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General Mills Inc
GIS : NYSE : Consumer Goods
$51.03 0.52 | 1.03%
Today's Range: 50.54 - 51.04
Avg. Daily Volume: 3,024,300
10/24/14 - 4:03 PM ET

Financial Analysis


GENERAL MILLS INC's gross profit margin for the first quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. GENERAL MILLS INC has very weak liquidity. Currently, the Quick Ratio is 0.43 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 9.11% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q1 FY14 Q1 FY13
Net Sales ($mil)4268.44372.7
EBITDA ($mil)721.8888.6
EBIT ($mil)571.5737.6
Net Income ($mil)345.2459.3


Balance Sheet Q1 FY14 Q1 FY13
Cash & Equiv. ($mil)841.2758.9
Total Assets ($mil)23372.822944.6
Total Debt ($mil)9319.98244.6
Equity ($mil)6202.36824.3


Profitability Q1 FY14 Q1 FY13
Gross Profit Margin37.2340.34
EBITDA Margin16.9120.32
Operating Margin13.3916.87
Sales Turnover0.760.79
Return on Assets7.317.69
Return on Equity27.5725.87
Debt Q1 FY14 Q1 FY13
Current Ratio0.810.86
Debt/Capital0.60.55
Interest Expense78.578.8
Interest Coverage7.289.36


Share Data Q1 FY14 Q1 FY13
Shares outstanding (mil)605.4637.0
Div / share0.410.38
EPS0.550.7
Book value / share10.2510.71
Institutional Own % n/a n/a
Avg Daily Volume2940395.02633930.0

Valuation


BUY. GENERAL MILLS INC's P/E ratio indicates a discount compared to an average of 27.47 for the Food Products industry and a value on par with the S&P 500 average of 18.06. For additional comparison, its price-to-book ratio of 4.77 indicates a significant premium versus the S&P 500 average of 2.49 and a discount versus the industry average of 5.56. The current price-to-sales ratio is similar to the S&P 500 average, but it is above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, GENERAL MILLS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
GIS 18.23 Peers 27.47   GIS 11.93 Peers 14.08

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

GIS is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

GIS is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
GIS 15.29 Peers 19.69   GIS 3.44 Peers 1.54

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

GIS is trading at a discount to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

GIS trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
GIS 4.77 Peers 5.56   GIS 0.37 Peers 20.47

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

GIS is trading at a discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, GIS is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
GIS 1.66 Peers 1.65   GIS -1.61 Peers 2.67

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

GIS is trading at a valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

GIS significantly trails its peers on the basis of sales growth

 

 

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