (GIS). This can be considered as Fairly Valued.
How profitable is GENERAL MILLS INC (GIS) stock?
GENERAL MILLS INC (GIS) has a profitability rating of 7 / 10.
Can you provide the financial health for GIS stock?
The financial health rating of GENERAL MILLS INC (GIS) is 3 / 10.
What is the expected EPS growth for GENERAL MILLS INC (GIS) stock?
The Earnings per Share (EPS) of GENERAL MILLS INC (GIS) is expected to decline by -12.43% in the next year.