General Mills logged a 2.85% change during today's premarket session, and is now trading at a price of $82.15 per share. The S&P 500 index moved 0.27% and the Nasdaq posted a 1.19% change.
General Mills shares moved 21.9% over the last 52 weeks, with a high of $87.79 and a low of $63.63. During this time, the stock outperformed the S&P 500 index by 34.98%. As of January 2022, the company's 50-day average price is $79.0. General Mills, Inc., is an American multinational manufacturer and marketer of branded consumer foods sold through retail stores. The large-cap Consumer Staples company is based in Minneapolis, MN. General Mills has returned a 2.68% dividend yield over the last 12 months.
Sustained EPS Growth with Reasonable Leverage Levels:
| 2019-05-26 | 2020-05-31 | 2021-05-30 | 2022-05-29 | |
|---|---|---|---|---|
| Revenue (MM) | $2,044 | $2,046 | $2,189 | $2,134 |
| Revenue Growth | n/a | 0.08% | 7.02% | -2.51% |
| Operating Margins | 123.09% | 144.4% | 143.65% | 162.85% |
| Operating Margins Growth | n/a | 17.31% | -0.52% | 13.37% |
| Earnings Per Share | $2.9 | $3.57 | $3.82 | $4.48 |
| EPS Growth | n/a | 23.1% | 7.0% | 17.28% |
| Diluted Shares (MM) | 604 | 611 | 613 | 604 |
| Free Cash Flow (MM) | $2,269 | $3,215 | $2,452 | $2,747 |
| FCF Growth | n/a | 41.69% | -23.73% | 12.03% |
| Capital Expenditures (MM) | $538 | $461 | $531 | $569 |
| Net Debt / EBITDA | 0.35 | -0.34 | -0.25 | 2.21 |
General Mills Is Reasonably Valued:
Compared to the Consumer Staples sector's average of 24.36, General Mills has a trailing twelve month P/E ratio of 17.33 and, according to its EPS guidance of 4.41, an expected P/E ratio of 18.63. General Mills's PEG ratio is 3.47 based on its 5.0% annual average growth rate of historical and projected earnings per share. This suggests that the company's shares are overvalued.
General Mills's P/B ratio is 4.818 compared to its sector average of 4.29. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 118.02% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 5-year average EPS * book value per share) = √(22.5 * 3.68 * 17.15) = $37.68
Most of the Market Indicators on General Mills Are Negative:
17 analysts are following General Mills and have set target prices ranging from $65.0 to $95.0 per share. On average, they have given the company a rating of hold. At the current price of $82.15, GIS is trading 0.83% away from its average analyst target price of $81.47 per share, implying an analyst consensus of little upside potential for the stock.
The company has an average amount of shares sold short since 2.13% of the company's shares are tied to short positions. Institutions own 79.7% of General Mills's shares, while the insider ownership rate stands at 0.18%. The biggest shareholder is Blackrock Inc. with a 10% stake in the company worth approximately $4,637,989,543.
