General Motors (GM) AI Stock Analysis

• Market Cap: $73.48B
• Dividend Yield: 0.69%
• Average Volume (3M): 8.14M
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.97
• Revenue Growth: -1.29%
• EPS Growth: -49.96%
• Country: US
• Employees: 162,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 2.51
• Shares Outstanding: 903,967,830
• 10 Day Avg. Volume: 6,879,357
• 30 Day Avg. Volume: 8,143,690
• PEG Ratio: -0.57
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 6.75
• Enterprise Value/Market Cap: 2.53
• Enterprise Value/Revenue: 1.01
• Enterprise Value/Gross Profit: 16.06
• Enterprise Value/Ebitda: 9.89
• 1Y Price Target: $96.38
• Price Target Upside: 18.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $89.00 ▲(9.48% Upside)
• Action: Downgraded Date: 01/28/26
• Date: Action: Downgraded 01/28/26

The score reflects pressured 2025 profitability despite a strong rebound in cash flow, plus a supportive technical uptrend. Valuation is less compelling (P/E ~24 with a low yield), while the earnings call adds moderate support via solid 2026 guidance and capital returns but is tempered by EV-related cash charges and tariff/commodity headwinds.

Positive Factors

Improved cash generation and free cash flow

A durable restoration of cash generation (OCF $26.9B; FCF $11.1B in 2025) materially strengthens GM's internal funding for capex, battery JV investments, and working capital. Strong FCF reduces refinancing reliance and supports multi‑year strategic execution and shareholder returns.

Software and recurring services momentum

Rising OnStar/Super Cruise subscribers and growing deferred software revenue (~$7.5B target) shift GM toward recurring, high‑margin revenue. This structural move improves revenue visibility, enhances aftermarket margins, and diversifies earnings beyond cyclical vehicle sales over the medium term.

North America product strength and market share gains

Sustained market share gains and leadership in full‑size pickups, SUVs and crossovers create durable volume and pricing advantages. Strong brand and product competitiveness in core segments help stabilize unit volumes and margins through automotive cycles, underpinning longer‑term cash flows.

Negative Factors

Large EV-related charges and cash settlements

Significant EV impairments and supplier/contract settlement cash outflows ($7.6B charges, ~$4.6B cash) indicate structural execution and demand mismatches. These write‑downs reduce invested capital returns and create uncertainty over EV program economics and future cash generation from electrification.

Tariff and commodity cost headwinds

Persistent tariff exposures and rising commodity/DRAM/FX costs are structural margin drags. With multi‑billion annual tariff impacts and ongoing input volatility, GM needs sustained footprint, sourcing or pricing changes to restore margins, creating ongoing execution risk to profitability.

Material margin compression and weakened profitability

Sharp margin deterioration and lower net income reflect lasting pressure from pricing, mix, and cost issues. Reduced margins lower ROE and constrain reinvestment capacity, making sustained operational improvements and margin recovery crucial for long‑term competitiveness and capital allocation flexibility.

General Motors Business Overview & Revenue Model

Company Description

General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts and accessories in North America, the Asia Pacific, the Middle East, Africa, South America, the United States, and China. The company operates through GM North America, GM International, Cruise, and GM Financial segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling brand names. The company also sells trucks, crossovers, cars, and purpose-built vehicles to dealers for consumer retail sales, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. In addition, it offers safety and security services for retail and fleet customers, including automatic crash response, emergency services, roadside assistance, crisis assist, stolen vehicle assistance, and turn-by-turn navigation; and connected services comprising mobile applications for owners to remotely control their vehicles and electric vehicle owners to locate charging stations, on-demand vehicle diagnostics, smart driver, marketplace in-vehicle commerce, in-vehicle voice, voice assistant, navigation and app ecosystem, connected navigation, SiriusXM with 360L, and 4G LTE wireless connectivity, as well as develops and commercializes autonomous vehicle technology. Further, the company provides automotive financing and insurance services; and software-enabled services and subscriptions. General Motors Company was founded in 1908 and is headquartered in Detroit, Michigan.

How the Company Makes Money

General Motors generates revenue primarily through the sale of vehicles, which includes passenger cars, trucks, and SUVs. The company also earns money through the sale of automotive parts and accessories. A significant revenue stream comes from GM Financial, which provides automotive financing solutions, including retail loan and lease programs for consumers and dealerships. Additionally, GM has been investing heavily in electric vehicles (EVs) and autonomous driving technology, which are expected to be key growth areas in the future. Partnerships with technology firms for EV development and collaborations with ride-sharing companies further diversify GM's revenue sources and expand its market reach.

General Motors Financial Statement Overview

Summary

Profitability weakened materially in 2025 (gross margin ~6% and net margin ~1.8%, with net income down to $3.3B from $6.0B), but cash generation improved sharply with operating cash flow up to $26.9B and free cash flow turning positive to $11.1B after prior negative years. Balance-sheet risk appears improved if the reported 2025 debt reduction is accurate, though ROE declined to ~5.4%.

Income Statement

Revenue has been broadly stable over the last several years (2021–2024 growth, followed by a slight decline in 2025), but profitability has weakened materially. Gross margin fell from ~12–14% in prior years to ~6% in 2025, and net margin declined to ~1.8% versus ~3.2% in 2024 and ~5.9% in 2023. Net income also stepped down to $3.3B in 2025 from $6.0B in 2024, indicating pressure on pricing, mix, and/or costs despite still-positive earnings.

Balance Sheet

Equity is sizable and relatively stable (~$61–68B), supporting the asset base (~$281B in 2025). Leverage was elevated in 2020–2024 (debt-to-equity roughly ~1.7–2.5x), which is a key balance-sheet risk for a cyclical manufacturer. The 2025 data shows zero total debt and a 0.0x debt-to-equity ratio, which (if accurate) would represent a major de-risking; however, return on equity fell to ~5.4% in 2025 from ~9.5% in 2024 and ~15.8% in 2023, reflecting reduced profitability.

Cash Flow

Operating cash flow improved to $26.9B in 2025 from ~$20–21B in 2023–2024, showing solid cash generation. Free cash flow swung sharply positive to $11.1B in 2025 after several years of negative free cash flow (including -$6.0B in 2024), which is a meaningful improvement in underlying funding capacity. A watch item is that free cash flow has been volatile and, in 2025, free cash flow was well below net income on the provided ratio, suggesting conversion dynamics may still be uneven despite the headline turnaround.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	185.02B	187.44B	171.84B	156.74B	127.00B
Gross Profit	11.60B	23.41B	19.14B	20.98B	17.88B
EBITDA	15.82B	21.75B	23.20B	23.87B	25.72B
Net Income	2.70B	6.01B	10.13B	9.93B	10.02B
Balance Sheet
Total Assets	281.28B	279.76B	273.06B	264.04B	244.72B
Cash, Cash Equivalents and Short-Term Investments	27.67B	27.14B	26.47B	31.30B	28.68B
Total Debt	130.28B	130.69B	122.65B	115.67B	110.39B
Total Liabilities	218.12B	214.17B	204.76B	191.75B	178.90B
Stockholders Equity	61.12B	63.07B	64.29B	67.79B	59.74B
Cash Flow
Free Cash Flow	11.07B	-5.98B	-3.68B	-5.14B	-6.92B
Operating Cash Flow	26.87B	20.13B	20.93B	16.04B	15.19B
Investing Cash Flow	-16.13B	-20.52B	-14.66B	-17.88B	-16.36B
Financing Cash Flow	-9.59B	1.94B	-6.35B	383.00M	1.74B

General Motors Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 81.29
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GM, the sentiment is Positive. The current price of 81.29 is below the 20-day moving average (MA) of 82.80, below the 50-day MA of 82.16, and above the 200-day MA of 63.85, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 48.80 is Neutral, neither overbought nor oversold. The STOCH value of 41.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GM.

General Motors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TM	78 Outperform	$306.10B	12.58	10.34%	2.57%	7.28%	12.41%
HMC	63 Neutral	$40.50B	12.13	4.11%	4.19%	0.32%	-25.51%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
TSLA	60 Neutral	$1.54T	380.46	4.89%	―	-2.93%	-47.22%
GM	57 Neutral	$73.48B	24.37	4.34%	0.69%	-1.29%	-49.96%
F	56 Neutral	$56.65B	-7.41	-20.26%	5.64%	3.75%	33.37%
LI	55 Neutral	$18.52B	31.25	6.53%	―	-9.99%	-54.75%

General Motors Corporate Events

General Motors Faces Major 2025 EV-Related Charges

In 2025, General Motors responded to a slowdown in North American electric vehicle demand—driven by the termination of certain consumer tax incentives and reduced stringency of emissions regulations—by scaling back EV production capacity and realigning its manufacturing footprint. The company shifted its Orion, Michigan plant from EVs to full-size internal combustion engine SUVs and pickups to address unmet demand in those segments, sold its interest in the Ultium Cells Lansing battery facility to LG Energy Solution, and in October 2025 began a broader reassessment of EV capacity that led to $1.6 billion in charges in the third quarter and an expected additional $6.0 billion in charges in the fourth quarter of 2025, primarily in North America. These anticipated charges, which include about $1.8 billion in non-cash impairments and $4.2 billion in supplier settlements, contract cancellations and other items, along with an expected $1.1 billion of non-EV-related charges for the China joint venture restructuring and a legal accrual, are set to weigh on GM’s 2025 financial results and cash flows, with further but smaller EV-related charges likely in 2026 and potential impairments to emissions credits depending on future regulatory changes, even as the company maintains its current Chevrolet, GMC and Cadillac EV retail portfolio.

The most recent analyst rating on (GM) stock is a Buy with a $98.00 price target. To see the full list of analyst forecasts on General Motors stock, see the GM Stock Forecast page.