Operating Margin

Watchlist Manager

Watchlist

Price: 37.495 EUR -0.98%

Market Cap: 20.9B EUR

16%

Declining

by 1.2%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

16%

Operating Income

$3B

Revenue

$18.8B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

16%

Operating Income

€3B

Revenue

$18.8B

Peer Comparison

Country		Company	Market Cap	Operating Margin
US		General Mills Inc NYSE:GIS	23.5B USD	Loading...
US		Mondelez International Inc NASDAQ:MDLZ	74B USD	Loading...
FR		Danone SA PAR:BN	44.6B EUR	Loading...
JP	G	Goyo Foods Industry Co Ltd TSE:2230	53.2T JPY	Loading...
CH		Nestle SA SIX:NESN	187.5B CHF	Loading...
ZA	T	Tiger Brands Ltd JSE:TBS	55B Zac	Loading...
US		Hershey Co NYSE:HSY	39.8B USD	Loading...
CN		Muyuan Foods Co Ltd SZSE:002714	250B CNY	Loading...
ZA	A	Avi Ltd JSE:AVI	36.1B Zac	Loading...
CH		Chocoladefabriken Lindt & Spruengli AG SIX:LISN	26.2B CHF	Loading...
CN		Foshan Haitian Flavouring and Food Co Ltd SSE:603288	212.1B CNY	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

General Mills Inc
Glance View

Economic Moat

None

Market Cap

20.9B EUR

Industry

Food Products

In the bustling arena of the global food industry, General Mills Inc. emerges as a stalwart, weaving its narrative through a rich tapestry of household brands and beloved products. Founded in the late 19th century, the company has continuously evolved, deftly maneuvering through the changing tides of consumer preferences and market demands. Headquartered in Golden Valley, Minnesota, General Mills is a powerhouse that has established a significant footprint in over 100 countries worldwide. The company garners a robust line-up of products spanning across cereals, snacks, dairy products, and pet foods, with iconic brands like Cheerios, Betty Crocker, Haagen-Dazs, and Blue Buffalo forming the backbone of its portfolio. This vast assortment is strategically developed to capture both traditional aisles in brick-and-mortar supermarkets and the swiftly expanding e-commerce sector. At the core of its operational prowess is a keen focus on innovation and an astute understanding of market dynamics. General Mills thrives on its ability to identify and capitalize on burgeoning food trends—organic, natural, and wellness-focused products—realigning its offerings to meet the changing tastes of discerning consumers. The company invests significantly in research and development, aiming to not only refine existing products but also to pioneer new ones that push the culinary envelope. Meanwhile, strategic acquisitions have allowed General Mills to broaden its market reach and diversify its revenue streams. By leveraging efficient supply chain mechanisms and strong retailer relationships, it ensures that its products maintain prominence on shelves across the globe. Thus, through a confluence of strategic agility and brand resilience, General Mills continues to generate substantial revenue and remains a formidable player in the dynamic landscape of the global food industry.

View GRM Analysis

GRM Intrinsic Value

Show

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

General Mills Inc
DUS:GRM

Peer Comparison

Market Distribution

Other Profitability Ratios

General Mills Inc
Glance View

See Also

Company

Help

Tools

Stocks

52 Week Range	37.135 61.31
Price Target

General Mills Inc DUS:GRM