NYSE:GM

Stock Analysis Report

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Market Cap

US$87.2b

Last Updated

2021/06/24 05:26 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Proven track record 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: GM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GM's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.07%

GM

5.2%

US Auto

0.5%

US Market


1 Year Return

138.3%

GM

201.8%

US Auto

42.6%

US Market

Return vs Industry: GM underperformed the US Auto industry which returned 178.6% over the past year.

Return vs Market: GM exceeded the US Market which returned 39% over the past year.


Shareholder returns

GMIndustryMarket
7 Day0.07%5.2%0.5%
30 Day5.9%10.8%1.9%
90 Day6.4%5.8%7.9%
1 Year138.3%138.3%202.1%201.8%44.9%42.6%
3 Year59.9%48.4%319.4%298.6%64.4%54.1%
5 Year148.4%112.4%524.7%452.0%128.3%102.7%

Long-Term 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?

9.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GM ($59.3) is trading above our estimate of fair value ($52.94)

Significantly Below Fair Value: GM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GM is good value based on its PE Ratio (9.5x) compared to the US Auto industry average (25.9x).

PE vs Market: GM is good value based on its PE Ratio (9.5x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

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 (1.7x) compared to the US Auto industry average (4.3x).


Future Growth

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

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GM's forecast earnings growth (3.1% per year) is above the savings rate (2%).

Earnings vs Market: GM's earnings (3.1% per year) are forecast to grow slower than the US market (15.6% per year).

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

Revenue vs Market: GM's revenue (4.2% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: GM's revenue (4.2% 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 (16.3%).


Past Performance

How has General Motors performed over the past 5 years?

-15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GM has high quality earnings.

Growing Profit Margin: GM's current net profit margins (7.3%) are higher than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: GM's earnings have declined by 15.1% per year over the past 5 years.

Accelerating Growth: GM's earnings growth over the past year (90.6%) exceeds its 5-year average (-15.1% per year).

Earnings vs Industry: GM earnings growth over the past year (90.6%) exceeded the Auto industry 41.3%.


Return on Equity

High ROE: GM's Return on Equity (16.6%) is considered low.


Financial Health

How is General Motors's financial position?


Financial Position Analysis

Short Term Liabilities: GM's short term assets ($82.1B) exceed its short term liabilities ($76.3B).

Long Term Liabilities: GM's short term assets ($82.1B) do not cover its long term liabilities ($107.6B).


Debt to Equity History and Analysis

Debt Level: GM's debt to equity ratio (203.4%) is considered high.

Reducing Debt: GM's debt to equity ratio has increased from 172.2% to 203.4% over the past 5 years.

Debt Coverage: GM's debt is not well covered by operating cash flow (14.8%).

Interest Coverage: GM's interest payments on its debt are well covered by EBIT (11.3x coverage).


Balance Sheet


Dividend

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

1.22%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate GM'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 GM's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

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


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Mary Barra (58 yo)

7.42yrs

Tenure

US$23,657,987

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 ($USD23.66M) is above average for companies of similar size in the US market ($USD11.27M).

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


Leadership Team

Experienced Management: GM's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: GM's board of directors are considered experienced (5 years average tenure).


Ownership

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


Insider Trading Volume

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


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$87.214b
  • Shares outstanding: 1.45b
  • Website: https://www.gm.com

Number of Employees


Location

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

Listings


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 Analysis2021/06/24 05:26
End of Day Share Price2021/06/23 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.