GENERAL MOTORS CO (GM) Stock Fundamental Analysis
NYSE:GM - New York Stock Exchange, Inc. - US37045V1008 - Common Stock - Currency: USD
GM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 38 industry peers in the Automobiles industry. GM scores excellent on profitability, but there are concerns on its financial health. GM has a correct valuation and a medium growth rate.
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.
In the past 5 years GM has always been profitable.
In the past 5 years GM always reported a positive cash flow from operatings.
1.2 Ratios
GM has a better Return On Assets (2.69%) than 76.32% of its industry peers.
GM's Return On Equity of 11.78% is amongst the best of the industry. GM outperforms 92.11% of its industry peers.
With an excellent Return On Invested Capital value of 5.84%, GM belongs to the best of the industry, outperforming 89.47% 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 6.56%.
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 has a Profit Margin of 4.02%. This is amongst the best in the industry. GM outperforms 86.84% of its industry peers.
In the last couple of years the Profit Margin of GM has declined.
GM has a Operating Margin of 7.20%. This is amongst the best in the industry. GM outperforms 92.11% of its industry peers.
In the last couple of years the Operating Margin of GM has grown nicely.
GM has a Gross Margin (12.28%) which is in line with its industry peers.
GM's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GM is destroying value.
GM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for GM has been reduced compared to 5 years ago.
GM has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.32, we must say that GM is in the distress zone and has some risk of bankruptcy.
GM has a Altman-Z score of 1.32. This is in the better half of the industry: GM outperforms 73.68% of its industry peers.
A Debt/Equity ratio of 1.50 is on the high side and indicates that GM has dependencies on debt financing.
GM has a worse Debt to Equity ratio (1.50) than 60.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACC0.79
WACC7.39%
2.3 Liquidity
A Current Ratio of 1.21 indicates that GM should not have too much problems paying its short term obligations.
The Current ratio of GM (1.21) is comparable to the rest of the industry.
GM has a Quick Ratio of 1.04. 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 decent Quick ratio value of 1.04, GM is doing good in the industry, outperforming 65.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.97% over the past year.
The Earnings Per Share has been growing by 19.68% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to decrease by -4.78% on average over the next years.
The Revenue is expected to grow by 1.34% on average over the next years.
EPS Next Y-9.93%
EPS Next 2Y-4.41%
EPS Next 3Y-3.24%
EPS Next 5Y-4.78%
Revenue Next Year-2.35%
Revenue Next 2Y-1.36%
Revenue Next 3Y-0.06%
Revenue Next 5Y1.34%
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.
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
Based on the Price/Earnings ratio of 4.68, 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 94.74% of the companies listed in the same industry.
GM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.60.
Based on the Price/Forward Earnings ratio of 5.20, 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 97.37% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GM to the average of the S&P500 Index (22.43), we can say GM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.68 | ||
| Fwd PE | 5.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GM is valued cheaply inside the industry as 92.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.62 |
4.3 Compensation for Growth
GM has an outstanding profitability rating, which may justify a higher PE ratio.
GM's earnings are expected to decrease with -3.24% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-4.41%
EPS Next 3Y-3.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.20%, GM has a reasonable but not impressive dividend return.
GM's Dividend Yield is rather good when compared to the industry average which is at 3.58. GM pays more dividend than 81.58% of the companies in the same industry.
With a Dividend Yield of 1.20, GM pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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
GM pays out 8.31% of its income as dividend. This is a sustainable payout ratio.
The Dividend Rate of GM has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP8.31%
EPS Next 2Y-4.41%
EPS Next 3Y-3.24%
50.21
+0.18 (+0.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobiles
Earnings (Last)
Earnings (Next)
Inst Owners87.62%
Inst Owner Change-2.84%
Ins Owners0.24%
Ins Owner Change0.33%
Market Cap48.52B
Analysts73.68
Price Target53.35 (6.25%)
Short Float %2.33%
Short Ratio1.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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)-13.65%
PT rev (3m)-12.91%
EPS NQ rev (1m)-10.77%
EPS NQ rev (3m)-18.53%
EPS NY rev (1m)-12.2%
EPS NY rev (3m)-19.74%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)-2.01%
Revenue NY rev (1m)-0.96%
Revenue NY rev (3m)-1.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.68 | ||
| Fwd PE | 5.2 | ||
| P/S | 0.26 | ||
| P/FCF | N/A | ||
| P/OCF | 2.11 | ||
| P/B | 0.75 | ||
| P/tB | 0.81 | ||
| EV/EBITDA | 5.62 |
EPS(TTM)10.72
EY21.35%
EPS(NY)9.65
Fwd EY19.22%
FCF(TTM)-2.98
FCFYN/A
OCF(TTM)23.84
OCFY47.48%
SpS195.02
BVpS66.62
TBVpS61.94
PEG (NY)N/A
PEG (5Y)0.24
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
WACC7.39%
ROIC/WACC0.79
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-9.93%
EPS Next 2Y-4.41%
EPS Next 3Y-3.24%
EPS Next 5Y-4.78%
Revenue 1Y (TTM)7.76%
Revenue growth 3Y13.85%
Revenue growth 5Y6.43%
Sales Q2Q%2.34%
Revenue Next Year-2.35%
Revenue Next 2Y-1.36%
Revenue Next 3Y-0.06%
Revenue Next 5Y1.34%
EBIT growth 1Y13.8%
EBIT growth 3Y-4.09%
EBIT growth 5Y20.72%
EBIT Next Year26.87%
EBIT Next 3Y10.91%
EBIT Next 5Y4.97%
FCF growth 1Y43.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y35.31%
OCF growth 3Y9.84%
OCF growth 5Y6.03%