Last Updated: 09 Nov 2024
Executive Summary
General Mills Inc. (GIS) is a leading multinational manufacturer and marketer of branded consumer foods. With a market capitalization of $36.37 billion, the company has a strong financial position and a history of consistent growth. The stock is currently trading at $65.52, below its 52-week high of $75.27. Analysts have a mixed outlook on the stock, with 1 rating it a strong buy, 2 rating it a buy, and 18 rating it a hold.
Company Overview
General Mills was founded in 1866 and is headquartered in Golden Valley, Minnesota. The company's portfolio of brands includes iconic names such as Cheerios, Betty Crocker, Pillsbury, and Yoplait. General Mills operates in over 100 countries and employs approximately 35,000 people worldwide.
Fundamental Analysis
General Mills has a strong financial profile. The company's revenue for the trailing twelve months (TTM) was $19.8 billion, with a gross profit of $6.5 billion. The company's diluted EPS for the TTM was $4.24, and its profit margin was 12.1%. General Mills has a strong balance sheet, with total assets of $23.1 billion and total liabilities of $10.7 billion. The company's debt-to-equity ratio is 0.46, which is considered to be a manageable level.
Technical Analysis
The technical analysis of General Mills' stock price shows that the stock is currently in a downtrend. The stock has been trading below its 50-day and 200-day moving averages since August 2022. The stock's relative strength index (RSI) is currently at 35, which indicates that the stock is oversold.
Short Term Outlook
In the short term, General Mills' stock price is likely to continue to trade in a range between $60 and $70. The stock is currently oversold, which could lead to a short-term bounce. However, the stock's downtrend is likely to continue until the company's fundamentals improve.
Long Term Outlook
In the long term, General Mills' stock price is likely to perform in line with the overall market. The company has a strong brand portfolio and a history of consistent growth. However, the company faces challenges from rising input costs and competition from private label brands.
Analyst Recommendations
Analysts have a mixed outlook on General Mills' stock. One analyst rates the stock a strong buy, two rate it a buy, and 18 rate it a hold. The average analyst target price for the stock is $74.8, which represents a potential upside of 14.2% from the current price.
