General Mills’ price movement
General Mills (GIS) has a market cap of $40.3 billion. Its stock rose by 3.2% to close at $67.86 per share on June 29, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 2.2%, 8.1%, and 19.5%, respectively, on the same day. GIS is trading 4.2% above its 20-day moving average, 6.9% above its 50-day moving average, and 15.0% above its 200-day moving average.
Related ETF and peers
The PowerShares High Yield Equity Dividend Achievers Portfolio (PEY) invests 1.6% of its holdings in General Mills. The ETF aims to track a yield-weighted index of US companies that have increased their annual dividends for at least ten consecutive years. The YTD price movement of PEY was 16.1% on June 29.
The market caps of General Mills’ competitors are as follows:
General Mills’ performance in fiscal 4Q16 and fiscal 2016
General Mills reported fiscal 4Q16 net sales of $3.9 billion, a fall of 9.3% compared to net sales of $4.3 billion in fiscal 4Q15. Sales of the US Retail, International, and Convenience Stores and Foodservice segments fell by 12.2%, 1.5%, and 7.8%, respectively, in fiscal 4Q16 compared to fiscal 4Q15.
Its net income and EPS (earnings per share) rose to $379.6 million and $0.62, respectively, in fiscal 4Q16 compared to $186.8 million and $0.30, respectively, in fiscal 4Q15.
General Mills has declared a quarterly dividend of $0.48 per share on its common stock. The dividend will be paid on August 1, 2016, to shareholders of record at the close of business on July 11, 2016.
Fiscal 2016 results
In fiscal 2016, GIS reported net sales of $16.6 billion, a fall of 5.7% YoY (year-over-year). It reported a gain on divestitures of $148.2 million in fiscal 2016. The company’s gross profit margin and operating profit rose by 4.5% and 30.3%, respectively, in fiscal 2016 on a YoY basis.
Its net income and EPS rose to $1.7 billion and $2.77, respectively, in fiscal 2016 compared to $1.2 billion and $1.97, respectively, in fiscal 2015.
In fiscal 2016, GIS’s cash and cash equivalents rose by 128.5%, and its inventories fell by 8.3%. Its current ratio and debt-to-equity ratio rose to 0.79x and 2.93x, respectively, in fiscal 2016 compared to 0.75x and 2.90x, respectively, in fiscal 2015.
The company repurchased ~11 million shares of its common stock worth $607 million in fiscal 2016.
The company has increased its annualized dividend to $1.92 per share, a rise of 8% compared to the annual dividend of $1.78 paid in fiscal 2016.
The company has made the following projections for fiscal 2017:
- organic net sales growth in the range of 0% to -2%
- total segment operating profit growth in the range of 6%–8% on a constant-currency basis
- adjusted operating profit margin growth of ~1.5%
- adjusted EPS growth in the range of 6%–8% on a constant-currency basis
The company has made the following projections for fiscal 2018:
- modest organic net sales growth
- adjusted EPS growth in the low double digits on a constant-currency basis
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