General Mills (GIS) AI Stock Analysis

• Market Cap: $29.88B
• Dividend Yield: 4.4%
• Average Volume (3M): 4.85M
• Price to Earnings (P/E): 12.1
• Beta (1Y): -0.18
• Revenue Growth: -2.62%
• EPS Growth: 4.27%
• Country: US
• Employees: 34,000
• Sector: Consumer Defensive
• Sector Strength: 82
• Industry: Packaged Foods
• EPS (TTM): 1.00
• Shares Outstanding: 547,600,500
• 10 Day Avg. Volume: 3,846,779
• 30 Day Avg. Volume: 4,850,169
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.60
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.89
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $60.87
• Price Target Upside: 11.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16

General Mills shows financial stability with strong profitability and cash flow generation. However, recent revenue declines and increased debt levels are concerns. The stock's valuation suggests it is undervalued, offering potential upside, supported by a solid dividend yield. Technical indicators point to bearish trends, but the earnings call reveals proactive strategies to enhance competitiveness. This balanced outlook results in a moderate overall stock score.

Positive Factors

Efficiency gains

Good visibility exists into a 5% productivity gain in the near future, with new efficiencies providing further contributions.

Long-term growth potential

The company believes that it can deliver against its long-term targets while coexisting with long-term trends such as an aging population, increased snacking, humanization of pets, and the increased use of AI and digital channels by retailers and consumers.

Operational improvements

The company has shown the ability to drive volume improvement at Pillsbury, Totino’s, and Blue Buffalo in recent months.

Negative Factors

Earnings pressure

The financial impact and magnitude of late-FY25 reinvestments are much larger than expected, affecting earnings negatively.

Guidance reduction

The FY25 guide down was greater than expected, with a reduction in FY25 adj EPS guidance by 4.5ppt at the midpoint for a y/y decline.

Sales challenges

Retail de-stocking and softness in the snacks category have led to lighter North America retail sales.

General Mills Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

General Mills generates revenue primarily through the sale of branded food products across various categories including cereals, snacks, meals, baking products, and pet foods. The company's revenue streams are mainly divided into three segments: North America Retail, Convenience Stores & Foodservice, and International. North America Retail is the largest segment, contributing a significant portion of the company's total revenue through the sale of products to major retail chains and supermarkets. The Convenience Stores & Foodservice segment provides products to convenience stores, vending operators, and foodservice outlets. The International segment extends the company's reach globally, offering products across Europe, Latin America, and the Asia-Pacific region. General Mills also benefits from strategic partnerships and joint ventures, such as its stake in the Haagen-Dazs ice cream business outside of North America, which provide additional revenue streams. The company invests in marketing and innovation to strengthen its brand presence and adapt to changing consumer preferences, further driving sales and profitability.

General Mills Financial Statement Overview

Summary

General Mills demonstrates overall financial stability with strong profitability and cash generation, though recent revenue declines and increased debt levels should be monitored. The company's solid margins and cash flow resilience position it well in the consumer products sector, yet future growth will depend on reversing the revenue trend.

Income Statement

General Mills exhibits solid profitability with a stable gross profit margin and resilient EBIT and EBITDA margins over TTM. However, revenue has slightly declined compared to the previous period, signaling potential challenges in growth. Net profit margin remains healthy, indicating effective cost management despite revenue pressures.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, reflecting a balanced approach to leveraging debt. The equity ratio suggests a stable financial foundation, though the increase in total debt over recent periods warrants monitoring. Return on equity indicates effective utilization of shareholder funds.

Cash Flow

Operating cash flow is robust, outperforming net income, which highlights strong cash generation capabilities. Free cash flow remains stable, supporting ongoing investment and debt servicing. Although the free cash flow growth rate is modest, the company's cash flow metrics remain strong.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
19.86B	20.09B	18.99B	18.13B	17.63B
	Gross Profit
6.93B	6.55B	6.40B	6.45B	6.13B
	EBIT
3.43B	2.66B	3.48B	3.14B	2.95B
	EBITDA
4.08B	4.08B	4.16B	3.88B	3.66B
	Net Income Common Stockholders
2.50B	2.59B	2.71B	2.34B	2.18B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
418.00M	585.50M	569.40M	1.51B	1.68B
	Total Assets
31.47B	31.45B	31.09B	31.84B	30.81B
	Total Debt
13.32B	11.71B	11.62B	12.61B	13.54B
	Net Debt
12.90B	11.12B	11.05B	11.11B	11.86B
	Total Liabilities
21.82B	20.75B	20.30B	21.46B	21.91B
	Stockholders Equity
9.40B	10.45B	10.54B	9.47B	8.06B
Cash Flow		Free Cash Flow
2.53B	2.09B	2.75B	2.45B	3.22B
	Operating Cash Flow
3.30B	2.78B	3.32B	2.98B	3.68B
	Investing Cash Flow
-1.20B	-346.40M	-1.69B	-512.80M	-486.20M
	Financing Cash Flow
-2.27B	-2.40B	-2.50B	-2.72B	-1.94B

General Mills Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIS, the sentiment is Negative. The current price of 54.44 is below the 20-day moving average (MA) of 56.63, below the 50-day MA of 58.36, and below the 200-day MA of 63.49, indicating a bearish trend. The MACD of -0.98 indicates Positive momentum. The RSI at 36.23 is Neutral, neither overbought nor oversold. The STOCH value of 13.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GIS.

General Mills Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GIS	70 Outperform	$29.88B	12.09	27.37%	4.40%	-2.62%	4.27%
HRL	69 Neutral	$16.03B	21.20	9.54%	3.93%	-1.84%	-5.14%
CAG	68 Neutral	$11.15B	34.40	3.67%	6.00%	-3.15%	-65.38%
KHC	68 Neutral	$33.61B	12.96	5.36%	5.63%	-4.25%	-4.04%
MKC	67 Neutral	$20.04B	25.85	14.73%	2.33%	0.40%	10.89%
Sector *	64 Neutral	$8.87B	14.81	5.05%	174.26%	3.56%	3.68%
SJM	59 Neutral	$12.08B	22.22	-3.55%	3.77%	7.07%	-181.54%

General Mills Corporate Events

General Mills Announces Leadership Change with Nudi’s Retirement

On March 5, 2025, General Mills announced the retirement of Jonathan J. Nudi, Group President of North America Pet, International, and North America Foodservice, effective June 30, 2025. This leadership change could impact the company’s strategic direction and operational focus in these key segments.