General Mills Inc. (NYSE:GIS)

The analysis of the financial ratios over the indicated periods reveals several noteworthy trends and fluctuations.

Price to Earnings (P/E) Ratio

The P/E ratio data begins from the period ending August 24, 2014, showing an initial increase from 17.81 to a peak of 27.74 by August 30, 2015. Following this peak, there is a general downward trend with some fluctuations, descending to a low of 11.32 by November 25, 2018. Subsequently, the ratio slightly rises again, reaching 18.81 by August 25, 2019, before a slight decline towards the final recorded period of 15.18. This pattern suggests periods of varying investor confidence or earnings performance, with a significant peak likely reflecting higher valuation expectations, followed by a correction phase and moderate recovery.

Price to Operating Profit (P/OP) Ratio

Beginning from the same period as the P/E ratio, the P/OP ratio shows a similar pattern of growth from 10.99 to a peak of 16.31 around August 30, 2015. Post-peak, the ratio gradually declines, with some volatility, reaching near 9.99 by November 25, 2018. A modest recovery is noted thereafter, with values hovering around 12 in the final periods. The trajectory closely mirrors that of the P/E ratio, indicating consistent valuation adjustments relative to operating profit over the observed timeframe.

Price to Sales (P/S) Ratio

The P/S ratio manifests a less volatile but still discernible trend. Starting at 1.81, it remains relatively stable until approximately May 29, 2016, after which it experiences a progressive rise, peaking at 2.57. Following this peak, a decline ensues, bottoming out at 1.41 by November 25, 2018. The ratio then recovers modestly, fluctuating around values near 1.9 towards the end of the data. This suggests changes in market valuation relative to sales, but with less pronounced variability compared to earnings-based ratios.

Price to Book Value (P/BV) Ratio

This ratio is available from the earliest period (August 25, 2013), beginning at 4.66 and showing a steady upward trend peaking at 8.64 around May 29, 2016. Following this peak, a notable decline occurs through to November 25, 2018, where it reaches a low of 3.46. A partial recovery is visible in the subsequent periods, stabilizing around the mid-4 range towards the last data point. The P/BV trend indicates shifts in investor valuations relative to the company's book equity, with peaks and troughs broadly coinciding with those observed in other valuation metrics but exhibiting a more pronounced peak and recovery pattern.

Overall, the data depicts a phase of increasing market optimism and valuation across most metrics culminating around mid-2015 to mid-2016, followed by a period of correction and decline through late 2018. The latter months show tentative signs of stabilization and mild recovery in valuation ratios. These patterns could reflect evolving market conditions, financial performance, and investor sentiment over the examined timeframe.

The financial data from the analyzed periods reveals several noteworthy trends regarding share price, earnings per share (EPS), and the price-to-earnings (P/E) ratio.

Share Price

The share price shows an overall fluctuating pattern across the timeline. It started near the 50 US$ mark, rising gradually to peak at 71.32 US$ around mid-2016. After this peak, a decline is observed, with the price dropping to as low as approximately 38.55 US$ in late 2018. Toward the end of the period under review, the share price appears to recover moderately, reaching the low-to-mid 50s US$ range.

Earnings Per Share (EPS)

EPS data begins from early 2014 and generally demonstrates a steady upward trend, moving from just under 3 US$ toward values slightly above 3 US$ in most subsequent quarters. Notably, there is a peak around early 2018 where EPS exceeds 3.5 US$, indicating improved profitability during that period. However, a dip occurs in the middle of 2019, reducing to approximately 2.57 US$, before showing a rebound thereafter.

Price-to-Earnings (P/E) Ratio

The P/E ratio exhibits variability, typically ranging between 15 and 27. In earlier observed quarters, particularly around 2014 through 2016, the ratio hovers in the higher 20s, suggesting increased investor expectations relative to earnings. Post-2016, there is a gradual decline in the P/E ratio, oscillating mostly in the teens, and reaching a low of approximately 11.32 by mid-2019. This decrease implies either a market adjustment to earnings performance or a revaluation of the stock price relative to earnings.

Overall Observations

The data illustrates a period of initial growth in company valuation and earnings, peaking around 2016 to early 2018, followed by a downturn in valuation despite relatively stable or moderately fluctuating earnings. The divergence between falling share prices and reasonably sustained earnings per share in later periods suggests potential external factors influencing market perception or shifts in industry conditions. Moreover, the lowering of the P/E ratio indicates a change in market sentiment, possibly reflecting lower growth expectations or increased uncertainty.

The share price demonstrates noticeable fluctuations throughout the observed periods. Initially, the price remains relatively stable around the low 50s, with slight increases observed through early 2016, peaking at 71.32 US$ in May 2016. Following this peak, a general downward trend is evident, with the share price declining to a low of 38.55 US$ in November 2018 before partially recovering to approximately 53 US$ by late 2019. This pattern indicates cycles of gains and losses, with the most significant correction occurring after mid-2016.

The operating profit per share data is available from May 2014 onward. It starts at 4.83 US$, decreases to 3.47 US$ in August 2015, and subsequently recovers and stabilizes around 4.4 US$ to 4.5 US$ through 2016 and early 2017. From mid-2017 onwards, the operating profit per share exhibits a slight declining trend, reaching a minimum of 3.86 US$ in February 2019, before experiencing a moderate rebound to 4.7 US$ by November 2019. This trajectory suggests periods of both contraction and growth in operational efficiency or profitability on a per-share basis over time.

The price to operating profit (P/OP) ratio aligns inversely with the operating profit per share and share price trends. Initially, the ratio gradually increases from 10.99 in May 2014 to a peak of 16.31 in August 2015, indicating a rising valuation per unit of operating profit. After reaching this peak, the ratio generally declines, reaching a low of 9.99 in February 2019, reflecting a more conservative valuation relative to operating profit. However, towards the end of the period, a moderate increase in the ratio suggests a slight uptick in share price relative to profit or a change in market expectations.

Overall, the data reflects a market environment with periods of growth and correction for the share price, coupled with operating profit per share fluctuations that mirror operational performance changes. The P/OP ratio movements indicate varying investor sentiment and valuation adjustments relative to operational profitability across the examined quarters.

The share price exhibits variability over the observed periods, initially fluctuating within a moderate range before experiencing a noticeable peak around May 2016 at approximately $71.32. Post this peak, the price undergoes a decline reaching a low near $38.55 by November 2018, followed by a gradual recovery stabilizing in the low to mid-$50 range towards the end of the timeline in November 2019.

Sales per share, starting from the quarter ending August 2014, show a generally declining trend. The values descend from the high 29s to the mid-27s over the course of five years, indicating a slight contraction in sales on a per-share basis. This decline, however, is relatively gradual and demonstrates some periods of minor fluctuation.

The price-to-sales (P/S) ratio fluctuates in a wide range across the quarters. It initially rises steadily, peaking near 2.57 in August 2016, coinciding with the peak in share price. This is followed by a decline, with the P/S ratio falling to approximately 1.41 in February 2019. Subsequently, the ratio recovers somewhat, ending around 1.92 in November 2019. This movement suggests changing investor sentiment and valuation relative to sales, reflecting market responsiveness to company performance and possibly broader market conditions.

Share Price Trend

Moderate fluctuations early on, sharp rise to peak in mid-2016, subsequent decline through 2018, partial recovery and stabilization near $50-$55 range by late 2019.

Sales Per Share Trend

Gradual decrease from high 29s to mid-27s over five years, indicating a consistent though modest reduction in sales efficiency per share.

P/S Ratio Analysis

Rising trend to a peak in mid-2016 aligns with share price peak; followed by decline to a low in early 2019; partial recovery afterwards suggests market valuation shifts relative to sales performance.

Share Price Trends

The share price experienced moderate fluctuations over the observed period. Starting at $50.15 in August 2013, it initially showed a mostly upward trajectory, reaching a peak of $71.32 in May 2016. After this peak, the share price declined steadily, dropping to a low of $38.55 in November 2018. Thereafter, a gradual recovery occurred, with prices rising back above $50 by November 2019.

Book Value Per Share (BVPS) Trends

BVPS showed a generally declining pattern from August 2013 ($10.76) through November 2016 ($7.21), with minor fluctuations in between. After reaching its lowest point in late 2016, BVPS gradually increased again, ending at $12.75 in November 2019, which is higher than the initial value at the beginning of the period.

Price-to-Book Value Ratio (P/BV) Trends

The P/BV ratio exhibited significant variation throughout the period. It progressively increased from 4.66 in August 2013 to its highest value of 8.64 in May 2016, indicating a rising market valuation relative to book value. Following this peak, the ratio declined sharply to 3.46 by November 2018, reflecting either a decrease in share price, an increase in book value, or both. By November 2019, the P/BV ratio had moderately rebounded to approximately 4.17.

Summary and Insights

The observed data suggests a notable shift in market sentiment over the period. The initial phase up to mid-2016 shows increasing investor optimism, as seen in rising share prices and elevated P/BV ratios despite a declining book value. This pattern may indicate inflated market valuation or strong growth expectations.

Post-2016, a reversal occurred with declining share prices and falling P/BV ratios, potentially reflecting market corrections or changing company fundamentals. Concurrently, the BVPS began to recover, which may signal underlying improvements in the company's net asset base. The latter part of the period indicates a stabilization phase with partial recovery in share prices and ratios.