GENERAL MOTORS CO (GM)
US37045V1008 - Common Stock
GM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 41 industry peers in the Automobiles industry. GM has an excellent profitability rating, but there are concerns on its financial health. GM is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
GM had positive earnings in the past year.
In the past year GM had a positive cash flow from operations.
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 80.49% of its industry peers.
GM has a better Return On Equity (15.50%) than 82.93% of its industry peers.
GM has a better Return On Invested Capital (6.12%) than 87.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GM is below the industry average of 10.20%.
| 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
The Profit Margin of GM (6.02%) is better than 80.49% of its industry peers.
In the last couple of years the Profit Margin of GM has grown nicely.
Looking at the Operating Margin, with a value of 7.29%, GM belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
In the last couple of years the Operating Margin of GM has grown nicely.
GM's Gross Margin of 12.23% is in line compared to the rest of the industry. GM outperforms 48.78% of 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
GM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
GM has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GM has less shares outstanding
The debt/assets ratio for GM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.33, we must say that GM is in the distress zone and has some risk of bankruptcy.
GM's Altman-Z score of 1.33 is fine compared to the rest of the industry. GM outperforms 65.85% 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.
GM's Debt to Equity ratio of 1.29 is on the low side compared to the rest of the industry. GM is outperformed by 75.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.33 |
ROIC/WACC0.75
WACC8.21%
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.
The Current ratio of GM (1.21) is worse than 68.29% 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.
Looking at the Quick ratio, with a value of 1.03, GM is in line with its industry, outperforming 51.22% of the companies in the same 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.
GM shows a small growth in Revenue. In the last year, the Revenue has grown by 6.25%.
Measured over the past years, GM shows a small growth in Revenue. The Revenue has been growing by 3.17% on average per year.
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 decrease in Earnings Per Share. The EPS will decrease by -0.41% on average per year.
The Revenue is expected to grow by 4.02% on average over the next years.
EPS Next Y32.27%
EPS Next 2Y15.94%
EPS Next 3Y8.82%
EPS Next 5Y-0.41%
Revenue Next Year8.04%
Revenue Next 2Y3.46%
Revenue Next 3Y2.37%
Revenue Next 5Y4.02%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
GM is valuated cheaply with a Price/Earnings ratio of 5.84.
Based on the Price/Earnings ratio, GM is valued cheaper than 92.68% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, GM is valued rather cheaply.
GM is valuated cheaply with a Price/Forward Earnings ratio of 5.30.
Based on the Price/Forward Earnings ratio, GM is valued cheaply inside the industry as 97.56% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.82. GM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.84 | ||
| Fwd PE | 5.3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GM indicates a rather cheap valuation: GM is cheaper than 92.68% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.79 |
4.3 Compensation for Growth
GM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of GM may justify a higher PE ratio.
PEG (NY)0.18
PEG (5Y)1.34
EPS Next 2Y15.94%
EPS Next 3Y8.82%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, 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 3.74. GM pays more dividend than 82.93% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, GM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
The dividend of GM decreases each year by -22.11%.
GM has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of GM decreased recently.
Dividend Growth(5Y)-22.11%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
GM pays out 5.73% of its income as dividend. This is a sustainable payout ratio.
The Dividend Rate of GM has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP5.73%
EPS Next 2Y15.94%
EPS Next 3Y8.82%
GENERAL MOTORS CO
NYSE:GM (11/22/2024, 11:10:07 AM)
57.675
+1.99 (+3.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap63.42B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.84 | ||
| Fwd PE | 5.3 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.18
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.8% | ||
| ROE | 15.5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.29% | ||
| PM (TTM) | 6.02% | ||
| GM | 12.23% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)10.02%
EPS 3Y18.4%
EPS 5Y
EPS Q2Q%
EPS Next Y32.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.25%
Revenue growth 3Y11.95%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y