GENERAL MOTORS CO (GM)
US37045V1008 - Common Stock
Overall GM gets a fundamental rating of 5 out of 10. We evaluated GM against 40 industry peers in the Automobiles industry. While GM belongs to the best of the industry regarding profitability, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on GM.
1. Profitability
1.1 Basic Checks
GM had positive earnings in the past year.
In the past year GM had a positive cash flow from operations.
Each year in the past 5 years GM has been profitable.
GM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GM (3.84%) is better than 78.95% of its industry peers.
GM has a Return On Equity of 15.95%. This is amongst the best in the industry. GM outperforms 84.21% of its industry peers.
The Return On Invested Capital of GM (5.75%) is better than 76.32% of its industry peers.
GM had an Average Return On Invested Capital over the past 3 years of 6.57%. This is below the industry average of 9.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 15.95% | ||
| ROIC | 5.75% |
ROA(3y)3.69%
ROA(5y)3.32%
ROE(3y)15.07%
ROE(5y)14.97%
ROIC(3y)6.57%
ROIC(5y)5.72%
1.3 Margins
GM has a better Profit Margin (6.08%) than 81.58% of its industry peers.
In the last couple of years the Profit Margin of GM has grown nicely.
The Operating Margin of GM (6.82%) is better than 84.21% of its industry peers.
GM's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 11.91%, GM is doing good in the industry, outperforming 60.53% of the companies in the same industry.
GM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.82% | ||
| PM (TTM) | 6.08% | ||
| GM | 11.91% |
OM growth 3Y-8.21%
OM growth 5Y14.77%
PM growth 3Y4.57%
PM growth 5Y1.61%
GM growth 3Y-3.02%
GM growth 5Y3.34%
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
GM has less shares outstanding than it did 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 1.28, we must say that GM is in the distress zone and has some risk of bankruptcy.
GM has a Altman-Z score of 1.28. This is in the better half of the industry: GM outperforms 60.53% of its industry peers.
GM has a Debt/Equity ratio of 1.30. This is a high value indicating a heavy dependency on external financing.
GM has a worse Debt to Equity ratio (1.30) than 76.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.28 |
ROIC/WACC0.73
WACC7.89%
2.3 Liquidity
GM has a Current Ratio of 1.16. This is a normal value and indicates that GM is financially healthy and should not expect problems in meeting its short term obligations.
GM has a worse Current ratio (1.16) than 71.05% of its industry peers.
A Quick Ratio of 0.97 indicates that GM may have some problems paying its short term obligations.
The Quick ratio of GM (0.97) is worse than 60.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.23% over the past year.
GM shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.37% yearly.
GM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.79%.
Measured over the past years, GM shows a small growth in Revenue. The Revenue has been growing by 3.17% on average per year.
EPS 1Y (TTM)10.23%
EPS 3Y18.4%
EPS 5Y4.37%
EPS growth Q2Q18.55%
Revenue 1Y (TTM)8.79%
Revenue growth 3Y11.95%
Revenue growth 5Y3.17%
Revenue growth Q2Q7.58%
3.2 Future
The Earnings Per Share is expected to grow by 1.56% on average over the next years.
GM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.50% yearly.
EPS Next Y14.53%
EPS Next 2Y8.53%
EPS Next 3Y7.02%
EPS Next 5Y1.56%
Revenue Next Year4.29%
Revenue Next 2Y2.89%
Revenue Next 3Y2.48%
Revenue Next 5Y4.5%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GM is valuated cheaply with a Price/Earnings ratio of 5.36.
Based on the Price/Earnings ratio, GM is valued cheaply inside the industry as 97.37% of the companies are valued more expensively.
GM is valuated cheaply when we compare the Price/Earnings ratio to 25.20, which is the current average of the S&P500 Index.
GM is valuated cheaply with a Price/Forward Earnings ratio of 4.78.
Based on the Price/Forward Earnings ratio, GM is valued cheaper than 97.37% of the companies in the same industry.
GM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.36 | ||
| Fwd PE | 4.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GM indicates a rather cheap valuation: GM is cheaper than 97.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.95 |
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.
GM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.37
PEG (5Y)1.23
EPS Next 2Y8.53%
EPS Next 3Y7.02%
5. Dividend
5.1 Amount
With a yearly dividend of 0.93%, GM is not a good candidate for dividend investing.
GM's Dividend Yield is rather good when compared to the industry average which is at 2.87. GM pays more dividend than 81.58% of the companies in the same industry.
With a Dividend Yield of 0.93, GM pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
The dividend of GM decreases each year by -22.11%.
GM has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of GM decreased recently.
Dividend Growth(5Y)-22.11%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
GM pays out 5.74% of its income as dividend. This is a sustainable payout ratio.
DP5.74%
EPS Next 2Y8.53%
EPS Next 3Y7.02%
GENERAL MOTORS CO
NYSE:GM (4/25/2024, 7:04:00 PM)
Premarket: 45.62 0 (0%)45.62
+0.54 (+1.2%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap52.67B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Dividend Growth(5Y)
DP
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.36 | ||
| Fwd PE | 4.78 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.37
PEG (5Y)1.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.84% | ||
| ROE | 15.95% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.82% | ||
| PM (TTM) | 6.08% | ||
| GM | 11.91% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.3 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.97 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)10.23%
EPS 3Y18.4%
EPS 5Y
EPS growth Q2Q
EPS Next Y14.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.79%
Revenue growth 3Y11.95%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
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EBIT Next 5Y
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