GENERAL MOTORS CO (GM)

US37045V1008 - Common Stock

44.59  +0.59 (+1.34%)

Premarket: 44.61 +0.02 (+0.04%)

Fundamental Rating

5

GM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 40 industry peers in the Automobiles industry. While GM has a great profitability rating, there are quite some concerns on its financial health. GM is valued quite cheap, while showing a decent growth score. This is a good combination!



8

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.
In the past 5 years GM always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of 3.67%, GM is in the better half of the industry, outperforming 79.49% of the companies in the same industry.
Looking at the Return On Equity, with a value of 15.59%, GM belongs to the top of the industry, outperforming 87.18% of the companies in the same industry.
GM has a better Return On Invested Capital (5.12%) than 82.05% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GM is in line with the industry average of 8.18%.
Industry RankSector Rank
ROA 3.67%
ROE 15.59%
ROIC 5.12%
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 (5.83%) than 84.62% of its industry peers.
In the last couple of years the Profit Margin of GM has grown nicely.
Looking at the Operating Margin, with a value of 5.97%, GM belongs to the top of the industry, outperforming 82.05% of the companies in the same industry.
GM's Operating Margin has improved in the last couple of years.
GM has a Gross Margin of 11.37%. This is in the better half of the industry: GM outperforms 64.10% of its industry peers.
In the last couple of years the Gross Margin of GM has grown nicely.
Industry RankSector Rank
OM 5.97%
PM (TTM) 5.83%
GM 11.37%
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

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.
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.
Compared to 1 year ago, GM has a worse 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's Altman-Z score of 1.22 is fine compared to the rest of the industry. GM outperforms 69.23% of its industry peers.
GM has a Debt/Equity ratio of 1.29. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.29, GM is doing worse than 74.36% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.29
Debt/FCF N/A
Altman-Z 1.22
ROIC/WACC0.66
WACC7.71%

2.3 Liquidity

A Current Ratio of 1.08 indicates that GM should not have too much problems paying its short term obligations.
GM's Current ratio of 1.08 is on the low side compared to the rest of the industry. GM is outperformed by 69.23% of its industry peers.
GM has a Quick Ratio of 1.08. This is a bad value and indicates that GM is not financially healthy enough and could expect problems in meeting its short term obligations.
GM has a Quick ratio of 0.90. This is in the lower half of the industry: GM underperforms 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 0.9

4

3. Growth

3.1 Past

GM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.58%.
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 9.64%.
GM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.17% yearly.
EPS 1Y (TTM)6.58%
EPS 3Y18.4%
EPS 5Y4.37%
EPS growth Q2Q-41.51%
Revenue 1Y (TTM)9.64%
Revenue growth 3Y11.95%
Revenue growth 5Y3.17%
Revenue growth Q2Q-0.3%

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 1.56% on average per year.
GM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.50% yearly.
EPS Next Y13.35%
EPS Next 2Y7.75%
EPS Next 3Y6.86%
EPS Next 5Y1.56%
Revenue Next Year4.47%
Revenue Next 2Y3.04%
Revenue Next 3Y2.63%
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.

8

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 5.50 indicates a rather cheap valuation of GM.
GM's Price/Earnings ratio is rather cheap when compared to the industry. GM is cheaper than 97.44% of the companies in the same industry.
GM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.42.
A Price/Forward Earnings ratio of 4.86 indicates a rather cheap valuation of GM.
Based on the Price/Forward Earnings ratio, GM is valued cheaply inside the industry as 97.44% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GM to the average of the S&P500 Index (22.74), we can say GM is valued rather cheaply.
Industry RankSector Rank
PE 5.5
Fwd PE 4.86

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, GM is valued cheaper than 97.44% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 6.28

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)0.41
PEG (5Y)1.26
EPS Next 2Y7.75%
EPS Next 3Y6.86%

4

5. Dividend

5.1 Amount

GM has a yearly dividend return of 0.90%, which is pretty low.
GM's Dividend Yield is rather good when compared to the industry average which is at 2.67. GM pays more dividend than 82.05% of the companies in the same industry.
With a Dividend Yield of 0.90, GM pays less dividend than the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 0.9%

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.
GM has decreased its dividend recently.
Dividend Growth(5Y)-22.11%
Div Incr Years1
Div Non Decr Years1

5.3 Sustainability

5.96% of the earnings are spent on dividend by GM. This is a low number and sustainable payout ratio.
DP5.96%
EPS Next 2Y7.75%
EPS Next 3Y6.86%

GENERAL MOTORS CO

NYSE:GM (3/27/2024, 8:16:59 PM)

Premarket: 44.61 +0.02 (+0.04%)

44.59

+0.59 (+1.34%)

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 Cap51.48B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.9%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 5.5
Fwd PE 4.86
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)0.41
PEG (5Y)1.26
Profitability
Industry RankSector Rank
ROA 3.67%
ROE 15.59%
ROCE
ROIC
ROICexc
ROICexgc
OM 5.97%
PM (TTM) 5.83%
GM 11.37%
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 RankSector Rank
Debt/Equity 1.29
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.08
Quick Ratio 0.9
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)6.58%
EPS 3Y18.4%
EPS 5Y
EPS growth Q2Q
EPS Next Y13.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.64%
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
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y