General Motors Co (NYSE: GM)

Sector: Consumer Cyclical Industry: Auto Manufacturers CIK: 0001467858
Market Cap 81.08 Bn
P/B 1.33
P/E 25.50
P/S 0.44
ROIC (Qtr) 1.15
Div Yield % 0.67
Rev 1y % (Qtr) -5.06
Total Debt (Qtr) 130.28 Bn
Debt/Equity (Qtr) 2.13

About

General Motors Company, known as GM, is a multinational corporation that operates in the automotive industry. The company's primary business activities involve designing, manufacturing, and selling vehicles and automotive parts across the globe. GM has a significant presence in various countries and regions, including North America, China, Brazil, and Europe. GM generates revenue through the sale of vehicles, automotive parts, and software-enabled services and subscriptions. The company's primary products include trucks, crossovers, cars, and SUVs,...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 26.87B provides exceptional 323.70x coverage of minority interest expenses 83M, showing strong core operations.
  • Operating cash flow of 26.87B provides exceptional 36.96x coverage of interest expenses 727M, showing strong debt service capability.
  • Strong operating cash flow of 26.87B provides 3.09x coverage of SG&A expenses 8.69B, showing efficient operational cost management.
  • Robust tangible asset base of 276.92B provides 17.95x coverage of working capital 15.43B, indicating strong operational backing.
  • Long-term investments of 50.06B provide solid 0.53x coverage of long-term debt 94.61B, indicating strategic financial planning.

Bear case

  • Operating cash flow of 26.87B barely covers its investment activities of (16.13B), with a coverage ratio of -1.67, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 26.87B provides thin coverage of dividend payments of (657M) with a -40.89 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of 3.76B show weak coverage of depreciation charges of 14.59B, with a 0.26 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 11.87B represents just -4.38x of debt issuance (2.71B), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 14.59B relative to operating cash flow of 26.87B, which is 0.54x suggests significant maintenance capital requirements affecting free cash flow.

Segments Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Auto Manufacturers
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TSLA Tesla, Inc. 1,386.72 Bn 263.09 14.50 7.70 Bn
2 TM Toyota Motor Corp/ 286.80 Bn 9.26 0.87 287.20 Bn
3 GM General Motors Co 81.08 Bn 25.50 0.44 130.28 Bn
4 RACE Ferrari N.V. 59.53 Bn 31.60 7.15 3.38 Bn
5 F Ford Motor Co 55.12 Bn 17.49 0.30 161.94 Bn
6 HMC Honda Motor Co Ltd 42.13 Bn 9.65 0.29 88.09 Bn
7 STLA Stellantis N.V. 29.73 Bn -10.57 0.17 -
8 XPEV Xpeng Inc. 17.74 Bn -44.29 1.79 4.87 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.68 1.20
EV to Cash from Ops. EV/CFO 7.10 5.88
EV to Debt EV to Debt 1.46 28.94
EV to EBIT EV/EBIT 50.68 11.38
EV to EBITDA EV/EBITDA 10.90 7.73
EV to Free Cash Flow [EV/FCF] EV/FCF 16.07 8.79
EV to Market Cap EV to Market Cap 2.35 304,683.06
EV to Revenue EV/Rev 1.03 16.98
Price to Book Value [P/B] P/B 1.33 3.04
Price to Earnings [P/E] P/E 25.50 9.04
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 18.28 0.59
Dividend Payout Ratio % Div Payout % (Qtr) 17.10 6.04
Dividend per Basic Share Div per Share (Qtr) 0.57 0.36
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 4.59 2.58
Interest Coverage Int. cover (Qtr) 5.17 8.74
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 1.42 -59.34
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 5.40 62.23
Dividend Growth (1y) % Div 1y % (Qtr) 18.75 1.34
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -49.36 -1,057.18
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -30.49 -19.82
EBIT Growth (1y) % EBIT 1y % (Qtr) -60.02 -1,011.94
EBT Growth (1y) % EBT 1y % (Qtr) -64.56 -216.80
EPS Growth (1y) % EPS 1y % (Qtr) -48.37 -59.11
FCF Growth (1y) % FCF 1y % (Qtr) 141.57 -21.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -50.46 -10.92
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.66 0.33
Cash Payout Ratio Cash Payout (Qtr) 0.02 0.03
Cash Ratio Cash Ratio (Qtr) 0.22 0.40
Current Ratio Curr Ratio (Qtr) 1.17 1.21
Debt to Equity Ratio Debt/Equity (Qtr) 2.13 0.99
Interest Cover Ratio Int Coverage (Qtr) 5.17 8.74
Times Interest Earned Times Interest Earned (Qtr) 5.17 8.74
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 9.90 -2,589.89
EBIT Margin % EBIT Margin % (Qtr) 2.03 -104,371.67
EBT Margin % EBT Margin % (Qtr) 1.64 -3,156.67
Gross Margin % Gross Margin % (Qtr) 6.30 -649.09
Net Profit Margin % Net Margin % (Qtr) 1.70 -3,158.82