Attractive P/E Ratio
Low Price-to-Sales Ratio
Decent Return on Equity
Operating Profit Margin
Strong Interest Coverage
Current Ratio Above 1
📈 Strong Revenue Growth
🏆 Market Leadership
🔋 Positive EV Profitability
🚀 EV Growth Potential
💡 Innovation and Technology Advancements
Negative Price-to-Free Cash Flow
Low Net Profit Margin
High Debt Levels
⚠️ Warranty Costs Impact
🌍 Regulatory Uncertainty
🔄 ICE Volume Decline
Overall, GM shows strong business quality with solid revenue growth and market leadership, particularly in the EV segment. However, challenges such as warranty costs and regulatory uncertainties represent risks to future profitability. The company's future prospects are promising, driven by significant EV growth potential and ongoing innovations, despite potential declines in ICE vehicle volumes.
Analysis Date: January 28, 2025
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$173.63
Current Market Price: $39.41
IV/P Ratio: 4.41x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
77.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for GM
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (8.20)
P/B ratio ≤ 1.5 (0.78)
Current ratio ≥ 2.0 (1.13x)
Long-term debt < Net current assets (0.08x)
Margin of safety (77.0%)
GM does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
GM's return on equity (ROE) is 8.93%, suggesting that the company is generating a reasonable return on shareholders' equity.
The operating profit margin is 6.82%, indicating that GM retains a fair percentage of revenue as profit after covering operating expenses.
The net profit margin of 3.21% is relatively low, indicating that GM has limited profitability after all expenses have been accounted for.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
8.93%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
-1.06%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
12.49%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
3.21%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
An interest coverage ratio of 15.11 demonstrates GM's ability to cover interest expenses comfortably, indicating strong financial health.
The current ratio of 1.13 indicates that GM has sufficient short-term assets to cover its short-term liabilities, reflecting good liquidity.
The debt-to-equity ratio of 2.07 indicates that GM is heavily leveraged, which could pose risks if cash flows do not meet expectations.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
1.99x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.13x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
GM achieved a 9% increase in revenue year-over-year, reaching $187 billion. This growth was driven by a strong product lineup including full-size pickups and SUVs, as well as expanding electric vehicle (EV) sales.
GM maintained its position as the #1 automaker in the U.S. for retail, fleet, and total sales, while also increasing its market share by 30 basis points to 16.5%.
GM's EV portfolio turned variable profit positive in Q4 2024, indicating successful scaling of production and efficiency improvements.
Despite improvements in product quality, warranty costs remain a significant issue, affecting margins. GM reported a breach of warranty and increased repair costs.
GM targets to increase EV wholesales to around 300,000 units in 2025, leveraging a growing portfolio that includes new models like the Cadillac Escalade IQ.
GM continues to innovate with Super Cruise technology, aiming for significant subscription revenue growth and advancements in autonomous driving capabilities.
The company faces potential changes in EV policies and tariffs under the new administration, which could affect future production and profitability.
Expected decline in internal combustion engine (ICE) vehicle volumes could impact overall sales, despite the positive outlook for EVs.