If you’re wondering whether General Mills (GIS) deserves a spot in your portfolio, the company just gave investors something to talk about. General Mills announced a $54 million expansion to its James Ford Bell Technical Center, adding a major wing and increasing pilot plant space by over 20%. This move not only gives their researchers more room to operate, it also signals a clear commitment to both product innovation and long-term growth plans.
This expansion comes at an interesting time for General Mills’ stock. Over the past year, shares have slipped nearly 29%, with more muted movement over the past month. Despite several recent growth initiatives and efforts to streamline the business, momentum has slowed compared to prior years. Still, the company’s willingness to invest in innovation could indicate a renewed focus on unlocking future value.
After such a pronounced pullback, are investors underestimating General Mills’ potential, or is the current price already reflecting tempered expectations for future growth?
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Most Popular Narrative: 10% Undervalued
According to the community narrative, General Mills is currently viewed as undervalued by analysts, with a consensus fair value above the recent share price. This perspective is based on projections of future earnings and a discounted cash flow approach.
General Mills plans a sizable step-up in investment for fiscal '26, including at least 5% through Holistic Margin Management (HMM) savings and $100 million in additional cost savings. However, reinvestment of these savings into pricing, innovation, in-store activity, and media could delay improvements in net margins and overall earnings in the short term.
Curious about the forces steering General Mills’ valuation higher, even as profits plateau? Find out which bold investment strategies and profit forecasts are driving this 10% upside call. What are the quantitative assumptions that set analyst expectations apart from market sentiment? The details behind this fair value might surprise you.
Looking at General Mills through the lens of our DCF model, the outlook again points to undervaluation and supports the analyst consensus. However, what if long-term cash flows evolve differently than expected? Is the market mispricing potential surprises?
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out General Mills for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Build Your Own General Mills Narrative
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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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Kshitija (or Keisha) Bhandaru is an Equity Analyst at Simply Wall St and has over 6 years of experience in the finance industry and describes herself as a lifelong learner driven by her intellectual curiosity. She previously worked with Market Realist for 5 years as an Equity Analyst.
