General Mills sells products including ready-to-eat cereals; convenient meals, including meal kits, ethnic meals, pizza, soups, side dish mixes, frozen breakfast, and frozen entrees; snacks comprising grain, fruit, and savory snacks, as well as nutrition bars and frozen hot snacks; refrigerated yogurt products; ice creams; baking mixes and ingredients; refrigerated and frozen dough products; and frozen and shelf-stable vegetable products. The company was founded in 1928 and is based in Minneapolis, Minnesota.
GIS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for GIS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that General Mills Inc ranked in the 53th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 36.33%. In terms of the factors that were most noteworthy in this DCF analysis for GIS, they are:
As a business, GIS is generating more cash flow than 83.31% of positive cash flow stocks in the Consumer Defensive.
General Mills Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 12.77% of tickers in our DCF set.
GIS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 12.77% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
UN, DLTR, KHC, FARM, and DG can be thought of as valuation peers to GIS, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
General Mills, Inc. (NYSE: GIS ) remains well positioned to address a potential surge in food demand amid rising COVID-19 cases worldwide, CEO Jefff Harmening said on CNBC's "Closing Bell." Fully Operational: General Mills managed to keep its supply chain "strong" since the early days of the pandemic and it remains fully operational today worldwide, Harmening said. All of its plants are "up and running" across the globe while adding capacity in … Full story available on Benzinga.com
DUBLIN--(BUSINESS WIRE)--The "Gluten-free Products Market by Type (Bakery products, Snacks & RTE products, Condiments & dressings, Pizzas & pastas), Distribution channel (Conventional stores, Specialty stores and Drugstores & Pharmacies), Form & Region - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering. The global gluten-free products market size is estimated at USD 5.6 billion in 2020 and projected to grow at a CAGR of 8.1% to reach USD 8.
Credit Suisse upgrades General Mills (GIS) to an Outperform rating after having it slotted at Neutral. "We expect General Mills to retain more of the consumers who tried its brands during the pandemic than its food peers will. Consistent reinvestment into product quality, ecommerce, and media support has helped General...