General Mills (GIS) is valued modestly, but why is the sentiment negative?

1:40 am ET, 18 Dec 2018

General Mills, Inc. (GIS) shares are trading at $36.74, down 2%. The company is announcing its quarterly earnings results on Wednesday before the market opens. What's driving GIS stock price? What's GIS stock price forecast?

General Mills manufactures and markets branded consumer foods. The stock fell 33% in the past year. The company is available at a forward P/E ratio of 13.06, which presents a significant discount compared to its industry peers.

Investors are showing interest in the company because of its attractive dividend yield.  On the other hand, a few bearish investors worry about disappointing J.M. Smucker's results. Last quarter the company's revenue rose 8.5% to $4.09 billion and earnings per share came at 71 cents.

Second-quarter FY19 results will be released before market open on December 19, 2018.  Analysts expect the company to earn 81 cents per share on revenue of $4.52 billion. The company beat analysts’ estimates three times in the previous four quarters.

What is the sentiment towards the GIS stock? Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is trending negative;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is negative. 

General Mills, Inc. (GIS) forward P/E ratio is 13.06, and it’s low compared to its industry peers’ P/E ratios.

General Mills, Inc. (GIS) average analyst price target ($48.37) is 24.89% above its current price ($38.73).

For the latest price and information on General Mills, Inc., please visit Finstead and search for "GIS price" or "GIS news".

General Mills (GIS) stock: will it return to growth?

8:12 am ET, 18 Sep 2018

General Mills, Inc. (GIS) shares are trading at $46.61, down -2%.  The food company’s sales declined 2.1% in North America in the latest quarter, so the share price dropped accordingly.  What's GIS stock price forecast?  What should investors know about General Mills?

General Mills stock has fallen 20% in 2018. Consumer staples stocks have underperformed the overall market. 

The company recently reaffirmed the fiscal year outlook of net sales growth of 9-10 percent and organic net sales ranging flat to 1 percent growth.

The overall sales for General Mills rose in the latest quarter despite a decline in its North American business.  The company said that net sales rose 8.6% to $4.09 billion. Sales climbed in Europe, Australia, Asia, and Latin America, as well as in the convenience stores and food-service division.  The analysts expected the company to earn $0.64 per share on revenue of $4.12 billion.  

The bulls feel that the acquisition of Blue Buffalo will give the company an opportunity to tap into the fast-growing U.S. pet food market. The bears are tightening the grip on the stock as they feel that operational costs are increasing.  The company was able to beat estimates or provide in-line results in the past four quarters.

What is the sentiment towards the GIS stock? Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is trending negative.

Over the last month, General Mills, Inc. (GIS) returned +4.98%.

General Mills, Inc. (GIS) short share of float is 4.2%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

General Mills, Inc. (GIS) average analyst price target ($48.63) is 2.53% above its current price ($47.43).

For the latest price and information on General Mills, Inc., please visit Finstead and search for "GIS price" or "GIS news".

General Mills, Inc. (GIS) Stock Guide

Updated at: 10:25 pm ET, 17 Sep 2020

Before we start: if you're looking for GIS stock price, you can quickly find it out by visiting Finny and typing "GIS quote". If you're looking for a quick scoop on GIS stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "GIS". You'll get all this info in one place. Or you can just type "GIS news" to get the latest stock news.

Looking to buy or sell General Mills, Inc. (GIS)? Interested in getting the full scoop on GIS, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this GIS stock guide, we'll address key questions about GIS, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are GIS earnings?
2. What is GIS dividend?
3. What is GIS dividend yield?
4. What is GIS stock forecast (i.e., prediction)?
5. GIS buy or sell? What is GIS Finny Score?
6. What are the reasons to buy GIS? Why should I buy GIS stock?
7. What are the reasons to sell GIS? Why should I sell GIS stock?
8. What are GIS key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are GIS earnings?

GIS trailing 12-month earnings per share (EPS) is $3.56.

2. What is GIS dividend?

GIS forward dividend is $1.96.

3. What is GIS dividend yield?

GIS forward dividend yield is 3.06%.

Analyst Predictions

4. What is GIS stock forecast (i.e., prediction)?

Based on GIS analyst price targets, GIS stock forecast is $64.57 (for a year from now). That means the average analyst price target for GIS stock is $64.57. The prediction is based on 21 analyst estimates.

The low price target for GIS is $51.00, while the high price target is $72.00.

GIS analyst rating is Hold.

Analysis

5. GIS buy or sell? What is GIS Finny Score?

#{finnyScore:83}Our quantitative analysis shows 5 reasons to buy and 1 reason to sell GIS, resulting in Finny Score of 83.

6. What are the reasons to buy GIS? Why should I buy GIS stock?

Here are the reasons to buy GIS stock:

  • In our view, General Mills' focus on driving cost efficiency is prudent and should provide the fuel to fund further brand spending.
  • Since fiscal 2012, the convenience and food-service segment has seen more than 500 basis points of operating margin gains to nearly 20% by shedding unprofitable fare and expanding its distribution into restaurants and convenience stores.
  • Annie's doubled General Mills' sales from the natural and organic aisle, a category with attractive growth prospects--growing 3 times faster than overall grocery sales--that now accounts for about 5% of its total sales.
  • GIS quarterly revenue growth was 20.70%, higher than the industry and sector average revenue growth (0.87% and 1.12%, respectively). See GIS revenue growth chart.
  • GIS profitability is improving. The YoY profit margin change was 2.93 percentage points. See GIS profitability chart.
  • GIS forward dividend yield is 3.06%, higher than the industry (0.62%) and sector (0.62%) forward dividend yields. See GIS forward dividend chart.
  • GIS average analyst price target ($64.57) is above its current price ($57.58). See GIS price target chart.
  • GIS cash to debt ratio is 0.12, higher than the average industry (0.12) and sector (0.11) cash to debt ratio. See GIS cash to debt chart.

7. What are the reasons to sell GIS? Why should I sell GIS stock?

Let's look at the reasons to sell GIS stock (i.e., the bear case):

  • Grains represent 5%-10% of the firm's cost of goods. Continued swings in raw material costs could resurface if unfavorable weather conditions arise.
  • General Mills' yogurt business has succumbed to intense competitive pressures, with sales down 20% in the third quarter on top of a 10% decline in the year-ago period, highlighting the challenge to consistently bring on-trend new products to market.
  • Reduced display merchandising has weighed on General Mills' U.S. snack and cereal businesses, which each posted low-single-digit sales declines in fiscal 2016.
  • GIS short interest (days to cover the shorts) ratio is 5.24. The stock garners more short interest than the average industry, sector or S&P 500 stock. See GIS short interest ratio chart.

Key Stats

8. What are GIS key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for GIS:

Metrics GIS
Price $57.70
Average Price Target / Upside $64.57 / 11.91%
Average Analyst Rating Hold
Forward Dividend Yield 3.06%
Industry Packaged Foods
Sector Consumer Defensive
Number of Employees 40,000
Market Cap $38.56B
Forward P/E Ratio 17.34
Price/Book Ratio 2.19
Revenue (TTM) $17.63B
YoY Quarterly Revenue Growth 20.70%
Profit Margin 12.37%

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