GENERAL MOTORS CO (GM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GM - US37045V1008 - Common Stock
81.76 USD
-0.22 (-0.27%)
81.27 USD
-0.49 (-0.6%)
GM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 36 industry peers in the Automobiles industry. GM has an excellent profitability rating, but there are concerns on its financial health. GM is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year GM was profitable.
GM had a positive operating cash flow in the past year.
In the past 5 years GM has always been profitable.
In the past 5 years GM always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GM (1.67%) is better than 80.56% of its industry peers.
GM has a Return On Equity of 7.23%. This is amongst the best in the industry. GM outperforms 86.11% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.61%, GM belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GM is in line with the industry average of 5.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 7.23% | ||
| ROIC | 3.61% |
ROA(3y)3.21%
ROA(5y)3.26%
ROE(3y)13.38%
ROE(5y)14.1%
ROIC(3y)5.22%
ROIC(5y)5.16%
1.3 Margins
GM has a better Profit Margin (2.56%) than 80.56% of its industry peers.
In the last couple of years the Profit Margin of GM has declined.
Looking at the Operating Margin, with a value of 4.56%, GM belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
GM's Operating Margin has improved in the last couple of years.
The Gross Margin of GM (9.28%) is comparable to the rest of the industry.
GM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.56% | ||
| PM (TTM) | 2.56% | ||
| GM | 9.28% |
OM growth 3Y-7.23%
OM growth 5Y13.42%
PM growth 3Y-20.89%
PM growth 5Y-4.37%
GM growth 3Y-5.9%
GM growth 5Y4.44%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GM is destroying value.
GM has less shares outstanding than it did 1 year ago.
GM has less shares outstanding than it did 5 years ago.
GM has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.32, we must say that GM is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.32, GM is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
GM has a Debt/Equity ratio of 1.45. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GM (1.45) is worse than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACC0.43
WACC8.48%
2.3 Liquidity
GM has a Current Ratio of 1.23. 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 (1.23) is comparable to the rest of the industry.
A Quick Ratio of 1.06 indicates that GM should not have too much problems paying its short term obligations.
GM has a Quick ratio of 1.06. This is in the better half of the industry: GM outperforms 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.52% over the past year.
GM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.68% yearly.
GM shows a small growth in Revenue. In the last year, the Revenue has grown by 2.58%.
GM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.43% yearly.
EPS 1Y (TTM)1.52%
EPS 3Y14.2%
EPS 5Y19.68%
EPS Q2Q%-5.41%
Revenue 1Y (TTM)2.58%
Revenue growth 3Y13.85%
Revenue growth 5Y6.43%
Sales Q2Q%-0.34%
3.2 Future
The Earnings Per Share is expected to grow by 5.94% on average over the next years.
GM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.50% yearly.
EPS Next Y-0.22%
EPS Next 2Y5.11%
EPS Next 3Y4.55%
EPS Next 5Y5.94%
Revenue Next Year1.03%
Revenue Next 2Y0.59%
Revenue Next 3Y0.85%
Revenue Next 5Y1.5%
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
With a Price/Earnings ratio of 8.15, the valuation of GM can be described as very reasonable.
97.22% of the companies in the same industry are more expensive than GM, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.43, GM is valued rather cheaply.
A Price/Forward Earnings ratio of 7.01 indicates a rather cheap valuation of GM.
91.67% of the companies in the same industry are more expensive than GM, based on the Price/Forward Earnings ratio.
GM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.66.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.15 | ||
| Fwd PE | 7.01 |
4.2 Price Multiples
94.44% of the companies in the same industry are more expensive than GM, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.89 |
4.3 Compensation for Growth
The excellent profitability rating of GM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.41
EPS Next 2Y5.11%
EPS Next 3Y4.55%
5. Dividend
5.1 Amount
GM has a yearly dividend return of 0.71%, which is pretty low.
Compared to an average industry Dividend Yield of 0.81, GM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.71, GM pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
The dividend of GM decreases each year by -18.77%.
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)-18.77%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
13.46% of the earnings are spent on dividend by GM. This is a low number and sustainable payout ratio.
DP13.46%
EPS Next 2Y5.11%
EPS Next 3Y4.55%
81.76
-0.22 (-0.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners86.95%
Inst Owner Change-2%
Ins Owners0.18%
Ins Owner Change-0.58%
Market Cap76.27B
Revenue(TTM)187.44B
Net Income(TTM)4.80B
Analysts76.32
Price Target73.59 (-9.99%)
Short Float %2.03%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend0.59
Dividend Growth(5Y)-18.77%
DP13.46%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.13%
Min EPS beat(2)0.48%
Max EPS beat(2)17.77%
EPS beat(4)2
Avg EPS beat(4)3.82%
Min EPS beat(4)-1.54%
Max EPS beat(4)17.77%
EPS beat(8)6
Avg EPS beat(8)7.95%
EPS beat(12)10
Avg EPS beat(12)12.79%
EPS beat(16)13
Avg EPS beat(16)12.13%
Revenue beat(2)1
Avg Revenue beat(2)1.53%
Min Revenue beat(2)-1.15%
Max Revenue beat(2)4.22%
Revenue beat(4)2
Avg Revenue beat(4)1.94%
Min Revenue beat(4)-1.15%
Max Revenue beat(4)5.43%
Revenue beat(8)5
Avg Revenue beat(8)2.99%
Revenue beat(12)8
Avg Revenue beat(12)2.43%
Revenue beat(16)9
Avg Revenue beat(16)1.16%
PT rev (1m)1.72%
PT rev (3m)24.33%
EPS NQ rev (1m)1.2%
EPS NQ rev (3m)12.54%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)10%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)3.13%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.15 | ||
| Fwd PE | 7.01 | ||
| P/S | 0.41 | ||
| P/FCF | N/A | ||
| P/OCF | 3.15 | ||
| P/B | 1.15 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 7.89 |
EPS(TTM)10.03
EY12.27%
EPS(NY)11.67
Fwd EY14.27%
FCF(TTM)-1.87
FCFYN/A
OCF(TTM)25.95
OCFY31.74%
SpS200.93
BVpS71.15
TBVpS66.38
PEG (NY)N/A
PEG (5Y)0.41
Graham Number126.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 7.23% | ||
| ROCE | 4.38% | ||
| ROIC | 3.61% | ||
| ROICexc | 4.25% | ||
| ROICexgc | 4.37% | ||
| OM | 4.56% | ||
| PM (TTM) | 2.56% | ||
| GM | 9.28% | ||
| FCFM | N/A |
ROA(3y)3.21%
ROA(5y)3.26%
ROE(3y)13.38%
ROE(5y)14.1%
ROIC(3y)5.22%
ROIC(5y)5.16%
ROICexc(3y)6.2%
ROICexc(5y)6.18%
ROICexgc(3y)6.4%
ROICexgc(5y)6.4%
ROCE(3y)6.34%
ROCE(5y)6.26%
ROICexgc growth 3Y1.96%
ROICexgc growth 5Y14.11%
ROICexc growth 3Y2.2%
ROICexc growth 5Y14.47%
OM growth 3Y-7.23%
OM growth 5Y13.42%
PM growth 3Y-20.89%
PM growth 5Y-4.37%
GM growth 3Y-5.9%
GM growth 5Y4.44%
F-Score6
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.39 | ||
| Cap/Depr | 194.9% | ||
| Cap/Sales | 13.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 110.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 1.32 |
F-Score6
WACC8.48%
ROIC/WACC0.43
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)1.52%
EPS 3Y14.2%
EPS 5Y19.68%
EPS Q2Q%-5.41%
EPS Next Y-0.22%
EPS Next 2Y5.11%
EPS Next 3Y4.55%
EPS Next 5Y5.94%
Revenue 1Y (TTM)2.58%
Revenue growth 3Y13.85%
Revenue growth 5Y6.43%
Sales Q2Q%-0.34%
Revenue Next Year1.03%
Revenue Next 2Y0.59%
Revenue Next 3Y0.85%
Revenue Next 5Y1.5%
EBIT growth 1Y-35.86%
EBIT growth 3Y5.62%
EBIT growth 5Y20.72%
EBIT Next Year18.84%
EBIT Next 3Y9.21%
EBIT Next 5Y4.64%
FCF growth 1Y-117%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.74%
OCF growth 3Y9.84%
OCF growth 5Y6.03%
GENERAL MOTORS CO / GM FAQ
What is the ChartMill fundamental rating of GENERAL MOTORS CO (GM) stock?
ChartMill assigns a fundamental rating of 5 / 10 to GM.
What is the valuation status for GM stock?
ChartMill assigns a valuation rating of 6 / 10 to GENERAL MOTORS CO (GM). This can be considered as Fairly Valued.
What is the profitability of GM stock?
GENERAL MOTORS CO (GM) has a profitability rating of 8 / 10.
What is the valuation of GENERAL MOTORS CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for GENERAL MOTORS CO (GM) is 8.15 and the Price/Book (PB) ratio is 1.15.
How sustainable is the dividend of GENERAL MOTORS CO (GM) stock?
The dividend rating of GENERAL MOTORS CO (GM) is 3 / 10 and the dividend payout ratio is 13.46%.