Welcome back traders!
Today, we're looking at a true OG company, General Mills GIS 0.00%↑ . We all grew up on their cereals, and let's be honest, many of us still eat them today. This is another one that my man
gave me a shout-out on this Friday—his second one of the day, so thank you again, my friend!This stock has been absolutely hammered, down over 50% from its all-time highs, and it's landed in a spot on the chart that really has my attention. When you combine the technical setup with the rock-solid fundamentals and a juicy dividend, this starts to look less like a falling knife and more like a coiled spring.
This is a blue-chip company that I believe is a fantastic long-term portfolio addition right here. Let's dig into why.
The Numbers: Why This Isn't Just a Nostalgia Play
First off, it's been a long time since I've seen a P/E ratio of 9.4 on a company this stable. On top of that, they're paying a 4.85% dividend, which is huge.
Now, let's talk about the elephant in the room: the debt. They're sitting on $14 billion in debt, which is never something I like to see. But there are compensating factors here. Their long-term assets are nearly $28 billion, while their long-term liabilities are only $15.5 billion. This means they could liquidate their assets and still be in a great net-positive position. They are also incredibly profitable, bringing in $1.2 billion in net income on $4.52 billion in revenue—that's a stellar 26% profit margin.
This is, in my opinion, a financially solid company.
