General Mills (GIS) AI Stock Analysis

• Market Cap: $28.83B
• Dividend Yield: 4.51%
• Average Volume (3M): 5.59M
• Price to Earnings (P/E): 13.0
• Beta (1Y): -0.09
• Revenue Growth: -1.87%
• EPS Growth: -5.16%
• Country: US
• Employees: 34,000
• Sector: Consumer Defensive
• Sector Strength: 57
• Industry: Packaged Foods
• EPS (TTM): 0.74
• Shares Outstanding: 542,427,500
• 10 Day Avg. Volume: 8,216,888
• 30 Day Avg. Volume: 5,591,490
• PEG Ratio: -1.40
• Price to Book (P/B): 3.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.07
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 7.97
• Enterprise Value/Ebitda: 2.68
• 1Y Price Target: $54.47
• Price Target Upside: 2.48% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15

• Rating: 63 Neutral
• Price Target: $54.00 ▲(1.60%Upside)

General Mills demonstrates financial stability and attractive valuation, but faces challenges from weak technical indicators and margin pressures. Strategic initiatives could enhance long-term prospects, but the stock currently reflects short-term uncertainty.

Positive Factors

Operational Efficiency

The company reported a higher adjusted gross margin than expected, indicating improved operational efficiency.

Volume Share Improvements

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

Negative Factors

EPS Growth Challenges

The lower than expected EPS growth was driven primarily by incremental investments, most notably in GIS's recently announced launch of a new fresh pet food offering, as well as limited flexibility to offset inflation.

FY26 Guidance

The fiscal year 2026 guidance was weaker than expected despite relatively in-line OSG with operating profit/EPS expected to decline 10-15% year-over-year.

Market Share and 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. 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 its consumer food products across different categories, including cereals, snacks, meals, baking products, and pet foods. The company's key revenue streams include retail sales through grocery stores, supermarkets, and mass merchandisers, as well as foodservice sales to restaurants and other foodservice providers. Additionally, General Mills benefits from strategic partnerships and joint ventures which help expand its market reach and product offerings. The company focuses on brand strength, innovation, and supply chain efficiency to maintain and grow its earnings. Significant factors contributing to its earnings include consumer trends, pricing strategies, and cost management initiatives.

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	19.49B	19.86B	20.09B	18.99B	18.13B
Gross Profit	6.73B	6.93B	6.55B	6.40B	6.45B
EBITDA	3.90B	4.08B	4.08B	4.16B	3.89B
Net Income	2.28B	2.50B	2.59B	2.71B	2.34B
Balance Sheet
Total Assets	33.07B	31.47B	31.45B	31.09B	31.84B
Cash, Cash Equivalents and Short-Term Investments	363.90M	418.00M	702.70M	819.20M	1.87B
Total Debt	14.88B	13.32B	12.06B	11.98B	13.01B
Total Liabilities	23.86B	21.82B	20.75B	20.30B	21.46B
Stockholders Equity	9.20B	9.40B	10.45B	10.54B	9.47B
Cash Flow
Free Cash Flow	2.92B	2.53B	2.09B	2.75B	2.45B
Operating Cash Flow	2.92B	3.30B	2.78B	3.32B	2.98B
Investing Cash Flow	-1.79B	-1.20B	-346.40M	-1.69B	-512.80M
Financing Cash Flow	-1.18B	-2.27B	-2.40B	-2.50B	-2.72B

General Mills Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 53.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GIS, the sentiment is Neutral. The current price of 53.15 is below the 20-day moving average (MA) of 53.21, below the 50-day MA of 54.14, and below the 200-day MA of 60.69, indicating a bearish trend. The MACD of -0.54 indicates Negative momentum. The RSI at 48.95 is Neutral, neither overbought nor oversold. The STOCH value of 82.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GIS.

General Mills Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KHC	74 Outperform	$31.55B	12.09	5.36%	6.00%	-4.25%	-4.04%
MKC	69 Neutral	$20.17B	26.10	14.19%	2.40%	0.89%	4.85%
Sector *	68 Neutral	¥197.40B	21.11	8.29%	2.33%	4.99%	3.05%
HRL	68 Neutral	$16.76B	22.41	9.39%	3.81%	-1.01%	-2.93%
CAG	67 Neutral	$10.02B	30.71	3.67%	6.67%	-3.15%	-65.38%
GIS	63 Neutral	$28.83B	12.97	24.57%	4.51%	-1.87%	-5.16%
SJM	47 Neutral	$11.10B	22.22	-17.87%	4.15%	6.69%	-261.87%

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.

The most recent analyst rating on (GIS) stock is a Hold with a $67.00 price target. To see the full list of analyst forecasts on General Mills stock, see the GIS Stock Forecast page.

General Mills Appoints New Group President for North America

On May 19, 2025, General Mills announced the appointment of Dana M. McNabb as Group President for North America Retail and North America Pet, effective June 1, 2025. This strategic leadership change is expected to impact the company’s operations and market positioning in the North American retail and pet food sectors.

The most recent analyst rating on (GIS) stock is a Hold with a $67.00 price target. To see the full list of analyst forecasts on General Mills stock, see the GIS Stock Forecast page.