Skip to Content

General Mills Inc GIS

Morningstar Rating
$69.97 +0.31 (0.45%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

General Mills Earnings: Signs of Stabilization as Volume Declines Ease; Shares Still Undervalued

Narrow-moat General Mills reported fiscal third-quarter organic sales declined 1%, reflecting a potential positive turning point in the consumer environment. Profitability remained healthy, too, with adjusted operating margins up 220 basis points over the prior-year quarter to 17.9%. Management maintained fiscal 2024 guidance for organic sales growth of flat to down 1%, as well as 4%-5% growth for both adjusted operating profit and adjusted EPS. We expect to increase our $77 fair value estimate by a low-single-digit percentage, mostly due to the time value of money.

Price vs Fair Value

GIS is trading at a 10% discount.
Price
$69.14
Fair Value
$94.00
Uncertainty
Low
1-Star Price
$57.83
5-Star Price
$68.60
Economic Moat
Zbcmtt
Capital Allocation
Rvvmsxrhz

Bulls Say, Bears Say

Bulls

General Mills holds strong brands in pet food, which should benefit from growing pet ownership and humanization trends. The brands acquired from Blue Buffalo are particularly well positioned in the more attractive premium segment.

Bears

General Mills is particularly vulnerable to changing consumer preferences and health trends, given its reliance on cereal, snacks, and convenient foods (53% of fiscal 2023 sales). Losing market share could exacerbate the hit to its financial performance.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if GIS is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$69.66
Day Range
$69.8270.66
52-Week Range
$60.3390.89
Bid/Ask
$69.30 / $71.21
Market Cap
$39.50 Bil
Volume/Avg
6.0 Mil / 4.4 Mil

Key Statistics

Price/Earnings (Normalized)
15.11
Price/Sales
2.03
Dividend Yield (Trailing)
3.30%
Dividend Yield (Forward)
3.37%
Total Yield
7.99%

Company Profile

General Mills is a global packaged food company that produces snacks, cereal, convenient meals, yogurt, dough, baking mixes and ingredients, pet food, and superpremium ice cream. Its largest brands are Nature Valley, Cheerios, Old El Paso, Yoplait, Pillsbury, Betty Crocker, Blue Buffalo, and Haagen-Dazs. In fiscal 2023, 81% of its revenue was derived from the United States, although the company also operates in Canada, Europe, Australia, Asia, and Latin America. While most of General Mills' products are sold through retail stores to consumers, the company also sells products to the foodservice channel and the commercial baking industry.
Sector
Consumer Defensive
Industry
Packaged Foods
Stock Style Box
Mid Value
Total Number of Employees
34,000

Competitors

Valuation

Metric
GIS
KLG
K
Price/Earnings (Normalized)
15.1112.7613.77
Price/Book Value
4.195.386.15
Price/Sales
2.030.581.50
Price/Cash Flow
12.5412.4312.18
Price/Earnings
GIS
KLG
K

Financial Strength

Metric
GIS
KLG
K
Quick Ratio
0.330.400.36
Current Ratio
0.660.840.66
Interest Coverage
7.7015.504.10
Quick Ratio
GIS
KLG
K

Profitability

Metric
GIS
KLG
K
Return on Assets (Normalized)
8.71%7.55%7.20%
Return on Equity (Normalized)
27.32%28.99%33.62%
Return on Invested Capital (Normalized)
13.78%17.44%12.68%
Return on Assets
GIS
KLG
K
See how this stock stacks up to its competitors with Morningstar Investor

Packaged Foods Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
NSRGY
Nestle SA ADRFywsrrnxdMrbqt$278.4 Bil
KHC
The Kraft Heinz CoBbkshbncWcg$44.9 Bil
DANOY
Danone SA ADRSyrscptvLsytpy$41.6 Bil
MKC
McCormick & Co Inc Registered Shs Non VtgCxpbrgqzbRngr$20.6 Bil
K
Kellanova CoXmndswgWbtrz$19.6 Bil
HRL
Hormel Foods CorpFfcpxstxqhMgxbg$19.1 Bil
LW
Lamb Weston Holdings IncDgxxcxfyFdhldzq$15.4 Bil
CAG
Conagra Brands IncCvcbkbqjMqd$14.2 Bil
SJM
JM Smucker CoTrwbqVvv$13.4 Bil

Sponsor Center