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, good cash flow from operations, increase in net income and growth in earnings per share. 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 7.0%. 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. The firm also exceeded the industry average cash flow growth rate of -5.03%.
- GENERAL MILLS INC has improved earnings per share by 34.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, GENERAL MILLS INC reported lower earnings of $2.35 versus $2.69 in the prior year. This year, the market expects an improvement in earnings ($2.66 versus $2.35).
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. General Mills has a market cap of $25.69 billion and is part of the consumer goods sector and food & beverage industry. The company has a P/E ratio of 15.6, below the S&P 500 P/E ratio of 17.7. Shares are down 2.3% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.
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