GENERAL MOTORS CO (8GM.DE) Stock Fundamental Analysis
FRA:8GM - Deutsche Boerse Ag - US37045V1008 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to 8GM. 8GM was compared to 29 industry peers in the Automobiles industry. While 8GM is still in line with the averages on profitability rating, there are concerns on its financial health. 8GM has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
8GM had positive earnings in the past year.
8GM had a positive operating cash flow in the past year.
8GM had positive earnings in each of the past 5 years.
8GM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.57%, 8GM perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
With a decent Return On Equity value of 11.40%, 8GM is doing good in the industry, outperforming 72.41% of the companies in the same industry.
8GM has a better Return On Invested Capital (6.71%) than 75.86% of its industry peers.
8GM had an Average Return On Invested Capital over the past 3 years of 5.60%. This is in line with the industry average of 7.29%.
The last Return On Invested Capital (6.71%) for 8GM 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
With a Profit Margin value of 3.84%, 8GM perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
8GM's Profit Margin has declined in the last couple of years.
8GM has a Operating Margin (7.98%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of 8GM has grown nicely.
8GM has a Gross Margin of 13.02%. This is amonst the worse of the industry: 8GM underperforms 82.76% of its industry peers.
In the last couple of years the Gross Margin of 8GM has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 8GM is destroying value.
Compared to 1 year ago, 8GM has less shares outstanding
8GM has less shares outstanding than it did 5 years ago.
8GM has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.29, we must say that 8GM is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.29, 8GM is doing worse than 62.07% of the companies in the same industry.
8GM has a Debt/Equity ratio of 1.43. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.43, 8GM is not doing good in the industry: 65.52% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.29 |
ROIC/WACC0.94
WACC7.11%
2.3 Liquidity
A Current Ratio of 1.13 indicates that 8GM should not have too much problems paying its short term obligations.
The Current ratio of 8GM (1.13) is comparable to the rest of the industry.
8GM has a Quick Ratio of 1.13. This is a bad value and indicates that 8GM is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.98, 8GM is in line with its industry, outperforming 48.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
8GM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.37%, which is quite impressive.
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, 8GM shows a quite strong growth in Revenue. The Revenue has grown by 9.08% in the last year.
The Revenue has been growing slightly by 6.43% on average over the past years.
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
8GM is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.78% yearly.
The Revenue is expected to grow by 1.34% on average over the next years.
EPS Next Y2.58%
EPS Next 2Y2.12%
EPS Next 3Y2.29%
EPS Next 5Y-4.78%
Revenue Next Year-1.54%
Revenue Next 2Y-1.29%
Revenue Next 3Y0.41%
Revenue Next 5Y1.34%
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 4.29 indicates a rather cheap valuation of 8GM.
Based on the Price/Earnings ratio, 8GM is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
8GM is valuated cheaply when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 4.18 indicates a rather cheap valuation of 8GM.
8GM's Price/Forward Earnings ratio is rather cheap when compared to the industry. 8GM is cheaper than 86.21% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.86. 8GM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.29 | ||
| Fwd PE | 4.18 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 8GM.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.13 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
8GM has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.66
PEG (5Y)0.22
EPS Next 2Y2.12%
EPS Next 3Y2.29%
5. Dividend
5.1 Amount
8GM has a Yearly Dividend Yield of 1.33%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.21, 8GM is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.44, 8GM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
The dividend of 8GM decreases each year by -18.77%.
Dividend Growth(5Y)-18.77%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
8GM pays out 9.08% of its income as dividend. This is a sustainable payout ratio.
The Dividend Rate of 8GM has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP9.08%
EPS Next 2Y2.12%
EPS Next 3Y2.29%
FRA:8GM (5/2/2025, 7:00:00 PM)
39.83
+0.05 (+0.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners87.62%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap38.49B
Analysts73.68
Price Target48.89 (22.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend0.52
Dividend Growth(5Y)-18.77%
DP9.08%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)-15.27%
PT rev (3m)-15.69%
EPS NQ rev (1m)3.23%
EPS NQ rev (3m)7.25%
EPS NY rev (1m)-8.88%
EPS NY rev (3m)-1.08%
Revenue NQ rev (1m)-0.57%
Revenue NQ rev (3m)-1.98%
Revenue NY rev (1m)-1.53%
Revenue NY rev (3m)-0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.29 | ||
| Fwd PE | 4.18 | ||
| P/S | 0.24 | ||
| P/FCF | N/A | ||
| P/OCF | 2.24 | ||
| P/B | 0.71 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | 5.13 |
EPS(TTM)9.29
EY23.32%
EPS(NY)9.52
Fwd EY23.91%
FCF(TTM)-5.28
FCFYN/A
OCF(TTM)17.79
OCFY44.66%
SpS165.64
BVpS55.74
TBVpS51.71
PEG (NY)1.66
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 | 1.29 |
F-Score7
WACC7.11%
ROIC/WACC0.94
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 Y2.58%
EPS Next 2Y2.12%
EPS Next 3Y2.29%
EPS Next 5Y-4.78%
Revenue 1Y (TTM)9.08%
Revenue growth 3Y13.85%
Revenue growth 5Y6.43%
Sales Q2Q%10.99%
Revenue Next Year-1.54%
Revenue Next 2Y-1.29%
Revenue Next 3Y0.41%
Revenue Next 5Y1.34%
EBIT growth 1Y45.62%
EBIT growth 3Y-4.09%
EBIT growth 5Y20.72%
EBIT Next Year26.87%
EBIT Next 3Y10.91%
EBIT Next 5Y4.97%
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%