Education
About Us
Working with TipRanks
Follow Us
General Motors (GM)
NYSE:GM
Top Page
General Motors
(NYSE:GM)74Outperform
Positive Factors
Financial Performance
General Motors exceeded revenue expectations, generating $47.7 billion compared to the consensus of $44.0 billion.
Operational Execution
GM continues to perform at a high level and extended its long and admirable track record of beating and raising on the back of strong execution with respect to controllable factors.
Negative Factors
Strategic Challenges
The company continues to dismantle its strategy in areas like BEV, China, and AV, lacking a long-term plan.
General Motors (GM) vs. S&P 500 (SPY)
Market Cap
$48.88B
Dividend Yield1.01%
Average Volume (3M)12.09M
Price to Earnings (P/E)7.7
Beta (1Y)1.42
Revenue Growth9.08%
EPS Growth-15.25%
CountryUS
Employees162,000
SectorConsumer Cyclical
Sector Strength53
IndustryVehicles
Share Statistics
EPS (TTM)6.14
Shares Outstanding995,001,900
10 Day Avg. Volume11,247,434
30 Day Avg. Volume12,092,641
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)N/A
Price to Sales (P/S)0.26
Price to Cash Flow (P/CF)3.00
P/FCF Ratio13.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$59.69Price Target Upside32.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
General Motors Business Overview & Revenue Model
Company DescriptionGeneral Motors (GM) is a leading global automotive manufacturer headquartered in Detroit, Michigan, known for its wide range of vehicles, including cars, trucks, and SUVs. The company operates across various sectors, including automotive design, manufacturing, and sales, as well as financial services. GM's core brands include Chevrolet, Buick, GMC, and Cadillac, and it is actively involved in the development of electric and autonomous vehicles.
How the Company Makes MoneyGeneral Motors generates revenue primarily through the sale of vehicles across its brand portfolio, which includes Chevrolet, Buick, GMC, and Cadillac. The company earns money from the manufacturing and sale of cars, trucks, and SUVs to individual consumers, dealerships, and fleet customers globally. Additionally, GM Financial, a wholly-owned subsidiary, provides automotive financial services, including loan and lease programs, contributing significantly to the company's earnings. GM also invests in innovative technologies such as electric and autonomous vehicles, which are expected to become increasingly important revenue streams in the future. Strategic partnerships and joint ventures, such as those with technology firms and battery manufacturers, support GM's growth in these emerging markets.
General Motors Financial Statement Overview
Summary
General Motors shows robust revenue growth and operational efficiency, yet faces challenges in maintaining net profitability. The balance sheet is stable with no debt, suggesting strategic changes, while cash flow generation has improved significantly, though past volatility remains a concern.Income Statement
General Motors has demonstrated solid revenue growth over recent years, with a notable increase from the previous year. The company's EBIT and EBITDA margins are healthy, indicating strong operational efficiency. However, the net profit margin has decreased, reflecting challenges in maintaining profitability amidst rising costs or other operational challenges.75
Positive
Balance Sheet
The balance sheet reflects a strong equity base with a favorable equity ratio, indicating stability. However, the company has fully paid off its debt, which is unusual and may suggest a strategic shift in capital structure. The return on equity has decreased, impacting overall profitability.68
Positive
Cash Flow
General Motors has turned around its free cash flow position, indicating improved cash generation capabilities. Operating cash flow remains strong relative to net income, but historical volatility in free cash flow indicates potential risks in sustaining this performance.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 187.44B | 171.84B | 156.74B | 127.00B | 122.48B | Gross Profit |
| 23.41B | 19.28B | 20.98B | 17.88B | 13.67B | EBIT |
| 12.78B | 9.30B | 10.31B | 13.67B | 8.93B | EBITDA |
| 21.75B | 23.05B | 23.86B | 25.71B | 21.87B | Net Income Common Stockholders |
| 6.01B | 10.13B | 9.93B | 10.02B | 6.43B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 27.14B | 26.47B | 31.30B | 28.68B | 29.04B | Total Assets |
| 279.76B | 273.06B | 264.04B | 244.72B | 235.19B | Total Debt |
| 130.69B | 122.65B | 114.70B | 109.38B | 110.86B | Net Debt |
| -19.87B | 103.80B | 95.55B | 89.31B | 90.87B | Total Liabilities |
| 214.17B | 204.76B | 191.75B | 178.90B | 185.52B | Stockholders Equity |
| 63.07B | 64.29B | 67.79B | 59.74B | 45.03B |
| Cash Flow | Free Cash Flow | |||
| 4.85B | -3.68B | -5.14B | -6.92B | -3.86B | Operating Cash Flow |
| 20.13B | 20.93B | 16.04B | 15.19B | 16.67B | Investing Cash Flow |
| -20.52B | -14.66B | -17.88B | -16.36B | -21.83B | Financing Cash Flow |
| 1.94B | -6.35B | 383.00M | 1.74B | 5.55B |
General Motors Technical Analysis
Negative
45.22
Price Trends
50.10
Negative
51.52
Negative
48.73
Negative
Market Momentum
-0.89
Negative
37.48
Neutral
41.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GM, the sentiment is Negative. The current price of 45.22 is below the 20-day moving average (MA) of 47.51, below the 50-day MA of 50.10, and below the 200-day MA of 48.73, indicating a bearish trend. The MACD of -0.89 indicates Negative momentum. The RSI at 37.48 is Neutral, neither overbought nor oversold. The STOCH value of 41.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GM.
General Motors Risk Analysis
General Motors disclosed 27 risk factors in its most recent earnings report. General Motors reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
General Motors Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $875.02B | 133.46 | 9.73% | ― | 0.95% | -52.81% | |
74 Outperform | $48.88B | 7.72 | 9.53% | 1.01% | 9.08% | -15.25% | |
71 Outperform | $36.15B | 6.24 | 13.11% | 7.99% | 5.00% | 35.92% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
43 Neutral | $12.73B | ― | -72.34% | ― | 12.09% | 17.65% | |
37 Underperform | $6.43B | ― | -70.08% | ― | 35.71% | 8.24% |
* Consumer Cyclical Sector Average
Performance Comparison
GM
General Motors
45.22
4.87
12.07%
F
Ford Motor
9.12
-2.57
-21.98%
TSLA
Tesla
272.04
91.30
50.51%
LCID
Lucid Group
2.10
-1.08
-33.96%
RIVN
Rivian Automotive
11.26
0.33
3.02%
General Motors Earnings Call Summary
Earnings Call Date: Jan 28, 2025 | % Change Since: -17.66% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
GM demonstrated strong financial performance and growth, particularly in the U.S. market and its EV segment, with disciplined capital allocation. However, challenges in China, increased warranty costs, and potential policy risks present significant concerns.Highlights
Record-Breaking Financial Results
Full year revenue grew by 9% year-over-year, with EBIT-adjusted at $14.9 billion, record adjusted automotive free cash flow, and record EPS-diluted-adjusted at $10.60, up 38% year-over-year.
Strong Performance in the U.S. Market
GM was #1 in the U.S. in retail, fleet, and total sales, growing market share by 30 basis points to 16.5% for the full year, with 17.5% in Q4, the highest since 2018 excluding pandemic impacts.
Significant Growth in EV Business
GM wholesaled 189,000 EVs in North America, doubling its market share over the year and achieving variable profit positive in Q4.
Improvements in EV Profitability
The Equinox EV saw a $1,000 improvement in variable profit since launch in Q2 2024, with plans to approach $2 billion in total annual revenue from Super Cruise within five years.
Successful Capital Allocation
GM returned nearly 55% of its free cash flow to shareholders, achieving its goal of reducing share count below 1 billion shares ahead of schedule.
Lowlights
Challenges in China
Despite some progress, GM reported a $4.1 billion special item in China related to impairments and restructuring actions, impacting profitability with a need for comprehensive restructuring.
Warranty and Legal Costs Pressure
Higher warranty costs and legal reserves impacted North America's Q4 margin by 1.3 percentage points, with a continued focus on driving down repair costs.
Cruise Restructuring Costs
A $500 million restructuring charge was recorded for Cruise, with a $1 billion annual run rate savings expected by ending robotaxi development.
Potential Policy and Tariff Risks
Uncertainty around public policy, trade, and potential tariffs could impact financial guidance if changes occur beyond current assumptions.
Company Guidance
In the General Motors Company Fourth Quarter and Calendar Year 2024 Earnings Conference Call, GM provided guidance for 2025 with several key financial metrics. The company expects EBIT-adjusted to range between $13.7 billion and $15.7 billion and EPS-diluted-adjusted between $11 and $12 per share. Adjusted automotive free cash flow is forecasted to be in the range of $11 billion to $13 billion. GM achieved a record full-year revenue of $187 billion in 2024, up 9% year-over-year, with a strong performance in both ICE and EV segments. The company also reported a record EBIT-adjusted of $14.9 billion and adjusted automotive free cash flow of $14 billion. In 2025, GM plans to wholesale approximately 300,000 EVs, with continued improvements in EV profitability and a target of achieving a positive EBIT margin. Despite uncertainties such as potential changes in public policy and tariffs, GM remains focused on disciplined pricing, market share growth, and capital allocation to ensure long-term profitability and shareholder returns.General Motors Corporate Events
Stock BuybackDividendsBusiness Operations and Strategy
General Motors Announces $6 Billion Share Buyback Plan
Positive
Feb 26, 2025
On February 24, 2025, General Motors’ Board of Directors approved a new $6 billion share repurchase program, including a $2 billion accelerated share repurchase (ASR) agreement with Barclays and J.P. Morgan. The company also announced an increase in its quarterly common stock dividend by $0.03 per share, effective from April 2025. These financial strategies are part of GM’s broader capital allocation plan to reinvest in business growth, maintain a strong balance sheet, and return capital to shareholders. The ASR program is expected to conclude by the second quarter of 2025, with the final number of shares repurchased based on average stock prices during the program’s term.
Product-Related AnnouncementsBusiness Operations and Strategy
General Motors Focuses on Personal Autonomous Vehicles
Positive
Dec 10, 2024
General Motors has announced a strategic shift to focus its autonomous driving development on personal vehicles, leveraging its Super Cruise technology and combining efforts with Cruise LLC. GM will cease funding Cruise’s robotaxi development to streamline operations, enhance integration, and achieve significant cost savings while increasing its ownership in Cruise to over 97%.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.