General Mills Inc. (GIS): What Does Valuation Ratios Tell Us?

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General Mills Inc. (NYSE:GIS) saw a downside of -0.50% to close Tuesday at $77.01 after subtracting -$0.39 on the day. The 5-day average trading volume is 4,197,680 shares of the company’s common stock. It has gained $81.45 in the past week and touched a new high 1 time within the past 5 days. An average of 3,134,665 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 3,817,382.

GIS’s 1-month performance is -9.78% or -$8.40 on its low of $76.24 reached on 01/24/23. The company’s shares have touched a 52-week low of $61.67 and high of $88.34, with the stock’s rally to the 52-week high happening on 01/06/23. YTD, GIS has lost -8.16% or -$6.84 and has reached a new high 4 times. However, the current price is down -12.83% from the 52-week high price.


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Insider Transactions

GIS stock investors last saw insider trading activity on Jan 11.Nudi Jonathon (Group President) most recently sold 10,894 shares at $84.49 per share on Jan 11. This transaction cost the insider $920,479. Group President, Walker Sean N, sold 27,157 shares at a price of $84.87 on Jan 09. Then, on Jan 06, Chief Accounting Officer Pallot Mark A sold 1,955 shares at a price of $85.99 per share. This transaction amounted to $168,110.

Valuation Metrics

GIS stock has a beta of 0.32. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.34 while the price-to-book (PB) in the most recent quarter is 4.54, with the price to cash flow ratio at 38.52.

General Mills Inc.’s quick ratio for the period ended November 29 was 0.30, with the current ratio over the same period at 0.60. As well, the company’s long term debt to equity for the quarter ending November 29 was 0.85, while the total debt to equity was 1.16.. In terms of profitability, the gross margin trailing 12 months is 32.70%. The firm’s gross profit as reported stood at $6.4 billion against revenue of $18.99 billion.

Earnings Surprise

For the quarterly period ending November 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 1.44% to $605.9 million, while revenue of $820.0 million was -35.34% off the previous quarter. Analysts expected GIS to announce $1.06 per share in earnings in its latest quarter, but it posted $1.1, representing a 3.80% surprise. EBITDA for the quarter stood at more than $939.4 million. GIS stock balance sheet for the quarter ending November 29 shows that total liabilities totaled 20.95 billion, with total debt at $11.74 billion. Shareholders hold equity totaling $589.61 million.

Let’s look briefly at General Mills Inc. (GIS) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 17.36% to suggest the stock is trending oversold, with historical volatility in this time period at 19.16%.

The stock’s 5-day moving average is $77.55, reflecting a -5.92% or -$4.85 change from its current price. GIS is currently trading -9.58% above its 20-day SMA, +0.04% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -4.14% and SMA200 by+10.44%.

Stochastic %K and %D was 7.88% and 6.13% and the average true range (ATR) pointed at 1.50. The RSI (14) points at 26.12%, while the 14-day stochastic is at 7.72% with the period’s ATR at 1.51. The stock’s 9-day MACD Oscillator is pointing at -2.55 and -4.25 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for General Mills Inc. (NYSE: GIS), Wells Fargo launched coverage with an Equal weight rating. Analysts offering their rating for GIS stock have a consensus rating for the stock as Hold. Currently, 2 brokerage advisors rate GIS as a “sell,”, while 14 advise that investors “Hold.” 3 analysts have rated the stock as underweight. 0 rates the stock as overweight while 2 have offered a “buy” rating.

What is GIS’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $65.00 and a high of $95.00, with their median price target at $82.00. Looking at these predictions, the average price target given by analysts is for General Mills Inc. (GIS) stock is $82.00.

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