You can take a look at their 8-K filings for a fully detailed report, but here are a few points to help you determine direction. These numbers are for the Q2 2017 year. Diluted earnings per share declined 8 percent to $0.80, driven by a prior-year gain from the divestiture of Green Giant North America. Net sales decreased 7 percent to $4.1 billion and organic net sales decline 4 percent. This does not paint a good picture for the company, so let us take a look at the chart and see how price has been reacting.
Despite a slow down in the chart has been steadily increasing, providing gradual yet respectable returns. Recently, price has dropped which may be an indication of sub par numbers and people taking profits. Research the volume and see if momentum has entered or exited the stock. Right now might a decent time to enter if these low numbers are just a phase, because price has pull about $10 off the recent highs.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include General Mills income statement, its balance sheet, and the statement of cash flows. Potential General Mills investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although General Mills investors may use each financial statement separately, they are all related. The changes in General Mills's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on General Mills's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of General Mills
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of General Mills performance into the future periods or doing a reasonable stock valuation. The intrinsic value of General Mills shares is the value that is considered the true value of the share. If
the intrinsic value of General is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares General Mills. Please read more on our
fundamental analysis page.
How effective is General Mills in utilizing its assets?
General Mills reports assets on its Balance Sheet. It represents the amount of General resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, General Mills aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Packaged Foods & Meats space. To get a better handle on how balance sheet or income statements item affect General volatility, please check the breakdown of all its
fundamentals.
Are General Mills Earnings Expected to grow?
The
future earnings power of General Mills involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of General Mills factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. General Mills
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of General
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of General Mills earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. General Mills dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. General one year expected dividend income is about USD1.48 per share.
At this time, General Mills'
Dividends Paid is comparatively stable compared to the past year.
Dividend Yield is likely to gain to 0.03 in 2024, whereas
Dividend Payout Ratio is likely to drop 0.39 in 2024.
Investing in dividend-paying stocks, such as General Mills is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in General Mills must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for General Mills. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
General Mills Gross Profit
General Mills Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing General Mills previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show General Mills Gross Profit growth over the last 10 years. Please check General Mills'
gross profit and other
fundamental indicators for more details.
Breaking down the case for General Mills
Risks
Being in the food industry, there are certain risks that are the same across the board, but here are a few to keep in mind before doing your research. The company cites in their latest 10-K filing that concerns with the safety and quality of food products could cause consumers to avoid certain food product or ingredients. This is trust with many food companies so be sure their product quality surpasses the standards set before them. Also, if their food becomes adulterated, misbranded, or mislabeled, they may have to begin the process of recalling those items, which would bring liability claims and cause people to leave the brand for good. If the company continues to push out quality products at competitive prices, then they should be able to compete long term.
Conclusion
Overall, I think General Mills has the potential to keep their solid growth patter going in terms of stock prices. However, they need to turn the sales numbers around quickly, otherwise people may begin getting worried and leave the stock. Before investing, be sure to do plenty of research and consult a professional to ensure this stock would be a good addition to your portfolio.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of General Mills. Please refer to our
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