GENERAL MILLS INC (GIS)

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AI: Fair-priced

Price checkAt $39.20, the low share price fairly balances dependable cash against weak growth and heavy debt.

The latest available close was $39.20 on August 14, before the August 17 market opening. That equals 12.6 times management’s $3.10 midpoint for fiscal 2027 adjusted earnings. Applying the guided 95 percent cash conversion implies roughly $1.59 billion of free cash flow, meaning cash left after operating and investment spending, or a 7.5 percent yield on the market value. The 6.2 percent dividend yield is appealing, but falling earnings and $13.08 billion of net debt prevent a clear undervaluation conclusion.

Big pictureCash remains dependable, but sales and profit are shrinking faster than comfort allows.

Fiscal 2026 revenue fell 5 percent to $18.42 billion, while sales excluding portfolio and currency effects declined 2 percent. Operating cash flow dropped 26 percent to $2.17 billion, and free cash flow fell 29 percent to $1.63 billion. Cash generation nevertheless remained positive throughout the six-year history, with annual operating cash flow between $2.17 billion and $3.32 billion. Packaged-food demand is usually defensive, but value-seeking shoppers, heavier promotions, lower volumes, and higher input costs have created a meaningful profit cycle.

Business strengthEstablished brands support cash generation, although debt and past acquisition losses weaken the safety cushion.

General Mills ended fiscal 2026 with $454 million of cash against $13.54 billion of debt; current liabilities also exceeded current assets by $2.16 billion. Adjusted operating profit of $2.8 billion covered $539 million of interest about 5.2 times, providing capacity but not a fortress balance sheet. Free cash flow covered the $1.32 billion dividend, though dividends plus $500 million of buybacks exceeded that cash. Average diluted shares fell 4 percent despite $79 million of stock compensation, but nearly $2.8 billion of write-downs exposed poor returns from earlier portfolio investments.

What could change the storyStable sales and delivered savings could unlock value, while another cash decline would threaten the bargain.

The price requires no rapid growth, but it assumes adjusted earnings remain near $3.00 to $3.20 per share and cash continues covering the $2.44 annual dividend. The strongest bull case is fiscal 2027 sales reaching the upper end of the down 1.5 percent to up 0.5 percent range while at least $750 million of planned savings protects profit. The bear case strengthens if sales fall below guidance, savings merely offset rising costs, or free cash flow drops beneath the roughly $1.31 billion annual dividend requirement.

$39.20 price considered

AI: News

Fiscal 2027 resetQuarterly profit beat expectations, but management still expects another year of lower earnings.

On July 1, 2026, General Mills reported fourth-quarter adjusted earnings of $0.95 per share and $4.61 billion of sales, above reported analyst estimates of $0.82 and $4.60 billion. Management nevertheless forecast fiscal 2027 adjusted earnings of $3.00 to $3.20 and an 8 to 13 percent decline in adjusted operating profit. Reuters reported shares up 3 percent before trading; the timing links the reaction to the release, although it cannot establish that any single figure caused the move.

Pet assets written downLarge pet-business write-downs reveal that earlier growth expectations were too optimistic.

The July 1 annual filing disclosed a $1.5 billion non-cash goodwill impairment for North America Pet plus $250 million of write-downs for the Nudges and True Chews brands. A write-down reduces the recorded value of assets when expected future returns deteriorate; it does not itself consume current cash. The stock rose following the broader earnings release, so no negative reaction can be isolated. Still, the charges materially weaken evidence that acquisition spending created lasting value.

Brazil exit agreedThe planned Brazil sale sharpens focus but crystallizes a large accounting loss.

On March 17, 2026, General Mills announced an agreement to sell its Brazil business to 3corações for a base price of R$800 million, subject to adjustments and approval. The operation generated about $350 million of fiscal 2025 sales. General Mills later recorded a $1.03 billion pre-tax valuation loss, partly reflecting accumulated currency translation losses, so not all represents new cash destruction. The exit should lift reported margins and simplify International, but removes revenue and highlights weak value recovery from past investment. No reliable isolated share-price reaction was found.

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Financial statements

	2026	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$18.42B	$19.49B	$19.86B	$20.09B	$18.99B	$18.13B	$17.63B	$16.87B	$15.74B	$15.62B	—	—	—	—	—	—	—	—	—
Research & development	$256.0M	$256.6M	$257.8M	$257.6M	$243.1M	$239.3M	$224.4M	$221.9M	$219.1M	$218.2M	$222.1M	$229.4M	$243.6M	$237.9M	$245.4M	$235.0M	$218.3M	$208.2M	—
Operating income	$885.8M	$3.30B	$3.43B	$3.43B	$3.48B	$3.14B	$2.95B	$2.52B	$2.42B	$2.49B	$2.71B	$2.08B	$2.96B	$2.85B	$2.56B	$2.77B	$2.61B	$2.33B	$2.23B
EBITDAderived	$1.44B	$3.84B	$3.98B	$3.98B	$4.05B	$3.75B	$3.55B	$3.14B	$3.04B	$3.10B	$3.32B	$2.67B	$3.54B	$3.44B	$3.10B	$3.25B	$3.06B	$2.78B	$2.69B
Net income	−$87.6M	$2.30B	$2.50B	$2.59B	$2.71B	$2.34B	$2.18B	$1.75B	$2.13B	$1.66B	$1.70B	$1.22B	$1.82B	$1.86B	$1.57B	$1.80B	$1.53B	$1.30B	$1.29B
Basic EPSper diluted share	-$0.16	$4.12	$4.34	$4.36	$4.46	$3.81	$3.59	$2.92	$3.69	$2.82	$2.83	$2.02	$2.90	$2.86	$2.42	$2.80	$2.32	$1.96	$1.93
Diluted EPSper diluted share	-$0.16	$4.10	$4.31	$4.31	$4.42	$3.78	$3.56	$2.90	$3.64	$2.77	$2.77	$1.97	$2.83	$2.79	$2.35	$2.70	$2.24	$1.90	$1.85

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)15$6.96M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 13, 2026Form 4	Williams-Roll JacquelineChief Human Resources Officer	SellCommon Stock · indirect	10.0K	$33.97	$339.7K	76.0K
May 12, 2026Form 4	Williams-Roll JacquelineChief Human Resources Officer	SellCommon Stock · indirect	10.0K	$34.27	$342.7K	86.0K
May 12, 2026Form 4	Fernandez RicardoSegment President	SellCommon Stock	8.0K	$34.50	$275.8K	62.3K
Dec 19, 2025Form 4	Gallagher Paul JosephChief Supply Chain Officer	SellCommon Stock	1.5K	$48.15	$72.2K	48.6K
Sep 19, 2025Form 4	Williams-Roll JacquelineChief Human Resources Officer	SellCommon Stock · indirect	4.0K	$50.04	$200.2K	66.6K

Review ownership filings at SEC.gov ↗

GENERAL MILLS INC (GIS)

Financial charts

Financial statements

Insider buys & sells