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 60 industry peers in the Food Products industry. GRM has an excellent profitability rating, 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.
1. Profitability
1.1 Basic Checks
In the past year GRM was profitable.
In the past year GRM had a positive cash flow from operations.
Each year in the past 5 years GRM has been profitable.
In the past 5 years GRM always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 7.82%, GRM belongs to the best of the industry, outperforming 85.00% 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 91.67% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.48%, GRM belongs to the best of the industry, outperforming 95.00% 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 6.63%.
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
The Profit Margin of GRM (13.03%) is better than 91.67% of its industry peers.
In the last couple of years the Profit Margin of GRM has grown nicely.
GRM has a Operating Margin of 18.33%. This is amongst the best in the industry. GRM outperforms 90.00% of its industry peers.
GRM's Operating Margin has been stable in the last couple of years.
GRM has a Gross Margin (35.38%) which is in line with its industry peers.
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 | 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
GRM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, GRM has less shares outstanding
GRM has less shares outstanding than it did 5 years ago.
GRM has a worse debt/assets ratio than last year.
2.2 Solvency
GRM has an Altman-Z score of 2.54. 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.
GRM has a better Altman-Z score (2.54) than 68.33% of its industry peers.
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.
The Debt to FCF ratio of GRM (5.73) is comparable to the rest of the industry.
GRM has a Debt/Equity ratio of 1.32. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GRM (1.32) is worse than 81.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.32 | ||
| Debt/FCF | 5.73 | ||
| Altman-Z | 2.54 |
ROIC/WACC1.57
WACC7.32%
2.3 Liquidity
A Current Ratio of 0.67 indicates that GRM may have some problems paying its short term obligations.
GRM's Current ratio of 0.67 is on the low side compared to the rest of the industry. GRM is outperformed by 86.67% of its industry peers.
GRM has a Quick 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 Quick ratio value of 0.44, GRM is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| 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%.
GRM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.02% yearly.
The Revenue has decreased by -2.62% in the past year.
GRM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.32% yearly.
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-5.15%
EPS Next 3Y-1.94%
EPS Next 5Y1.39%
Revenue Next Year-2.39%
Revenue Next 2Y-2.08%
Revenue Next 3Y-1.46%
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.
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 11.79, the valuation of GRM can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of GRM indicates a somewhat cheap valuation: GRM is cheaper than 75.00% of the companies listed in the same industry.
GRM is valuated cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
GRM is valuated correctly with a Price/Forward Earnings ratio of 12.98.
63.33% of the companies in the same industry are more expensive than GRM, based on the Price/Forward Earnings ratio.
GRM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.79 | ||
| Fwd PE | 12.98 |
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 68.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.67 | ||
| EV/EBITDA | 10.2 |
4.3 Compensation for Growth
GRM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.68
EPS Next 2Y-5.15%
EPS Next 3Y-1.94%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.50%, GRM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.31, GRM pays a bit more dividend than its industry peers.
GRM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
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
52.52% of the earnings are spent on dividend by GRM. 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-5.15%
EPS Next 3Y-1.94%
FRA:GRM (5/23/2025, 7:00:00 PM)
46.685
-0.16 (-0.34%)
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 Cap25.56B
Analysts65.93
Price Target55.84 (19.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.5% |
Yearly Dividend2.11
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)-6.48%
PT rev (3m)-18.29%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-23.38%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.14%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-4.25%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.79 | ||
| Fwd PE | 12.98 | ||
| P/S | 1.47 | ||
| P/FCF | 11.67 | ||
| P/OCF | 9.12 | ||
| P/B | 3.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.2 |
EPS(TTM)3.96
EY8.48%
EPS(NY)3.6
Fwd EY7.7%
FCF(TTM)4
FCFY8.57%
OCF(TTM)5.12
OCFY10.97%
SpS31.72
BVpS14.96
TBVpS-21.5
PEG (NY)N/A
PEG (5Y)1.68
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 | 2.54 |
F-Score6
WACC7.32%
ROIC/WACC1.57
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-5.15%
EPS Next 3Y-1.94%
EPS Next 5Y1.39%
Revenue 1Y (TTM)-2.62%
Revenue growth 3Y3.09%
Revenue growth 5Y3.32%
Sales Q2Q%-5.04%
Revenue Next Year-2.39%
Revenue Next 2Y-2.08%
Revenue Next 3Y-1.46%
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%