GENERAL MILLS INC (GRM.DE) Stock Fundamental Analysis
FRA:GRM - US3703341046 - Common Stock
42.36 EUR
-0.41 (-0.97%)
We assign a fundamental rating of 4 out of 10 to GRM. GRM was compared to 57 industry peers in the Food Products industry. GRM scores excellent on profitability, but there are concerns on its financial health. GRM has a valuation in line with the averages, but it does not seem to be growing. GRM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
GRM had positive earnings in the past year.
GRM had a positive operating cash flow in the past year.
In the past 5 years GRM has always been profitable.
In the past 5 years GRM always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.94%, GRM is doing good in the industry, outperforming 73.68% of the companies in the same industry.
Looking at the Return On Equity, with a value of 24.95%, GRM belongs to the top of the industry, outperforming 87.72% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.39%, GRM belongs to the top of the industry, outperforming 87.72% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GRM is above the industry average of 7.09%.
| 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
Looking at the Profit Margin, with a value of 11.78%, GRM belongs to the top of the industry, outperforming 85.96% of the companies in the same industry.
GRM's Profit Margin has been stable in the last couple of years.
The Operating Margin of GRM (17.24%) is better than 92.98% of its industry peers.
GRM's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 34.60%, GRM perfoms like the industry average, outperforming 43.86% of the companies in the same industry.
In the last couple of years the Gross Margin of GRM has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GRM is still creating some value.
The number of shares outstanding for GRM has been reduced compared to 1 year ago.
The number of shares outstanding for GRM has been reduced compared to 5 years ago.
The debt/assets ratio for GRM is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.43 indicates that GRM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GRM (2.43) is comparable to the rest of the industry.
The Debt to FCF ratio of GRM is 6.49, which is on the high side as it means it would take GRM, 6.49 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.49, GRM perfoms like the industry average, outperforming 49.12% of the companies in the same industry.
GRM has a Debt/Equity ratio of 1.45. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.45, GRM is doing worse than 85.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 6.49 | ||
| Altman-Z | 2.43 |
ROIC/WACC1.59
WACC6.54%
2.3 Liquidity
A Current Ratio of 0.67 indicates that GRM may have some problems paying its short term obligations.
GRM has a worse Current ratio (0.67) than 89.47% of its industry peers.
A Quick Ratio of 0.43 indicates that GRM may have some problems paying its short term obligations.
GRM has a Quick ratio of 0.43. This is in the lower half of the industry: GRM underperforms 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
GRM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.86%.
Measured over the past 5 years, GRM 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, GRM shows a decrease in Revenue. The Revenue has decreased by -1.87% in the last year.
The Revenue has been growing slightly by 2.03% on average over the past years.
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
Based on estimates for the next years, GRM will show a small growth in Earnings Per Share. The EPS will grow by 0.77% on average per year.
Based on estimates for the next years, GRM will show a small growth in Revenue. The Revenue will grow by 0.05% on average per year.
EPS Next Y-12.48%
EPS Next 2Y-4.4%
EPS Next 3Y-0.83%
EPS Next 5Y0.77%
Revenue Next Year-4.11%
Revenue Next 2Y-2.25%
Revenue Next 3Y-0.79%
Revenue Next 5Y0.05%
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 decreasing.
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
A Price/Earnings ratio of 11.73 indicates a reasonable valuation of GRM.
70.18% of the companies in the same industry are more expensive than GRM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.03, GRM is valued rather cheaply.
A Price/Forward Earnings ratio of 13.39 indicates a correct valuation of GRM.
GRM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GRM is cheaper than 61.40% of the companies in the same industry.
GRM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.73 | ||
| Fwd PE | 13.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GRM is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, GRM is valued a bit cheaper than the industry average as 71.93% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.51 | ||
| EV/EBITDA | 10.38 |
4.3 Compensation for Growth
GRM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.76
EPS Next 2Y-4.4%
EPS Next 3Y-0.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.04%, GRM is a good candidate for dividend investing.
GRM's Dividend Yield is rather good when compared to the industry average which is at 3.27. GRM pays more dividend than 87.72% of the companies in the same industry.
GRM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
5.2 History
The dividend of GRM has a limited annual growth rate of 4.26%.
Dividend Growth(5Y)4.26%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
58.33% of the earnings are spent on dividend by GRM. This is a bit on the high side, but may be sustainable.
GRM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP58.33%
EPS Next 2Y-4.4%
EPS Next 3Y-0.83%
FRA:GRM (9/5/2025, 3:31:37 PM)
42.36
-0.41 (-0.97%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners87.31%
Inst Owner ChangeN/A
Ins Owners0.28%
Ins Owner ChangeN/A
Market Cap22.65B
Analysts66.15
Price Target48.83 (15.27%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.04% |
Yearly Dividend2.09
Dividend Growth(5Y)4.26%
DP58.33%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
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)-0.44%
PT rev (3m)-12.56%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-14.92%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)-9.4%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-2.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.73 | ||
| Fwd PE | 13.39 | ||
| P/S | 1.35 | ||
| P/FCF | 11.51 | ||
| P/OCF | 9.04 | ||
| P/B | 2.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.38 |
EPS(TTM)3.61
EY8.52%
EPS(NY)3.16
Fwd EY7.47%
FCF(TTM)3.68
FCFY8.69%
OCF(TTM)4.69
OCFY11.06%
SpS31.29
BVpS14.77
TBVpS-21.69
PEG (NY)N/A
PEG (5Y)3.76
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 | 2.43 |
F-Score5
WACC6.54%
ROIC/WACC1.59
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-12.48%
EPS Next 2Y-4.4%
EPS Next 3Y-0.83%
EPS Next 5Y0.77%
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-0.79%
Revenue Next 5Y0.05%
EBIT growth 1Y-8.02%
EBIT growth 3Y0.07%
EBIT growth 5Y2.04%
EBIT Next Year4.84%
EBIT Next 3Y3.04%
EBIT Next 5Y3.06%
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%