General Mills (GIS) Could Be 5% Undervalued On New Totino's Launches And Farm Tie Up
Why General Mills Stock Is Back on Investors’ Radar
General Mills (GIS) has drawn fresh attention after announcing a new regenerative agriculture collaboration with ADM and Walmart, along with a broad expansion of Totino’s Pizza Rolls and Ultimate Pizza flavors across U.S. retailers.
See our latest analysis for General Mills.
For context, General Mills’ share price is US$36.03, with a 1-day share price return of 1.35% and a 90-day share price return of 3.77%. The 1-year total shareholder return has declined 25.06%, suggesting recent momentum is improving from a weaker long term trend.
If this General Mills update has you thinking about where else demand and growth stories might emerge, it could be a good moment to scan 18 top founder-led companies
General Mills looks busy strengthening brands and supply chains, yet the stock is still down sharply over 1 year and trades near analysts’ price targets. Does that recent uptick actually leave much value on the table?
Most Popular Narrative: 4.9% Undervalued
General Mills is priced at $36.03, while the most followed valuation narrative pegs fair value closer to $37.88, suggesting a modest gap that hinges on how earnings recover from a recent loss.
General Mills plans a sizable step-up in investment for fiscal '26, including at least 5% through Holistic Margin Management (HMM) savings and $100 million in additional cost savings. However, reinvestment of these savings into pricing, innovation, in-store activity, and media could delay improvements in net margins and overall earnings in the short term.
Want to see what turns a current loss into future profits in this General Mills story? The narrative focuses on margin repair, portfolio resets, and a defined earnings path. The full breakdown connects flat revenue expectations with different profit assumptions and a future valuation multiple that is not extreme but still ambitious.
Result: Fair Value of $37.88 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the General Mills story could shift if planned cost savings and marketing spend drive stronger volumes than expected, or if key categories like cereal and pet food recover faster.
Find out about the key risks to this General Mills narrative.
Another View: What General Mills’ Sales Multiple Is Telling You
While one narrative sees General Mills as about 4.9% undervalued, the P/S ratio paints a more cautious picture. The stock trades at roughly 1x sales, richer than the US Food industry at 0.7x and close to its fair ratio of 1.1x. As a result, the margin for error looks tight rather than wide.
If you prefer to anchor your view on simple market multiples instead of cash flow models, See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Uncertain whether the mixed signals around General Mills skew more positive or negative right now? Take a moment to review the full picture yourself with 2 key rewards and 3 important warning signs
Looking for more investment ideas beyond General Mills?
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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