General Mills Stock Analysis, Valuation (NYSE:GIS)

Add to My Stocks
$41.82 $0.99 (2.31%) GIS stock closing price May 18, 2018 (Closing)
Watch Robo Advisor Video of GIS Stock Analysis
General Mills
Updated on : May 18, 2018
previous close
GIS 41.8 (0%)
S&P 500 2713 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Food-Misc-Diversified
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2018-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-2.1%
Operating Profit
Operating Margin:
16.3%
Sector Average:
12%
5 Quarter Net Profit
Net Margins
2018-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
9.65B
Debt/Equity Ratio:
 1.81
Compared to the industry
Cash Flow
Operating cash flow:
$568.5M
Net Income:
$941.4M
Dividend Yield
GIS dividend yield:
4.66%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
High Dividend Yield
Recent Growth
Long Term Growth
High Debt Burden
Cash Flow
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
GIS PS :
1.5
Industry PS :
1.6
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
15.2%
Return on Equity:
46.9%
Free Cash Flow Margin:
11.1%
Double Tap To Exit Full Screen
0:00
/

General Mills Stock Analysis

331 5 2

View the General Mills stock analysis video on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for GIS stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

General Mills, Inc. Stock Rating 3.6/5

Amigobulls GIS stock analysis relies on business fundamentals such as General Mills revenue growth, profits and return on equity measures from the latest quarter 2018 Q3 earnings. We compare General Mills valuation with its sector peers to gauge relative attractiveness of GIS stock. Based on a company's historical fundamentals we arrive at General Mills stock rating which is indicative of the company's financial performance.

Should you buy GIS stock?

  • The TTM operating margin was good at 16.3% for General Mills.
  • LTM Net margins were good at 14% for General Mills.
  • The General Mills stock currently trades at a price to earnings ratio of 13.7. We rate this as a positive, compared to the industry average of 21.4.
  • General Mills is a dividend paying stock with a high yield of 4.66%.
  • General Mills's return on invested capital of 15.2% is good.
  • General Mills has a good Return On Equity (ROE) of 46.9%.
  • The company has a good Free Cash Flow (FCF) margin of 11.1%.

Should you sell GIS stock?

  • General Mills had a low YoY revenue growth of 2.3% in the 2018 Q3.
  • Sales declined by -2.1% annually over the last 5 years.
  • General Mills is debt laden and has a high debt/equity ratio of  1.81.
  • The company has an operating cash flow which is 0.6 times the net income. This is not a healthy sign.

General Mills Related Company Stock Videos

Comments on this video and General Mills stock

Investors can use Amigobulls General Mills stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Company's fundamentals remain one of the key driver of GIS stock and helps investors in making good buy and sell decision.

While doing a study of the company financials, General Mills revenue growth and profit or net income are two main metrics which help in identifying whether GIS stock is overvalued or undervalued. Investors could make use of GIS technical analysis to check whether the fundamental story is reflected in the market sentiment.