GENERAL MOTORS CO (GM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GM - US37045V1008 - Common Stock
72.81 USD
+0.03 (+0.04%)
72.9475 USD
+0.14 (+0.19%)
Overall GM gets a fundamental rating of 5 out of 10. We evaluated GM 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.
In the past year GM had a positive cash flow from operations.
Each year in the past 5 years GM has been profitable.
Each year in the past 5 years GM had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 1.67%, GM belongs to the best of the industry, outperforming 80.56% of the companies in the same industry.
GM's Return On Equity of 7.23% is amongst the best of the industry. GM outperforms 86.11% of its industry peers.
GM's Return On Invested Capital of 3.61% is amongst the best of the industry. GM outperforms 83.33% of its industry peers.
GM had an Average Return On Invested Capital over the past 3 years of 5.22%. This is in line with the industry average of 5.83%.
| 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.
GM's Profit Margin has declined in the last couple of years.
The Operating Margin of GM (4.56%) is better than 86.11% of its industry peers.
In the last couple of years the Operating Margin of GM has grown nicely.
GM has a Gross Margin (9.28%) which 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
GM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for GM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.30, 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 1.30, GM is in the better half of the industry, outperforming 66.67% 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.
GM has a Debt to Equity ratio of 1.45. This is comparable to the rest of the industry: GM outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.3 |
ROIC/WACC0.45
WACC8.1%
2.3 Liquidity
A Current Ratio of 1.23 indicates that GM should not have too much problems paying its short term obligations.
The Current ratio of GM (1.23) is comparable to the rest of the industry.
GM has a Quick Ratio of 1.06. This is a normal value and indicates that GM is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of GM (1.06) is better than 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
GM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.52%.
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
Based on estimates for the next years, GM will show a small growth in Earnings Per Share. The EPS will grow by 5.94% on average per year.
The Revenue is expected to grow by 1.50% on average over the next years.
EPS Next Y0.08%
EPS Next 2Y5.1%
EPS Next 3Y4.93%
EPS Next 5Y5.94%
Revenue Next Year0.97%
Revenue Next 2Y0.61%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.26, the valuation of GM can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of GM indicates a rather cheap valuation: GM is cheaper than 97.22% of the companies listed in the same industry.
GM is valuated cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.24, which indicates a rather cheap valuation of GM.
Based on the Price/Forward Earnings ratio, GM is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 36.12. GM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.26 | ||
| Fwd PE | 6.24 |
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 | 7.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)85.42
PEG (5Y)0.37
EPS Next 2Y5.1%
EPS Next 3Y4.93%
5. Dividend
5.1 Amount
GM has a yearly dividend return of 0.84%, which is pretty low.
GM's Dividend Yield is a higher than the industry average which is at 3.48.
Compared to an average S&P500 Dividend Yield of 2.41, GM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
The dividend of GM decreases each year by -18.77%.
GM has been paying a dividend for at least 10 years, so it has 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 13.46% of its income as dividend. This is a sustainable payout ratio.
DP13.46%
EPS Next 2Y5.1%
EPS Next 3Y4.93%
72.81
+0.03 (+0.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners86.38%
Inst Owner Change-2.01%
Ins Owners0.21%
Ins Owner Change-0.58%
Market Cap67.92B
Revenue(TTM)187.44B
Net Income(TTM)4.80B
Analysts76.32
Price Target72.57 (-0.33%)
Short Float %2.17%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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)17.43%
PT rev (3m)25.46%
EPS NQ rev (1m)6.74%
EPS NQ rev (3m)13.29%
EPS NY rev (1m)8.35%
EPS NY rev (3m)11.93%
Revenue NQ rev (1m)1.84%
Revenue NQ rev (3m)3.35%
Revenue NY rev (1m)2.22%
Revenue NY rev (3m)2.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.26 | ||
| Fwd PE | 6.24 | ||
| P/S | 0.36 | ||
| P/FCF | N/A | ||
| P/OCF | 2.81 | ||
| P/B | 1.02 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 7.5 |
EPS(TTM)10.03
EY13.78%
EPS(NY)11.66
Fwd EY16.02%
FCF(TTM)-1.87
FCFYN/A
OCF(TTM)25.95
OCFY35.65%
SpS200.93
BVpS71.15
TBVpS66.38
PEG (NY)85.42
PEG (5Y)0.37
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 | 1.3 |
F-Score6
WACC8.1%
ROIC/WACC0.45
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 Y0.08%
EPS Next 2Y5.1%
EPS Next 3Y4.93%
EPS Next 5Y5.94%
Revenue 1Y (TTM)2.58%
Revenue growth 3Y13.85%
Revenue growth 5Y6.43%
Sales Q2Q%-0.34%
Revenue Next Year0.97%
Revenue Next 2Y0.61%
Revenue Next 3Y0.85%
Revenue Next 5Y1.5%
EBIT growth 1Y-35.86%
EBIT growth 3Y5.62%
EBIT growth 5Y20.72%
EBIT Next Year15.44%
EBIT Next 3Y9.15%
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 7.26 and the Price/Book (PB) ratio is 1.02.
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%.