GENERAL MOTORS CO (GM)
US37045V1008 - Common Stock
We assign a fundamental rating of 5 out of 10 to GM. GM was compared to 42 industry peers in the Automobiles industry. GM has an excellent profitability rating, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on GM.
1. Profitability
1.1 Basic Checks
GM had positive earnings in the past year.
GM had a positive operating cash flow in the past year.
Each year in the past 5 years GM has been profitable.
In the past 5 years GM always reported a positive cash flow from operatings.
1.2 Ratios
GM has a better Return On Assets (3.80%) than 80.95% of its industry peers.
GM's Return On Equity of 15.50% is amongst the best of the industry. GM outperforms 83.33% of its industry peers.
The Return On Invested Capital of GM (6.12%) is better than 88.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GM is below the industry average of 10.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.8% | ||
| ROE | 15.5% | ||
| ROIC | 6.12% |
ROA(3y)3.69%
ROA(5y)3.32%
ROE(3y)15.07%
ROE(5y)14.97%
ROIC(3y)6.57%
ROIC(5y)5.72%
1.3 Margins
GM has a Profit Margin of 6.02%. This is amongst the best in the industry. GM outperforms 80.95% of its industry peers.
GM's Profit Margin has improved in the last couple of years.
The Operating Margin of GM (7.29%) is better than 83.33% of its industry peers.
In the last couple of years the Operating Margin of GM has grown nicely.
GM has a Gross Margin (12.23%) which is in line with its industry peers.
In the last couple of years the Gross Margin of GM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.29% | ||
| PM (TTM) | 6.02% | ||
| GM | 12.23% |
OM growth 3Y-8.21%
OM growth 5Y14.77%
PM growth 3Y4.57%
PM growth 5Y1.61%
GM growth 3Y-3.02%
GM growth 5Y3.34%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GM is destroying value.
Compared to 1 year ago, GM has less shares outstanding
The number of shares outstanding for GM has been reduced compared to 5 years ago.
The debt/assets ratio for GM is higher compared to a year ago.
2.2 Solvency
GM has an Altman-Z score of 1.32. This is a bad value and indicates that GM is not financially healthy and even has some risk of bankruptcy.
GM has a better Altman-Z score (1.32) than 71.43% of its industry peers.
A Debt/Equity ratio of 1.29 is on the high side and indicates that GM has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.29, GM is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACC0.76
WACC8.05%
2.3 Liquidity
GM has a Current Ratio of 1.21. This is a normal value and indicates that GM is financially healthy and should not expect problems in meeting its short term obligations.
GM has a Current ratio of 1.21. This is in the lower half of the industry: GM underperforms 61.90% of its industry peers.
GM has a Quick Ratio of 1.03. This is a normal value and indicates that GM is financially healthy and should not expect problems in meeting its short term obligations.
GM has a Quick ratio (1.03) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.02% over the past year.
Measured over the past 5 years, GM shows a small growth in Earnings Per Share. The EPS has been growing by 4.37% on average per year.
Looking at the last year, GM shows a small growth in Revenue. The Revenue has grown by 6.25% in the last year.
GM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.17% yearly.
EPS 1Y (TTM)10.02%
EPS 3Y18.4%
EPS 5Y4.37%
EPS Q2Q%29.82%
Revenue 1Y (TTM)6.25%
Revenue growth 3Y11.95%
Revenue growth 5Y3.17%
Sales Q2Q%10.48%
3.2 Future
Based on estimates for the next years, GM will show a small growth in Earnings Per Share. The EPS will grow by 0.57% on average per year.
Based on estimates for the next years, GM will show a small growth in Revenue. The Revenue will grow by 6.36% on average per year.
EPS Next Y32.21%
EPS Next 2Y16.27%
EPS Next 3Y10.35%
EPS Next 5Y0.57%
Revenue Next Year8.21%
Revenue Next 2Y3.57%
Revenue Next 3Y2.48%
Revenue Next 5Y6.36%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 5.24, which indicates a rather cheap valuation of GM.
GM's Price/Earnings ratio is rather cheap when compared to the industry. GM is cheaper than 97.62% of the companies in the same industry.
GM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
With a Price/Forward Earnings ratio of 4.73, the valuation of GM can be described as very cheap.
97.62% of the companies in the same industry are more expensive than GM, based on the Price/Forward Earnings ratio.
GM is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.24 | ||
| Fwd PE | 4.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GM is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.63 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.16
PEG (5Y)1.2
EPS Next 2Y16.27%
EPS Next 3Y10.35%
5. Dividend
5.1 Amount
With a yearly dividend of 0.95%, GM is not a good candidate for dividend investing.
GM's Dividend Yield is rather good when compared to the industry average which is at 4.01. GM pays more dividend than 83.33% of the companies in the same industry.
With a Dividend Yield of 0.95, GM pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
The dividend of GM decreases each year by -22.11%.
GM has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of GM decreased in the last 3 years.
Dividend Growth(5Y)-22.11%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
5.73% of the earnings are spent on dividend by GM. This is a low number and sustainable payout ratio.
DP5.73%
EPS Next 2Y16.27%
EPS Next 3Y10.35%
GENERAL MOTORS CO
NYSE:GM (12/20/2024, 8:15:00 PM)
Premarket: 51.81 0 (0%)51.81
+1.47 (+2.92%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners88.37%
Inst Owner Change-3.64%
Ins Owners0.22%
Ins Owner Change-0.33%
Market Cap56.97B
Analysts75.14
Price Target60.7 (17.16%)
Short Float %3.11%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
Dividend Growth(5Y)-22.11%
DP5.73%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.05%
Min EPS beat(2)8.05%
Max EPS beat(2)18.05%
EPS beat(4)4
Avg EPS beat(4)12.09%
Min EPS beat(4)3.73%
Max EPS beat(4)18.54%
EPS beat(8)8
Avg EPS beat(8)17.28%
EPS beat(12)11
Avg EPS beat(12)14.9%
EPS beat(16)14
Avg EPS beat(16)21.63%
Revenue beat(2)2
Avg Revenue beat(2)4.31%
Min Revenue beat(2)2.45%
Max Revenue beat(2)6.17%
Revenue beat(4)3
Avg Revenue beat(4)4.04%
Min Revenue beat(4)-0.39%
Max Revenue beat(4)7.92%
Revenue beat(8)6
Avg Revenue beat(8)2.68%
Revenue beat(12)7
Avg Revenue beat(12)0.9%
Revenue beat(16)9
Avg Revenue beat(16)0.85%
PT rev (1m)8.86%
PT rev (3m)6.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.5%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)3.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.19%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.24 | ||
| Fwd PE | 4.73 | ||
| P/S | 0.31 | ||
| P/FCF | N/A | ||
| P/OCF | 2.9 | ||
| P/B | 0.8 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | 5.63 |
EPS(TTM)9.88
EY19.07%
EPS(NY)10.95
Fwd EY21.14%
FCF(TTM)-5.72
FCFYN/A
OCF(TTM)17.87
OCFY34.49%
SpS166.17
BVpS64.51
TBVpS60.19
PEG (NY)0.16
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.8% | ||
| ROE | 15.5% | ||
| ROCE | 6.87% | ||
| ROIC | 6.12% | ||
| ROICexc | 7.35% | ||
| ROICexgc | 7.57% | ||
| OM | 7.29% | ||
| PM (TTM) | 6.02% | ||
| GM | 12.23% | ||
| FCFM | N/A |
ROA(3y)3.69%
ROA(5y)3.32%
ROE(3y)15.07%
ROE(5y)14.97%
ROIC(3y)6.57%
ROIC(5y)5.72%
ROICexc(3y)7.89%
ROICexc(5y)6.89%
ROICexgc(3y)8.17%
ROICexgc(5y)7.16%
ROCE(3y)7.37%
ROCE(5y)6.41%
ROICexcg growth 3Y-3.76%
ROICexcg growth 5Y12.24%
ROICexc growth 3Y-3.44%
ROICexc growth 5Y12.59%
OM growth 3Y-8.21%
OM growth 5Y14.77%
PM growth 3Y4.57%
PM growth 5Y1.61%
GM growth 3Y-3.02%
GM growth 5Y3.34%
F-Score7
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.58 | ||
| Cap/Depr | 210.78% | ||
| Cap/Sales | 14.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.69% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 1.32 |
F-Score7
WACC8.05%
ROIC/WACC0.76
Cap/Depr(3y)192.72%
Cap/Depr(5y)181.67%
Cap/Sales(3y)15.08%
Cap/Sales(5y)15.9%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.02%
EPS 3Y18.4%
EPS 5Y4.37%
EPS Q2Q%29.82%
EPS Next Y32.21%
EPS Next 2Y16.27%
EPS Next 3Y10.35%
EPS Next 5Y0.57%
Revenue 1Y (TTM)6.25%
Revenue growth 3Y11.95%
Revenue growth 5Y3.17%
Sales Q2Q%10.48%
Revenue Next Year8.21%
Revenue Next 2Y3.57%
Revenue Next 3Y2.48%
Revenue Next 5Y6.36%
EBIT growth 1Y4.51%
EBIT growth 3Y2.76%
EBIT growth 5Y18.41%
EBIT Next Year64.43%
EBIT Next 3Y14.14%
EBIT Next 5YN/A
FCF growth 1Y-656.73%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y14.05%
OCF growth 3Y7.88%
OCF growth 5Y6.53%