GENERAL MOTORS CO (GM) Stock Fundamental Analysis
NYSE:GM - New York Stock Exchange, Inc. - US37045V1008 - Common Stock - Currency: USD
Overall GM gets a fundamental rating of 5 out of 10. We evaluated GM against 40 industry peers in the Automobiles industry. While GM has a great profitability rating, there are quite some 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.
In the past 5 years GM has always been profitable.
Each year in the past 5 years GM had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GM (2.57%) is better than 73.68% of its industry peers.
GM has a Return On Equity of 11.40%. This is amongst the best in the industry. GM outperforms 81.58% of its industry peers.
GM has a Return On Invested Capital of 6.71%. This is amongst the best in the industry. GM outperforms 92.11% of its industry peers.
GM had an Average Return On Invested Capital over the past 3 years of 5.60%. This is below the industry average of 9.10%.
The last Return On Invested Capital (6.71%) for GM 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
GM's Profit Margin of 3.84% is fine compared to the rest of the industry. GM outperforms 78.95% of its industry peers.
GM's Profit Margin has declined in the last couple of years.
GM has a better Operating Margin (7.98%) than 86.84% of its industry peers.
GM's Operating Margin has improved in the last couple of years.
GM has a Gross Margin (13.02%) which is in line with its industry peers.
GM's Gross Margin has improved in the last couple of years.
| 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
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.
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 1.30. 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 (1.30) is better than 68.42% of its industry peers.
GM has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
GM has a worse Debt to Equity ratio (1.43) than 68.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.3 |
ROIC/WACC0.92
WACC7.26%
2.3 Liquidity
GM has a Current Ratio of 1.13. 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 Current ratio, with a value of 1.13, GM is doing worse than 68.42% of the companies in the same industry.
GM has a Quick Ratio of 1.13. This is a bad value and indicates that GM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of GM (0.98) is comparable to the rest of the industry.
| 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.
Looking at the last year, GM shows a quite strong growth in Revenue. The Revenue has grown by 9.08% in the last year.
GM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.43% yearly.
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
The Earnings Per Share is expected to decrease by -0.13% on average over the next years.
Based on estimates for the next years, GM 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-0.4%
Revenue Next 2Y0.1%
Revenue Next 3Y0.9%
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 4.38 indicates a rather cheap valuation of GM.
GM's Price/Earnings ratio is rather cheap when compared to the industry. GM is cheaper than 94.74% of the companies in the same industry.
When comparing the Price/Earnings ratio of GM to the average of the S&P500 Index (29.63), we can say GM is valued rather cheaply.
GM is valuated cheaply with a Price/Forward Earnings ratio of 3.91.
Based on the Price/Forward Earnings ratio, GM is valued cheaper than 97.37% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, GM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.38 | ||
| Fwd PE | 3.91 |
4.2 Price Multiples
GM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GM is cheaper than 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.23 |
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.
GM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.36
PEG (5Y)0.22
EPS Next 2Y8.15%
EPS Next 3Y5.76%
5. Dividend
5.1 Amount
GM has a Yearly Dividend Yield of 1.00%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of GM has falen by -20.91%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.93, GM pays a better dividend. On top of this GM pays more dividend than 81.58% of the companies listed in the same industry.
With a Dividend Yield of 1.00, GM pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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.
GM has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-18.77%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
GM pays out 9.08% 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.
DP9.08%
EPS Next 2Y8.15%
EPS Next 3Y5.76%
46.29
-1.6 (-3.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners88.37%
Inst Owner Change-10.89%
Ins Owners0.22%
Ins Owner Change-0.01%
Market Cap46.06B
Analysts75.14
Price Target61.25 (32.32%)
Short Float %2.61%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend0.59
Dividend Growth(5Y)-18.77%
DP9.08%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)0.75%
PT rev (3m)9.84%
EPS NQ rev (1m)4.22%
EPS NQ rev (3m)0.85%
EPS NY rev (1m)8.21%
EPS NY rev (3m)8.84%
Revenue NQ rev (1m)-1.1%
Revenue NQ rev (3m)2.18%
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.38 | ||
| 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 | 5.23 |
EPS(TTM)10.56
EY22.81%
EPS(NY)11.85
Fwd EY25.6%
FCF(TTM)-6.01
FCFYN/A
OCF(TTM)20.23
OCFY43.7%
SpS188.38
BVpS63.39
TBVpS58.82
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 | 1.3 |
F-Score7
WACC7.26%
ROIC/WACC0.92
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-0.4%
Revenue Next 2Y0.1%
Revenue Next 3Y0.9%
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%