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General Motors
(NYSE:GM)
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Rating:57Neutral
Price Target:
$86.00
▲(0.22% Upside)
Action:Reiterated
Date:10/20/26
The score is held back primarily by weakened current profitability and elevated leverage in the financial statements, alongside a valuation headwind from a high P/E and low dividend yield. These are partially offset by a strong and upbeat earnings call (record results, improved North America margins, and higher free cash flow guidance), while technical indicators suggest a mostly neutral setup rather than a strong trend.
Positive Factors
Truck leadership and North America margins
GM’s leading full-size pickup position supports a favorable mix and provides a durable earnings base in North America. The recovery of regional margins into the company’s target range, alongside sustained truck share leadership, strengthens operating resilience and supports future product launches.
Negative Factors
Compressed profitability and heavy leverage
Weak current profitability reduces the earnings buffer available to absorb cyclical pressure, while leverage near two times equity limits financial flexibility. Lower returns on equity also indicate that GM is converting its substantial asset base into earnings less efficiently than in earlier periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Truck leadership and North America margins
GM’s leading full-size pickup position supports a favorable mix and provides a durable earnings base in North America. The recovery of regional margins into the company’s target range, alongside sustained truck share leadership, strengthens operating resilience and supports future product launches.
Read all positive factors
General Motors Key Performance Indicators (KPIs)
Any
Vehicles Delivered by Geography
Breaks down vehicle deliveries by region, highlighting where General Motors is seeing the most demand and potential growth opportunities or challenges.
Breaks down vehicle deliveries by region, highlighting where General Motors is seeing the most demand and potential growth opportunities or challenges.
Data provided by:
The Fly
The FlyGeneral Motors (GM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$67.64B
Dividend Yield0.91%
Average Volume (3M)7.96M
Price to Earnings (P/E)17.2
Beta (1Y)0.84
Revenue Growth-0.26%
EPS Growth-11.45%
CountryUS
Employees156,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)4.42
Shares Outstanding877,451,540
10 Day Avg. Volume8,163,396
30 Day Avg. Volume7,962,657
Financial Highlights & Ratios
PEG Ratio-0.50
Price to Book (P/B)1.22
Price to Sales (P/S)0.40
P/FCF Ratio6.75
Enterprise Value/Market Cap2.48
Enterprise Value/Revenue0.90
Enterprise Value/Gross Profit9.97
Enterprise Value/Ebitda11.14
Forecast
1Y Price Target
$108.00Price Target Upside25.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)13.49
Revenue Forecast (FY)$185.89B
General Motors Business Overview & Revenue Model
Company Description
General Motors Company, a prominent global automotive enterprise, is engaged in the design, manufacturing, and distribution of a wide array of vehicles—including trucks, crossovers (SUVs), and passenger cars—along with related parts and accessorie...
How the Company Makes Money
GM primarily makes money by selling vehicles and related products and services through multiple revenue streams. (1) Automotive sales: The largest source of revenue is wholesale sales of new vehicles (trucks, SUVs, crossovers, and passenger vehicl...
General Motors Earnings Call Summary
Earnings Call Date:Oct 20, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 27, 2027
Earnings Call Sentiment Positive
The call was predominantly positive. GM reported record quarterly revenue, strong EBIT and EPS growth, improved North American margins, higher free cash flow guidance, substantial share repurchases, strong truck performance, growing digital revenue, and continued profitability at GM Financial and in China. These strengths outweighed the acknowledged challenges, including approximately $2 billion of full-year commodity, logistics, and DRAM headwinds, ongoing EV restructuring charges, international softness, tariff costs, and uncertainty around 2027 cost pressures.Positive Updates
Record Quarterly Revenue and Strong Earnings Growth
Third-quarter revenue reached a record $50 billion, up 3% year-over-year. EBIT adjusted was $4.1 billion, up 22% year-over-year, and diluted adjusted EPS was $3.70, up more than 30% year-over-year.
Negative Updates
Commodity, Logistics, and DRAM Cost Inflation
Commodity and logistics pressures intensified, with copper prices at record levels and HRC steel prices at four-year highs. Spot prices for both HRC steel and copper were up 10%-15% since July and approximately 50% versus last year's average. These pressures are expected to create approximately $400 million of incremental calendar-year costs, with the majority affecting the fourth quarter, and a total full-year headwind of around $2 billion from commodity inflation, logistics, and DRAM costs.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly Revenue and Strong Earnings Growth
Third-quarter revenue reached a record $50 billion, up 3% year-over-year. EBIT adjusted was $4.1 billion, up 22% year-over-year, and diluted adjusted EPS was $3.70, up more than 30% year-over-year.
Read all positive updates
Company Guidance
GM now expects 2026 EBIT adjusted of $14.5 billion-$15.5 billion, EPS diluted adjusted of $12.75-$13.75, capital expenditures at the lower half of the $10 billion-$12 billion range, and adjusted automotive free cash flow of $11.5 billion-$12.5 billion; it expects total SAAR in the mid 16-million unit range, approximately 16 million for the rest of the year, a year-over-year volume headwind of approximately 35,000 full-size pickups, a full-year pricing tailwind of 0.5% in North America, EV loss reduction of $1 billion-$1.5 billion, warranty improvement closer to the high end of $1 billion-$1.5 billion, emissions-related regulatory savings around $500 million year-to-date, gross tariff costs at the low end of $2.5 billion-$3.5 billion, a 20%-21% effective tax rate and a fourth-quarter tax rate in the 25%-27% range, commodity inflation, logistics, and DRAM costs around $2 billion, and onshoring, supply-chain, and software investments of approximately $1 billion-$1.5 billion; GM Financial remains on track for full-year EBT adjusted of $2.5 billion-$3 billion, while OnStar Digital and Super Cruise are on track for more than $3 billion in realized revenue for calendar year 2026 and to approach $7.5 billion in deferred revenue by year-end. For 2027, assuming market conditions in the tariff environment remain broadly similar to 2026 and recent commodity pressures moderate, GM continues to believe it can grow revenue, margins, and EBIT adjusted; annualizing recent incremental commodity inflation would mean an additional $1 billion-$1.5 billion of EBIT adjusted headwind and a total headwind of roughly $2 billion.General Motors Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
48
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 186.95B | 185.02B | 187.44B | 171.84B | 156.74B | 127.00B |
| Gross Profit | 16.81B | 20.10B | 32.60B | 29.04B | 30.78B | 25.78B |
| EBITDA | 15.04B | 18.43B | 21.75B | 23.20B | 23.87B | 25.72B |
| Net Income | 3.93B | 2.70B | 6.01B | 10.13B | 9.93B | 10.02B |
Balance Sheet | ||||||
| Total Assets | 289.18B | 281.28B | 279.76B | 273.06B | 264.04B | 244.72B |
| Cash, Cash Equivalents and Short-Term Investments | 27.80B | 27.67B | 27.14B | 26.47B | 31.30B | 28.68B |
| Total Debt | 128.74B | 130.28B | 130.69B | 122.65B | 115.67B | 110.39B |
| Total Liabilities | 224.66B | 218.12B | 214.17B | 204.76B | 191.75B | 178.90B |
| Stockholders Equity | 62.81B | 61.12B | 63.07B | 64.29B | 67.79B | 59.74B |
Cash Flow | ||||||
| Free Cash Flow | 16.50B | 11.07B | -5.98B | -3.68B | -5.14B | -6.92B |
| Operating Cash Flow | 23.42B | 26.87B | 20.13B | 20.93B | 16.04B | 15.19B |
| Investing Cash Flow | -10.22B | -16.13B | -20.52B | -14.66B | -17.88B | -16.36B |
| Financing Cash Flow | -12.29B | -9.59B | 1.94B | -6.35B | 383.00M | 1.74B |
General Motors Technical Analysis
Negative
85.81
Price Trends
83.71
Negative
82.55
Negative
80.37
Negative
Market Momentum
-0.97
Positive
35.50
Neutral
24.98
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 85.81 is above the 20-day moving average (MA) of 81.00, above the 50-day MA of 83.71, and above the 200-day MA of 80.37, indicating a bearish trend. The MACD of -0.97 indicates Positive momentum. The RSI at 35.50 is Neutral, neither overbought nor oversold. The STOCH value of 24.98 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 28 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $1.53T | 327.52 | 4.58% | ― | 11.75% | -37.64% | |
62 Neutral | $232.44B | 8.85 | 11.67% | 3.23% | 3.88% | 4.59% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | $67.64B | 17.22 | 6.32% | 0.91% | -0.26% | -11.45% | |
57 Neutral | $44.43B | -46.71 | -1.40% | 4.30% | 0.81% | -128.78% | |
54 Neutral | $48.45B | -6.40 | -18.90% | 5.04% | 1.47% | -315.47% | |
47 Neutral | $18.00B | -4.83 | -67.49% | ― | 14.21% | 20.20% |
* Consumer Cyclical Sector Average
GM
General Motors
76.11
9.83
14.83%
F
Ford Motor
11.90
0.11
0.93%
HMC
Honda Motor Company
33.97
2.38
7.53%
TSLA
Tesla
386.47
-62.51
-13.92%
TM
Toyota Motor
194.86
-9.20
-4.51%
RIVN
Rivian Automotive
12.46
-0.63
-4.81%
General Motors Corporate Events
Business Operations and StrategyPrivate Placements and Financing
General Motors Launches $4.5 Billion Inventory Financing Program
Positive
Aug 11, 2026
On August 7, 2026, General Motors entered into a Master IPU Agreement establishing a $4.5 billion inventory financing program with Procura Auto Parts LLC, supported by bank funding from a syndicate including JPMorgan Chase and Banco Santander. Und...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.