General Mills Inc

Find Ratings Reports
GIS : NYSE : Consumer Goods
$71.22 | %
Today's Range: 71.07 - 71.64
Avg. Daily Volume: 3,169,900
07/22/16 - 4:00 PM ET

Financial Analysis


GENERAL MILLS INC's gross profit margin for the fourth quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. GENERAL MILLS INC has very weak liquidity. Currently, the Quick Ratio is 0.46 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.33% 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 Q4 FY15 Q4 FY14
Net Sales ($mil)3927.94298.8
EBITDA ($mil)800.1872.2
EBIT ($mil)633.2727.6
Net Income ($mil)379.6186.8


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)763.7336.7
Total Assets ($mil)21712.321964.5
Total Debt ($mil)8430.99223.9
Equity ($mil)4930.24996.7


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin40.2139.29
EBITDA Margin20.3620.28
Operating Margin16.1216.93
Sales Turnover0.760.8
Return on Assets7.815.56
Return on Equity34.4224.44
Debt Q4 FY15 Q4 FY14
Current Ratio0.790.77
Debt/Capital0.630.65
Interest Expense77.579.6
Interest Coverage8.179.14


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)596.8598.7
Div / share0.460.44
EPS0.620.3
Book value / share8.268.35
Institutional Own % n/a n/a
Avg Daily Volume3192491.03720018.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 47.16 for the Food Products industry and a value on par with the S&P 500 average of 25.03. For additional comparison, its price-to-book ratio of 8.73 indicates a significant premium versus the S&P 500 average of 2.80 and a significant premium versus the industry average of 6.05. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
GIS 26.03 Peers 47.16   GIS 16.36 Peers 18.11

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.

 

Average. 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 valuation on par 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 20.72 Peers 23.60   GIS 2.19 Peers 1.23

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

GIS is trading at a valuation on par with 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 8.73 Peers 6.05   GIS 40.60 Peers 69.06

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

GIS is trading at a significant premium 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 2.60 Peers 2.56   GIS -6.06 Peers 145.15

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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