NYSE:GM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Good value 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


Market Performance


7 Day Return

5.7%

GM

6.2%

US Auto

2.3%

US Market


1 Year Return

17.9%

GM

9.3%

US Auto

5.6%

US Market

Return vs Industry: GM exceeded the US Auto industry which returned 9.3% over the past year.

Return vs Market: GM exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

GMIndustryMarket
7 Day5.7%6.2%2.3%
30 Day-4.3%0.5%-1.0%
90 Day-7.2%-5.1%-0.7%
1 Year22.9%17.9%12.5%9.3%7.9%5.6%
3 Year30.4%15.4%26.1%14.1%45.6%36.3%
5 Year46.0%18.5%10.2%-6.8%65.8%47.6%

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?

40.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: GM ($36.65) is trading below our estimate of fair value ($61.06)

Significantly Undervalued: GM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GM is good value based on its PE Ratio (5.8x) compared to the Auto industry average (16.6x).

PE vs Market: GM is good value based on its PE Ratio (5.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: GM is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: GM is good value based on its PB Ratio (1.2x) compared to the US Auto industry average (3x).


Next Steps

Future Growth

How is General Motors forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

1.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GM's forecast earnings growth (1.8% per year) is below the savings rate (2.7%).

Earnings vs Market: GM's earnings (1.8% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: GM's revenue (0.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: GM's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: GM's Return on Equity is forecast to be low in 3 years time (16.9%).


Next Steps

Past Performance

How has General Motors performed over the past 5 years?

2.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GM's earnings have grown by 2.6% per year over the past 5 years.

Accelerating Growth: GM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Auto industry (-11.3%).


Return on Equity

High ROE: GM's Return on Equity (19.4%) is considered low.


Return on Assets

ROA vs Industry: GM has a higher Return on Assets than the Auto industry average last year.


Return on Capital Employed

ROCE Improving: GM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is General Motors's financial position?


Financial Position Analysis

Short Term Liabilities: GM's short term assets ($81.3B) do not cover its short term liabilities ($84.3B)

Long Term Liabilities: GM's short term assets (81.3B) do not cover its long term liabilities (102.4B)


Debt to Equity History and Analysis

Debt Level: GM's debt to equity ratio (227.1%) is considered high

Reducing Debt: GM's debt to equity ratio has increased from 94.1% to 227.1% over the past 5 years.

Debt Coverage: GM's debt is not well covered by operating cash flow (13.7%).

Interest Coverage: GM's interest payments on its debt are well covered by EBIT (22.5x 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 0.8x debt).


Next Steps

Dividend

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

4.15%

Current Dividend Yield


Dividend Yield vs Market

company4.1%marketbottom25%1.5%markettop25%3.8%industryaverage4.0%forecastin3Years4.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GM's dividend (4.15%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: GM's dividend (4.15%) is in the top 25% of dividend payers in the US market (3.76%)

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 low payout ratio (23.9%), 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 (21.2% payout ratio).


Next Steps

Management

What is the CEO of General Motors's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Mary Barra (57yo)

5.8yrs

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 ($USD21.87M) is about average for companies of similar size in the US market ($USD11.23M).

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


Management Age and Tenure

2.9yrs

Average Tenure

55.5yo

Average Age

Experienced Management: GM's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

4.0yrs

Average Tenure

63yo

Average Age

Experienced Board: GM's board of directors are considered experienced (4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$385,80009 May 19
Wesley Bush
EntityIndividual
Shares10,000
Max PriceUS$38.58

Ownership Breakdown


Management Team

  • Randy Mott (62yo)

    Chief Information Officer & Senior VP of Global Information Technology

    • Tenure: 7.7yrs
  • Jon Lauckner (62yo)

    CTO and VP of Global R&D

    • Tenure: 7.5yrs
  • Mark Reuss (55yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$7.36m
  • Mary Barra (57yo)

    Chairman & CEO

    • Tenure: 5.8yrs
    • Compensation: US$21.87m
  • Alan Batey (56yo)

    • Tenure: 0yrs
    • Compensation: US$5.34m
  • Dan Ammann (47yo)

    Chief Executive Officer of GM Cruise Holdings LLC

    • Tenure: 0.8yrs
    • Compensation: US$8.97m
  • Dan Turton

    Vice President of Federal and Administration Affairs

    • Tenure: 4.8yrs
  • Dhivya Suryadevara (37yo)

    Executive VP & CFO

    • Tenure: 1.1yrs
    • Compensation: US$5.51m
  • Randy Arickx

    Vice President of Corporate Communications & Investor Relations

    • Tenure: 0yrs
  • Christopher Hatto (49yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 1.1yrs

Board Members

  • Pat Russo (67yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$307.83k
  • Tim Solso (71yo)

    Lead Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$387.56k
  • Tom Schoewe (66yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$335.86k
  • Devin Wenig (52yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$214.84k
  • Joe Jimenez (59yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$292.38k
  • Carol Stephenson (68yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$305.40k
  • Linda Gooden (66yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$307.36k
  • Jane Mendillo (60yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$278.15k
  • Jami Miscik (60yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$71.51k
  • Mary Barra (57yo)

    Chairman & CEO

    • Tenure: 5.8yrs
    • Compensation: US$21.87m

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$52.326b
  • Shares outstanding: 1.43b
  • Website: https://www.gm.com

Number of Employees


Location

  • General Motors Company
  • 300 Renaissance Center
  • Detroit
  • Michigan
  • 48243
  • 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
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, GM Cruise, and GM Financial. It  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 00:11
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.