General Mills (GIS) AI Stock Analysis

• Market Cap: $27.04B
• Dividend Yield: 4.76%
• Average Volume (3M): 5.58M
• Price to Earnings (P/E): 12.3
• Beta (1Y): -0.07
• Revenue Growth: -1.87%
• EPS Growth: -5.16%
• Country: US
• Employees: 34,000
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Packaged Foods
• EPS (TTM): 0.74
• Shares Outstanding: 534,685,850
• 10 Day Avg. Volume: 5,791,043
• 30 Day Avg. Volume: 5,578,828
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.64
• Enterprise Value/Revenue: 2.27
• Enterprise Value/Gross Profit: 6.60
• Enterprise Value/Ebitda: 11.78
• 1Y Price Target: $53.88
• Price Target Upside: 6.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 19

• Rating: 73 Outperform
• Price Target: $56.00 ▲(10.72% Upside)

General Mills' overall stock score reflects its strong financial stability and attractive valuation, supported by a solid dividend yield. Strategic initiatives highlighted in the earnings call provide optimism for future growth, despite challenges in revenue growth and leverage. Technical indicators suggest potential short-term weakness, but the company's long-term prospects remain positive.

Positive Factors

Product Innovation

GIS plans to take advantage of themes like protein, bold flavors, comfort, and indulgence through innovation, renovation, advertising, and value.

Volume Share

Sequential volume share improvements are encouraging as analysts look ahead to easier compares.

Negative Factors

Earnings Guidance

FY26 EPS guidance is worse than expected due to higher investments, and some challenges will linger into FY27, making core profitability uncertain.

Market Valuation

Relative valuation is not cheap and analysts would like to see some market share improvements to have confidence underwriting a significant margin recovery in future fiscal years.

General Mills Business Overview & Revenue Model

Company Description

General Mills, Inc. is a leading global food company known for its diverse portfolio of brands and products across various sectors, including cereals, snacks, yogurt, and baking goods. Founded in 1866 and headquartered in Minneapolis, Minnesota, General Mills operates in the consumer foods industry, producing well-known brands such as Cheerios, Betty Crocker, Haagen-Dazs, and Nature Valley. The company is committed to delivering high-quality food products that cater to the evolving tastes and preferences of consumers worldwide.

How the Company Makes Money

General Mills generates revenue primarily through the sale of its food products across various channels, including grocery stores, supermarkets, and online retailers. The company's revenue model is built around several key segments, including North America Retail, International, and Pet segment. The North America Retail segment, which includes popular products like cereals and snacks, constitutes the majority of the company's revenue. Additionally, General Mills benefits from strategic partnerships with retailers and distributors, which enhance product visibility and accessibility. The company also invests in innovation and marketing to drive brand loyalty and expand its customer base. Seasonal promotions and new product launches further contribute to revenue growth, along with the company's focus on sustainability, which resonates with modern consumers. Overall, General Mills' diverse product offerings, strong brand portfolio, and effective distribution strategies play a crucial role in its financial success.

General Mills Financial Statement Overview

Summary

General Mills shows stable financial performance with strong cash flow generation and consistent profit margins. However, the slowing revenue growth and increased leverage pose potential risks.

Income Statement

General Mills shows a stable financial performance with a consistent gross profit margin averaging around 33-35% over the years. The net profit margin has slightly declined from 14.6% in 2022 to 11.7% in 2025, indicating some pressure on net income relative to revenue. Revenue growth has been modest, with a slight decrease in recent years, suggesting a need for strategic initiatives to boost top-line growth. EBIT and EBITDA margins have remained stable, reflecting operational efficiency.

Balance Sheet

The balance sheet indicates a strong equity position with a debt-to-equity ratio that has increased from 1.47 in 2020 to 1.62 in 2025, reflecting higher leverage which could pose risks if interest rates rise. Return on equity has decreased from 33.1% in 2020 to 24.8% in 2025, highlighting reduced profitability on shareholder equity. The equity ratio has remained relatively stable, showcasing a balanced approach toward asset financing.

Cash Flow

General Mills has demonstrated robust operating cash flows, with a strong free cash flow position consistently exceeding $2 billion. The operating cash flow to net income ratio has been favorable, underscoring the company's ability to convert earnings into cash. Free cash flow growth has been positive, although it has decelerated in recent years, pointing to potential challenges in maintaining growth without strategic reinvestment.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.49B	19.49B	19.86B	20.09B	18.99B	18.13B
Gross Profit	6.72B	6.73B	6.93B	6.55B	6.40B	6.45B
EBITDA	3.76B	3.92B	4.08B	4.08B	4.16B	3.89B
Net Income	2.28B	2.28B	2.50B	2.59B	2.71B	2.34B
Balance Sheet
Total Assets	33.07B	33.07B	31.47B	31.45B	31.09B	31.84B
Cash, Cash Equivalents and Short-Term Investments	363.90M	363.90M	418.00M	702.70M	819.20M	1.87B
Total Debt	15.30B	15.30B	13.32B	12.06B	11.98B	13.01B
Total Liabilities	23.86B	23.86B	21.82B	20.75B	20.30B	21.46B
Stockholders Equity	9.20B	9.20B	9.40B	10.45B	10.54B	9.47B
Cash Flow
Free Cash Flow	2.29B	2.29B	2.53B	2.09B	2.75B	2.45B
Operating Cash Flow	2.92B	2.92B	3.30B	2.78B	3.32B	2.98B
Investing Cash Flow	-1.79B	-1.79B	-1.20B	-346.40M	-1.69B	-512.80M
Financing Cash Flow	-1.18B	-1.18B	-2.27B	-2.40B	-2.50B	-2.72B

General Mills Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.58
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIS, the sentiment is Positive. The current price of 50.58 is above the 20-day moving average (MA) of 49.56, above the 50-day MA of 50.12, and below the 200-day MA of 56.00, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 57.43 is Neutral, neither overbought nor oversold. The STOCH value of 72.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GIS.

General Mills Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GIS	73 Outperform	$27.04B	12.34	24.57%	4.76%	-1.87%	-5.16%
CPB	69 Neutral	$10.15B	16.93	15.64%	4.53%	6.40%	6.17%
MKC	69 Neutral	$19.03B	24.62	14.19%	2.50%	0.89%	4.85%
HRL	63 Neutral	$14.11B	18.71	9.46%	4.49%	0.65%	-3.76%
Sector *	63 Neutral	$20.52B	14.79	-2.72%	3.09%	1.95%	-4.74%
KHC	56 Neutral	$32.30B	12.81	-11.68%	5.86%	-3.83%	-384.08%
SJM	55 Neutral	$12.00B	22.22	-21.32%	3.86%	2.54%	-293.39%

General Mills Corporate Events

General Mills Launches Global Transformation Initiative

On May 20, 2025, General Mills announced a multi-year global transformation initiative aimed at enhancing productivity through improved business processes and organizational changes. This initiative, expected to be completed by fiscal 2028, will incur charges of approximately $130 million, with significant expenses recorded in fiscal 2025, primarily for severance, impacting the company’s financials and operational strategy.