Price to Sales (P/S)
since 2005
Calculation
General Mills Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Net sales1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Jun 28, 2019 | 1.87 | = | 52.52 | ÷ | 28.02 | 28.02 | = | 16,865,200 | ÷ | 601,959,611 | |
| Jun 29, 2018 | 1.67 | = | 44.26 | ÷ | 26.53 | 26.53 | = | 15,740,400 | ÷ | 593,367,848 | |
| Jun 29, 2017 | 2.03 | = | 54.97 | ÷ | 27.07 | 27.07 | = | 15,619,800 | ÷ | 577,099,679 | |
| Jun 30, 2016 | 2.57 | = | 71.32 | ÷ | 27.74 | 27.74 | = | 16,563,100 | ÷ | 597,020,906 | |
| Jul 6, 2015 | 1.92 | = | 56.59 | ÷ | 29.45 | 29.45 | = | 17,630,300 | ÷ | 598,737,719 | |
| Jul 3, 2014 | 1.81 | = | 53.05 | ÷ | 29.24 | 29.24 | = | 17,909,600 | ÷ | 612,508,457 | |
| Jul 3, 2013 | 1.76 | = | 48.95 | ÷ | 27.73 | 27.73 | = | 17,774,100 | ÷ | 640,860,417 | |
| Jul 3, 2012 | 1.52 | = | 39.02 | ÷ | 25.68 | 25.68 | = | 16,657,900 | ÷ | 648,588,155 | |
| Jul 8, 2011 | 1.60 | = | 36.81 | ÷ | 23.07 | 23.07 | = | 14,880,200 | ÷ | 644,862,721 | |
| Jul 9, 2010 | 1.59 | = | 36.15 | ÷ | 22.72 | 22.72 | = | 14,796,500 | ÷ | 651,216,065 | |
| Jul 13, 2009 | 1.31 | = | 29.55 | ÷ | 22.57 | 22.57 | = | 14,691,300 | ÷ | 650,831,872 | |
| Jul 11, 2008 | 1.55 | = | 31.57 | ÷ | 20.30 | 20.30 | = | 13,652,100 | ÷ | 672,405,794 | |
| Jul 26, 2007 | 1.48 | = | 27.81 | ÷ | 18.84 | 18.84 | = | 12,441,500 | ÷ | 660,376,158 | |
| Jul 27, 2006 | 1.58 | = | 26.01 | ÷ | 16.50 | 16.50 | = | 11,640,000 | ÷ | 705,623,534 | |
| Jul 28, 2005 | 1.55 | = | 23.77 | ÷ | 15.36 | 15.36 | = | 11,244,000 | ÷ | 732,047,408 |
Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25), 10-K (reporting date: 2013-05-26), 10-K (reporting date: 2012-05-27), 10-K (reporting date: 2011-05-29), 10-K (reporting date: 2010-05-30), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-25), 10-K (reporting date: 2007-05-27), 10-K (reporting date: 2006-05-28), 10-K (reporting date: 2005-05-29).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of General Mills Inc. Annual Report.
An analysis of the Price to Sales (P/S) ratio from 2005 to 2019 reveals a long-term trend characterized by initial stability, a period of significant valuation expansion, and a subsequent correction toward historical norms. While revenue efficiency grew steadily for the first decade, the market valuation of those sales experienced a notable decoupling between 2013 and 2016.
- Sales per Share Performance
- A consistent upward trajectory in sales per share is observed from 2005 to 2015, rising from 15.36 USD to a peak of 29.45 USD. Following this peak, sales per share entered a period of marginal fluctuation, ending the period at 28.02 USD in 2019. This indicates a sustained growth in revenue generation per share for the majority of the analyzed timeframe.
- P/S Ratio Stability Phase (2005–2012)
- Between 2005 and 2012, the P/S ratio remained remarkably stable, fluctuating within a narrow band between 1.31 and 1.60. During this period, share price increases were generally proportional to the growth in sales per share, suggesting a consistent market valuation of the company's revenue streams.
- Valuation Expansion and Peak (2013–2016)
- A distinct shift occurred starting in 2013, as the P/S ratio climbed from 1.76 to a peak of 2.57 in 2016. This expansion was driven primarily by a sharp increase in share price, which reached a high of 71.32 USD in 2016. Notably, this valuation peak occurred while sales per share actually declined slightly from 29.45 USD in 2015 to 27.74 USD in 2016, indicating that the stock price grew independently of revenue performance.
- Market Correction and Normalization (2017–2019)
- Following the 2016 peak, a contraction in the P/S ratio is evident, dropping to 2.03 in 2017 and further to 1.67 in 2018. By 2019, the ratio settled at 1.87. This downward trend aligns with a reduction in share price from the 2016 highs, suggesting a market correction to bring the valuation back closer to the historical averages established in the first decade of the data set.
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Comparison to Competitors
General Mills Inc., P/S, long-term trends, comparison to competitors
| General Mills Inc. | Coca-Cola Co. | Mondelēz International Inc. | PepsiCo Inc. | Philip Morris International Inc. | |
|---|---|---|---|---|---|
| Jun 28, 2019 | 1.87 | 6.75 | 3.25 | 3.03 | 4.57 |
| Jun 29, 2018 | 1.67 | 6.15 | 2.61 | 2.52 | 4.03 |
| Jun 29, 2017 | 2.03 | 5.31 | 2.42 | 2.51 | 5.57 |
| Jun 30, 2016 | 2.57 | 4.28 | 2.67 | 2.43 | 5.96 |
| Jul 6, 2015 | 1.92 | 4.32 | 2.11 | 2.22 | 5.28 |
| Jul 3, 2014 | 1.81 | 3.99 | 1.78 | 2.23 | 4.32 |
| Jul 3, 2013 | 1.76 | 3.58 | 1.63 | 1.79 | 4.01 |
| Jul 3, 2012 | 1.52 | 3.57 | 1.35 | 1.78 | 4.91 |
| Jul 8, 2011 | 1.60 | 3.36 | 1.23 | 1.50 | 4.60 |
| Jul 9, 2010 | 1.59 | 4.18 | 1.13 | 1.74 | 4.11 |
| Jul 13, 2009 | 1.31 | 3.92 | 1.06 | 2.27 | 3.68 |
| Jul 11, 2008 | 1.55 | 2.98 | 0.79 | 1.88 | 2.67 |
| Jul 26, 2007 | 1.48 | 4.79 | 1.30 | 2.91 | — |
| Jul 27, 2006 | 1.58 | 4.57 | 1.55 | 3.01 | — |
| Jul 28, 2005 | 1.55 | 4.30 | 1.50 | 3.03 | — |
Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25), 10-K (reporting date: 2013-05-26), 10-K (reporting date: 2012-05-27), 10-K (reporting date: 2011-05-29), 10-K (reporting date: 2010-05-30), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-25), 10-K (reporting date: 2007-05-27), 10-K (reporting date: 2006-05-28), 10-K (reporting date: 2005-05-29).
Comparison to Sector (Food, Beverage & Tobacco)
General Mills Inc., P/S, long-term trends, comparison to sector (food, beverage & tobacco)
| General Mills Inc. | Food, Beverage & Tobacco | |
|---|---|---|
| Jun 28, 2019 | 1.87 | 4.22 |
| Jun 29, 2018 | 1.67 | 3.59 |
| Jun 29, 2017 | 2.03 | 3.71 |
| Jun 30, 2016 | 2.57 | 3.56 |
| Jul 6, 2015 | 1.92 | 3.27 |
| Jul 3, 2014 | 1.81 | 2.95 |
| Jul 3, 2013 | 1.76 | 2.61 |
| Jul 3, 2012 | 1.52 | 2.72 |
| Jul 8, 2011 | 1.60 | 2.35 |
| Jul 9, 2010 | 1.59 | 2.45 |
| Jul 13, 2009 | 1.31 | 2.54 |
| Jul 11, 2008 | 1.55 | 1.95 |
| Jul 26, 2007 | 1.48 | 2.86 |
| Jul 27, 2006 | 1.58 | 2.88 |
| Jul 28, 2005 | 1.55 | 2.77 |
Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25), 10-K (reporting date: 2013-05-26), 10-K (reporting date: 2012-05-27), 10-K (reporting date: 2011-05-29), 10-K (reporting date: 2010-05-30), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-25), 10-K (reporting date: 2007-05-27), 10-K (reporting date: 2006-05-28), 10-K (reporting date: 2005-05-29).
Comparison to Industry (Consumer Staples)
General Mills Inc., P/S, long-term trends, comparison to industry (consumer staples)
| General Mills Inc. | Consumer Staples | |
|---|---|---|
| Jun 28, 2019 | 1.87 | 1.47 |
| Jun 29, 2018 | 1.67 | 1.24 |
| Jun 29, 2017 | 2.03 | 1.25 |
| Jun 30, 2016 | 2.57 | 1.26 |
| Jul 6, 2015 | 1.92 | 1.23 |
| Jul 3, 2014 | 1.81 | 1.18 |
| Jul 3, 2013 | 1.76 | 1.14 |
| Jul 3, 2012 | 1.52 | 1.10 |
| Jul 8, 2011 | 1.60 | 1.03 |
| Jul 9, 2010 | 1.59 | 1.08 |
| Jul 13, 2009 | 1.31 | 1.01 |
| Jul 11, 2008 | 1.55 | 1.04 |
| Jul 26, 2007 | 1.48 | 1.20 |
| Jul 27, 2006 | 1.58 | 1.25 |
| Jul 28, 2005 | 1.55 | 1.26 |
Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25), 10-K (reporting date: 2013-05-26), 10-K (reporting date: 2012-05-27), 10-K (reporting date: 2011-05-29), 10-K (reporting date: 2010-05-30), 10-K (reporting date: 2009-05-31), 10-K (reporting date: 2008-05-25), 10-K (reporting date: 2007-05-27), 10-K (reporting date: 2006-05-28), 10-K (reporting date: 2005-05-29).