General Mills Inc

GIS

Grain Mill Products

Mkt Cap

$38.6B

PE

15.11

Debt

$12.64B

Cash

$588.6M

EV

$50.65B

FCF

$2.367B

Market Cap

$38.6B

P/E Ratio

15.11

Debt

$12.64B

Cash

$588.6M

EV

$50.65B

FCF

$2.367B

Charts data: {"Earnings":[{"time":"2015-05-30","value":1221300000},{"time":"2016-05-28","value":1697400000},{"time":"2017-05-27","value":1657500000},{"time":"2018-05-26","value":2131000000},{"time":"2019-05-25","value":1752700000},{"time":"2020-05-30","value":2181200000},{"time":"2021-05-29","value":2339800000},{"time":"2022-05-28","value":2707300000},{"time":"2023-05-27","value":2593900000}],"Sales":[{"time":"2015-05-30","value":17630300000},{"time":"2016-05-28","value":16563100000},{"time":"2017-05-27","value":15619800000},{"time":"2018-05-26","value":15740400000},{"time":"2019-05-25","value":2043900000},{"time":"2020-05-30","value":2045600000},{"time":"2021-05-29","value":2189200000},{"time":"2022-05-28","value":2134300000},{"time":"2023-05-27","value":1957400000}],"Net Margins":[{"time":"2015-05-30","value":0.06927278605582435},{"time":"2016-05-28","value":0.1024808157893148},{"time":"2017-05-27","value":0.10611531517689086},{"time":"2018-05-26","value":0.13538410713831922},{"time":"2019-05-25","value":0.8575272762855326},{"time":"2020-05-30","value":1.0662886194759484},{"time":"2021-05-29","value":1.0687922528777636},{"time":"2022-05-28","value":1.2684720985803308},{"time":"2023-05-27","value":1.3251762542147747}],"Assets":[{"time":"2015-05-30","value":21964500000},{"time":"2016-05-28","value":21712300000},{"time":"2017-05-27","value":21812600000},{"time":"2018-05-26","value":30624000000},{"time":"2019-05-25","value":30111200000},{"time":"2020-05-30","value":30806700000},{"time":"2021-05-29","value":31841900000},{"time":"2022-05-28","value":31090100000},{"time":"2023-05-27","value":31451700000}],"Stockholders Equity":[{"time":"2015-05-30","value":5392700000},{"time":"2016-05-28","value":5307100000},{"time":"2017-05-27","value":4685500000},{"time":"2018-05-26","value":6492400000},{"time":"2019-05-25","value":7367700000},{"time":"2020-05-30","value":8349500000},{"time":"2021-05-29","value":9773200000},{"time":"2022-05-28","value":10788000000},{"time":"2023-05-27","value":10700000000}],"ROE":[{"time":"2015-05-30","value":0.22647282437369035},{"time":"2016-05-28","value":0.31983569180908594},{"time":"2017-05-27","value":0.35375093373172556},{"time":"2018-05-26","value":0.32822993038013676},{"time":"2019-05-25","value":0.2378897077785469},{"time":"2020-05-30","value":0.2612371998323253},{"time":"2021-05-29","value":0.23940981459501495},{"time":"2022-05-28","value":0.25095476455320725},{"time":"2023-05-27","value":0.24242056074766355}],"ROA":[{"time":"2015-05-30","value":0.09457533747638235},{"time":"2016-05-28","value":0.12469429770222408},{"time":"2017-05-27","value":0.117656767189606},{"time":"2018-05-26","value":0.08193900208986415},{"time":"2019-05-25","value":0.08647280746034698},{"time":"2020-05-30","value":0.09954652721648213},{"time":"2021-05-29","value":0.10293669661672199},{"time":"2022-05-28","value":0.11544510953647624},{"time":"2023-05-27","value":0.11200030522992398}]}

General Mills, Inc. manufactures and markets branded consumer foods worldwide. The company operates in five segments: North America Retail; Convenience Stores & Foodservice; Europe & Australia; Asia & Latin America; and Pet. It offers ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, bakery flour, frozen pizza and pizza snacks, snack bars, fruit and salty snacks, ice cream, nutrition bars, wellness beverages, and savory and grain snacks, as well as various organic products, including frozen and shelf-stable vegetables. It also supplies branded and unbranded food products to the North American foodservice and commercial baking industries; and manufactures and markets pet food products, including dog and cat food. The company markets its products under the Annie's, Betty Crocker, Bisquick, Blue Buffalo, Blue Basics, Blue Freedom, Bugles, Cascadian Farm, Cheerios, Chex, Cinnamon Toast Crunch, Cocoa Puffs, Cookie Crisp, EPIC, Fiber One, Food Should Taste Good, Fruit by the Foot, Fruit Gushers, Fruit Roll-Ups, Gardetto's, Go-Gurt, Gold Medal, Golden Grahams, Häagen-Dazs, Helpers, Jus-Rol, Kitano, Kix, Lärabar, Latina, Liberté, Lucky Charms, Muir Glen, Nature Valley, Oatmeal Crisp, Old El Paso, Oui, Pillsbury, Progresso, Raisin Nut Bran, Total, Totino's, Trix, Wanchai Ferry, Wheaties, Wilderness, Yoki, and Yoplait trademarks. It sells its products directly, as well as through broker and distribution arrangements to grocery stores, mass merchandisers, membership stores, natural food chains, e-commerce retailers, commercial and noncommercial foodservice distributors and operators, restaurants, convenience stores, and pet specialty stores, as well as drug, dollar, and discount chains. The company operates 466 leased and 392 franchise ice cream parlors. General Mills, Inc. was founded in 1866 and is headquartered in Minneapolis, Minnesota.

Sector

10-Q
8/27/23
10-K
5/28/23
10-Q
2/26/23
10-Q
11/27/22
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8/28/22
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5/29/22
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2/27/22
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10-K
5/26/19
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2/24/19
10-Q
11/25/18
10-Q
8/26/18
10-K
5/27/18
10-Q
2/25/18

DCF

Discounted Cash Flow Valuation of General Mills Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$2.367B	$2.443B	$2.521B	$2.602B	$2.686B	$2.772B	$2.862B	$2.954B	$3.048B	$3.147B	$3.248B	$32.48B
DCF		$2.124B	$1.906B	$1.711B	$1.536B	$1.378B	$1.237B	$1.11B	$996.6M	$894.4M	$802.8M	$8.028B
Value	$21.72B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 7.9%

Earnings Stability 80%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	05-2015	05-2016	05-2017	05-2018	05-2019	05-2020	05-2021	05-2022	05-2023	TTM
Net Margin	6.9%	10%	11%	14%	86%	110%	110%	130%	130%	130%
ROA	9.5%	12%	12%	8.2%	8.6%	10%	10%	12%	11%	12%
ROE	23%	32%	35%	33%	24%	26%	24%	25%	24%	26%

What is the average Net Margin?

The average Net Margin over the past 5 years is +95.36%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +20.53%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +9.97%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.69%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +26%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -1.18%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	05-2015	05-2016	05-2017	05-2018	05-2019	05-2020	05-2021	05-2022	05-2023	TTM
Debt FCF	-	4.55	5.48	7.15	6.38	4.85	6.00	4.54	6.41	5.34
Debt Equity	1.78	1.75	2.02	2.44	1.97	1.87	1.51	1.16	1.25	1.30
MIN
Graham Stability	-	-	-	100%	96%	100%	100%	100%	100%	96%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 5.34.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.23.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.96.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	05-2016	05-2018	05-2020	05-2022	Trend
Revenue	-26%	-34%	-1.5%	-8.3%	1.3%
Net Income	6.2%	4%	5.9%	-4.2%	-2.8%
Stockholders Equity	11%	11%	8.6%	-0.82%	0.61%
FCF	0.38%	-1.2%	-13%	-24%	-2.7%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is -34.09%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.26%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +4.01%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -2.78%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +10.51%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.61%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -1.19%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -2.71%.