General Mills Inc

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GIS : NYSE : Consumer Goods
$59.16 | %
Today's Range: 59.01 - 59.75
Avg. Daily Volume: 3145800.0
03/24/17 - 4:01 PM ET

Financial Analysis

GENERAL MILLS INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged 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 0.41 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 16.88% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)3793.24002.4
EBITDA ($mil)795.2777.8
EBIT ($mil)648.0629.1
Net Income ($mil)357.8361.7

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)899.1782.7
Total Assets ($mil)21670.321631.6
Total Debt ($mil)9723.18768.2
Equity ($mil)4063.44888.8

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin39.0938.32
EBITDA Margin20.9619.43
Operating Margin17.0815.72
Sales Turnover0.730.78
Return on Assets7.516.95
Return on Equity40.0630.77
Debt Q3 FY16 Q3 FY15
Current Ratio0.720.76
Interest Expense76.477.2
Interest Coverage8.488.15

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)576.1593.6
Div / share0.480.44
Book value / share7.058.24
Institutional Own % n/a n/a
Avg Daily Volume3117637.03143292.0


BUY. This stock's P/E ratio indicates a discount compared to an average of 31.49 for the Food Products industry and a discount compared to the S&P 500 average of 26.33. For additional comparison, its price-to-book ratio of 8.42 indicates a significant premium versus the S&P 500 average of 2.93 and a significant premium versus the industry average of 5.11. The current price-to-sales ratio is above the S&P 500 average, but below the industry average. The valuation analysis reveals that, GENERAL MILLS INC seems to be trading at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
GIS 21.99 Peers 31.49   GIS 14.94 Peers 18.83

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
GIS 18.16 Peers 20.87   GIS 2.10 Peers 1.71

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 premium to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
GIS 8.42 Peers 5.11   GIS 10.20 Peers 1487.20

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
GIS 2.17 Peers 2.40   GIS -7.05 Peers 8.16

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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