ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. General Mills's annualized return on capital (ROC %) for the quarter that ended in Feb. 2026 was 5.10%.
As of today (2026-06-25), General Mills's WACC % is 4.21%. General Mills's ROC % is 6.42% (calculated using TTM income statement data).
General Mills generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
General Mills (MEX:GIS) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, General Mills's WACC % is 4.21%. General Mills's ROC % is 6.42% (calculated using TTM income statement data).
General Mills generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
General Mills ROC % Related Terms
General Mills ROC % Historical Data
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The historical data trend for General Mills's ROC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note:
The Operating Income data used here is four times the quarterly (Feb. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
General Mills (MEX:GIS) has a ROC % of 5.10% as of Feb. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on General Mills and its competitors.
Is General Mills' ROC % too high?
General Mills' current ROC % is 5.10%. The Consumer Packaged Goods industry median ROC % is 5.14. General Mills' value of 5.10% is 0.8% below this industry median. Overall, General Mills has a GF Score™ of 55/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does General Mills' ROC % compare to JBS and HRL?
General Mills' ROC % of 5.10% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROC % is 5.14. General Mills' value of 5.10% is 0.8% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Consumer Packaged Goods company?
The median ROC % among Consumer Packaged Goods companies is 5.14, based on 1,948 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. General Mills's current ROC % of 5.10% is 0.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on General Mills and its competitors. For the Consumer Packaged Goods industry, the median ROC % is 5.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. General Mills's current ROC % is 5.10%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is General Mills stock overvalued right now?
Based on GuruFocus' analysis, General Mills (MEX:GIS) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN1,046.91, compared to a current price of MXN620.00 — trading 40.8% below its estimated fair value. The current ROC % is 5.10% and 0.8% below the Consumer Packaged Goods industry median of 5.14. General Mills' overall GF Score™ is 55/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For General Mills (MEX:GIS), the current ROC % is 5.10% as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is General Mills (MEX:GIS) Overvalued in 2026?
Based on GuruFocus' analysis, General Mills stock appears to be undervalued.
The current stock price of MXN620.00 is trading 40.8% below its estimated GF Value™ of MXN1,046.91.
GuruFocus considers General Mills to be Significantly Undervalued.
Key valuation signals for MEX:GIS:
ROC %: 5.10%
GF Value™: MXN1,046.91 vs. price of MXN620.00 (40.8% below fair value)
Industry Position: 0.8% below the Consumer Packaged Goods median
No single metric tells the full story. See the MEX:GIS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
General Mills is a global packaged-food company that produces snacks, cereal, convenient meals, dough, baking mixes and ingredients, pet food, and superpremium ice cream. Its largest brands are Nature Valley, Cheerios, Old El Paso, Pillsbury, Betty Crocker, Blue Buffalo, and Haagen-Dazs. In fiscal 2025, 81% of its revenue was derived from the United States, although the company also operates in Canada, Europe, Australia, Asia, and Latin America. Although most of General Mills' products are sold through retail stores to consumers, the company also sells products to the foodservice channel and the commercial baking industry.
55GF Score
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