General Mills (GIS) AI Stock Analysis

• Market Cap: $24.13B
• Dividend Yield: 5.19%
• Average Volume (3M): 7.33M
• Price to Earnings (P/E): 9.8
• Beta (1Y): -0.12
• Revenue Growth: -5.65%
• EPS Growth: 0.41%
• Country: US
• Employees: 34,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 1.10
• Shares Outstanding: 533,582,100
• 10 Day Avg. Volume: 7,760,316
• 30 Day Avg. Volume: 7,327,432
• PEG Ratio: -2.54
• Price to Book (P/B): 3.22
• Price to Sales (P/S): 1.52
• P/FCF Ratio: 12.91
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 1.98
• Enterprise Value/Gross Profit: 5.87
• Enterprise Value/Ebitda: 10.83
• 1Y Price Target: $47.86
• Price Target Upside: 5.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15
• EPS Forecast (FY): 3.52
• Revenue Forecast (FY): $18.48B

• Rating: 68 Neutral
• Price Target: $49.00 ▲(8.34% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is driven primarily by decent underlying financial quality but constrained by leverage, softer growth, and weaker recent free cash flow. Attractive valuation (low P/E and high yield) meaningfully lifts the score, while technicals remain mixed-to-weak with the stock trading below major moving averages. Earnings-call guidance is moderately supportive but tempered by cost and category/volume sustainability risks.

Positive Factors

Brand innovation & pet segment momentum

Successful new-product rollout (Love Made Fresh ~5% share, high ratings) and momentum across the Pet business show the company can convert innovation into trial and distribution gains. Durable product appeal and retail execution support sustained pound-share recovery and category positioning over months.

Sustained profitability and margins

Margins remain robust for a staples manufacturer, providing recurring operating cash and cushioning against input volatility. While margins have compressed versus earlier years, current gross and net margins underpin durable earnings capacity and support reinvestment, dividends and strategic initiatives.

High free-cash-flow conversion expectations

Management's guidance for ~95% FCF conversion indicates structural cash-generation resilience even amid softer sales. High conversion supports capital allocation flexibility — funding innovation, dividends and deleveraging — and makes the business less reliant on external financing over the medium term.

Negative Factors

Elevated leverage limits flexibility

Above-peer leverage amplifies returns but reduces financial flexibility. Higher debt-to-equity constrains the company’s ability to absorb further margin or volume weakness, limits near-term strategic spending, and increases refinancing and interest-rate sensitivity over the coming months.

Top-line softness and downward FY26 organic sales revision

Management materially revised FY26 organic sales lower, reflecting weaker consumer demand and slower volume recovery. Persistent top-line headwinds reduce earnings scalability, pressure margin recovery, and make multi-quarter growth targets and strategic investments harder to achieve without sustained pricing or mix gains.

Structural category pressures (cereal, dog feeding)

Enduring secular shifts in key categories — cereal declining as consumers seek alternatives and dog feeding moving to unmeasured channels — create sustained volume risk. These trends require portfolio repositioning, increased marketing or innovation to arrest share loss over several quarters.

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 through the sale of its extensive portfolio of food products, which are distributed through various channels including supermarkets, convenience stores, and restaurants. The company's revenue model is primarily based on the direct sale of consumer packaged goods, with significant revenue streams coming from its branded products across cereals, snacks, and frozen foods. Additionally, General Mills benefits from strategic partnerships with retailers and foodservice operators, enhancing its distribution capabilities. The company also invests in innovation and marketing to drive brand loyalty and expand its market share, contributing to its overall earnings. Overall, the combination of a diverse product offering, effective marketing strategies, and strong distribution partnerships positions General Mills to capitalize on consumer trends and preferences in the food industry.

General Mills Financial Statement Overview

Summary

Solid profitability (TTM gross margin ~34%, net margin ~14%) and generally healthy cash generation, but slightly negative TTM revenue (~-2%), margin compression versus prior years, elevated leverage (debt-to-equity ~1.47), and a meaningful TTM free-cash-flow decline (~-15%) temper the outlook.

Income Statement

TTM (Trailing-Twelve-Months) revenue is slightly down (~-2%), extending a mild multi-year softness after prior growth. Profitability remains solid for Packaged Foods, with TTM gross margin around 34% and net margin around 14%. However, margins have generally compressed versus earlier years (notably EBITDA/operating profitability), indicating cost pressures and/or mix headwinds even as earnings remain resilient.

Balance Sheet

Leverage is the main constraint: TTM debt is higher than equity (debt-to-equity ~1.47), and leverage has trended up versus some earlier periods. Returns on equity are strong (~27% TTM), but that strength is partly amplified by the higher debt load. Overall, the balance sheet looks workable for a mature staples business, but it is less conservative than best-in-class peers and provides less flexibility if conditions weaken.

Cash Flow

Cash generation remains healthy, with TTM free cash flow covering a meaningful portion of earnings (free cash flow about three-quarters of net income). That said, TTM free cash flow declined meaningfully year-over-year (about -15%), signaling higher cash demands or weaker conversion versus the prior year. Operating cash flow relative to the company’s overall obligation profile appears modest, reinforcing that cash flow is solid but not exceptionally strong given the leverage.

Breakdown	TTM	May 2025	May 2024	May 2023	May 2022	May 2021
Income Statement
Total Revenue	18.78B	19.49B	19.86B	20.09B	18.99B	18.13B
Gross Profit	6.34B	6.73B	6.93B	6.55B	6.40B	6.45B
EBITDA	3.43B	3.92B	4.08B	4.08B	4.16B	3.89B
Net Income	2.54B	2.30B	2.50B	2.59B	2.71B	2.34B
Balance Sheet
Total Assets	32.55B	33.07B	31.47B	31.45B	31.09B	31.84B
Cash, Cash Equivalents and Short-Term Investments	683.40M	363.90M	418.00M	702.70M	819.20M	1.87B
Total Debt	13.73B	15.30B	13.32B	12.06B	11.98B	13.01B
Total Liabilities	23.22B	23.86B	21.82B	20.75B	20.30B	21.46B
Stockholders Equity	9.32B	9.20B	9.40B	10.45B	10.54B	9.47B
Cash Flow
Free Cash Flow	1.78B	2.29B	2.53B	2.09B	2.75B	2.45B
Operating Cash Flow	2.36B	2.92B	3.30B	2.78B	3.32B	2.98B
Investing Cash Flow	49.90M	-1.79B	-1.20B	-346.40M	-1.69B	-512.80M
Financing Cash Flow	-4.04B	-1.18B	-2.27B	-2.40B	-2.50B	-2.72B

General Mills Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 45.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 45.23 is below the 20-day moving average (MA) of 46.55, below the 50-day MA of 45.71, and below the 200-day MA of 47.96, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 46.18 is Neutral, neither overbought nor oversold. The STOCH value of 29.53 is Neutral, 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	68 Neutral	$24.13B	9.77	27.29%	5.19%	-5.65%	0.41%
HRL	68 Neutral	$14.08B	28.81	6.12%	4.82%	1.55%	-40.81%
MKC	65 Neutral	$19.07B	24.24	14.32%	2.61%	1.64%	-1.83%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SJM	61 Neutral	$12.37B	-9.84	-20.68%	4.45%	-0.66%	-326.55%
CPB	60 Neutral	$8.03B	13.94	14.82%	5.64%	2.71%	4.90%
KHC	54 Neutral	$29.13B	-4.98	-12.87%	6.75%	-3.70%	-431.05%

General Mills Corporate Events

General Mills appoints new director, updates corporate bylaws

On January 26, 2026, General Mills appointed Joan L. Bottarini as an independent director to its Board, expanding the Board to twelve members and assigning her to the Audit and Compensation and Talent Committees, with compensation aligned to the company’s standard director pay practices, including an initial grant of restricted stock units. On the same date, the Board amended and restated the company’s by-laws to update procedures and disclosure requirements for director nominations and shareholder proposals at annual meetings, clarify the majority voting provision for contested elections, and implement various administrative and modernizing changes, signaling ongoing refinement of its corporate governance framework for investors and other stakeholders.

The most recent analyst rating on (GIS) stock is a Hold with a $49.00 price target. To see the full list of analyst forecasts on General Mills stock, see the GIS Stock Forecast page.