GENERAL MOTORS CO (GM) Stock Fundamental Analysis
NYSE:GM - New York Stock Exchange, Inc. - US37045V1008 - Common Stock
We assign a fundamental rating of 6 out of 10 to GM. GM was compared to 42 industry peers in the Automobiles industry. GM scores excellent on profitability, 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.
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's Return On Assets of 3.80% is amongst the best of the industry. GM outperforms 82.50% of its industry peers.
GM has a Return On Equity of 15.50%. This is amongst the best in the industry. GM outperforms 87.50% of its industry peers.
GM's Return On Invested Capital of 6.12% is amongst the best of the industry. GM outperforms 90.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GM is below the industry average of 9.39%.
| 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
Looking at the Profit Margin, with a value of 6.02%, GM belongs to the top of the industry, outperforming 82.50% of the companies in the same industry.
GM's Profit Margin has improved in the last couple of years.
The Operating Margin of GM (7.29%) is better than 85.00% of its industry peers.
In the last couple of years the Operating Margin of GM has grown nicely.
GM has a Gross Margin of 12.23%. This is comparable to the rest of the industry: GM outperforms 47.50% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GM is destroying value.
The number of shares outstanding for GM has been reduced compared to 1 year ago.
The number of shares outstanding for GM has been reduced compared to 5 years ago.
Compared to 1 year ago, GM has a worse debt to assets ratio.
2.2 Solvency
GM has an Altman-Z score of 1.33. This is a bad value and indicates that GM is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of GM (1.33) is better than 67.50% of its industry peers.
GM has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external 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 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.33 |
ROIC/WACC0.75
WACC8.19%
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 worse Current ratio (1.21) than 60.00% 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's Quick ratio of 1.03 is in line compared to the rest of the industry. GM outperforms 55.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
GM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.02%, which is quite good.
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 5.34% 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 5Y5.34%
Revenue Next Year8.28%
Revenue Next 2Y3.6%
Revenue Next 3Y2.46%
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 accelerating.
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
With a Price/Earnings ratio of 5.34, the valuation of GM can be described as very cheap.
Based on the Price/Earnings ratio, GM is valued cheaper than 97.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. GM is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 4.82 indicates a rather cheap valuation of GM.
GM's Price/Forward Earnings ratio is rather cheap when compared to the industry. GM is cheaper than 97.50% of the companies in the same industry.
GM is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.34 | ||
| Fwd PE | 4.82 |
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 95.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.71 |
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)0.17
PEG (5Y)1.22
EPS Next 2Y16.27%
EPS Next 3Y10.35%
5. Dividend
5.1 Amount
GM has a yearly dividend return of 0.93%, which is pretty low.
GM's Dividend Yield is rather good when compared to the industry average which is at 3.90. GM pays more dividend than 82.50% of the companies in the same industry.
With a Dividend Yield of 0.93, GM pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
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 in the last 3 years.
Dividend Growth(5Y)-22.11%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
GM pays out 5.73% of its income as dividend. This is a sustainable payout ratio.
DP5.73%
EPS Next 2Y16.27%
EPS Next 3Y10.35%
GENERAL MOTORS CO
NYSE:GM (1/22/2025, 1:10:04 PM)
52.805
-1.09 (-2.01%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners88.37%
Inst Owner Change0.01%
Ins Owners0.22%
Ins Owner Change-0.33%
Market Cap58.06B
Analysts74.74
Price Target60.8 (15.14%)
Short Float %3.26%
Short Ratio3.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend0.46
Dividend Growth(5Y)-22.11%
DP5.73%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)0.15%
PT rev (3m)9.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.5%
EPS NY rev (1m)0%
EPS NY rev (3m)3.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.19%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.34 | ||
| Fwd PE | 4.82 | ||
| P/S | 0.32 | ||
| P/FCF | N/A | ||
| P/OCF | 2.96 | ||
| P/B | 0.82 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 5.71 |
EPS(TTM)9.88
EY18.71%
EPS(NY)10.95
Fwd EY20.74%
FCF(TTM)-5.72
FCFYN/A
OCF(TTM)17.87
OCFY33.84%
SpS166.17
BVpS64.51
TBVpS60.19
PEG (NY)0.17
PEG (5Y)1.22
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 | 1.33 |
F-Score7
WACC8.19%
ROIC/WACC0.75
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 5Y5.34%
Revenue 1Y (TTM)6.25%
Revenue growth 3Y11.95%
Revenue growth 5Y3.17%
Sales Q2Q%10.48%
Revenue Next Year8.28%
Revenue Next 2Y3.6%
Revenue Next 3Y2.46%
Revenue Next 5Y6.36%
EBIT growth 1Y4.51%
EBIT growth 3Y2.76%
EBIT growth 5Y18.41%
EBIT Next Year53.31%
EBIT Next 3Y10.82%
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%