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GM

General Motors NYSE:GM Stock Report

Last Price

US$35.48

Market Cap

US$51.7b

7D

-11.2%

1Y

-32.1%

Updated

24 Sep, 2022

Data

Company Financials +
GM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance2/6
Financial Health3/6
Dividends0/6

GM Stock Overview

General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts and accessories in North America, the Asia Pacific, the Middle East, Africa, South America, the United States, and China.

General Motors Company Competitors

Price History & Performance

Summary of all time highs, changes and price drops for General Motors
Historical stock prices
Current Share PriceUS$35.48
52 Week HighUS$67.21
52 Week LowUS$30.33
Beta1.25
1 Month Change-12.16%
3 Month Change1.90%
1 Year Change-32.07%
3 Year Change-5.18%
5 Year Change-12.14%
Change since IPO3.77%

Recent News & Updates

Sep 14

GM Cruise Steps Up Commercial Operations, Hastening Prospect Of Revenues From Autonomous Tech

Summary Cruise, already operating robotaxis commercially in San Francisco, will add Austin and Phoenix as new markets within three months. Kyle Vogt, Cruise CEO, set a goal of $1 billion in revenue by 2025. Vogt declares autonomous tech “no longer the bottleneck” to increasing company’s scale of activities. Potential profit from autonomous tech establishes a hedge against slower-than-forecast consumer uptake of GM battery-electric vehicles (BEVs). The research and development of autonomous driving undertaken by General Motors Co. (NYSE:GM) has been overshadowed of late, at least in public perception and the mass media, by activities involving the migration from internal combustion engines - ICE - to BEVs. From an investment perspective, GM's autonomous activities until now have been largely a story about massive development cost and overcoming technical hurdles - and little or nothing about payoff in terms of revenue or profit. A change is coming as GM has succeeded in San Francisco to launch a commercial robotaxi service, albeit on an extremely small scale. Modest beginnings A San Francisco-based startup founded in 2013, Cruise was purchased by GM in 2016, reportedly (though never confirmed) for about $500 million. The company, which employed about 40 at the time of its acquisition, now employs about 3,000 and has been given responsibility for GM's autonomous tech development as well as its commercialization. GM has taken on additional investors, including the Honda Motor Co. (HMC), and now owns 80% of the venture, which was last valued at about $30 billion. While other ventures including Waymo, owned by Alphabet (GOOG) (GOOGL), have been operating autonomous robotaxis on a pilot and commercial basis, mostly in less dense locales, Cruise claims to be the first to do so commercially in a major U.S. city., following issuance in June of California's first permit to offer autonomous rides in return for payment. According to Vogt, who presented at a conference sponsored by Goldman Sachs last week, customers seem to be generally pleased with the service: "We've peaked at over 70 concurrent AVs operating - driverless AVs operating concurrently. We're probably going to double or triple that by the end of the year. And it's being used all the time. Through the first half of the year, I'm proud of this stat like our 28-day retention, so people coming back after a month is almost at 50%. And to put that into perspective, that's almost as good as a mature ride-hailing company today, and we're only just a few months into this service." CEO, co-founder and CTO of Cruise (Cruise) The rollout in San Francisco hasn't been without incident. On June 3, a Cruise vehicle collided with another vehicle at an intersection while making a left turn, resulting in minor injuries. Cruise said the other vehicle was speeding and afterward updated programming that controlled left turns unprotected by a traffic signal. Also, that month, a number of Cruise AVs blocked traffic for two hours at an intersection. Rough spots According to Vogt, the company is in the process of smoothing out technological "rough spots." For the first time in eight years, he said, technology isn't the bottleneck in the way of commercialization. The new bottleneck, he implies, is Cruise's unproven ability to scale operations in other cities and to expand the number of vehicles it dedicates to ride-hailing - with the goal of profitability. For the time being, Cruise is using Chevrolet Bolt EVs for autonomous operations. Cruise intends to transition away from a traditional passenger vehicle such as the Bolt to GM's purpose-built people mover, the Origin - an odd-looking conveyance that lacks steering wheel and other traditional control devices. Cruise Origin prototype (Cruise) "The Origin is a real vehicle now," Vogt told the Goldman Sachs conference, "and we're currently testing it on closed courses. It's actually driving autonomously here. It was an enormous amount of effort to bring up this new vehicle. It's got an all-new sensing and compute platform, which you've been hard at work on. It has obviously new doors and screens. It has a low-cost architecture, and it was validated using a stimulation first approach, not millions of miles of testing." GM has said the battery-powered Origin will be manufactured at its Detroit-Hamtramck assembly plant. According to Vogt, Origin is designed for low cost and should last for 1 million miles, compared to a vehicle like the Bolt, which needs replacement after 200,000 or so miles. Cruise is working on low-cost sensors and custom semiconductor chips, he said. Eventually, Origin could be sold to individual consumers. "The Origin is a real vehicle now, and we're currently testing it on closed courses," he said. "It's actually driving autonomously here. It was an enormous amount of effort to bring up this new vehicle. It's got an all-new sensing and compute platform, which (we've) been hard at work on. It has obviously new doors and screens. It has a low-cost architecture, and it was validated using a stimulation first approach, not millions of miles of testing." Scaling up As for migration beyond San Francisco, Vogt claims the software developed for the Bay Area is highly adaptable to other cities. Permitting, which took 33 months in California, takes a matter of weeks in Cruise's next markets, Phoenix and Austin - which are scheduled to begin operations before the end of the year. "What I'm really excited about is we're going from zero footprint, no maps, no infrastructure on the ground - to our first revenue-generating driverless rides in about 90 days. This is something people thought may take years. It doesn't," he said. In Phoenix, Cruise will be working with Walmart (WMT) - an investor in the amount of $2.75 billion - on package delivery.

Sep 06

General Motors: The New Risk Factor

Summary Work from home is likely to be a permanent fixture for a significant portion of the US workforce going forward. Because commuting to work accounts for 30% of Vehicle Miles Traveled in the US, this has significant implications for auto manufacturers. Auto sales essentially reflect the number of cars reaching the end of their lives. A drop in VMT produces a concurrent drop in new sales as used cars last longer. But the potential exists for an even more significant impact on consumer inventory levels of automobiles, which may drop by as large or an even larger percentage. Back in 2018, I wrote an article predicting that General Motors (GM) and other automakers like Volkswagen (VWAPY) (VWAGY) (VLKAF) Ford (F) and Toyota Motors (TM) would see a substantial reduction in their unit sales within a few years because of the growing penetration of ride-hailing services like Uber (UBER) and Lyft (LYFT) with their sharing options. Obviously, the COVID-19 pandemic completely derailed that. But in fact there has been a substantial reduction in auto sales in 2022 - but for reasons obviously having little to do with Uber and Lyft. Despite this auto stocks have held up reasonably well under the Fed’s selling pressure, as the lower sales and high demand have produced a more profitable environment. The general expectation is that auto stocks will do well, either because sales stay low and maintain pricing power or because volumes recover. While the pandemic has obviously scrambled my projections around ride-hailing, it has also produced other changes that may be less auspicious for autos. In my view, the changes in work-from-home policies in corporate America may be causing longer-term deleterious changes in the US auto market, which the temporary pricing power from the pandemic is only masking. Miles, Sales And Inventories My argument in 2018 was based on the view that any substantial reduction in VMT (Vehicle Miles Travelled) must produce a concurrent reduction in autos produced and sold every year. This is because assuming a steady state of automotive penetration, new auto sales every year are basically just sales to replace cars that have worn down and reached the end of their useful lifespan. The key words there are “assuming a steady state.” The US is one of the most highly-penetrated automotive societies in the world, with a personal vehicle fleet of over 260 million cars and trucks. Because this inventory is so large relative to annual sales - around 18 million run rate when there isn’t a global chip shortage - changes in the structure of automotive utilization can have even larger impacts than changes in the rate of utilization. Thus, the impact of any change that reduces the need for automotive transport, like working from home and less commuting, must be analyzed on two levels: the impact on VMT - and through it the necessary replacement rate - and the impact on automotive consumer inventories, the cars that sit in homes’ garages and driveways. The Role Of Commuting Commuting to work constitutes a very substantial portion of the entire personal automotive mobility segment. Prior to COVID, 30% of all VMT was accounted for by commuting to and from work, while only about 6% of the civilian workforce was working remotely, which means that the average worker who is required to travel to the office was spending roughly $4,160 commuting. Those commutes were also taking almost half an hour each way, so they’re also working an hour unpaid. But that’s less relevant to GM and its peers, I suppose. The situation now is very different. Roughly 25% of the workforce is now working full time from home, and another 20% are working part time from home. There are growing indications that these changes will stick as workers demand more flexibility from employers - and considering how expensive commuting is, that’s perhaps not as surprising as some think. This means that the VMT from commuting has probably dropped by about 1/3. Thus, approximately 10% of all VMT in the country may now be in jeopardy. And that’s assuming that the work-from-home effect is finished growing, which it may not be. Could the final number be 15%? 20%? Translating Fewer Miles To Fewer Cars Replacement Rate This is bad enough if it simply produces a 20% reduction in the annual depreciation of vehicles, i.e. it reduces the number of vehicles that needs replacing by 20% per year. That alone could take an 18-million unit annual run rate down to 14.5 million. Inventory Adjustment But far more serious is the possibility, if not probability, that it will also reduce the amount of inventory that is needed to fulfill all automotive needs. If a 20% reduction in VMT also reduced the amount of cars that Americans needed to own by 20%, there would suddenly be a tsunami of no-longer-needed used cars flooding into the market. Of course, commuting isn’t heading anywhere near zero, even if it remains much lower than it has been. So a full 30% reduction is nowhere on the horizon. But the ratio of inventory to annual usage is so high that even a fraction of that is enough to produce a severe effect, if the effect on owned inventory is anywhere near the VMT reduction. This comes back to the fact that America’s high penetration of automotive ownership produces an unusually high ratio of inventory to sales. Retrograde changes in inventory greatly magnify the effects of a lower VMT because excess inventory has to be bled off through reductions in new car sales over and above what the lower replacement rate has already produced. If, for example, a cut in half of commuting did produce a 15% reduction in vehicle inventory needs, it would reduce the number of vehicles needed by roughly 39 million. That would hold auto sales at current depressed levels - but without the rocket high prices that make such low sales levels profitable - for almost nine years if phased in over that same time period. If it was phased in over five years, it would cut sales down to 10 million units per year. If it were phased in over two, it could theoretically take sales all the way down to 0 for that time frame. Disproportionate Impact? There’s also the possibility that a commuting reduction’s impact on automotive consumer inventory will be outsized relative to its share of VMT. Commuting is relatively unique among our automotive subsets in that it is more likely than any other use to produce the need for an increase in automotive inventory. Being on time to work is one of the few uses of cars for which a person or family has little to no flexibility. This increases the need for a car on hand they can use without fear of it being tied up by another family member.

Shareholder Returns

GMUS AutoUS Market
7D-11.2%-9.6%-5.2%
1Y-32.1%-6.3%-23.0%

Return vs Industry: GM underperformed the US Auto industry which returned -6.3% over the past year.

Return vs Market: GM underperformed the US Market which returned -23.1% over the past year.

Price Volatility

Is GM's price volatile compared to industry and market?
GM volatility
GM Average Weekly Movement5.9%
Auto Industry Average Movement9.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: GM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: GM's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1908157,000Mary Barrahttps://www.gm.com

General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts and accessories in North America, the Asia Pacific, the Middle East, Africa, South America, the United States, and China. 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.

General Motors Company Fundamentals Summary

How do General Motors's earnings and revenue compare to its market cap?
GM fundamental statistics
Market CapUS$51.73b
Earnings (TTM)US$7.72b
Revenue (TTM)US$132.10b

6.7x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GM income statement (TTM)
RevenueUS$132.10b
Cost of RevenueUS$105.98b
Gross ProfitUS$17.90b
Other ExpensesUS$10.18b
EarningsUS$7.72b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 25, 2022

Earnings per share (EPS)5.30
Gross Margin13.55%
Net Profit Margin5.85%
Debt/Equity Ratio163.5%

How did GM perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

0%

Payout Ratio