NYSE:GM

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Undervalued average dividend payer.


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: GM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-15.6%

GM

-11.8%

US Auto

-2.0%

US Market


1 Year Return

-53.7%

GM

-11.8%

US Auto

-15.1%

US Market

Return vs Industry: GM underperformed the US Auto industry which returned -11.8% over the past year.

Return vs Market: GM underperformed the US Market which returned -15.1% over the past year.


Shareholder returns

GMIndustryMarket
7 Day-15.6%-11.8%-2.0%
30 Day-40.1%-36.8%-19.7%
90 Day-50.3%-25.3%-23.2%
1 Year-51.6%-53.7%-9.1%-11.8%-13.4%-15.1%
3 Year-39.4%-46.5%-2.3%-10.5%10.9%3.7%
5 Year-38.9%-50.7%-5.4%-21.5%28.4%14.4%

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

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GM ($18.04) is trading below our estimate of fair value ($56.91)

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


Price To Earnings Ratio

PE vs Industry: GM is good value based on its PE Ratio (3.9x) compared to the Auto industry average (9.7x).

PE vs Market: GM is good value based on its PE Ratio (3.9x) compared to the US market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: GM is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: GM is good value based on its PB Ratio (0.6x) compared to the US Auto industry average (2x).


Next Steps

Future Growth

How is General Motors forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GM's forecast earnings growth (2.4% per year) is above the savings rate (1.7%).

Earnings vs Market: GM's earnings (2.4% per year) are forecast to grow slower than the US market (13.4% per year).

High Growth Earnings: GM's earnings are forecast to grow, but not significantly.

Revenue vs Market: GM's revenue (0.6% per year) is forecast to grow slower than the US market (7.1% per year).

High Growth Revenue: GM's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GM's Return on Equity is forecast to be low in 3 years time (15%).


Next Steps

Past Performance

How has General Motors performed over the past 5 years?

-2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GM has high quality earnings.

Growing Profit Margin: GM's current net profit margins (4.8%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: GM's earnings have declined by -2.1% per year over the past 5 years.

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

Earnings vs Industry: GM had negative earnings growth (-17.6%) over the past year, making it difficult to compare to the Auto industry average (-14.5%).


Return on Equity

High ROE: GM's Return on Equity (14.5%) is considered low.


Next Steps

Financial Health

How is General Motors's financial position?


Financial Position Analysis

Short Term Liabilities: GM's short term assets ($75.0B) do not cover its short term liabilities ($84.9B).

Long Term Liabilities: GM's short term assets ($75.0B) do not cover its long term liabilities ($97.2B).


Debt to Equity History and Analysis

Debt Level: GM's debt to equity ratio (224.2%) is considered high.

Reducing Debt: GM's debt to equity ratio has increased from 129.6% to 224.2% over the past 5 years.

Debt Coverage: GM's debt is not well covered by operating cash flow (14.6%).

Interest Coverage: GM's interest payments on its debt are well covered by EBIT (18.3x coverage).


Balance Sheet

Inventory Level: GM has a high level of physical assets or inventory.

Debt Coverage by Assets: GM's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

8.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GM's dividend (8.43%) is higher than the bottom 25% of dividend payers in the US market (2.05%).

High Dividend: GM's dividend (8.43%) is in the top 25% of dividend payers in the US market (5.71%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, GM has been paying a dividend for less than 10 years.

Growing Dividend: GM's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.9%), GM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GM's dividends in 3 years are forecast to be well covered by earnings (21.1% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Mary Barra (57yo)

6.25s

Tenure

US$21,870,450

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 ($USD21.87M) is above average for companies of similar size in the US market ($USD11.95M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mary Barra
Chairman & CEO6.25yrsUS$21.87m0.092% $23.6m
Mark Reuss
President1.25yrsUS$7.36m0.020% $5.2m
Dhivya Suryadevara
Executive VP & CFO1.58yrsUS$5.51m0.0019% $479.5k
Alan Batey
no dataUS$5.34m0.0063% $1.6m
Daniel Ammann
Chief Executive Officer of GM Cruise Holdings LLCno dataUS$8.97m0.00098% $252.6k
Christopher Hatto
VP of Global Business Solutions & Chief Accounting Officer1.58yrsno data0.0013% $327.4k
Jon Lauckner
CTO and VP of Global R&D8yrsno datano data
Randall Mott
Executive VP of Global Information Technology & Chief Information Officer8.17yrsno data0.017% $4.3m
Daniel Turton
Vice President of Federal and Administration Affairs5.25yrsno datano data
Randy Arickx
Vice President of Corporate Communications & Investor Relationsno datano datano data

5.3yrs

Average Tenure

55.5yo

Average Age

Experienced Management: GM's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mary Barra
Chairman & CEO6.25yrsUS$21.87m0.092% $23.6m
Patricia Russo
Independent Director10.75yrsUS$307.83k0.00086% $221.7k
Theodore Solso
Lead Independent Director4.25yrsUS$387.56k0.00046% $118.6k
Thomas Schoewe
Independent Director8.42yrsUS$335.86k0.0015% $397.0k
Devin Wenig
Independent Director2yrsUS$214.84kno data
Joseph Jimenez
Independent Director4.83yrsUS$292.38k0.0023% $582.6k
Carol Stephenson
Independent Director10.75yrsUS$305.40k0.000060% $15.5k
Linda Gooden
Independent Director5.17yrsUS$307.36k0.000070% $18.0k
Jane Mendillo
Independent Director3.83yrsUS$278.15k0.00032% $82.5k
Judith Miscik
Independent Director1.5yrsUS$71.51kno data

4.5yrs

Average Tenure

63yo

Average Age

Experienced Board: GM's board of directors are considered experienced (4.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GM 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: GM
  • Exchange: NYSE
  • Founded: 1908
  • Industry: Automobile Manufacturers
  • Sector: Automobiles
  • Market Cap: US$25.779b
  • 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 segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling brand names. The company also sells trucks, crossovers, and cars to dealers for consumer retail sales, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. In addition, it offers safety and security services for retail and fleet customers, including automatic crash response, emergency services, crisis assist, stolen vehicle assistance, roadside assistance, and turn-by-turn navigation, as well as connected services comprising mobile applications for owners to remotely control their vehicles and electric vehicle owners to locate charging stations, on-demand vehicle diagnostics, smart driver, marketplace in-vehicle commerce, connected navigation, SiriusXM with 360L, and 4G LTE wireless connectivity. Further, the company provides automotive financing services. General Motors Company was founded in 1908 and is headquartered in Detroit, Michigan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 04:32
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.