#1 - General Mills (NYSE:GIS)
General Mills (NYSE: GIS) For many investors, the question regarding buying General Mills was if their dividend yield (one of the highest in the market) justified growth that was inconsistent and in some cases non-existent. General Mills stock has been assailed by rising commodity prices and low demand. That is not normally a good combination for investors to digest with their morning cereal. And investors, at least initially, have not responded positively to their latest earnings report. That could be a mistake. To begin with, the stock is trading at a 10-year low valuation of 12 times earnings and has a P/E ratio of just over 16 (the S&P 500 Index is at 18). It also appears that cost-cutting measures are taking root. In the quarter just ended, General Mills saw their operating cash flow increase from 509 million to $607 million, easily allowing the company to make a dividend payment of approximately $300 million that equates to a 4% dividend yield at current prices. The company is also reporting modest increases in both pricing and market share in many of its core categories.
About General Mills
General Mills, Inc manufactures and markets branded consumer foods worldwide. The company operates through four segments: North America Retail; International; Pet; and North America Foodservice. It offers grain, ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, bakery flour, frozen pizza and pizza snacks, snack bars, fruit and savory snacks, ice cream and frozen desserts, unbaked and fully baked frozen dough products, frozen hot snacks, ethnic meals, side dish mixes, frozen breakfast and entrees, nutrition bars, and frozen and shelf-stable vegetables.
Read More - Current Price
- $63.91
- Consensus Rating
- Hold
- Ratings Breakdown
- 3 Buy Ratings, 12 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $72.67 (13.7% Upside)
