General Mills: The Opportunity Cost Of Holding The Stock Is Too High

Luca Socci
4.76K Followers
(7min)

Summary

  • General Mills continues to struggle with sales growth and declining EPS, underperforming the market despite its reputation for stability and dividends.
  • Recent earnings confirm lackluster performance, with organic sales expected to remain flat and profit forecasted to drop further in FY2026.
  • Valuation appears cheap on the surface, but poor growth prospects and a high PEG ratio suggest the stock is overvalued and could fall further.
  • Given the high opportunity cost, I recommend selling General Mills and seeking better income or growth opportunities elsewhere.

Pillsbury rotolini alla cannella

NoDerog/iStock Unreleased via Getty Images

Introduction

General Mills, Inc. (NYSE:GIS) has been around for over 150 years, and it is one of the most prominent players in the food industry. As such, it belongs to a usually stable sector, with low beta

This article was written by

4.76K Followers
I focus on long term growth and dividend growth investing. I follow both the US and the European stock markets, looking for undervalued stock and/or for high quality dividend growing companies that provide me with cash to reinvest. Over time, I have come to realize that profitability is a much safer driver of gains than low valuation. As a result, I give utmost importance to margins, free cash flow stability and growth, and returns on invested capital. I research stocks within my areas of competence and whenever I find a high-quality company, I usually never get bored in researching it more and more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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