1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Alberto Abaterusso
Alberto Abaterusso
Articles (857) 

General Mills to Report 2nd-Quarter Results Wednesday

Analysts expect the company to post EPS of 83 cents on $4.08 billion in revenue

December 18, 2017 | About:

General Mills Inc. (NYSE:GIS) will report its financial results for the second quarter of fiscal 2018 before the opening bell on Dec. 20. 

Analysts estimate earnings will come in around 83 cents per share. This represents a 2.4% decrease year over year. Eighteen analysts were surveyed and their estimates range between a low of 80 cents and a high of 86 cents.

The average analyst forecasts a 0.7% decline in sales to $4.08 billion.

Fifteen analysts' estimates ranged between a low of $3.99 billion and a high of $4.15 billion.

From fiscal 2018 to fiscal 2019, analysts expect General Mills' sales to grow 4.5%. Over the next five years, sales are expected to grow 6.40% per annum.

The chart below illustrates the decline in General Mills’ sales over the past five quarters.

The chart below illustrates the decline in General Mills’ sales over the past five fiscal years. 

As of the most recent quarter, General Mills has approximately $820.8 million in cash on hand and securities, or $1.44 per share. The total debt amounts to $10.09 billion, which equates to a total debt to equity ratio of 2.58 versus an industry median of 0.51. This means  General Mills’ balance sheet is more leveraged than its peers. With an interest coverage ratio of 3.81, however, the company has no problem paying interest on its outstanding debt.

As of May 28, General Mills’ total assets and total liabilities are valued at $21.813 billion and $16.574 billion. Total current assets are valued at $4.061 billion and current liabilities are valued at $5.331 billion, for a total current ratio of 0.76 versus an industry median of 1.58. The latter ratio indicates the company is less capable than its peers in generating the financial resources to meet its short-term obligations.

GuruFocus assigns General Mills a financial strength rating of 5 out of 10.

Over the past 12 months, General Mills generated approximately $2.53 billion from its operations, of which about 65% is levered free cash flow.

Besides its growing business needs, the company also used its free cash flow to distribute dividends to its shareholders. The quarterly dividend of 49 cents per share leads to a forward annual dividend of $1.98 and forward yield of 3.45%.

General Mills is currently trading around $58.03 per share with a market capitalization of $32.98 billion, a price-book (P/B) ratio of 8.46, a price-sales (P/S) ratio of 2.20 and a price-earnings (P/E) ratio of 20.80. The stock's 52-week range is $49.65 to $63.74.

The forward P/E ratio is 18.35 versus an industry median of 18.55.

Disclosure: No positions in General Mills.

About the author:

Alberto Abaterusso
Alberto Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds a MBA from Università degli Studi di Bari (Italy), Aldo Moro.

Rating: 0.0/5 (0 votes)


Please leave your comment:

Performances of the stocks mentioned by Alberto Abaterusso

User Generated Screeners

DBrizanALL 23Mar2018 1220p
cyebrahimiGrowth Stocks
DBrizanALL 22Mar2018 1133p
DBrizanALL 22Mar2018 1015p
HOLKLSUTop 20 Group Utilities
efredbacYahoo Watchlist
jasonw.mosleyRule # 1
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat