GENERAL MOTORS CO (GM) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:GM • US37045V1008
84 USD
-2.26 (-2.62%)
At close: Jan 30, 2026
83.91 USD
-0.09 (-0.11%)
After Hours: 1/30/2026, 8:04:00 PM
Taking everything into account, GM scores 5 out of 10 in our fundamental rating. GM was compared to 35 industry peers in the Automobiles industry. GM has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on GM.
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
- GM's Return On Assets of 1.14% is fine compared to the rest of the industry. GM outperforms 74.29% of its industry peers.
- GM has a better Return On Equity (5.22%) than 80.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 0.98%, GM is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for GM is in line with the industry average of 5.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.14% | ||
| ROE | 5.22% | ||
| ROIC | 0.98% |
ROA(3y)2.46%
ROA(5y)2.95%
ROE(3y)10.73%
ROE(5y)12.36%
ROIC(3y)3.92%
ROIC(5y)4.36%
1.3 Margins
- GM has a better Profit Margin (1.73%) than 77.14% of its industry peers.
- GM's Profit Margin has declined in the last couple of years.
- GM has a Operating Margin of 1.25%. This is in the better half of the industry: GM outperforms 74.29% of its industry peers.
- In the last couple of years the Operating Margin of GM has declined.
- Looking at the Gross Margin, with a value of 5.94%, GM is in line with its industry, outperforming 48.57% of the companies in the same industry.
- In the last couple of years the Gross Margin of GM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.25% | ||
| PM (TTM) | 1.73% | ||
| GM | 5.94% |
OM growth 3Y-39.37%
OM growth 5Y-27.26%
PM growth 3Y-32.9%
PM growth 5Y-19.55%
GM growth 3Y-21.68%
GM growth 5Y-11.75%
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.
- Compared to 1 year ago, GM has about the same debt to assets ratio.
2.2 Solvency
- GM has an Altman-Z score of 1.22. This is a bad value and indicates that GM is not financially healthy and even has some risk of bankruptcy.
- GM has a Altman-Z score of 1.22. This is in the better half of the industry: GM outperforms 71.43% of its industry peers.
- GM has a debt to FCF ratio of 73.56. This is a negative value and a sign of low solvency as GM would need 73.56 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 73.56, GM is doing good in the industry, outperforming 77.14% of the companies in the same industry.
- A Debt/Equity ratio of 1.55 is on the high side and indicates that GM has dependencies on debt financing.
- GM has a Debt to Equity ratio of 1.55. This is in the lower half of the industry: GM underperforms 65.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.55 | ||
| Debt/FCF | 73.56 | ||
| Altman-Z | 1.22 |
ROIC/WACC0.12
WACC8.5%
2.3 Liquidity
- GM has a Current Ratio of 1.17. This is a normal value and indicates that GM is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.17, GM perfoms like the industry average, outperforming 45.71% of the companies in the same industry.
- GM has a Quick Ratio of 1.01. 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 (1.01) is better than 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 0.57% over the past year.
- Measured over the past years, GM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.83% on average per year.
- The Revenue has decreased by -1.29% in the past year.
- GM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.60% yearly.
EPS 1Y (TTM)0.57%
EPS 3Y11.8%
EPS 5Y16.83%
EPS Q2Q%30.73%
Revenue 1Y (TTM)-1.29%
Revenue growth 3Y5.69%
Revenue growth 5Y8.6%
Sales Q2Q%-5.06%
3.2 Future
- Based on estimates for the next years, GM will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.63% on average per year.
- Based on estimates for the next years, GM will show a small growth in Revenue. The Revenue will grow by 1.44% on average per year.
EPS Next Y13.55%
EPS Next 2Y10.58%
EPS Next 3Y7.64%
EPS Next 5Y11.63%
Revenue Next Year0.28%
Revenue Next 2Y0.99%
Revenue Next 3Y1.94%
Revenue Next 5Y1.44%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
- The Price/Earnings ratio is 7.91, which indicates a rather cheap valuation of GM.
- GM's Price/Earnings ratio is rather cheap when compared to the industry. GM is cheaper than 97.14% of the companies in the same industry.
- GM is valuated cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 6.97, which indicates a rather cheap valuation of GM.
- 94.29% of the companies in the same industry are more expensive than GM, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of GM to the average of the S&P500 Index (25.57), we can say GM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.91 | ||
| Fwd PE | 6.97 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GM is valued cheaply inside the industry as 82.86% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GM indicates a somewhat cheap valuation: GM is cheaper than 80.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.25 | ||
| EV/EBITDA | 10.31 |
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.
PEG (NY)0.58
PEG (5Y)0.47
EPS Next 2Y10.58%
EPS Next 3Y7.64%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.75%, GM is not a good candidate for dividend investing.
- GM's Dividend Yield is a higher than the industry average which is at 0.86.
- Compared to an average S&P500 Dividend Yield of 1.83, GM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
- The dividend of GM is nicely growing with an annual growth rate of 7.63%!
- GM has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of GM decreased in the last 3 years.
Dividend Growth(5Y)7.63%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- GM pays out 20.58% of its income as dividend. This is a sustainable payout ratio.
- GM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP20.58%
EPS Next 2Y10.58%
EPS Next 3Y7.64%
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 of GENERAL MOTORS CO (GM) stock?
ChartMill assigns a valuation rating of 8 / 10 to GENERAL MOTORS CO (GM). This can be considered as Undervalued.
What is the profitability of GM stock?
GENERAL MOTORS CO (GM) has a profitability rating of 5 / 10.
What are the PE and PB ratios of GENERAL MOTORS CO (GM) stock?
The Price/Earnings (PE) ratio for GENERAL MOTORS CO (GM) is 7.91 and the Price/Book (PB) ratio is 1.28.
What is the earnings growth outlook for GENERAL MOTORS CO?
The Earnings per Share (EPS) of GENERAL MOTORS CO (GM) is expected to grow by 13.55% in the next year.