Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A+ . The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, increase in net income, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 6.7%. Since the same quarter one year prior, revenues slightly increased by 5.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 35.3% when compared to the same quarter one year prior, rising from $405.60 million to $548.90 million.
- 43.60% is the gross profit margin for GENERAL MILLS INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.50% is above that of the industry average.
- Net operating cash flow has increased to $488.80 million or 10.88% when compared to the same quarter last year. Despite an increase in cash flow, GENERAL MILLS INC's average is still marginally south of the industry average growth rate of 11.84%.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
General Mills, Inc. manufactures and markets branded consumer foods worldwide. The company also supplies branded and unbranded food products to the foodservice and commercial baking industries. The company has a P/E ratio of 15.8, below the average food & beverage industry P/E ratio of 17.2 and below the S&P 500 P/E ratio of 17.7. General Mills has a market cap of $26.22 billion and is part of the
industry. Shares are up 0.1% year to date as of the close of trading on Friday.
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--Written by a member of TheStreet Ratings Staff.
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