DB:8GM

Stock Analysis Report

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Executive Summary

General Motors Company designs, builds, and sells cars, trucks, crossovers, and automobile parts worldwide.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has General Motors's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8GM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.0%

8GM

4.0%

DE Auto

2.6%

DE Market


1 Year Return

-35.9%

8GM

10.2%

DE Auto

8.1%

DE Market

Return vs Industry: 8GM underperformed the German Auto industry which returned 10.1% over the past year.

Return vs Market: 8GM underperformed the German Market which returned 8.1% over the past year.


Shareholder returns

8GMIndustryMarket
7 Day7.0%4.0%2.6%
30 Day7.7%0.8%0.7%
90 Day7.2%21.0%11.5%
1 Year-33.7%-35.9%11.9%10.2%10.5%8.1%
3 Yearn/a12.9%2.6%6.4%-2.1%
5 Yearn/a-6.8%-19.2%15.2%-0.3%

Price Volatility Vs. Market

How volatile is General Motors's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is General Motors undervalued compared to its fair value and its price relative to the market?

27.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8GM (€22.66) is trading below our estimate of fair value (€31.4)

Significantly Below Fair Value: 8GM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8GM is poor value based on its PE Ratio (25.1x) compared to the XE Auto industry average (14.8x).

PE vs Market: 8GM is poor value based on its PE Ratio (25.1x) compared to the German market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: 8GM is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 8GM is overvalued based on its PB Ratio (1x) compared to the DE Auto industry average (0.7x).


Next Steps

Future Growth

How is General Motors forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

39.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8GM's forecast earnings growth (39.1% per year) is above the savings rate (0.2%).

Earnings vs Market: 8GM's earnings (39.1% per year) are forecast to grow faster than the German market (23.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 8GM's revenue (7.1% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: 8GM's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 8GM's Return on Equity is forecast to be low in 3 years time (13%).


Next Steps

Past Performance

How has General Motors performed over the past 5 years?

-13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8GM has a large one-off loss of $1.4B impacting its June 30 2020 financial results.

Growing Profit Margin: 8GM's current net profit margins (1.3%) are lower than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: 8GM's earnings have declined by 13.2% per year over the past 5 years.

Accelerating Growth: 8GM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8GM had negative earnings growth (-83.1%) over the past year, making it difficult to compare to the Auto industry average (-24.1%).


Return on Equity

High ROE: 8GM's Return on Equity (3.7%) is considered low.


Next Steps

Financial Health

How is General Motors's financial position?


Financial Position Analysis

Short Term Liabilities: 8GM's short term assets ($87.5B) exceed its short term liabilities ($77.9B).

Long Term Liabilities: 8GM's short term assets ($87.5B) do not cover its long term liabilities ($116.1B).


Debt to Equity History and Analysis

Debt Level: 8GM's debt to equity ratio (291.6%) is considered high.

Reducing Debt: 8GM's debt to equity ratio has increased from 150.3% to 291.6% over the past 5 years.

Debt Coverage: 8GM's debt is not well covered by operating cash flow (6.9%).

Interest Coverage: 8GM's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


Next Steps

Dividend

What is General Motors's current dividend yield, its reliability and sustainability?

2.64%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8GM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 8GM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 8GM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8GM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 8GM is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8GM's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Mary Barra (58 yo)

6.58yrs

Tenure

US$21,630,867

Compensation

Ms. Mary T. Barra serves as the Chief Executive Officer of General Motors of Canada Limited. Ms. Barra has been the Chief Executive Officer of General Motors Company January 15, 2014. She is a Director of ...


CEO Compensation Analysis

Compensation vs Market: Mary's total compensation ($USD21.63M) is above average for companies of similar size in the German market ($USD5.24M).

Compensation vs Earnings: Mary's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mary Barra
Chairman & CEO6.58yrsUS$21.63m0.091%
$ 29.7m
Mark Reuss
President1.58yrsUS$8.18m0.020%
$ 6.5m
Dhivya Suryadevara
Executive VP & CFO1.92yrsUS$6.77m0.0019%
$ 600.2k
Craig Glidden
Executive VP & General Counsel5.42yrsUS$4.28m0.013%
$ 4.3m
Alan Batey
no dataUS$5.32m0.010%
$ 3.4m
Barry Engle
Executive Officer1.33yrsUS$5.15m0.0084%
$ 2.7m
Christopher Hatto
VP of Global Business Solutions & Chief Accounting Officer1.92yrsno data0.0013%
$ 412.0k
Jon Lauckner
CTO and VP of Global R&D8.33yrsno datano data
Randall Mott
Executive VP of Global Information Technology & Chief Information Officer8.5yrsno data0.017%
$ 5.4m
Randy Arickx
Vice President of Corporate Communications & Investor Relationsno datano datano data
Jeffrey Taylor
Chief Compliance Officer & Deputy General Counsel4.33yrsno datano data
Deborah Wahl
Global Chief Marketing Officer0.92yrno datano data

3.1yrs

Average Tenure

57yo

Average Age

Experienced Management: 8GM's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mary Barra
Chairman & CEO6.58yrsUS$21.63m0.091%
$ 29.7m
Patricia Russo
Independent Director11.08yrsUS$317.10k0.0018%
$ 567.7k
Theodore Solso
Lead Independent Director4.58yrsUS$403.35k0.00046%
$ 149.2k
Thomas Schoewe
Independent Director8.75yrsUS$357.31k0.0015%
$ 499.6k
Devin Wenig
Independent Director2.33yrsUS$317.31kno data
Joseph Jimenez
Independent Director5.17yrsUS$333.10k0.0023%
$ 733.2k
Wesley Bush
Independent Director1.5yrsUS$265.64k0.00070%
$ 227.1k
Carol Stephenson
Independent Director11.08yrsUS$316.74k0.000060%
$ 19.5k
Linda Gooden
Independent Director5.5yrsUS$317.70k0.000070%
$ 22.7k
Jane Mendillo
Independent Director4.17yrsUS$292.68k0.00032%
$ 103.8k
Judith Miscik
Independent Director1.83yrsUS$306.83kno data

4.6yrs

Average Tenure

61yo

Average Age

Experienced Board: 8GM's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 8GM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

General Motors Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: General Motors Company
  • Ticker: 8GM
  • Exchange: DB
  • Founded: 1908
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Market Cap: US$38.239b
  • Listing Market Cap: US$32.442b
  • Shares outstanding: 1.43b
  • Website: https://www.gm.com

Number of Employees


Location

  • General Motors Company
  • 300 Renaissance Center
  • Detroit
  • Michigan
  • 48265-3000
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GMNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2010
GM *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 2010
8GMXTRA (XETRA Trading Platform)YesCommon StockDEEURNov 2010
8GMDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2010
GMSWX (SIX Swiss Exchange)YesCommon StockCHCHFNov 2010
0R0ELSE (London Stock Exchange)YesCommon StockGBUSDNov 2010
GMOTWBAG (Wiener Boerse AG)YesCommon StockATEURNov 2010
8GMETLX (Eurotlx)YesCommon StockITEURNov 2010
GMCO34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EA REP 1 COM SH USD0.01BRBRLSep 2016

Biography

General Motors Company designs, builds, and sells cars, trucks, crossovers, and automobile parts worldwide. The company operates through GM North America, GM International, Cruise, and GM Financial segment ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/08 21:51
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.