NYSE:GIS

Stock Analysis Report

Executive Summary

General Mills, Inc. manufactures and markets branded consumer foods worldwide.


Snowflake Analysis

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has General Mills's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GIS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

9.6%

GIS

9.5%

US Food

12.5%

US Market


1 Year Return

1.6%

GIS

-8.4%

US Food

-12.7%

US Market

Return vs Industry: GIS exceeded the US Food industry which returned -8.4% over the past year.

Return vs Market: GIS exceeded the US Market which returned -12.7% over the past year.


Shareholder returns

GISIndustryMarket
7 Day9.6%9.5%12.5%
30 Day5.8%-6.7%-14.7%
90 Day-3.2%-17.9%-21.5%
1 Year5.5%1.6%-6.1%-8.4%-10.9%-12.7%
3 Year-0.5%-11.5%-16.0%-22.8%12.6%5.4%
5 Year9.0%-8.7%16.6%2.9%31.9%17.5%

Price Volatility Vs. Market

How volatile is General Mills's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is General Mills undervalued compared to its fair value and its price relative to the market?

38.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GIS ($51.82) is trading below our estimate of fair value ($84.81)

Significantly Below Fair Value: GIS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GIS is good value based on its PE Ratio (14.8x) compared to the Food industry average (17.8x).

PE vs Market: GIS is poor value based on its PE Ratio (14.8x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: GIS is poor value based on its PEG Ratio (44.4x)


Price to Book Ratio

PB vs Industry: GIS is overvalued based on its PB Ratio (4.1x) compared to the US Food industry average (1.6x).


Next Steps

Future Growth

How is General Mills forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GIS's forecast earnings growth (0.3% per year) is below the savings rate (1.7%).

Earnings vs Market: GIS's earnings (0.3% per year) are forecast to grow slower than the US market (12.3% per year).

High Growth Earnings: GIS's earnings are forecast to grow, but not significantly.

Revenue vs Market: GIS's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: GIS's revenue is forecast to decline over the next 3 years (-0.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GIS's Return on Equity is forecast to be high in 3 years time (22.6%)


Next Steps

Past Performance

How has General Mills performed over the past 5 years?

8.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GIS has high quality earnings.

Growing Profit Margin: GIS's current net profit margins (12.7%) are higher than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: GIS's earnings have grown by 8.3% per year over the past 5 years.

Accelerating Growth: GIS's earnings growth over the past year (37.8%) exceeds its 5-year average (8.3% per year).

Earnings vs Industry: GIS earnings growth over the past year (37.8%) exceeded the Food industry -0.7%.


Return on Equity

High ROE: Whilst GIS's Return on Equity (25.78%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is General Mills's financial position?


Financial Position Analysis

Short Term Liabilities: GIS's short term assets ($4.3B) do not cover its short term liabilities ($6.7B).

Long Term Liabilities: GIS's short term assets ($4.3B) do not cover its long term liabilities ($15.2B).


Debt to Equity History and Analysis

Debt Level: GIS's debt to equity ratio (162.3%) is considered high.

Reducing Debt: GIS's debt to equity ratio has increased from 154.6% to 162.3% over the past 5 years.

Debt Coverage: GIS's debt is well covered by operating cash flow (21.6%).

Interest Coverage: GIS's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet

Inventory Level: GIS has a low level of unsold assets or inventory.

Debt Coverage by Assets: GIS's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is General Mills's current dividend yield, its reliability and sustainability?

3.78%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: GIS's dividend (3.78%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: GIS's dividend (3.78%) is low compared to the top 25% of dividend payers in the US market (5.49%).


Stability and Growth of Payments

Stable Dividend: GIS's dividends per share have been stable in the past 10 years.

Growing Dividend: GIS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.9%), GIS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GIS's dividends in 3 years are forecast to be covered by earnings (52.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Jeff Harmening (52yo)

2.75s

Tenure

US$9,855,417

Compensation

Mr. Jeffrey L. Harmening, also known as Jeff, has been the Chief Executive Officer at General Mills, Inc. since June 1, 2017. Mr. Harmening served as the President of General Mills, Inc. since July 1, 2016 ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD9.86M) is about average for companies of similar size in the US market ($USD11.74M).

Compensation vs Earnings: Jeff's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Harmening
Chairman & CEO2.75yrsUS$9.86m0.0059% $1.9m
Donal Mulligan
Strategic Advisorno dataUS$4.00m0.029% $9.2m
John Church
Chief Supply Chain Officer & Global Business Solutions Officer11.92yrsUS$3.18m0.0086% $2.7m
Jonathon Nudi
Group President of North America Retail3.17yrsUS$4.43m0.010% $3.2m
Kofi Bruce
Chief Financial Officerno datano data0.0021% $665.9k
Marie Pillai
Chief Investment Officer11.17yrsno datano data
Mark Pallot
VP & Chief Accounting Officerno datano data0.0017% $524.5k
Jaime Montemayor
Chief Digital & Technology Officerno datano datano data
Jeff Siemon
Vice President of Investor Relationsno datano datano data
Richard Allendorf
Senior VP5yrsUS$2.88m0.0074% $2.3m

5.0yrs

Average Tenure

52yo

Average Age

Experienced Management: GIS's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Harmening
Chairman & CEO2.75yrsUS$9.86m0.0059% $1.9m
David Cordani
Independent Director5.33yrsUS$279.98k0.0043% $1.4m
Maria Sastre
Independent Director1.75yrsUS$254.98k0.00084% $263.8k
Stephen Odland
Independent Director15.42yrsUS$269.98k0.021% $6.7m
Eric Sprunk
Independent Director4.25yrsUS$259.98kno data
Diane Neal
Independent Director1.33yrsUS$236.25k0.00069% $216.7k
Maria G. Henry
Independent Director3.75yrsUS$271.23k0.0032% $1.0m
Jorge Uribe
Independent Director3.75yrsUS$254.98k0.0022% $697.3k
Roger Ferguson
Independent Director4.25yrsUS$269.98kno data
Ronal Clark
Independent Lead Director4.25yrsUS$284.98k0.0084% $2.6m

4.0yrs

Average Tenure

61yo

Average Age

Experienced Board: GIS's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

General Mills, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: General Mills, Inc.
  • Ticker: GIS
  • Exchange: NYSE
  • Founded: 1866
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$31.410b
  • Shares outstanding: 606.14m
  • Website: https://www.generalmills.com

Number of Employees


Location

  • General Mills, Inc.
  • Number One General Mills Boulevard
  • Minneapolis
  • Minnesota
  • 55426
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GISNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
GRMDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
GRMXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
GISSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
0R1XLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
GISWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
GRMETLX (Eurotlx)YesCommon StockITEURJan 1968
GIS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
G1MI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 SHS UNSPONBRBRLJan 2020

Biography

General Mills, Inc. manufactures and markets branded consumer foods worldwide. The company operates in five segments: North America Retail; Convenience Stores & Foodservice; Europe & Australia; Asia & Latin America; and Pet. It offers ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza snacks, grain, fruit, and savory snacks, as well as organic products, including refrigerated yogurt, nutrition bars, meal kits, salty snacks, ready-to-eat cereal, and grain snacks. It also supplies branded and unbranded food products to the North American foodservice and commercial baking industries; and manufactures and markets pet food products, including dog and cat food. The company markets its products under the Annie’s, Betty Crocker, Bisquick, Blue Buffalo, BLUE Basics, BLUE Freedom, BLUE Wilderness, Bugles, Cascadian Farm, Cheerios, Chex, Cinnamon Toast Crunch, Cocoa Puffs, Cookie Crisp, EPIC, Fiber One, Food Should Taste Good, Fruit by the Foot, Fruit Gushers, Fruit Roll-Ups, Gardetto’s, Go-Gurt, Gold Medal, Golden Grahams, Häagen-Dazs, Helpers, Jeno’s, Jus-Rol, Kitano, Kix, Lärabar, Latina, Liberté, Lucky Charms, Muir Glen, Nature Valley, Oatmeal Crisp, Old El Paso, Pillsbury, Progresso, Raisin Nut Bran, Total, Totino’s, Trix, Wanchai Ferry, Wheaties, Yoki, and Yoplait trademarks. General Mills, Inc. sells its products directly, as well as through broker and distribution arrangements to grocery stores, mass merchandisers, membership stores, natural food chains, e-commerce retailers, commercial and noncommercial foodservice distributors and operators, restaurants, convenience stores, and pet specialty stores, as well as drug, dollar, and discount chains. It operates 525 leased and 365 franchise branded ice cream parlors. General Mills, Inc. was founded in 1866 and is headquartered in Minneapolis, Minnesota. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 00:37
End of Day Share Price2020/03/27 00:00
Earnings2020/02/23
Annual Earnings2019/05/26


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.