GENERAL MILLS INC (GRM.DE) Stock Fundamental Analysis
FRA:GRM - Deutsche Boerse Ag - US3703341046 - Common Stock - Currency: EUR
Overall GRM gets a fundamental rating of 5 out of 10. We evaluated GRM against 58 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 on the other hand it scores bad on growth. Finally GRM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year GRM was profitable.
GRM had a positive operating cash flow in the past year.
GRM had positive earnings in each of the past 5 years.
Each year in the past 5 years GRM had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.82%, GRM belongs to the best of the industry, outperforming 81.03% of the companies in the same industry.
With an excellent Return On Equity value of 27.62%, GRM belongs to the best of the industry, outperforming 91.38% of the companies in the same industry.
The Return On Invested Capital of GRM (11.48%) is better than 93.10% of its industry peers.
GRM had an Average Return On Invested Capital over the past 3 years of 11.19%. This is above the industry average of 7.19%.
The 3 year average ROIC (11.19%) for GRM is below the current ROIC(11.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.82% | ||
| ROE | 27.62% | ||
| ROIC | 11.48% |
ROA(3y)8.3%
ROA(5y)7.86%
ROE(3y)25.69%
ROE(5y)25.77%
ROIC(3y)11.19%
ROIC(5y)11.05%
1.3 Margins
Looking at the Profit Margin, with a value of 13.03%, GRM belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
GRM's Profit Margin has improved in the last couple of years.
The Operating Margin of GRM (18.33%) is better than 87.93% of its industry peers.
In the last couple of years the Operating Margin of GRM has remained more or less at the same level.
With a Gross Margin value of 35.38%, GRM perfoms like the industry average, outperforming 48.28% of the companies in the same industry.
GRM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.33% | ||
| PM (TTM) | 13.03% | ||
| GM | 35.38% |
OM growth 3Y-0.35%
OM growth 5Y1.11%
PM growth 3Y-0.88%
PM growth 5Y3.88%
GM growth 3Y-0.55%
GM growth 5Y0.17%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), GRM is creating some value.
The number of shares outstanding for GRM has been reduced compared to 1 year ago.
Compared to 5 years ago, GRM has less shares outstanding
The debt/assets ratio for GRM is higher compared to a year ago.
2.2 Solvency
GRM has an Altman-Z score of 2.59. This is not the best score and indicates that GRM is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.59, GRM is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
The Debt to FCF ratio of GRM is 5.73, which is a neutral value as it means it would take GRM, 5.73 years of fcf income to pay off all of its debts.
GRM's Debt to FCF ratio of 5.73 is in line compared to the rest of the industry. GRM outperforms 50.00% of its industry peers.
GRM has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
GRM's Debt to Equity ratio of 1.32 is on the low side compared to the rest of the industry. GRM is outperformed by 86.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 5.73 | ||
| Altman-Z | 2.59 |
ROIC/WACC1.6
WACC7.19%
2.3 Liquidity
GRM has a Current Ratio of 0.67. This is a bad value and indicates that GRM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.67, GRM is not doing good in the industry: 89.66% of the companies in the same industry are doing better.
A Quick Ratio of 0.44 indicates that GRM may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.44, GRM is doing worse than 82.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
GRM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.24%.
The Earnings Per Share has been growing slightly by 7.02% on average over the past years.
GRM shows a decrease in Revenue. In the last year, the revenue decreased by -2.62%.
The Revenue has been growing slightly by 3.32% on average over the past years.
EPS 1Y (TTM)-3.24%
EPS 3Y6.05%
EPS 5Y7.02%
EPS Q2Q%-14.53%
Revenue 1Y (TTM)-2.62%
Revenue growth 3Y3.09%
Revenue growth 5Y3.32%
Sales Q2Q%-5.04%
3.2 Future
The Earnings Per Share is expected to grow by 1.39% on average over the next years.
Based on estimates for the next years, GRM will show a decrease in Revenue. The Revenue will decrease by -0.77% on average per year.
EPS Next Y-6.3%
EPS Next 2Y-4.58%
EPS Next 3Y-1.42%
EPS Next 5Y1.39%
Revenue Next Year-2.41%
Revenue Next 2Y-2.05%
Revenue Next 3Y-1.42%
Revenue Next 5Y-0.77%
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
With a Price/Earnings ratio of 12.69, GRM is valued correctly.
Based on the Price/Earnings ratio, GRM is valued a bit cheaper than 68.97% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.88. GRM is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 13.81, which indicates a correct valuation of GRM.
GRM's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.20, GRM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.69 | ||
| Fwd PE | 13.81 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GRM.
Based on the Price/Free Cash Flow ratio, GRM is valued a bit cheaper than 67.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.57 | ||
| EV/EBITDA | 10.71 |
4.3 Compensation for Growth
The excellent profitability rating of GRM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.81
EPS Next 2Y-4.58%
EPS Next 3Y-1.42%
5. Dividend
5.1 Amount
GRM has a Yearly Dividend Yield of 4.26%, which is a nice return.
GRM's Dividend Yield is rather good when compared to the industry average which is at 3.09. GRM pays more dividend than 84.48% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, GRM pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
5.2 History
The dividend of GRM has a limited annual growth rate of 3.77%.
Dividend Growth(5Y)3.77%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
GRM pays out 52.52% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of GRM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP52.52%
EPS Next 2Y-4.58%
EPS Next 3Y-1.42%
FRA:GRM (4/30/2025, 7:00:00 PM)
49.99
+1.04 (+2.11%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners83.24%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap27.37B
Analysts66.92
Price Target55.65 (11.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
Yearly Dividend2.09
Dividend Growth(5Y)3.77%
DP52.52%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.59%
Min EPS beat(2)3.36%
Max EPS beat(2)13.83%
EPS beat(4)4
Avg EPS beat(4)4.49%
Min EPS beat(4)0.06%
Max EPS beat(4)13.83%
EPS beat(8)7
Avg EPS beat(8)4.96%
EPS beat(12)11
Avg EPS beat(12)5.43%
EPS beat(16)14
Avg EPS beat(16)5.14%
Revenue beat(2)1
Avg Revenue beat(2)-1.22%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)0.93%
Revenue beat(4)1
Avg Revenue beat(4)-1.57%
Min Revenue beat(4)-3.84%
Max Revenue beat(4)0.93%
Revenue beat(8)2
Avg Revenue beat(8)-1.74%
Revenue beat(12)4
Avg Revenue beat(12)-1.04%
Revenue beat(16)7
Avg Revenue beat(16)-0.22%
PT rev (1m)-14.42%
PT rev (3m)-20.99%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-32.96%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-7.1%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-5.41%
Revenue NY rev (1m)-1.41%
Revenue NY rev (3m)-2.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.69 | ||
| Fwd PE | 13.81 | ||
| P/S | 1.58 | ||
| P/FCF | 12.57 | ||
| P/OCF | 9.82 | ||
| P/B | 3.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.71 |
EPS(TTM)3.94
EY7.88%
EPS(NY)3.62
Fwd EY7.24%
FCF(TTM)3.98
FCFY7.96%
OCF(TTM)5.09
OCFY10.18%
SpS31.54
BVpS14.87
TBVpS-21.38
PEG (NY)N/A
PEG (5Y)1.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.82% | ||
| ROE | 27.62% | ||
| ROCE | 14.5% | ||
| ROIC | 11.48% | ||
| ROICexc | 11.72% | ||
| ROICexgc | 135.48% | ||
| OM | 18.33% | ||
| PM (TTM) | 13.03% | ||
| GM | 35.38% | ||
| FCFM | 12.61% |
ROA(3y)8.3%
ROA(5y)7.86%
ROE(3y)25.69%
ROE(5y)25.77%
ROIC(3y)11.19%
ROIC(5y)11.05%
ROICexc(3y)11.5%
ROICexc(5y)11.59%
ROICexgc(3y)142.43%
ROICexgc(5y)203.07%
ROCE(3y)14.09%
ROCE(5y)13.92%
ROICexcg growth 3Y-26.03%
ROICexcg growth 5Y9.28%
ROICexc growth 3Y-0.15%
ROICexc growth 5Y4.48%
OM growth 3Y-0.35%
OM growth 5Y1.11%
PM growth 3Y-0.88%
PM growth 5Y3.88%
GM growth 3Y-0.55%
GM growth 5Y0.17%
F-Score6
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 5.73 | ||
| Debt/EBITDA | 2.96 | ||
| Cap/Depr | 127.52% | ||
| Cap/Sales | 3.53% | ||
| Interest Coverage | 7.63 | ||
| Cash Conversion | 76.5% | ||
| Profit Quality | 96.8% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 2.59 |
F-Score6
WACC7.19%
ROIC/WACC1.6
Cap/Depr(3y)121.97%
Cap/Depr(5y)106.34%
Cap/Sales(3y)3.44%
Cap/Sales(5y)3.17%
Profit Quality(3y)94.44%
Profit Quality(5y)107.11%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.24%
EPS 3Y6.05%
EPS 5Y7.02%
EPS Q2Q%-14.53%
EPS Next Y-6.3%
EPS Next 2Y-4.58%
EPS Next 3Y-1.42%
EPS Next 5Y1.39%
Revenue 1Y (TTM)-2.62%
Revenue growth 3Y3.09%
Revenue growth 5Y3.32%
Sales Q2Q%-5.04%
Revenue Next Year-2.41%
Revenue Next 2Y-2.05%
Revenue Next 3Y-1.42%
Revenue Next 5Y-0.77%
EBIT growth 1Y-1.75%
EBIT growth 3Y2.72%
EBIT growth 5Y4.47%
EBIT Next Year8.65%
EBIT Next 3Y2.53%
EBIT Next 5Y2.37%
FCF growth 1Y-2.71%
FCF growth 3Y1.02%
FCF growth 5Y2.19%
OCF growth 1Y1.78%
OCF growth 3Y3.45%
OCF growth 5Y3.31%