GENERAL MOTORS CO (GM) Stock Fundamental Analysis
NYSE:GM - New York Stock Exchange, Inc. - US37045V1008 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to GM. GM was compared to 37 industry peers in the Automobiles industry. While GM belongs to the best of the industry regarding profitability, there are concerns on its financial health. GM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year GM was profitable.
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's Return On Assets of 2.69% is fine compared to the rest of the industry. GM outperforms 78.38% of its industry peers.
The Return On Equity of GM (11.78%) is better than 91.89% of its industry peers.
The Return On Invested Capital of GM (5.84%) is better than 91.89% of its industry peers.
GM had an Average Return On Invested Capital over the past 3 years of 5.60%. This is in line with the industry average of 6.62%.
The last Return On Invested Capital (5.84%) for GM is above the 3 year average (5.60%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 11.78% | ||
| ROIC | 5.84% |
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 4.02% is amongst the best of the industry. GM outperforms 86.49% of its industry peers.
GM's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.20%, GM belongs to the top of the industry, outperforming 91.89% of the companies in the same industry.
GM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 12.28%, GM is in line with its industry, outperforming 54.05% of the companies in the same industry.
In the last couple of years the Gross Margin of GM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.2% | ||
| PM (TTM) | 4.02% | ||
| GM | 12.28% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GM is destroying value.
Compared to 1 year ago, GM has less shares outstanding
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 1.32. This is a bad value and indicates that GM is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 1.32, GM is doing good in the industry, outperforming 64.86% of the companies in the same industry.
A Debt/Equity ratio of 1.50 is on the high side and indicates that GM has dependencies on debt financing.
The Debt to Equity ratio of GM (1.50) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACC0.77
WACC7.53%
2.3 Liquidity
A Current Ratio of 1.21 indicates that GM should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.21, GM is in line with its industry, outperforming 45.95% of the companies in the same industry.
A Quick Ratio of 1.04 indicates that GM should not have too much problems paying its short term obligations.
The Quick ratio of GM (1.04) is better than 64.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
GM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.97%, which is quite impressive.
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 7.76%.
Measured over the past years, GM shows a small growth in Revenue. The Revenue has been growing by 6.43% on average per year.
EPS 1Y (TTM)25.97%
EPS 3Y14.2%
EPS 5Y19.68%
EPS Q2Q%6.11%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y13.85%
Revenue growth 5Y6.43%
Sales Q2Q%2.34%
3.2 Future
GM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.82% yearly.
Based on estimates for the next years, GM will show a small growth in Revenue. The Revenue will grow by 0.14% on average per year.
EPS Next Y-10.58%
EPS Next 2Y-4.07%
EPS Next 3Y-1.27%
EPS Next 5Y0.82%
Revenue Next Year-2.23%
Revenue Next 2Y-0.91%
Revenue Next 3Y-0.06%
Revenue Next 5Y0.14%
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 4.98 indicates a rather cheap valuation of GM.
GM's Price/Earnings ratio is rather cheap when compared to the industry. GM is cheaper than 97.30% of the companies in the same industry.
GM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 5.49, which indicates a rather cheap valuation of GM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GM indicates a rather cheap valuation: GM is cheaper than 94.59% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. GM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.98 | ||
| Fwd PE | 5.49 |
4.2 Price Multiples
GM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GM is cheaper than 94.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.73 |
4.3 Compensation for Growth
The excellent profitability rating of GM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-4.07%
EPS Next 3Y-1.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.13%, GM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.64, GM pays a better dividend. On top of this GM pays more dividend than 81.08% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, GM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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
8.31% of the earnings are spent on dividend by GM. This is a low number and sustainable payout ratio.
DP8.31%
EPS Next 2Y-4.07%
EPS Next 3Y-1.27%
53.39
+0.24 (+0.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners87.44%
Inst Owner Change-0.07%
Ins Owners0.24%
Ins Owner Change0.33%
Market Cap51.33B
Analysts73.16
Price Target54.11 (1.35%)
Short Float %2.08%
Short Ratio1.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend0.59
Dividend Growth(5Y)-18.77%
DP8.31%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.49%
Min EPS beat(2)-1.54%
Max EPS beat(2)-1.45%
EPS beat(4)2
Avg EPS beat(4)5.78%
Min EPS beat(4)-1.54%
Max EPS beat(4)18.05%
EPS beat(8)6
Avg EPS beat(8)11.18%
EPS beat(12)9
Avg EPS beat(12)12.01%
EPS beat(16)12
Avg EPS beat(16)13.45%
Revenue beat(2)1
Avg Revenue beat(2)2.35%
Min Revenue beat(2)-0.72%
Max Revenue beat(2)5.43%
Revenue beat(4)3
Avg Revenue beat(4)3.33%
Min Revenue beat(4)-0.72%
Max Revenue beat(4)6.17%
Revenue beat(8)5
Avg Revenue beat(8)2.84%
Revenue beat(12)8
Avg Revenue beat(12)2.11%
Revenue beat(16)9
Avg Revenue beat(16)1.31%
PT rev (1m)0.66%
PT rev (3m)-12.42%
EPS NQ rev (1m)-2.16%
EPS NQ rev (3m)-15.12%
EPS NY rev (1m)-0.72%
EPS NY rev (3m)-20.57%
Revenue NQ rev (1m)1.1%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0.18%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.98 | ||
| Fwd PE | 5.49 | ||
| P/S | 0.27 | ||
| P/FCF | N/A | ||
| P/OCF | 2.23 | ||
| P/B | 0.8 | ||
| P/tB | 0.86 | ||
| EV/EBITDA | 5.73 |
EPS(TTM)10.72
EY20.08%
EPS(NY)9.72
Fwd EY18.2%
FCF(TTM)-3
FCFYN/A
OCF(TTM)23.96
OCFY44.88%
SpS196.01
BVpS66.96
TBVpS62.25
PEG (NY)N/A
PEG (5Y)0.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 11.78% | ||
| ROCE | 7.09% | ||
| ROIC | 5.84% | ||
| ROICexc | 6.81% | ||
| ROICexgc | 7.01% | ||
| OM | 7.2% | ||
| PM (TTM) | 4.02% | ||
| GM | 12.28% | ||
| 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 | 1.5 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.71 | ||
| Cap/Depr | 206.93% | ||
| Cap/Sales | 13.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.32 |
F-Score7
WACC7.53%
ROIC/WACC0.77
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)25.97%
EPS 3Y14.2%
EPS 5Y19.68%
EPS Q2Q%6.11%
EPS Next Y-10.58%
EPS Next 2Y-4.07%
EPS Next 3Y-1.27%
EPS Next 5Y0.82%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y13.85%
Revenue growth 5Y6.43%
Sales Q2Q%2.34%
Revenue Next Year-2.23%
Revenue Next 2Y-0.91%
Revenue Next 3Y-0.06%
Revenue Next 5Y0.14%
EBIT growth 1Y13.8%
EBIT growth 3Y-4.09%
EBIT growth 5Y20.72%
EBIT Next Year5.72%
EBIT Next 3Y4.76%
EBIT Next 5Y4.9%
FCF growth 1Y43.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y35.31%
OCF growth 3Y9.84%
OCF growth 5Y6.03%