GENERAL MILLS INC (GIS) Stock Fundamental Analysis
USA - NYSE:GIS - US3703341046 - Common Stock
49.7144 USD
+0.28 (+0.58%)
GIS gets a fundamental rating of 4 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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
GIS had positive earnings in the past year.
GIS had a positive operating cash flow in the past year.
In the past 5 years GIS has always been profitable.
In the past 5 years GIS always reported a positive cash flow from operatings.
1.2 Ratios
GIS's Return On Assets of 8.84% is amongst the best of the industry. GIS outperforms 88.76% of its industry peers.
Looking at the Return On Equity, with a value of 30.71%, GIS belongs to the top of the industry, outperforming 95.51% of the companies in the same industry.
GIS's Return On Invested Capital of 10.30% is amongst the best of the industry. GIS outperforms 83.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GIS is significantly below the industry average of 27.85%.
| 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 94.38% of the companies in the same industry.
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 16.84% is amongst the best of the industry. GIS outperforms 93.26% of its industry peers.
In the last couple of years the Operating Margin of GIS has remained more or less at the same level.
GIS's Gross Margin of 34.39% is fine compared to the rest of the industry. GIS outperforms 78.65% of its industry peers.
GIS's Gross Margin has been stable in the last couple of years.
| 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.
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.
GIS has a Altman-Z score (2.44) which is in line with its industry peers.
GIS has a debt to FCF ratio of 6.87. This is a slightly negative value and a sign of low solvency as GIS would need 6.87 years to pay back of all of its debts.
The Debt to FCF ratio of GIS (6.87) is better than 71.91% 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's Debt to Equity ratio of 1.29 is on the low side compared to the rest of the industry. GIS is outperformed by 78.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | 6.87 | ||
| Altman-Z | 2.44 |
ROIC/WACC1.54
WACC6.71%
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's Current ratio of 0.66 is on the low side compared to the rest of the industry. GIS is outperformed by 87.64% of its industry peers.
A Quick Ratio of 0.40 indicates that GIS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.40, GIS is doing worse than 80.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.4 |
3. Growth
3.1 Past
GIS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.86%.
GIS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.12% yearly.
The Revenue has decreased by -3.26% in the past year.
GIS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.03% yearly.
EPS 1Y (TTM)-6.86%
EPS 3Y2.23%
EPS 5Y3.12%
EPS Q2Q%115.8%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y0.86%
Revenue growth 5Y2.03%
Sales Q2Q%-6.82%
3.2 Future
The Earnings Per Share is expected to grow by 0.77% on average over the next years.
Based on estimates for the next years, GIS will show a small growth in Revenue. The Revenue will grow by 0.05% on average per year.
EPS Next Y-12.36%
EPS Next 2Y-4.6%
EPS Next 3Y-0.96%
EPS Next 5Y0.77%
Revenue Next Year-4.16%
Revenue Next 2Y-2.26%
Revenue Next 3Y-0.8%
Revenue Next 5Y0.05%
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
With a Price/Earnings ratio of 11.81, the valuation of GIS can be described as very reasonable.
76.40% of the companies in the same industry are more expensive than GIS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.06. GIS is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 12.98 indicates a correct valuation of GIS.
GIS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GIS is cheaper than 76.40% of the companies in the same industry.
GIS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.81 | ||
| Fwd PE | 12.98 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GIS.
Based on the Price/Free Cash Flow ratio, GIS is valued a bit cheaper than 77.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.68 | ||
| EV/EBITDA | 10.59 |
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)3.78
EPS Next 2Y-4.6%
EPS Next 3Y-0.96%
5. Dividend
5.1 Amount
GIS has a Yearly Dividend Yield of 4.83%, which is a nice return.
GIS's Dividend Yield is rather good when compared to the industry average which is at 5.11. GIS pays more dividend than 84.27% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, GIS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
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.
GIS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP45.62%
EPS Next 2Y-4.6%
EPS Next 3Y-0.96%
NYSE:GIS (9/26/2025, 11:56:03 AM)
49.7144
+0.28 (+0.58%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners87.31%
Inst Owner Change-3.13%
Ins Owners0.28%
Ins Owner Change3.74%
Market Cap26.58B
Analysts65.38
Price Target56.64 (13.93%)
Short Float %6.17%
Short Ratio5.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.83% |
Yearly Dividend2.43
Dividend Growth(5Y)4.26%
DP45.62%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)-7.76%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-9.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.97%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-2.37%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-2.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.81 | ||
| Fwd PE | 12.98 | ||
| P/S | 1.39 | ||
| P/FCF | 12.68 | ||
| P/OCF | 9.88 | ||
| P/B | 2.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.59 |
EPS(TTM)4.21
EY8.47%
EPS(NY)3.83
Fwd EY7.71%
FCF(TTM)3.92
FCFY7.89%
OCF(TTM)5.03
OCFY10.12%
SpS35.83
BVpS17.78
TBVpS-24.76
PEG (NY)N/A
PEG (5Y)3.78
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%
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-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 | 2.44 |
F-Score4
WACC6.71%
ROIC/WACC1.54
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%115.8%
EPS Next Y-12.36%
EPS Next 2Y-4.6%
EPS Next 3Y-0.96%
EPS Next 5Y0.77%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y0.86%
Revenue growth 5Y2.03%
Sales Q2Q%-6.82%
Revenue Next Year-4.16%
Revenue Next 2Y-2.26%
Revenue Next 3Y-0.8%
Revenue Next 5Y0.05%
EBIT growth 1Y-9.08%
EBIT growth 3Y0.07%
EBIT growth 5Y2.04%
EBIT Next Year5.08%
EBIT Next 3Y3.2%
EBIT Next 5Y3.06%
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%