If you had invested in General Mills stock at 17.91, your return over the last 23 years would have been 251.15, for an annualized return of 5.61 (not including any dividends or dividend reinvestments). Over the past 12 months, General Mills's ROIC was 8.94, while its WACC came in at 4.06. stock was originally listed at a price of 17.91 in Dec 31, 1997. If the ROIC is higher than the WACC, it indicates that the company is creating value for shareholders.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. Return on invested capital (ROIC) measures how well a company generates cash flow relative to the capital it has invested in its business. The 3-year average EBITDA growth rate is 4%, which ranks in the middle range of the companies in the industry of Consumer Packaged Goods.Īnother way to evaluate a company's profitability is to compare its return on invested capital (ROIC) to its weighted cost of capital (WACC). The 3-year average annual revenue growth rate of General Mills is 3.2%, which ranks in the middle range of the companies in the industry of Consumer Packaged Goods.
The faster a company is growing, the more likely it is to be creating value for shareholders, especially if the growth is profitable. GuruFocus research has found that growth is closely correlated with the long term performance of a company's stock. Growth is probably the most important factor in the valuation of a company. This is the debt and cash of General Mills over the past years: GuruFocus ranks the overall financial strength of General Mills at 4 out of 10, which indicates that the financial strength of General Mills is poor. General Mills annual total common and preferred stock dividends paid for 2021 were -1.246B, a 4.23 increase from 2020. General Mills has a cash-to-debt ratio of 0.20, which is worse than 71% of the companies in the industry of Consumer Packaged Goods. General Mills total common and preferred stock dividends paid for the twelve months ending Augwere -3.109B, a 3.96 increase year-over-year. General Mills employs 35,000 staff and has a trailing 12-month revenue of around 0.00. General Mills shares (GIS) are listed on the NYSE and all prices are listed in US Dollars. Looking at the cash-to-debt ratio and interest coverage is a great starting point for understanding the financial strength of a company. General Mills Inc is a packaged foods business based in the US.
Thus, it is important to carefully review the financial strength of a company before deciding whether to buy its stock. Investing in companies with poor financial strength has a higher risk of permanent loss of capital. Link: These companies may deliever higher future returns at reduced risk. The stock price was over 72 per share in mid-2016 and dropped to sub-37 by late 2018, an almost 50 decline. General Mills Stock Is Believed To Be Fairly Valuedīecause General Mills is fairly valued, the long-term return of its stock is likely to be close to the rate of its business growth, which averaged 3.2% over the past three years and is estimated to grow 1.61% annually over the next three to five years. Overall, this was close to a perfect storm for General Mills.