General Mills Inc (NYSE: GIS)

Sector: Consumer Defensive Industry: Packaged Foods CIK: 0000040704
Market Cap 26.99 Bn
P/B 5.45
P/E 20.72
P/S 1.54
ROIC (Qtr) 12.16
Div Yield % 5.14
Rev 1y % (Qtr) -7.24
Total Debt (Qtr) 13.73 Bn
Debt/Equity (Qtr) 1.47
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About

General Mills, Inc., commonly known as GIS, is a prominent player in the consumer foods industry. With a rich history dating back to 1866, the company has established itself as a leading food company, headquartered in Minneapolis, Minnesota. General Mills boasts a global presence, with operations in over 100 countries worldwide. The company's primary business activities revolve around the production and distribution of a diverse range of consumer food products. These offerings span various categories, including breakfast cereals, snacks, baking...

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Investment thesis

Bull case

  • Operating cash flow of 2.36B provides exceptional 162.74x coverage of minority interest expenses 14.50M, showing strong core operations.
  • Operating cash flow of 2.36B provides strong 27.96x coverage of stock compensation 84.40M, indicating sustainable incentive practices.
  • Robust free cash flow of 1.79B exceeds capital expenditure of 574.60M by 3.11x, indicating strong organic growth funding capability.
  • Cash position of 683.40M provides exceptional 47.13x coverage of minority interest expenses 14.50M, indicating strong liquidity.
  • Retained earnings of 22.55B provide full 1.85x coverage of long-term debt 12.16B, indicating strong internal capital position.

Bear case

  • Operating cash flow of 2.36B provides thin coverage of dividend payments of (1.32B) with a -1.79 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 683.40M provide limited coverage of acquisition spending of 646.60M, which is 1.06x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High financing cash flow of (4.04B) relative to working capital of (2.64B), which is 1.53x suggests concerning dependence on external funding for operational needs.
  • Free cash flow of 1.79B represents just -1.40x of debt issuance (1.27B), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 2.36B barely covers operating expenses of (937M) with a -2.52 ratio, suggesting thin operational efficiency margins and limited flexibility.

Breakdown of Revenue (2025)

Breakdown of Revenue (2025)

Peer comparison

Companies in the Packaged Foods
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 KHC Kraft Heinz Co 28.20 Bn -4.82 1.13 21.22 Bn
2 GIS General Mills Inc 26.99 Bn 20.72 1.54 13.73 Bn
3 JBS Jbs N.V. 17.81 Bn 10.08 0.23 23.92 Bn
4 MKC Mccormick & Co Inc 16.10 Bn 44.21 3.77 4.00 Bn
5 HRL Hormel Foods Corp /De/ 12.37 Bn 18.03 1.34 2.86 Bn
6 SJM J M SMUCKER Co 11.08 Bn 19.60 1.97 7.91 Bn
7 PPC Pilgrims Pride Corp 10.32 Bn 9.54 0.56 3.29 Bn
8 MICC Magnum Ice Cream Co N.V. 9.71 Bn 28.17 1.04 4.02 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.10 1.47
EV to Cash from Ops. EV/CFO 13.57 29.75
EV to Debt EV to Debt 2.61 27.85
EV to EBIT EV/EBIT 15.96 86.88
EV to EBITDA EV/EBITDA 12.88 -156.20
EV to Free Cash Flow [EV/FCF] EV/FCF 18.45 -5.67
EV to Market Cap EV to Market Cap 1.33 1.15
EV to Revenue EV/Rev 2.04 7.32
Price to Book Value [P/B] P/B 5.45 8.48
Price to Earnings [P/E] P/E 20.72 14.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.92 4.58
Dividend Payout Ratio % Div Payout % (Qtr) 51.90 3.76
Dividend per Basic Share Div per Share (Qtr) 2.42 0.65
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 72.30 22.76
Interest Coverage Int. cover (Qtr) 7.20 6.64
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 26.31 -118.07
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -70.19 43.48
Dividend Growth (1y) % Div 1y % (Qtr) 1.68 0.66
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -1.76 -48.16
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 5.79 -152.35
EBIT Growth (1y) % EBIT 1y % (Qtr) 3.07 -50.79
EBT Growth (1y) % EBT 1y % (Qtr) 2.23 -54.94
EPS Growth (1y) % EPS 1y % (Qtr) 0.65 -28.10
FCF Growth (1y) % FCF 1y % (Qtr) -36.28 7.02
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -9.65 439.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.58 1.01
Cash Payout Ratio Cash Payout (Qtr) 0.45 0.12
Cash Ratio Cash Ratio (Qtr) 0.09 0.86
Current Ratio Curr Ratio (Qtr) 0.66 2.60
Debt to Equity Ratio Debt/Equity (Qtr) 1.47 2.21
Interest Cover Ratio Int Coverage (Qtr) 7.20 6.64
Times Interest Earned Times Interest Earned (Qtr) 7.20 6.64
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 23.40 -919.13
EBIT Margin % EBIT Margin % (Qtr) 20.49 -1,474.87
EBT Margin % EBT Margin % (Qtr) 17.64 -1,537.76
Gross Margin % Gross Margin % (Qtr) 33.80 26.98
Net Profit Margin % Net Margin % (Qtr) 13.50 -1,538.60