One-glance verdict
Undervalued
$84.29 our estimate vs market $35.18
Wall Street consensus: $37.00 (-56.1% lower than our fair-value estimate)
58% below our estimate, below the bear case
Fundamentals snapshot
General Mills, Inc.
GIS · NYQ · Consumer Defensive · Packaged Foods
Current price
$35.18
52-week range
$31.18 - $49.59
Market cap
$18.81B
Balance sheet
Stretched
4.93x Stretched
Net debt $13.18B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Free cash flow was positive in 10/10 years.
- Reward Dividend yield is 6.9% with 44-year payout history.
- Risk Net debt grew 18.7% over 3 years.
- Risk Return on equity was -10.5% last year — the company lost money on shareholders' equity.
What this company does
General Mills, Inc.
General Mills makes and sells well-known food brands like Cheerios, Betty Crocker, and Blue Buffalo pet food. The money they make mostly comes from selling these everyday items in grocery stores and pet stores across the world, which matters because it shows they have a steady stream of income from products people regularly buy. Their business model relies on a strong supply chain (the system of getting ingredients and making products available to stores) to keep shelves stocked with their popular items.
How the company got here
General Mills has a long history, dating back to 1866 when it started as a single flour mill on the Mississippi River. Over the decades, it grew by acquiring other food companies and expanding its product lines. A key turning point was its strategic shift towards focusing on brands with strong consumer recognition and growth potential, including a significant move into the pet food business with the acquisition of Blue Buffalo. This evolution has transformed it from a basic flour producer into a diversified global food giant.
What it actually does
General Mills is a company that makes and sells a wide variety of food products that you can find in most grocery stores. Think of the cereals you might eat for breakfast, the snacks you grab for a quick bite, or the ingredients you use for baking. They also make food for pets. Essentially, they create and market many of the familiar food brands that people buy regularly for their households.
North America Retail
This is the largest part of General Mills' business, where it sells many of its well-known food brands directly to consumers through grocery stores and mass merchandisers in the U.S., Canada, and Mexico. This segment includes popular ready-to-eat cereals like Cheerios and Lucky Charms, convenient meal options such as Betty Crocker baking mixes and Totino's frozen snacks, and a variety of snack products. These are the everyday items that fill pantry shelves and are recognized by shoppers across North America.
International
This segment focuses on selling General Mills' products to consumers outside of North America, reaching markets across Europe, Asia, Latin America, and Africa. It includes many of the same beloved brands found in the U.S., adapted for local tastes and preferences, alongside regional brands. This part of the business is crucial for global growth, bringing familiar tastes to new customers and expanding the company's worldwide presence.
North America Pet
This segment is dedicated to the pet food market, primarily through the Blue Buffalo brand, which offers a range of wholesome natural pet foods, including dry food, wet food, and treats for dogs and cats. This business line represents a significant area of growth for General Mills, tapping into the strong consumer trend of treating pets as family members and a willingness to spend on premium pet nutrition. It's a distinct part of the company focused on a specific, passionate consumer base.
North America Foodservice
This segment supplies food products to businesses that serve food outside the home, such as restaurants, bakeries, and catering companies. They provide ingredients and prepared items like refrigerated dough, baking mixes, and frozen breakfast products that these businesses use to create their own offerings. Think of the ingredients that go into a restaurant's pizza or the frozen dough used for biscuits in a diner; this segment provides those essential components.
What management is betting on now
General Mills' current strategy focuses on strengthening its core brands and driving profitable growth, particularly in its key segments like North America Retail and Pet. Management is prioritizing innovation to introduce new products that meet evolving consumer demands for health, convenience, and taste. They are also investing in their supply chain (the network of companies and processes involved in getting products from creation to the customer) to improve efficiency and reduce costs. The goal is to consistently deliver value to shareholders by growing sales and earnings.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$989.60M
FY2025 Q3
$428.00M
FY2025 Q4
$391.40M
FY2026 Q1
$287.50M
FY2026 Q2
$675.70M
FY2026 Q3
$295.50M
FY2026 Q4
$367.60M
FY2027 Q1
$207.30M
Revenue
$4.39B
Net income
$397.00M
Diluted EPS
0.74
Operating cash flow
$297.80M
Free cash flow
$207.30M
Fetching…
Sources
Revenue
$4.61B
Net income
$-2.01B
Diluted EPS
-3.74
Operating cash flow
$552.00M
Free cash flow
$367.60M
Fetching…
Sources
Revenue
$4.44B
Net income
$303.10M
Diluted EPS
0.56
Operating cash flow
$397.90M
Free cash flow
$295.50M
Fetching…
Sources
Revenue
$4.86B
Net income
$413.00M
Diluted EPS
0.78
Operating cash flow
$819.30M
Free cash flow
$675.70M
Fetching…
Sources
Revenue
$4.52B
Net income
$1.20B
Diluted EPS
2.22
Operating cash flow
$397.00M
Free cash flow
$287.50M
Fetching…
Sources
Revenue
$4.56B
Net income
$294.00M
Diluted EPS
0.53
Operating cash flow
$611.60M
Free cash flow
$391.40M
Fetching…
Sources
Revenue
$4.84B
Net income
$625.60M
Diluted EPS
1.12
Operating cash flow
$531.90M
Free cash flow
$428.00M
Fetching…
Sources
Revenue
$5.24B
Net income
$795.70M
Diluted EPS
1.42
Operating cash flow
$1.15B
Free cash flow
$989.60M
Fetching…
Sources
Is it cheap or expensive?
Fair value $84.29 vs current price $35.18
Wall Street consensus is the average analyst price target: $37.00 (-56.1% lower than our fair-value estimate).
Our most-likely fair value is $84.29 a share — about 139.6% above today's price of $35.18, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $13.2B. Interest coverage 4.9x.
Net debt
$13.18B
Interest coverage
4.93x
General Mills, Inc.'s profit covers its interest bill about 4.9 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
GIS
BASELINE
General Mills, Inc.
Total debt $13.62B Interest coverage 4.93x This is the baseline the peer rows are being compared against.
Total debt $19.00B Interest coverage 4.90x -1% vs GIS Has roughly the same debt cushion as GIS.
Total debt $22.06B Interest coverage 6.04x +23% vs GIS Carries about 1.2x more debt cushion than GIS.
Total debt $6.94B Interest coverage 3.52x -29% vs GIS Carries about 1.4x less debt cushion than GIS.
Total debt $7.76B Interest coverage 3.23x -35% vs GIS Carries about 1.5x less debt cushion than GIS.
Total debt $2.86B Interest coverage 11.47x +133% vs GIS Carries about 2.3x more debt cushion than GIS.
What you should know
The case for and against GIS
2 Rewards
3 Risks
Rewards
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 6.9% with 44-year payout history.
Risks
-
Net debt grew 18.7% over 3 years.
-
Return on equity was -10.5% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 0.3% (peer median: 0.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
11.16x
P/B
2.52x
P/S
1.03x
EV/EBITDA
9.37x
PEG ratio
11.74x
Profitability
How much profit each dollar creates
Gross margin
33.7%
Operating margin
15.2%
Net margin
-4.9%
ROE
-10.5%
ROA
5.6%
Health
Liquidity and balance-sheet strength
Debt / equity
1.82x
Current ratio
0.70x
Quick ratio
0.32x
Total debt
$13.62B
Total cash
$433.10M
Growth
How the business has been compounding
Revenue TTM
$18.30B
Revenue 5Y CAGR
37.1%
EPS TTM
-1.64
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$2.07B
Free CF TTM
$1.63B
FCF margin
8.9%
Dividend
Shareholder payout
Yield
6.9%
Payout ratio
59.4%
Last ex-div date
2026-10-13