By analyzing existing forward indicators between General Mills and Nestle, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Nestle with a short position in General Mills. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. General Mills has an asset utilization ratio of 87.46 percent. This connotes that the company is making $0.87 for each dollar of assets. An increasing asset utilization means that General Mills is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as General or Campbell is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding General Mills 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.
How important is General Mills's Liquidity
General Mills
financial leverage refers to using borrowed capital as a funding source to finance General Mills ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. General Mills financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to General Mills' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of General Mills' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between General Mills's total debt and its cash.
Correlation Between General and Campbell Soup
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding General Mills together with similar or unrelated positions with a negative correlation. For example, you can also add Campbell Soup to your portfolio. If Campbell Soup is not perfectly correlated to General Mills it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When General Mills, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both General Mills and Campbell Soup in your portfolio? Please note if you are using this as a pair-trade strategy between General Mills and Campbell Soup, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between GIS and CPB for more information.
Breaking down the case for General Mills
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me take a closer look at General Mills revenue. Based on the latest financial disclosure, General Mills reported 18.99
B of revenue. This is 27.84% higher than that of the Consumer Defensive sector and 128.32% higher than that of the
Packaged Foods industry. The revenue for all United States stocks is 101.28% lower than that of the stock. As for Nestle Sa we see revenue of 91.3
B, which is much higher than that of the Packaged Foods
| General | 18.99 Billion |
| Sector | 8.32 Billion |
| Nestle | 91.3 Billion |
General Mills is estimated to stay under $77 in October
Latest standard deviation is at 1.23. General Mills has relatively low volatility with skewness of 1.65 and kurtosis of 8.91. However, we advise all investors to independently investigate General Mills to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure General Mills' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact General Mills' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Perspective on General Mills
While many other companies under the packaged foods industry are still a bit expensive, General Mills may offer a potential longer-term growth to retail investors. With a less-than optimistic outlook for your 90 days horizon, it may be a good time to short some or all of your General Mills holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to General Mills.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of General Mills. Please refer to our
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