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Is this Large Market Cap Stock target price reasonable for General Mills, Inc. (NYSE:GIS)?

The company in question is, General Mills, Inc. (NYSE:GIS) currently with a stock price of 61.78 (-0.71% today). The market cap for General Mills, Inc. is 36796.17, and is in the sector Consumer Goods, and Processed & Packaged Goods industry. The target price for General Mills, Inc. is 67.44. Currently General Mills, Inc. is trading with a P/E of 22.48, and a forward P/E of 18.05. Average volume for General Mills, Inc. is 3220.48 and so far today it is 3317800.

Performance in the last year for General Mills, Inc. has been 12.79%. For EPS growth, General Mills, Inc. has seen a growth of 40.60%, and is looking to grow in the next year to 10.28%. More long term stats show that EPS growth has been 0.50% over the last five years and could be 6.95% for the next five years. General Mills, Inc. has seen sales growth quarter over quarter at -7.10%, with EPS growth quarter over quarter at -3.60%. The 20-day simple moving average is -7.64%, with the 200-day simple moving average coming to -1.75%.

Since the IPO date for General Mills, Inc. on the 6/10/1983, General Mills, Inc. has seen performance year to date to be 10.33%. With General Mills, Inc. trading at 61.78, the dividend yield is 3.11%, and the EPS is 2.75.

So could General Mills, Inc., be undervalued? Well as said before P/E is 22.48. The PEG is 3.24, P/S is 2.26 and the P/B is at 7.55. The P/cash is 48.06, with P/free cash flow at 56.13.

General Mills, Inc. ability to deal with debt shows that the current ratio is 0.8, and the quick ratio is 0.5. This is with long term debt/equity at 1.44, and total debt/equity at 1.81.

In terms of margins, General Mills, Inc. has a gross margin of 35.10%, an operating margin of 16.40% and a profit margin of 10.30%.Payout ratio for General Mills, Inc. is 64.80%. Return on assets come to 7.70% with return on investment coming to 14.60%.

Insider ownership for General Mills, Inc., is at 0.40% and institutional ownership comes to 72.20%. Outstanding shares are at 595.6. While shares float is 588.77. The float short is currently 1.96%, and short ratio is 3.58.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

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