General Mills Inc

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GIS : NYSE : Consumer Goods
$52.08 -4.4 | -7.7%
Today's Range: 55.19 - 56.3
Avg. Daily Volume: 4003300.0
09/20/17 - 9:11 AM ET

Financial Analysis


GENERAL MILLS INC's gross profit margin for the fourth quarter of its fiscal year 2016 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 0.45 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 12.21% 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 FY16 Q4 FY15
Net Sales ($mil)3806.63927.9
EBITDA ($mil)787.8800.1
EBIT ($mil)632.5633.2
Net Income ($mil)408.9379.6


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)766.1763.7
Total Assets ($mil)21812.621712.3
Total Debt ($mil)9481.78430.9
Equity ($mil)4327.94930.2


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin38.9140.21
EBITDA Margin20.6920.36
Operating Margin16.6216.12
Sales Turnover0.720.76
Return on Assets7.597.81
Return on Equity38.2934.42
Debt Q4 FY16 Q4 FY15
Current Ratio0.760.79
Debt/Capital0.690.63
Interest Expense69.377.5
Interest Coverage9.138.17


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)576.9596.8
Div / share0.480.46
EPS0.690.62
Book value / share7.58.26
Institutional Own % n/a n/a
Avg Daily Volume3993484.03617622.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 25.81 for the Food Products industry and a discount compared to the S&P 500 average of 24.88. For additional comparison, its price-to-book ratio of 7.34 indicates a significant premium versus the S&P 500 average of 3.10 and a significant premium versus the industry average of 4.59. The price-to-sales ratio is below both the S&P 500 average and the industry average, indicating a discount. The valuation analysis reveals that, GENERAL MILLS INC seems to be trading 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 19.87 Peers 25.81   GIS 13.73 Peers 20.31

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

GIS is trading at a 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 significant 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 17.04 Peers 22.78   GIS 1.62 Peers 1.07

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 7.34 Peers 4.59   GIS 0.00 Peers 31.39

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.

 

Neutral. Higher earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

The growth rate for GIS is not available.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
GIS 2.03 Peers 2.14   GIS -5.70 Peers 0.35

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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