General Mills logged a -1.1% change during today's afternoon session, and is now trading at a price of $73.69 per share.
Over the last year, General Mills logged a -2.0% change, with its stock price reaching a high of $90.89 and a low of $73.66. Over the same period, the stock underperformed the S&P 500 index by -12.0%. As of April 2023, the company's 50-day average price was $78.99. General Mills, Inc. manufactures and markets branded consumer foods worldwide. Based in Minneapolis, MN, the large-cap Consumer Staples company has 34,000 full time employees. General Mills has offered a 2.9% dividend yield over the last 12 months.
Exceptional Profitability Overshadowed by Excessive Leverage:
| 2019-06-28 | 2020-07-02 | 2021-06-30 | 2022-06-29 | |
|---|---|---|---|---|
| Revenue (MM) | $16,865 | $17,627 | $18,127 | $18,993 |
| Gross Margins | 34.1% | 34.8% | 35.6% | 33.7% |
| Operating Margins | 16.7% | 16.9% | 18.6% | 17.1% |
| Net Margins | 10.39% | 12.37% | 12.91% | 14.25% |
| Net Income (MM) | $1,753 | $2,181 | $2,340 | $2,707 |
| Net Interest Expense (MM) | -$522 | -$466 | -$420 | -$380 |
| Depreciation & Amort. (MM) | -$620 | -$595 | -$601 | -$570 |
| Earnings Per Share | $2.9 | $3.56 | $3.78 | $4.31 |
| EPS Growth | n/a | 22.76% | 6.18% | 14.02% |
| Diluted Shares (MM) | 605 | 613 | 620 | 585 |
| Free Cash Flow (MM) | $3,330 | $4,135 | $3,511 | $3,882 |
| Capital Expenditures (MM) | -$523 | -$459 | -$528 | -$565 |
| Net Current Assets (MM) | -$18,557 | -$17,336 | -$16,314 | -$15,212 |
| Current Ratio | 0.59 | 0.68 | 0.7 | 0.63 |
| Long Term Debt (MM) | $11,625 | $10,929 | $9,787 | $9,135 |
| Net Debt / EBITDA | 5.56 | 4.29 | 4.07 | 3.6 |
General Mills benefits from strong margins with a stable trend, a steady stream of strong cash flows, and stable revenues and a flat capital expenditure trend. The company's financial statements show wider gross margins than its peer group and a strong EPS growth trend. However, the firm has a highly leveraged balance sheet.
A Lower P/E Ratio Than Its Sector Average but Trades Above Its Graham Number:
General Mills has a trailing twelve month P/E ratio of 18.3, compared to an average of 24.36 for the Consumer Staples sector. Based on its EPS guidance of $4.75, the company has a forward P/E ratio of 16.6. The 10.4% compound average growth rate of General Mills's historical and projected earnings per share yields a PEG ratio of 1.77. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing General Mills in terms of its equity because its P/B ratio is 4.14 while the sector average is 4.29. The company's shares are currently trading 92.9% above their Graham number.
Analysts Give General Mills an Average Rating of Hold:
The 17 analysts following General Mills have set target prices ranging from $69.0 to $91.0 per share, for an average of $81.41 with a hold rating. As of April 2023, the company is trading -3.0% away from its average target price, indicating that there is an analyst consensus of some upside potential.
General Mills has an average amount of shares sold short because 2.6% of the company's shares are sold short. Institutions own 79.1% of the company's shares, and the insider ownership rate stands at 0.23%, suggesting a small amount of insider investors. The largest shareholder is Blackrock Inc., whose 9% stake in the company is worth $4,011,290,817.
