General Motors (GM) AI Stock Analysis

• Market Cap: $75.48B
• Dividend Yield: 0.69%
• Average Volume (3M): 8.31M
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.96
• Revenue Growth: 2.58%
• EPS Growth: -46.27%
• Country: US
• Employees: 162,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 2.80
• Shares Outstanding: 932,861,300
• 10 Day Avg. Volume: 7,700,794
• 30 Day Avg. Volume: 8,307,771
• PEG Ratio: -0.81
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.32
• P/FCF Ratio: -9.93
• Enterprise Value/Market Cap: 2.23
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 9.58
• Enterprise Value/Ebitda: 8.90
• 1Y Price Target: $84.72
• Price Target Upside: 4.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 11.94
• Revenue Forecast (FY): $186.96B

• Rating: 70 Outperform
• Price Target: $90.00 ▲(10.80% Upside)

The score is driven by solid technical strength (price above key moving averages with positive MACD) and a constructive earnings-call outlook (raised guidance), tempered by weaker financial quality signals—margin compression, high leverage, and sharply negative free-cash-flow growth—plus only moderate valuation support.

Positive Factors

U.S. Market Share & Scale

Sustained share gains in the U.S. indicate durable scale advantages across brands and dealer networks. Higher share can support pricing, factory utilization and negotiating power with suppliers, helping margins and funding of new product programs over the next 2-6 months.

Growing Software & Recurring Revenue

Rising software, connectivity and subscription revenue diversifies GM away from pure vehicle sales cyclicality. Larger deferred revenue and subscriber growth create higher-margin, recurring cash flows, improving long-term profitability and cash visibility as vehicle cycles fluctuate.

Operational Flexibility & Portfolio Breadth

The ability to repurpose assembly capacity and divest cell assets shows operational agility to realign capital with demand. That flexibility reduces the risk of sustained overcapacity in EVs, preserves cash, and lets GM lean into profitable ICE segments while trimming costly battery exposure.

Negative Factors

High Financial Leverage

Near-2.0 debt-to-equity signals significant leverage that constrains strategic optionality. With elevated debt, GM faces higher interest and refinancing risk, limiting ability to absorb restructuring charges or fund EV investments without pressuring cash flow or requiring asset dispositions.

Severely Deteriorated Free Cash Flow

A sharply negative FCF growth rate and very low FCF-to-income ratio indicate operations are not producing sustainable post-capex cash. This weakens GM's ability to self-fund investments, supplier settlements and restructuring costs, raising funding and timing risk for strategic initiatives.

Large EV-Related Charges & Restructuring Risk

Multibillion dollar impairments and supplier settlements are structural: they reduce capital, strain cash flow and reflect misaligned prior capacity planning. Such sizeable charges can depress multi-quarter earnings, divert management focus and necessitate further strategic changes.

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

Mixed fundamentals: revenue growth is slightly negative and margins compressed (gross and net), while leverage is high (debt-to-equity ~2.0) and free cash flow declined sharply, offset partly by a still-decent EBITDA margin indicating some operational efficiency.

Income Statement

General Motors' income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate at -1.98%, reflecting challenges in maintaining sales momentum. Gross profit margin has decreased to 9.55% from 12.35% in the previous year, indicating pressure on cost management. Net profit margin also fell to 1.66%, highlighting reduced profitability. However, the company maintains a reasonable EBITDA margin of 10.12%, suggesting operational efficiency. Overall, the income statement reflects a need for improved revenue growth and cost control.

Balance Sheet

The balance sheet reveals a stable yet leveraged financial position. The debt-to-equity ratio is high at 1.996, indicating significant leverage, which could pose risks if not managed carefully. Return on equity has decreased to 4.68%, reflecting lower profitability relative to shareholder equity. However, the equity ratio remains stable, suggesting a balanced asset structure. Overall, while the company is maintaining its equity base, the high leverage requires careful monitoring.

Cash Flow

Cash flow analysis shows challenges in free cash flow management. The TTM free cash flow growth rate is significantly negative at -223.18%, indicating cash flow constraints. The operating cash flow to net income ratio is 0.26, suggesting that cash generation from operations is not fully supporting net income. The free cash flow to net income ratio is low at 0.09, highlighting limited cash available after capital expenditures. Overall, cash flow management needs improvement to ensure financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	183.89B	187.44B	171.84B	156.74B	127.00B	122.48B
Gross Profit	17.57B	23.41B	19.14B	20.98B	17.88B	13.67B
EBITDA	18.90B	21.75B	23.05B	23.86B	25.71B	21.87B
Net Income	3.04B	6.01B	10.13B	9.93B	10.02B	6.43B
Balance Sheet
Total Assets	288.17B	279.76B	273.06B	264.04B	244.72B	235.19B
Cash, Cash Equivalents and Short-Term Investments	29.70B	27.14B	26.47B	31.30B	28.68B	29.04B
Total Debt	132.50B	130.69B	122.65B	115.67B	110.39B	110.86B
Total Liabilities	219.77B	214.17B	204.76B	191.75B	178.90B	185.52B
Stockholders Equity	66.37B	63.07B	64.29B	67.79B	59.74B	45.03B
Cash Flow
Free Cash Flow	2.27B	-5.98B	-3.68B	-5.14B	-6.92B	-3.86B
Operating Cash Flow	24.21B	20.13B	20.93B	16.04B	15.19B	16.67B
Investing Cash Flow	-18.99B	-20.52B	-14.66B	-17.88B	-16.36B	-21.83B
Financing Cash Flow	-5.62B	1.94B	-6.35B	383.00M	1.74B	5.55B

General Motors Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 81.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GM, the sentiment is Neutral. The current price of 81.23 is below the 20-day moving average (MA) of 82.36, above the 50-day MA of 77.08, and above the 200-day MA of 59.19, indicating a neutral trend. The MACD of 1.25 indicates Positive momentum. The RSI at 51.07 is Neutral, neither overbought nor oversold. The STOCH value of 19.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GM.

General Motors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TM	81 Outperform	$305.97B	9.83	12.51%	2.57%	7.30%	12.42%
TSLA	73 Outperform	$1.46T	292.33	7.03%	―	-1.56%	-59.09%
F	71 Outperform	$55.03B	11.84	10.26%	5.64%	3.75%	33.37%
GM	70 Outperform	$75.48B	16.26	4.44%	0.69%	2.58%	-46.27%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HMC	58 Neutral	$42.03B	10.18	5.23%	4.19%	0.34%	-25.49%
LI	55 Neutral	$16.63B	27.10	6.53%	―	-10.00%	-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.