Money and Finance
It's about time for another stock analysis. This time I decided to take a look atGeneral Mills (GIS). General Mills closed on Wednesday 5/9/12 at $38.91.
Company Background:
General Mills, Inc. manufactures and markets branded consumer foods worldwide. It also supplies branded and unbranded food products to the foodservice and commercial baking industries. The company offers ready-to-eat cereals, refrigerated yogurt, ready-to-serve soup, dry dinners, shelf stable and frozen vegetables, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza snacks, grain, fruit and savory snacks; and a range of organic products, including soup, granola bars, and cereals; and ice cream and frozen desserts, and grain snacks. It sells its products through its direct sales personnel, as well as through broker and distribution arrangements to grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, commercial and noncommercial foodservice distributors and operators, restaurants, and convenience stores.
DCF Valuation:
Analysts expect General Mills to grow earnings 7.15% per year for the next five years and I've assumed they can continue to grow at 3.00% per year thereafter. Running these numbers through a DCF analysis with a 10% discount rate yields a fair value price of $43.43. This means that at $38.91 the shares are undervalued by 10%.
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Money and Finance
General Mills Stock Analysis
It's about time for another stock analysis. This time I decided to take a look atGeneral Mills (GIS). General Mills closed on Wednesday 5/9/12 at $38.91.
Company Background:
General Mills, Inc. manufactures and markets branded consumer foods worldwide. It also supplies branded and unbranded food products to the foodservice and commercial baking industries. The company offers ready-to-eat cereals, refrigerated yogurt, ready-to-serve soup, dry dinners, shelf stable and frozen vegetables, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza snacks, grain, fruit and savory snacks; and a range of organic products, including soup, granola bars, and cereals; and ice cream and frozen desserts, and grain snacks. It sells its products through its direct sales personnel, as well as through broker and distribution arrangements to grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, commercial and noncommercial foodservice distributors and operators, restaurants, and convenience stores.
DCF Valuation:
Analysts expect General Mills to grow earnings 7.15% per year for the next five years and I've assumed they can continue to grow at 3.00% per year thereafter. Running these numbers through a DCF analysis with a 10% discount rate yields a fair value price of $43.43. This means that at $38.91 the shares are undervalued by 10%.
Read more »
- Pepsico (pep) Dividend Stock Analysis
If you look at my portfolio you'll notice that it's lacking exposure to the food industry. Specifically those weekly repeat purchase foods such as potato chips and other snack foods. Coca-Cola is my only current exposure there and I'd...
- Clorox Stock Analysis
For Christmas, my gift to everyone is some stock analysis reports. In this one we'll look at consumer staple giant The Clorox Company (CLX). I would like to add some more defensive and consumer staples companies to my portfolio so let's see...
- Pepsi Stock Analysis
It's been a while since I've posted a stock analysis so today we'll look at the other beverage giant PepsiCo (PEP). Pepsi was trading for $69.44 at mid-day yesterday. Company Background: PepsiCo, Inc. engages in the manufacture and sale...
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- Recent Buy - General Mills (gis)
Today I added to my position in General Mills (GIS). I purchased another 22 shares at $49.12 raising my total shares to 55. General Mills, Inc. manufactures and markets branded consumer foods worldwide. The company also supplies branded and unbranded...