GENERAL MOTORS CO (GM) Stock Fundamental Analysis
USA - NYSE:GM - US37045V1008 - Common Stock
58.38 USD
+1.04 (+1.81%)
58.3116 USD
-0.07 (-0.12%)
GM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 37 industry peers in the Automobiles industry. GM scores excellent on profitability, but there are concerns on its financial health. GM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
GM had positive earnings in the past year.
GM had a positive operating cash flow in the past year.
GM had positive earnings in each of the past 5 years.
GM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GM has a better Return On Assets (2.26%) than 86.49% of its industry peers.
GM has a better Return On Equity (9.84%) than 91.89% of its industry peers.
The Return On Invested Capital of GM (4.70%) is better than 89.19% 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 5.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.26% | ||
| ROE | 9.84% | ||
| ROIC | 4.7% |
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
With an excellent Profit Margin value of 3.48%, GM belongs to the best of the industry, outperforming 86.49% of the companies in the same industry.
In the last couple of years the Profit Margin of GM has declined.
GM has a Operating Margin of 5.95%. This is amongst the best in the industry. GM outperforms 91.89% of its industry peers.
In the last couple of years the Operating Margin of GM has grown nicely.
GM has a Gross Margin (10.97%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of GM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.95% | ||
| PM (TTM) | 3.48% | ||
| GM | 10.97% |
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.
The number of shares outstanding for GM has been reduced compared to 1 year ago.
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
GM has an Altman-Z score of 1.28. 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 1.28, GM is doing good in the industry, outperforming 64.86% of the companies in the same industry.
GM has a Debt/Equity ratio of 1.47. This is a high value indicating a heavy dependency on external financing.
GM's Debt to Equity ratio of 1.47 is in line compared to the rest of the industry. GM outperforms 45.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.47 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.28 |
ROIC/WACC0.62
WACC7.6%
2.3 Liquidity
GM has a Current Ratio of 1.22. This is a normal value and indicates that GM is financially healthy and should not expect problems in meeting its short term obligations.
GM's Current ratio of 1.22 is in line compared to the rest of the industry. GM outperforms 56.76% of its industry peers.
A Quick Ratio of 1.05 indicates that GM should not have too much problems paying its short term obligations.
GM has a better Quick ratio (1.05) than 70.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
GM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.76%, which is quite good.
The Earnings Per Share has been growing by 19.68% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.34% in the past year.
The Revenue has been growing slightly by 6.43% on average over the past years.
EPS 1Y (TTM)10.76%
EPS 3Y14.2%
EPS 5Y19.68%
EPS Q2Q%-17.32%
Revenue 1Y (TTM)5.34%
Revenue growth 3Y13.85%
Revenue growth 5Y6.43%
Sales Q2Q%-1.77%
3.2 Future
GM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.54% yearly.
Based on estimates for the next years, GM will show a small growth in Revenue. The Revenue will grow by 1.18% on average per year.
EPS Next Y-8.35%
EPS Next 2Y-2.04%
EPS Next 3Y0.36%
EPS Next 5Y5.54%
Revenue Next Year-1.45%
Revenue Next 2Y-0.72%
Revenue Next 3Y0.06%
Revenue Next 5Y1.18%
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
The Price/Earnings ratio is 5.73, 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 100.00% of the companies in the same industry.
GM is valuated cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 5.76, the valuation of GM can be described as very cheap.
Based on the Price/Forward Earnings ratio, GM is valued cheaply inside the industry as 94.59% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.94. GM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.73 | ||
| Fwd PE | 5.76 |
4.2 Price Multiples
GM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GM is cheaper than 97.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.63 |
4.3 Compensation for Growth
GM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-2.04%
EPS Next 3Y0.36%
5. Dividend
5.1 Amount
GM has a Yearly Dividend Yield of 1.07%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.56, 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 2.38, GM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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.
The dividend of GM decreased in the last 3 years.
Dividend Growth(5Y)-18.77%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
9.77% of the earnings are spent on dividend by GM. This is a low number and sustainable payout ratio.
DP9.77%
EPS Next 2Y-2.04%
EPS Next 3Y0.36%
58.38
+1.04 (+1.81%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners86.38%
Inst Owner Change-0.28%
Ins Owners0.21%
Ins Owner Change-0.55%
Market Cap55.58B
Analysts75.68
Price Target61.8 (5.86%)
Short Float %1.99%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
Yearly Dividend0.59
Dividend Growth(5Y)-18.77%
DP9.77%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.53%
Min EPS beat(2)-1.54%
Max EPS beat(2)0.48%
EPS beat(4)2
Avg EPS beat(4)3.89%
Min EPS beat(4)-1.54%
Max EPS beat(4)18.05%
EPS beat(8)6
Avg EPS beat(8)8.23%
EPS beat(12)10
Avg EPS beat(12)12.68%
EPS beat(16)13
Avg EPS beat(16)14.38%
Revenue beat(2)0
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-1.15%
Max Revenue beat(2)-0.72%
Revenue beat(4)2
Avg Revenue beat(4)2.43%
Min Revenue beat(4)-1.15%
Max Revenue beat(4)6.17%
Revenue beat(8)4
Avg Revenue beat(8)2.38%
Revenue beat(12)7
Avg Revenue beat(12)1.75%
Revenue beat(16)8
Avg Revenue beat(16)0.78%
PT rev (1m)6.17%
PT rev (3m)14.22%
EPS NQ rev (1m)0.4%
EPS NQ rev (3m)-3.86%
EPS NY rev (1m)1.04%
EPS NY rev (3m)2.58%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.73 | ||
| Fwd PE | 5.76 | ||
| P/S | 0.3 | ||
| P/FCF | N/A | ||
| P/OCF | 2.32 | ||
| P/B | 0.84 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 6.63 |
EPS(TTM)10.19
EY17.45%
EPS(NY)10.13
Fwd EY17.36%
FCF(TTM)-1.93
FCFYN/A
OCF(TTM)25.18
OCFY43.13%
SpS197.04
BVpS69.7
TBVpS64.99
PEG (NY)N/A
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.26% | ||
| ROE | 9.84% | ||
| ROCE | 5.71% | ||
| ROIC | 4.7% | ||
| ROICexc | 5.53% | ||
| ROICexgc | 5.68% | ||
| OM | 5.95% | ||
| PM (TTM) | 3.48% | ||
| GM | 10.97% | ||
| 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%
ROICexcg growth 3Y1.96%
ROICexcg 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 | 1.47 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.19 | ||
| Cap/Depr | 213.68% | ||
| Cap/Sales | 13.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.12% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 1.28 |
F-Score6
WACC7.6%
ROIC/WACC0.62
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)10.76%
EPS 3Y14.2%
EPS 5Y19.68%
EPS Q2Q%-17.32%
EPS Next Y-8.35%
EPS Next 2Y-2.04%
EPS Next 3Y0.36%
EPS Next 5Y5.54%
Revenue 1Y (TTM)5.34%
Revenue growth 3Y13.85%
Revenue growth 5Y6.43%
Sales Q2Q%-1.77%
Revenue Next Year-1.45%
Revenue Next 2Y-0.72%
Revenue Next 3Y0.06%
Revenue Next 5Y1.18%
EBIT growth 1Y-11.53%
EBIT growth 3Y5.62%
EBIT growth 5Y20.72%
EBIT Next Year15.44%
EBIT Next 3Y9.15%
EBIT Next 5Y4.9%
FCF growth 1Y-56.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y11.52%
OCF growth 3Y9.84%
OCF growth 5Y6.03%