General Mills Stock Buyback: A Comprehensive Review

General Mills has a history of stock buybacks, with the company announcing a $5 billion buyback program in 2015. This program was part of a larger effort to return value to shareholders.

The company's buyback program has been successful, with General Mills repurchasing over $3.5 billion in shares between 2015 and 2017. This has helped to boost the company's stock price and increase shareholder value.

One of the key benefits of General Mills' stock buyback program is that it allows the company to return capital to shareholders without sacrificing its financial flexibility. This is particularly important for a company like General Mills, which operates in a competitive consumer goods industry.

By repurchasing shares, General Mills can also reduce the number of outstanding shares, which can help to increase earnings per share and make the company more attractive to investors.

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Analysts rate General Mills stock a 'Buy' on average, with 12 optimistic ratings over the last three months.

The stock is up almost 2% so far this year, which may not seem impressive until you compare it to the broader S&P 500 stock index, down nearly 19% this year.

General Mills stock is trading at a P/E ratio of 18x, slightly higher than its five-year average P/E ratio of 16x.

The stock also pays a dividend yield of 3%, which is a significant return for investors.

The company has been buying back shares, reducing the number of company shares and increasing the P/E ratio.

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The valuation ratios of General Mills stock are worth taking a closer look at. The trailing PE ratio is 13.13, which is relatively low compared to the broader market.

The forward PE ratio is slightly higher at 14.05, indicating that analysts expect the company's earnings to grow in the future. This could be a sign that investors are optimistic about General Mills' prospects.

The PEG ratio is 40.10, which is higher than average. This could indicate that the stock is overvalued, but it's essential to consider other factors before making a decision.

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Here are the valuation ratios of General Mills stock:

The P/FCF ratio of 11.83 suggests that the stock is trading at a relatively reasonable multiple compared to its free cash flow. This could be a sign that the stock is undervalued, but it's essential to consider other factors before making a decision.

General Mills Stock has a 12-month price target of $69.60, which is less than 2% above its current price of $68. The highest analyst price target is $75, which is 9.6% above the current stock price.

The company has raised its outlook for full-year 2022 due to its ability to deal with inflation. General Mills now expects adjusted earnings per share to grow between 0% and 2%.

Analysts forecast General Mills to report adjusted earnings per share of $3.83 for the year ending in May of 2022. This is in line with the company's forecast and slightly higher than its 2021 adjusted earnings per share of $3.79.

The company will announce its fourth quarter and full-year financial results on June 29. You can find a link to the webcast here.

Here are the key valuation metrics for General Mills:

General Mills' financial performance is impressive, with a return on equity (ROE) of 27.48% and a return on invested capital (ROIC) of 10.24%. This indicates that the company is generating significant profits from its equity and investments.

The company's revenue per employee is $5.85 million, which is a testament to its efficient operations. This means that each employee is contributing significantly to the company's revenue.

The employee count is 3,400, and the company generates profits per employee of $765,647. This high profit per employee ratio suggests that General Mills has a well-managed workforce that is generating significant value for the company.

Here is a summary of the company's key financial metrics:

Financial Efficiency is a key aspect of any company's financial performance. Return on equity (ROE) of 27.48% indicates a strong ability to generate profits from shareholder investments.

The company's ROE is significantly higher than its return on assets (ROA) of 7.33%, suggesting that it's able to generate more value from its assets than other companies in the same industry.

Return on invested capital (ROIC) of 10.24% and return on capital employed (ROCE) of 14.93% also indicate a high level of financial efficiency. These metrics suggest that the company is able to generate a strong return on the capital it has invested.

A revenue per employee of $5.85M and profits per employee of $765,647 demonstrate the company's ability to generate significant revenue and profits from each employee. With an employee count of 3,400, this translates to a substantial overall revenue and profit.

Here's a breakdown of the company's financial efficiency metrics:

These metrics provide a clear picture of the company's financial efficiency and its ability to generate value from its assets and investments.

The company's balance sheet paints a picture of its financial health. The cash and cash equivalents stand at $2.29 billion, a significant amount of money that can be used to fund operations or investments.

However, this is heavily outweighed by the total debt of $14.52 billion, resulting in a net cash position of -$12.23 billion.

The company's net cash position per share is -$22.15, which is a concern for investors. This means that for every share they own, they're essentially losing $22.15.

The company's equity, also known as book value, is $9.45 billion. This is significantly lower than the total debt, indicating that the company is heavily indebted.

Here's a summary of the key numbers:

The company's working capital is actually negative, indicating that it's struggling to meet its short-term obligations.

General Mills Stock is trading at a P/E ratio of 18x, which is a bit higher than its five-year average P/E ratio of 16x.

Analysts are optimistic about the stock, with 12 analysts rating it a 'Buy' over the last three months.

The stock has only produced a 2% return so far this year, but that's better than the S&P 500, which is down nearly 19% this year.

General Mills also pays a dividend yield of 3%.

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The company bought back 8.8 million shares of stock through the first nine months of its fiscal year, reducing the number of shares by 1% to about 614 million shares.

This move increased the company's P/E ratio and reduced the number of shares, so future profits will be split between a smaller number of shareholders.

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