General Motors Co (GM) stock analysis

P/E above its 5-year median

General Motors's P/E of 19.3 is above its own 5-year median of 6.4.

P/E above the industry

General Motors's P/E of 19.3 is above the Motor Vehicles and Motor Vehicle Equipment median of 17.4.

EV/EBITDA above its 5-year median

General Motors's EV/EBITDA of 2.8 is above its 5-year median of 1.2.

P/B below the industry

General Motors's price-to-book of 1.16 is below the Motor Vehicles and Motor Vehicle Equipment median of 1.57.

Trading below fair value

The share price of $86.00 is below our fair value estimate of $92.53.

Margin of safety under 20%

The price is 7.1% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 5.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -18.9% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 30.0% over the last twelve months, against a 5-year average of -15.9% a year.

Growing slower than the industry

Revenue grew -0.3% over the last twelve months; the Motor Vehicles and Motor Vehicle Equipment median is 5.5%.

Guidance raised

General Motors raised its full-year 2026 Automotive operating cash flow outlook on Oct 20, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 6.1% over the last twelve months and averaged 12.8% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 11.5%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

General Motors's return on equity of 6.1% is above the Motor Vehicles and Motor Vehicle Equipment median of 3.5%.

Earnings shrank over 5 years

Net income shrank 15.9% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 2.1% over the last twelve months, against a 5-year average of 5.0%.

Net margin above the industry

General Motors's net margin of 2.1% is above the Motor Vehicles and Motor Vehicle Equipment median of 1.9%.

No debt

General Motors has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 1.09 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.19; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

General Motors paid dividends worth 0.8% of the share price over the last twelve months.

Yield below Treasuries

The 0.8% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; General Motors yields 0.8%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 9 fiscal years.

Covered by earnings

Dividends take 29.9% of net income.

Covered by free cash flow

Dividends take 8.2% of free cash flow.