Is This General Mills, Inc. (GIS) Ready to Lead?

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But what do the numbers say?
The important question is, has this been priced into the stock?

Company PE Projected Growth Rate PEG Dividend Yield
General Mills 18 7.78% 2.31 3%
Kellogg Company (NYSE:K) 25 7.74% 3.23 2.7%
Industry (Packaged Goods) 21 7.39% 2.84 2.4%

The following metrics show that General Mills is still presenting value against its most noted rival and within the industry. General Mills currently has a lower P/E ratio than Kellogg Company (NYSE:K) and the industry. In addition, it has a higher five-year projected growth rate, leading to lower PEG ratios (explained here) than Kellogg Company (NYSE:K), and within the industry. Finally, it pays the largest dividend yield to compensate you for your time. With that being said, the industry overall is a bit pricey now; however, if you’re looking for value within the industry, keep an eye on this company.

Report for duty!
General Mills, Inc. (NYSE:GIS) has stable and consistent management with a potential catalyst in its Greek yogurt product. Going into earnings on June 26, I recommend you add this company to your watchlist, read the next annual report, and listen to the earnings call. I’ll be on the lookout for any positive signs from Yoplait Greek, international growth numbers, and EPS/dividend guidance. I feel that if management continues its commitment to the share repurchase program, and continues to execute, this General is ready to lead.

The article Is This General Ready to Lead? originally appeared on Fool.com and is written by Jamal Carnette.

Jamal Carnette has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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