NYSE:GIS
$69.59
(2/9 3:28PM)
+1.5%
| Open | $68.87 |
Mkt Cap | $22.6 Billion |
| High | $69.81 |
52Wk High | $72.46 |
| Low | $68.87 |
52Wk Low | $46.37 |
| Volume | 1.3 Million |
Avg Vol 10D | 2.9 Million |
Ockham's Rating/Recommendation Summary
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GIS Revenue
As a value investing shop, we are interested in seeing how GIS's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 10 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 1.86x and the low end of the range at 1.45x.
With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for GIS of 1.55x is slightly under its historical average. This level of Price to Sales gives us a fairly neutral position on the GIS shares. We would like to see a drop in the Price to Sales ratio just a little bit more (given current sales figures) before we would become more positive on a Price to Sales basis. Such a drop would increase the attractiveness of the stock but, as always, would need to be considered in the context of all other valuation factors.
GIS Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. GIS is significantly below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 10 years of cash earnings levels for GIS to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 14.93 and a 11.60 low over the same period.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for GIS? From the Ockham perspective, we are looking specifically at GIS to see if the market is recognizing the huge disparity between GIS's past stock price to Cash Earnings ratio to today's levels. At a difference of 19% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at GIS. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
GIS Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations.
Comparable to our analysis of Sales and Cash Earnings per share, we examine dividend yields from GIS against the historic high and low levels over an available data range. Because GIS has an established history of paying a dividend to shareholders, there is value in comparing recent dividends to historical dividends. In GIS’s case, the estimated annual dividend is $1.96 producing a current dividend yield of 2.86%. The highest dividend yield from GIS in recent history was 4.23% while the lowest dividend yield was 2.08%. Given this range, the current dividend yield for GIS is below its historical median and not terribly attractive from this perspective.
General Mills, Incorporated Was Talked About by Mad Money
General Mills, Incorporated is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Mad Money.
We noticed recently that in comparison to all other stocks we analyze in the news; GIS has received less coverage from the financial media in business television and blogs. Based on our methodology, General Mills, Incorporated should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… Shrink regulated bank, you need food and drug banks, projector and gamble, GENERAL MILLS, pep pepsi, coke. How about clorox. That's a good bank. …”
Check Out Mad Money and News on GIS
As always, the latest news on GIS is available to Ockham clients through RazorWire, and it was mentioned recently on Mad Money.
At present, Ockham has a valuation stance of Undervalued on GIS, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, General Mills, Incorporated has actually sunk a bit in comparison to the others. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… The banks of GENERAL MILLS and projector gamble and bristol myers. Pepsi and coke, old rivals that are self-financing. While the president doesn't want the economy of mankind ... …”
News Breaking on General Mills, Incorporated on Fast Money
News has broken via the television and viral blogs regarding GIS, so investors should take an interest in learning what was said.
Based on our methodology, General Mills, Incorporated should hold some appeal to value investors as we view it as Undervalued. Ranking all stocks in terms of news coverage offers some interesting data. In the case of GIS, it is getting significantly more attention in recent news coverage than we are used to seeing. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey.
“… Procter & gamble from the food prices, GENERAL MILLS, conagra, all benefit from lower wheat and corn prices. > > fbr doubling down on -- robust demand for coal. > > …”
Merger Talk with GIS on The Opening Bell on Fox Business
News broke today regarding mergers and acquisitions and General Mills, Incorporated was discussed as well on The Opening Bell on Fox Business. Other sources will be required to know exactly what the context was in the discussion.
Based on our methodology, General Mills, Incorporated should hold some appeal to value investors as we view it as Undervalued. Crowd sentiment is leaning to the bearish side, according to the robust data set collected by the Motley Fool CAPS survey. Ranking all stocks in terms of news coverage offers some interesting data. In the case of GIS, it is getting significantly more attention in recent news coverage than we are used to seeing.
“… And kraft is distracted with an acquisition and GENERAL MILLS does a lot of different products. Everything that hain makes is organic, gluten-free no additives or stabilizers ... …”
Fox Business Discussed the Latest Development of General Mills, Incorporated
General Mills, Incorporated is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Fox Business.
The Motley Fool CAPS data suggests that investors believe General Mills, Incorporated will beat the market in the foreseeable future. We consider GIS as Undervalued at the current price of $70.26. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that General Mills, Incorporated has been talked about more than normal recently.
“… That has proven over the kraft's underperformance, GENERAL MILLS against kraft, GENERAL MILLS outperformed kraft by 30%. …”
Yearly Highs and GIS Recently Discussed on Countdown to the Closing Bell
Stick with it or dump it? Countdown to the Closing Bell discusses what an abnormally high price means for GIS's investors. Take note of Ockham's valaution on the stock as well.
Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. At present, Ockham has a valuation stance of Undervalued on GIS, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Take notice of the news on this stock because it is up $3.47 since the close of trading yesterday. In comparison to the other stocks that we follow, General Mills, Incorporated has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days.
“… GENERAL MILLS hitting a 52 week high as well. GENERAL MILLS, the maker of cereals like wheaties. > > stocks to the downside. We watch all of this. …”
Countdown to the Closing Bell Discusses Higher Prices and General Mills, Incorporated
When a stock reaches a notable high point, investors have to ask themselves: take profits or let it run? See what Countdown to the Closing Bell recommends for General Mills, Incorporated and obviously Ockham has an opinion as well.
The Motley Fool CAPS data suggests that investors believe General Mills, Incorporated will beat the market in the foreseeable future. We consider GIS as Undervalued at the current price of $71.69. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that General Mills, Incorporated has been talked about more than normal recently.
“… I did a stock and I noticed that GENERAL MILLS with a new 52-week high. All the folks to buy the cheerios, wheatties and luckie charm may feel lucky > > cheryl: shibani? . …”
News on GIS From the Pundits on Mad Money
General Mills, Incorporated is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Mad Money.
The Motley Fool CAPS data suggests that investors believe General Mills, Incorporated will beat the market in the foreseeable future. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, GIS has been less covered in the news compared to the rest of our universe of stocks. We consider GIS as Undervalued at the current price of $70.93. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… Mac matrix and gmi, general >> you'll see why this is a hard one for me in a moment. The GENERAL MILLS, obviously. …”
General Mills, Incorporated Dividend News from Mad Money
For income investors, dividend news is obviously important. GIS's dividends were discussed recently on Mad Money.
At present, Ockham has a valuation stance of Undervalued on GIS, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, General Mills, Incorporated has actually sunk a bit in comparison to the others.
“… So what have we mentioned so GENERAL MILLS, pfiser, waist management and gm. It is part of our crusade/anti-low yielding bonds and cd jihad. …”
What Is Fast Money Saying About GIS's Balance Sheet?
The balance sheet is a key indicator of a company's financial standing; GIS's was discussed not long ago on Fast Money.
When taking into account the amount of news coverage each stock normally sees as a percentage of the total, General Mills, Incorporated has actually sunk a bit in comparison to the others. At present, Ockham has a valuation stance of Undervalued on GIS, as we could see significant price appreciation based on current fundamentals like cash earnings and revenue. Crowd sentiment is favorable on this stock, as measured by the Motley Fool CAPS survey.
“… We had the ceo from GENERAL MILLS the other day. That stock is at a 52-week high. Part of that may be because all we've done is continue to raise that dividend. …”