General Mills Inc. Stock Buy Recommendation Reiterated (GIS)

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 ( TheStreet) -- General Mills (NYSE: GIS) 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 solid stock price performance, revenue growth, attractive valuation levels, expanding profit margins and good cash flow from operations. 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 stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. 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.
  • The revenue growth significantly trails the industry average of 43.4%. Since the same quarter one year prior, revenues slightly increased by 5.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 39.10% 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 11.09% is above that of the industry average.
  • Net operating cash flow has increased to $828.30 million or 16.26% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -23.78%.

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 $29.96 billion and is part of the consumer goods sector and food & beverage industry. The company has a P/E ratio of 17.1, below the S&P 500 P/E ratio of 17.7. Shares are up 13.1% year to date as of the close of trading on Monday.

You can view the full General Mills Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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