GENERAL MILLS INC (GIS) Stock Fundamental Analysis
NYSE:GIS - New York Stock Exchange, Inc. - US3703341046 - Common Stock - Currency: USD
Overall GIS gets a fundamental rating of 5 out of 10. We evaluated GIS 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 correct valuation and a medium growth rate. GIS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
GIS had positive earnings in the past year.
In the past year GIS had a positive cash flow from operations.
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
The Return On Assets of GIS (6.94%) is better than 80.90% of its industry peers.
GIS's Return On Equity of 24.95% is amongst the best of the industry. GIS outperforms 95.51% of its industry peers.
Looking at the Return On Invested Capital, with a value of 10.39%, GIS belongs to the top of the industry, outperforming 84.27% 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 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 better Profit Margin (11.78%) than 92.13% of its industry peers.
GIS's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 17.24%, GIS belongs to the best 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.
GIS's Gross Margin of 34.60% is fine compared to the rest of the industry. GIS outperforms 76.40% of its industry peers.
GIS's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GIS is creating some value.
Compared to 1 year ago, GIS has less shares outstanding
Compared to 5 years ago, GIS has less shares outstanding
Compared to 1 year ago, GIS has a worse debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 2.44, GIS is in line with its industry, outperforming 58.43% of the companies in the same industry.
GIS has a debt to FCF ratio of 6.49. This is a slightly negative value and a sign of low solvency as GIS would need 6.49 years to pay back of all of its debts.
The Debt to FCF ratio of GIS (6.49) is better than 75.28% of its industry peers.
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.
GIS has a Current ratio of 0.67. This is amonst the worse of the industry: GIS underperforms 87.64% of its industry peers.
GIS has a Quick Ratio of 0.67. 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 0.43, 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.
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.
Looking at the last year, GIS shows a decrease in Revenue. The Revenue has decreased by -1.87% in the last 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%-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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.79 indicates a reasonable 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 75.28% of the companies listed in the same industry.
GIS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.93.
Based on the Price/Forward Earnings ratio of 13.45, the valuation of GIS can be described as correct.
GIS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GIS is cheaper than 71.91% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GIS to the average of the S&P500 Index (35.31), we can say GIS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.79 | ||
| Fwd PE | 13.45 |
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.
GIS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GIS is cheaper than 79.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.75 | ||
| EV/EBITDA | 10.46 |
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-4.48%
EPS Next 3Y-0.8%
5. Dividend
5.1 Amount
GIS has a Yearly Dividend Yield of 4.87%, which is a nice return.
GIS's Dividend Yield is rather good when compared to the industry average which is at 4.71. GIS pays more dividend than 85.39% of the companies 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.
The dividend of GIS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP58.33%
EPS Next 2Y-4.48%
EPS Next 3Y-0.8%
49.65
-0.02 (-0.04%)
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 Cap26.93B
Analysts66.15
Price Target56.64 (14.08%)
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 | 11.79 | ||
| Fwd PE | 13.45 | ||
| P/S | 1.38 | ||
| P/FCF | 11.75 | ||
| P/OCF | 9.23 | ||
| P/B | 2.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.46 |
EPS(TTM)4.21
EY8.48%
EPS(NY)3.69
Fwd EY7.43%
FCF(TTM)4.23
FCFY8.51%
OCF(TTM)5.38
OCFY10.84%
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%