GENERAL MILLS INC (GIS)

US3703341046 - Common Stock

69.66  +1.32 (+1.93%)

After market: 69.66 0 (0%)

Fundamental Rating

5

GIS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 91 industry peers in the Food Products industry. GIS has an excellent profitability rating, but there are some minor 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.



8

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.
Each year in the past 5 years GIS had a positive operating cash flow.

1.2 Ratios

GIS has a better Return On Assets (8.28%) than 84.62% of its industry peers.
GIS's Return On Equity of 27.06% is amongst the best of the industry. GIS outperforms 93.41% of its industry peers.
The Return On Invested Capital of GIS (12.14%) is better than 90.11% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GIS is above the industry average of 7.96%.
The last Return On Invested Capital (12.14%) for GIS is above the 3 year average (11.06%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 8.28%
ROE 27.06%
ROIC 12.14%
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

GIS's Profit Margin of 12.66% is amongst the best of the industry. GIS outperforms 87.91% 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 has a Operating Margin of 18.16%. This is amongst the best in the industry. GIS outperforms 95.60% of its industry peers.
In the last couple of years the Operating Margin of GIS has declined.
The Gross Margin of GIS (34.66%) is better than 86.81% 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 RankSector Rank
OM 18.16%
PM (TTM) 12.66%
GM 34.66%
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%

4

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.
The debt/assets ratio for GIS has been reduced compared to a year ago.

2.2 Solvency

GIS has an Altman-Z score of 2.99. This is not the best score and indicates that GIS is in the grey zone with still only limited risk for bankruptcy at the moment.
GIS's Altman-Z score of 2.99 is fine compared to the rest of the industry. GIS outperforms 72.53% of its industry peers.
GIS has a debt to FCF ratio of 5.29. This is a neutral value as GIS would need 5.29 years to pay back of all of its debts.
GIS's Debt to FCF ratio of 5.29 is fine compared to the rest of the industry. GIS outperforms 72.53% of its industry peers.
A Debt/Equity ratio of 1.24 is on the high side and indicates that GIS has dependencies on debt financing.
GIS's Debt to Equity ratio of 1.24 is on the low side compared to the rest of the industry. GIS is outperformed by 80.22% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.24
Debt/FCF 5.29
Altman-Z 2.99
ROIC/WACC1.64
WACC7.39%

2.3 Liquidity

GIS has a Current 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 Current ratio (0.66) than 86.81% of its industry peers.
A Quick Ratio of 0.40 indicates that GIS may have some problems paying its short term obligations.
GIS has a worse Quick ratio (0.40) than 87.91% of its industry peers.
Industry RankSector Rank
Current Ratio 0.66
Quick Ratio 0.4

3

3. Growth

3.1 Past

GIS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.67%.
Measured over the past 5 years, GIS shows a small growth in Earnings Per Share. The EPS has been growing by 6.69% on average per year.
Looking at the last year, GIS shows a small growth in Revenue. The Revenue has grown by 1.09% in the last year.
Measured over the past years, GIS shows a small growth in Revenue. The Revenue has been growing by 5.01% on average per year.
EPS 1Y (TTM)7.67%
EPS 3Y6%
EPS 5Y6.69%
EPS growth Q2Q20.62%
Revenue 1Y (TTM)1.09%
Revenue growth 3Y4.46%
Revenue growth 5Y5.01%
Revenue growth Q2Q-0.52%

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 Y5.27%
EPS Next 2Y4.74%
EPS Next 3Y5.56%
EPS Next 5Y5.62%
Revenue Next Year-1.31%
Revenue Next 2Y0.03%
Revenue Next 3Y0.66%
Revenue Next 5Y2.05%

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 stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 15.05, which indicates a correct valuation of GIS.
Based on the Price/Earnings ratio, GIS is valued a bit cheaper than 78.02% of the companies in the same industry.
GIS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.42.
GIS is valuated correctly with a Price/Forward Earnings ratio of 14.77.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GIS indicates a somewhat cheap valuation: GIS is cheaper than 79.12% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.74, GIS is valued a bit cheaper.
Industry RankSector Rank
PE 15.05
Fwd PE 14.77

4.2 Price Multiples

65.93% of the companies in the same industry are more expensive than GIS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GIS is valued a bit cheaper than 75.82% of the companies in the same industry.
Industry RankSector Rank
P/FCF 16.71
EV/EBITDA 12.06

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GIS does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of GIS may justify a higher PE ratio.
PEG (NY)2.85
PEG (5Y)2.25
EPS Next 2Y4.74%
EPS Next 3Y5.56%

7

5. Dividend

5.1 Amount

GIS has a Yearly Dividend Yield of 3.45%.
GIS's Dividend Yield is rather good when compared to the industry average which is at 3.36. GIS pays more dividend than 86.81% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, GIS pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.45%

5.2 History

The dividend of GIS has a limited annual growth rate of 2.20%.
GIS has been paying a dividend for at least 10 years, so it has a reliable track record.
GIS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.2%
Div Incr Years4
Div Non Decr Years12

5.3 Sustainability

GIS pays out 52.80% 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.
DP52.8%
EPS Next 2Y4.74%
EPS Next 3Y5.56%

GENERAL MILLS INC

NYSE:GIS (3/27/2024, 8:16:45 PM)

After market: 69.66 0 (0%)

69.66

+1.32 (+1.93%)

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 Cap39.56B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.45%
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 15.05
Fwd PE 14.77
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)2.85
PEG (5Y)2.25
Profitability
Industry RankSector Rank
ROA 8.28%
ROE 27.06%
ROCE
ROIC
ROICexc
ROICexgc
OM 18.16%
PM (TTM) 12.66%
GM 34.66%
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 RankSector Rank
Debt/Equity 1.24
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.66
Quick Ratio 0.4
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)7.67%
EPS 3Y6%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.09%
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