GIS

General Mills

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Consumer Defensive

industry

Packaged Foods

Exchange

NYSE

County of HQ

United States

Next Earnings Date

06/24/26

Business Summary

General Mills generates cash by owning scaled consumer food brands and pushing them through dominant retail distribution channels in packaged foods. Its moat comes from brand equity, shelf space control, and pricing power embedded in everyday staple consumption. High Operating Margins of 23.60% show the benefit of scale and cost discipline in manufacturing and procurement. The model converts steady grocery demand into recurring cash flow, which supports dividends and debt servicing, but its resilience depends heavily on maintaining brand relevance and cost control in a competitive, low-growth category.

VALUATION

P/E

8.7

Market Cap ($M USD)

$18,993

Forward P/E

10.8

PEG

4.3

PRICE TO SALES

1.1

PRICE TO BOOK

2

EV / EBITDA

7.8

5-Year Average P/E

DIVIDEND

Yield

6.90%

Annual Payout

$2.44

Payout Ratio

59.40%

Consecutive Years of Dividend Growth

6

5-Year Dividend Growth Rate

3.60%

Financial Health & Profitability

Earnings Per Share

$4.09

Next Year EPS Growth Estimate

$3.29

Next Year Revenue Growth Estimate

-2.40%

Return on Equity (ROE)

23.60%

Operating Margin

14.50%

Debt-to-Equity

1.5

Piotroski F-Score

4

Altman Z-Score

2.2

Return on Invested Capital (ROIC)

11.80%%

Current Ratio

0.6

Quick Ratio

Gainseekers Quantitative Analysis

Summary

GIS is trading like a statistically cheap stock with a Price/Earnings of 8.7 and a Price/Sales of 1.1, but the Forward P/E of 10.8 combined with a bloated PEG Forward of 4.3 signals that growth expectations do not justify even this discounted multiple. The Altman Z-Score of 2.2 places the company in the gray zone, not distressed but far from financially bulletproof, and the Current Ratio of 0.6 reinforces tight liquidity. Return on Equity at -2.40% is a major red flag, especially when paired with Debt/Equity of 14.50%, suggesting capital structure strain. This is not a clean deep-value balance sheet story; it’s a slow-growth defensive name priced cheaply for a reason, with moderate solvency risk and limited growth visibility.

AI Exposure / Tech Reliance

As a Consumer Defensive company in Packaged Foods, GIS operates in a low-tech, brand-driven industry where AI is more about supply chain optimization and pricing analytics than disruption. The sector is resilient to technological obsolescence but unlikely to experience AI-driven hypergrowth. Technology here enhances margin efficiency rather than transforming revenue trajectories.

The Bull Case

A value-oriented investor could justify ownership based on Operating Margin of 23.60% and ROIC of 11.80%, which indicate the core business still generates solid operating profitability. A Piotroski F-Score of 4 is mediocre but not catastrophic, implying fundamental stability rather than collapse. The stock trades at 8.7x earnings with a Market Cap of $18,993M, suggesting the market is not pricing in aggressive expectations. With a TTM Yield of 1.5 and a Dividend 5-Year Avg of 6, income-oriented investors may see this as a steady cash-flow compounder in a defensive sector. If margins hold and capital allocation improves, even modest earnings stability could justify multiple expansion from compressed levels.

The Bear Case

The bear case is rooted in leverage and growth mismatch. Debt/Equity of 14.50% is extreme, and with a Current Ratio of 0.6, liquidity flexibility is limited. The PEG Forward of 4.3 signals that growth is weak relative to valuation, while EPS Next Year (Est.) of $4.09 compared to current EPS of 7.8 suggests a sharp earnings contraction. Return on Equity at -2.40% indicates shareholder capital is not being efficiently employed, and the Altman Z-Score of 2.2 leaves little margin for macro shocks. This is a highly leveraged defensive name with deteriorating profitability metrics—exactly the type of stock that looks optically cheap before becoming structurally impaired.

Market Sentiment & Smart Money

Short Interest %

9.10%

Analyst Consensus

3.22

Average Analyst Price Target

$41.33

Institutional Ownership %

88.40%

1-Year Beta

-0.02

Insider Buying % (6 Mo)

0.30%%

Distance to 52-Week High

60.10%%

Distance to 52-Week Low

100.50%%