General Motors (GM) AI Stock Analysis

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General Motors

(NYSE:GM)

70Outperform

General Motors demonstrates strong financial performance with robust profitability and a stable balance sheet, but faces challenges in cash flow management. While the stock's technical indicators suggest a neutral to slightly bearish trend, its valuation is attractive with a low P/E ratio. Recent earnings call and corporate events reflect both strategic growth in EVs and challenges from tariffs and cost pressures, balancing the overall outlook.

Positive Factors

Cash Flow Management

Since the beginning of 2022, GM has generated $31 billion of surplus cash and returned $25 billion to shareholders.

Earnings Performance

North America EBIT was 3% higher than consensus on revenue 5% ahead and volumes stronger than expected.

Shareholder Returns

GM announced a new $6 billion share repurchase authorization, which includes a $2 billion accelerated share repurchase program.

Negative Factors

Margin Pressure

GM's commitment not to raise prices is politically helpful but economically nonsensical, risking margin compression and underperformance.

Pricing Power

Weakening pricing power limits GM's ability to pass on costs to consumers.

Tariffs Impact

Tariffs are a significant headwind for GM, impacting the company's 2025 outlook.

General Motors (GM) vs. S&P 500 (SPY)

Market Cap

$43.55B

Dividend Yield1.06%

Average Volume (3M)16.79M

Price to Earnings (P/E)6.5

Beta (1Y)1.01

Revenue Growth7.76%

EPS Growth-14.17%

CountryUS

Employees162,000

SectorConsumer Cyclical

Sector Strength59

IndustryAuto - Manufacturers

Share Statistics

EPS (TTM)2.78

Shares Outstanding961,434,750

10 Day Avg. Volume12,444,019

30 Day Avg. Volume16,790,503

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap3.54

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit6.60

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$52.50

Price Target Upside15.69% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering18

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 Key Performance Indicators (KPIs)

Any

Total Vehicles Delivered

Total Vehicles Delivered
Tracks the total number of vehicles delivered, reflecting overall demand, production capacity, and sales performance.

Chart InsightsGeneral Motors' vehicle deliveries have shown a recovery trend in late 2024, rebounding from earlier declines. Despite challenges like increased warranty costs and restructuring in China, GM's strong U.S. market performance and significant growth in the EV segment have bolstered overall results. The company achieved record revenue and EBIT in 2024, with plans to further enhance EV profitability in 2025. However, potential policy and tariff risks could pose challenges. GM's strategic focus on disciplined pricing and market share growth aims to sustain long-term profitability.

Data provided by:

Main Street Data

General Motors Financial Statement Overview

Summary

General Motors has shown strong revenue growth and operational efficiency. The balance sheet is stable with no debt, which is unusual and indicates a potential strategic shift. Cash flow has improved, though historical volatility is a concern. Overall, profitability challenges remain due to rising costs and decreased net profit margins.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
20.82B	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
110.82B	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
-5.98B	-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

Technical Analysis Sentiment

Negative

Last Price45.38

Price Trends

50DMA

46.86

Negative

100DMA

48.76

Negative

200DMA

48.78

Negative

Market Momentum

MACD

-0.31

Negative

RSI

46.77

Neutral

STOCH

23.97

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 45.38 is above the 20-day moving average (MA) of 45.11, below the 50-day MA of 46.86, and below the 200-day MA of 48.78, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 46.77 is Neutral, neither overbought nor oversold. The STOCH value of 23.97 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LI	76 Outperform	$25.52B	23.86	12.29%	―	15.50%	-32.48%
TM	75 Outperform	$252.11B	7.62	14.59%	2.53%	-0.59%	7.56%
HMC	74 Outperform	$49.69B	7.13	8.11%	3.94%	4.37%	6.93%
TSLA	74 Outperform	$923.82B	157.95	9.16%	―	1.03%	-53.71%
F	73 Outperform	$40.88B	7.03	13.42%	7.29%	5.00%	35.92%
GM	70 Outperform	$43.55B	6.53	8.88%	1.06%	7.76%	-14.17%
Sector *	61 Neutral	$6.64B	11.67	3.04%	3.98%	2.60%	-21.24%

* Consumer Cyclical Sector Average

Performance Comparison

General Motors

45.38

0.77

1.73%

Ford Motor

10.17

-1.45

-12.48%

HMC

Honda Motor Company

30.80

-2.80

-8.33%

TSLA

Tesla

280.26

95.50

51.69%

Toyota Motor

192.48

-43.12

-18.30%

Li Auto

25.25

-3.95

-13.53%

General Motors Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q1-2025)

% Change Since: -3.94%|

Next Earnings Date:Jul 22, 2025

Earnings Call Sentiment Neutral

The earnings call presented a balanced view with significant achievements in market share and EV growth, alongside challenges from tariffs and cost pressures. GM demonstrated strong adaptability but faces ongoing pressure to mitigate tariff impacts and manage costs effectively.

Q1-2025 Updates

Positive Updates

Market Share Growth

GM gained almost two full points of market share year-over-year in the US, outpacing every other major automaker, with Q1 margin in North America at 8.8%.

EV Market Position

GM achieved over 90% year-over-year growth in EVs, securing the number two position in the US market, with Cadillac EVs accounting for 20% of its US sales.

Successful Mitigation of Supply Chain Disruption

GM Supply chain team quickly overcame a fire at a supplier factory, limiting production impact to about 7,000 units, all expected to be recovered in Q2.

Strong US Manufacturing and Compliance

GM increased direct purchases in the US for North American production by 27% since 2019, with more than 80% USMCA compliant content in US assembled vehicles.

Cash Flow and Capital Management

GM reported adjusted automotive free cash flow guidance in the range of $7.5 billion to $10 billion and continued disciplined capital expenditures.

Negative Updates

Impact of Tariffs

GM expects a $4 billion to $5 billion impact from tariffs on vehicle imports from Korea, Mexico, and Canada, with efforts to offset only 30% of this headwind.

Cost Pressures

Fixed costs were up $400 million year-over-year due to higher depreciation, amortization, warranty pressure, and labor costs.

Warranty Expenses

GM faces $500 million of incremental expenses for voluntary measures addressing engine supplier quality issues in some model year 2021 to 2024 vehicles.

Currency Exchange Headwinds

GM faced a $300 million headwind from foreign exchange, primarily due to weakness in the Mexican peso.

Company Guidance

During the first quarter 2025 earnings call, General Motors updated its full-year EBIT adjusted guidance to a range of $10 billion to $12.5 billion, impacted by a $4 billion to $5 billion tariff exposure, from which the company aims to offset 30% through self-help initiatives. The first-quarter results saw total company revenue of $44 billion, up 2% year-over-year, with a market share increase to 17.2% in the US. GM reported a first-quarter EBIT adjusted of $3.5 billion and EPS diluted adjusted of $2.78. In North America, GM's Q1 margin was 8.8%, within their target range of 8% to 10%, despite headwinds from tariffs and other factors. The company highlighted strong US EV market share growth to 10%, rising to 12% in March, maintaining its position as the number two EV seller. GM continues to focus on strengthening its US manufacturing capabilities, with over 80% of its US-assembled vehicles being USMCA compliant, and plans to adjust its supply chain to further increase US content.

General Motors Corporate Events

Business Operations and StrategyFinancial Disclosures

General Motors Revises 2025 Earnings Guidance Downward

Negative

May 1, 2025

On May 1, 2025, General Motors updated its full-year earnings guidance for 2025, reflecting a downward revision due to an estimated tariff-related impact of $4.0 billion to $5.0 billion. The updated financial outlook includes reduced expectations for net income, EBIT-adjusted, automotive operating cash flow, and adjusted automotive free cash flow. Despite these adjustments, the company plans to maintain its capital spending, including investments in battery cell manufacturing joint ventures, at $10.0 billion to $11.0 billion. This announcement may affect stakeholders’ perceptions of GM’s financial health and its ability to navigate regulatory and policy challenges.

Spark’s Take on GM Stock

According to Spark, TipRanks’ AI Analyst, GM is a Outperform.

General Motors receives a solid overall score due to strong financial performance, undervaluation, and positive developments in the EV sector. Challenges like profitability maintenance and policy risks are offset by strategic capital allocation. The stock is well-positioned but requires attention to sustaining cash flow improvements.

To see Spark’s full report on GM stock, click here.

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.

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.