GENERAL MOTORS CO (8GM.DE) Stock Fundamental Analysis
FRA:8GM - Deutsche Boerse Ag - US37045V1008 - Common Stock - Currency: EUR
8GM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 32 industry peers in the Automobiles industry. There are concerns on the financial health of 8GM while its profitability can be described as average. 8GM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year 8GM was profitable.
In the past year 8GM had a positive cash flow from operations.
Each year in the past 5 years 8GM has been profitable.
8GM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.57%, 8GM perfoms like the industry average, outperforming 44.12% of the companies in the same industry.
8GM has a Return On Equity of 11.40%. This is comparable to the rest of the industry: 8GM outperforms 55.88% of its industry peers.
The Return On Invested Capital of 8GM (6.71%) is better than 64.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 8GM is below the industry average of 9.20%.
The last Return On Invested Capital (6.71%) for 8GM is above the 3 year average (5.60%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 11.4% | ||
| ROIC | 6.71% |
ROA(3y)3.21%
ROA(5y)3.26%
ROE(3y)13.38%
ROE(5y)14.1%
ROIC(3y)5.6%
ROIC(5y)5.91%
1.3 Margins
8GM has a Profit Margin (3.84%) which is in line with its industry peers.
8GM's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 7.98%, 8GM perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
8GM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 13.02%, 8GM is doing worse than 82.35% of the companies in the same industry.
In the last couple of years the Gross Margin of 8GM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.98% | ||
| PM (TTM) | 3.84% | ||
| GM | 13.02% |
OM growth 3Y-15.76%
OM growth 5Y13.42%
PM growth 3Y-20.89%
PM growth 5Y-4.37%
GM growth 3Y-11.63%
GM growth 5Y4.44%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 8GM is destroying value.
The number of shares outstanding for 8GM has been reduced compared to 1 year ago.
Compared to 5 years ago, 8GM has less shares outstanding
The debt/assets ratio for 8GM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that 8GM is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.29, 8GM perfoms like the industry average, outperforming 44.12% of the companies in the same industry.
A Debt/Equity ratio of 1.43 is on the high side and indicates that 8GM has dependencies on debt financing.
The Debt to Equity ratio of 8GM (1.43) is worse than 61.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.29 |
ROIC/WACC0.93
WACC7.24%
2.3 Liquidity
8GM has a Current Ratio of 1.13. This is a normal value and indicates that 8GM is financially healthy and should not expect problems in meeting its short term obligations.
8GM's Current ratio of 1.13 is on the low side compared to the rest of the industry. 8GM is outperformed by 61.76% of its industry peers.
A Quick Ratio of 0.98 indicates that 8GM may have some problems paying its short term obligations.
The Quick ratio of 8GM (0.98) is better than 67.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.37% over the past year.
The Earnings Per Share has been growing by 19.68% on average over the past years. This is quite good.
8GM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.08%.
Measured over the past years, 8GM shows a small growth in Revenue. The Revenue has been growing by 6.43% on average per year.
EPS 1Y (TTM)30.37%
EPS 3Y14.2%
EPS 5Y19.68%
EPS Q2Q%54.84%
Revenue 1Y (TTM)9.08%
Revenue growth 3Y13.85%
Revenue growth 5Y6.43%
Sales Q2Q%10.99%
3.2 Future
Based on estimates for the next years, 8GM will show a decrease in Earnings Per Share. The EPS will decrease by -0.13% on average per year.
Based on estimates for the next years, 8GM will show a small growth in Revenue. The Revenue will grow by 4.76% on average per year.
EPS Next Y12.22%
EPS Next 2Y8.15%
EPS Next 3Y5.76%
EPS Next 5Y-0.13%
Revenue Next Year-0.02%
Revenue Next 2Y0.03%
Revenue Next 3Y1.13%
Revenue Next 5Y4.76%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 4.39 indicates a rather cheap valuation of 8GM.
85.29% of the companies in the same industry are more expensive than 8GM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.35, 8GM is valued rather cheaply.
With a Price/Forward Earnings ratio of 3.91, the valuation of 8GM can be described as very cheap.
91.18% of the companies in the same industry are more expensive than 8GM, based on the Price/Forward Earnings ratio.
8GM is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.39 | ||
| Fwd PE | 3.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 8GM is valued a bit cheaper than the industry average as 61.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.17 |
4.3 Compensation for Growth
8GM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.36
PEG (5Y)0.22
EPS Next 2Y8.15%
EPS Next 3Y5.76%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.02%, 8GM has a reasonable but not impressive dividend return.
8GM's Dividend Yield is slightly below the industry average, which is at 6.74.
With a Dividend Yield of 1.02, 8GM pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
5.2 History
The dividend of 8GM decreases each year by -18.77%.
Dividend Growth(5Y)-18.77%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
8GM pays out 9.08% of its income as dividend. This is a sustainable payout ratio.
The Dividend Rate of 8GM has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP9.08%
EPS Next 2Y8.15%
EPS Next 3Y5.76%
FRA:8GM (3/7/2025, 7:00:00 PM)
42.72
-1.5 (-3.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners87.62%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap42.51B
Analysts75.56
Price Target57.7 (35.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Yearly Dividend0.55
Dividend Growth(5Y)-18.77%
DP9.08%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.3%
Min EPS beat(2)-1.45%
Max EPS beat(2)18.05%
EPS beat(4)3
Avg EPS beat(4)10.8%
Min EPS beat(4)-1.45%
Max EPS beat(4)18.54%
EPS beat(8)7
Avg EPS beat(8)14.35%
EPS beat(12)10
Avg EPS beat(12)13.93%
EPS beat(16)13
Avg EPS beat(16)20.48%
Revenue beat(2)2
Avg Revenue beat(2)5.8%
Min Revenue beat(2)5.43%
Max Revenue beat(2)6.17%
Revenue beat(4)3
Avg Revenue beat(4)3.42%
Min Revenue beat(4)-0.39%
Max Revenue beat(4)6.17%
Revenue beat(8)6
Avg Revenue beat(8)2.99%
Revenue beat(12)8
Avg Revenue beat(12)1.7%
Revenue beat(16)9
Avg Revenue beat(16)1.14%
PT rev (1m)-0.52%
PT rev (3m)-0.68%
EPS NQ rev (1m)0.65%
EPS NQ rev (3m)4.22%
EPS NY rev (1m)6.02%
EPS NY rev (3m)8.57%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.39 | ||
| Fwd PE | 3.91 | ||
| P/S | 0.25 | ||
| P/FCF | N/A | ||
| P/OCF | 2.29 | ||
| P/B | 0.73 | ||
| P/tB | 0.79 | ||
| EV/EBITDA | 5.17 |
EPS(TTM)9.73
EY22.78%
EPS(NY)10.91
Fwd EY25.55%
FCF(TTM)-5.54
FCFYN/A
OCF(TTM)18.63
OCFY43.62%
SpS173.51
BVpS58.39
TBVpS54.17
PEG (NY)0.36
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 11.4% | ||
| ROCE | 8.15% | ||
| ROIC | 6.71% | ||
| ROICexc | 7.87% | ||
| ROICexgc | 8.1% | ||
| OM | 7.98% | ||
| PM (TTM) | 3.84% | ||
| GM | 13.02% | ||
| FCFM | N/A |
ROA(3y)3.21%
ROA(5y)3.26%
ROE(3y)13.38%
ROE(5y)14.1%
ROIC(3y)5.6%
ROIC(5y)5.91%
ROICexc(3y)6.66%
ROICexc(5y)7.09%
ROICexgc(3y)6.88%
ROICexgc(5y)7.34%
ROCE(3y)6.8%
ROCE(5y)7.18%
ROICexcg growth 3Y-7.41%
ROICexcg growth 5Y14.11%
ROICexc growth 3Y-7.2%
ROICexc growth 5Y14.47%
OM growth 3Y-15.76%
OM growth 5Y13.42%
PM growth 3Y-20.89%
PM growth 5Y-4.37%
GM growth 3Y-11.63%
GM growth 5Y4.44%
F-Score7
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.3 | ||
| Cap/Depr | 210.74% | ||
| Cap/Sales | 13.93% | ||
| Interest Coverage | 2.42 | ||
| Cash Conversion | 73.62% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1.29 |
F-Score7
WACC7.24%
ROIC/WACC0.93
Cap/Depr(3y)201.81%
Cap/Depr(5y)189.83%
Cap/Sales(3y)13.92%
Cap/Sales(5y)15.19%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)30.37%
EPS 3Y14.2%
EPS 5Y19.68%
EPS Q2Q%54.84%
EPS Next Y12.22%
EPS Next 2Y8.15%
EPS Next 3Y5.76%
EPS Next 5Y-0.13%
Revenue 1Y (TTM)9.08%
Revenue growth 3Y13.85%
Revenue growth 5Y6.43%
Sales Q2Q%10.99%
Revenue Next Year-0.02%
Revenue Next 2Y0.03%
Revenue Next 3Y1.13%
Revenue Next 5Y4.76%
EBIT growth 1Y45.62%
EBIT growth 3Y-4.09%
EBIT growth 5Y20.72%
EBIT Next Year31.96%
EBIT Next 3Y13.47%
EBIT Next 5YN/A
FCF growth 1Y-62.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.83%
OCF growth 3Y9.84%
OCF growth 5Y6.03%