General Motors (GM)
NYSE:GM
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General Motors
(NYSE:GM)
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Rating:51Neutral
Price Target:
$73.00
▼(-4.86% Downside)
Action:ReiteratedDate:03/24/26
The score is held back primarily by weakened profitability in 2025 and bearish technicals (below key moving averages with negative MACD). Improved operating/free cash flow and supportive 2026 guidance with shareholder returns help offset these risks, but valuation (higher P/E with low yield) and EV/tariff-related headwinds keep the overall profile in the middle range.
Positive Factors
Free Cash Flow Recovery
A sustained swing to positive free cash flow and materially higher operating cash flow provides durable internal funding for capex, R&D, and shareholder returns. Strong cash generation reduces reliance on external financing and supports execution of multi-year EV and software investments.
Negative Factors
Margin Compression
A structural decline in gross and net margins significantly reduces earnings power and return on capital. Persistent margin compression limits the company's ability to fund discretionary investments and weakens ROE, making multi-year profitability recovery and capital allocation more challenging.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Recovery
A sustained swing to positive free cash flow and materially higher operating cash flow provides durable internal funding for capex, R&D, and shareholder returns. Strong cash generation reduces reliance on external financing and supports execution of multi-year EV and software investments.
Read all positive factors
General Motors (GM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$69.36B
Dividend Yield0.69%
Average Volume (3M)7.71M
Price to Earnings (P/E)27.7
Beta (1Y)0.92
Revenue Growth-1.29%
EPS Growth-49.96%
CountryUS
Employees162,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)2.51
Shares Outstanding903,967,830
10 Day Avg. Volume6,049,175
30 Day Avg. Volume7,707,133
Financial Highlights & Ratios
PEG Ratio-0.57
Price to Book (P/B)1.22
Price to Sales (P/S)0.40
P/FCF Ratio6.75
Enterprise Value/Market Cap2.60
Enterprise Value/Revenue0.98
Enterprise Value/Gross Profit15.58
Enterprise Value/Ebitda10.32
Forecast
1Y Price Target
$95.50Price Target Upside24.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering20
EPS Forecast (FY)12.31
Revenue Forecast (FY)$185.57B
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...
How the Company Makes Money
GM makes money primarily through (1) selling vehicles and (2) providing automotive financing and related services.
1) Vehicle and parts revenue (Automotive)
- Wholesale and retail vehicle sales: The largest source of revenue is the sale of new ve...
General Motors Key Performance Indicators (KPIs)
Any
Total Vehicles Delivered
Data provided by:
The Fly
The FlyGeneral Motors Earnings Call Summary
Earnings Call Date:Jan 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: strong cash generation, disciplined capital returns (buybacks/dividend increase), market share gains and significant product and software momentum (OnStar/Super Cruise, China NEV turnaround) underpin positive forward guidance for 2026 (EBIT $13–15B, FCF $9–11B). Those positives are tempered by large, near‑term EV-related charges and cash obligations ($7.6B aggregate in Q3/Q4 of 2025 with ~$4.6B cash expected), ongoing tariff costs (~$3B+), commodity and supply cost pressures, and production downtime tied to model transitions. Management expects many of the negative items to be smaller or to normalize in 2026–2027, and highlighted operational and technology initiatives to restore margins, but the sizable one‑time EV and tariff impacts leave the call mixed rather than clearly positive or negative.Positive Updates
Strong Full-Year Financial Performance
Full-year EBIT adjusted of $12.7B and adjusted automotive free cash flow of $10.6B in 2025 drove a year-end cash balance of $21.7B; management cites nearly $25B of free cash flow generated over the past two years and structural improvement in average annual free cash flow from ~$3B to ~$10B over five years.
Negative Updates
Large EV-Related Charges and Cash Impact
Aggregate EV-related charges recorded in Q3 and Q4 totaled $7.6B, of which $4.6B is expected to be settled in cash; $400M cash paid in 2025 with majority of remaining cash payments expected in 2026. BrightDrop electric van production discontinued and certain EV assets impaired; management expects materially smaller EV-related charges going forward but near-term cash impact is significant.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Financial Performance
Full-year EBIT adjusted of $12.7B and adjusted automotive free cash flow of $10.6B in 2025 drove a year-end cash balance of $21.7B; management cites nearly $25B of free cash flow generated over the past two years and structural improvement in average annual free cash flow from ~$3B to ~$10B over five years.
Read all positive updates
Company Guidance
GM guided 2026 to EBIT adjusted of $13–$15 billion (midpoint $14B), adjusted diluted EPS of $11–$13 ($12 midpoint) and adjusted automotive free cash flow of $9–$11 billion ($10B midpoint), with gross tariff costs expected at $3–$4B (Q1 ~$750M–$1B) and North America margins targeted to return to ~8–10%; it plans $10–$12B of annual capex in 2026–27 (including ~ $5B to expand U.S. capacity), expects $1–$1.5B of benefit from right‑sizing EV capacity, anticipates ~$1B of warranty improvement vs. 2025, sees ~ $400M of incremental high‑margin OnStar/Super Cruise revenue and deferred software/services revenue rising to ~ $7.5B (from $5.4B), while flagging $1–$1.5B of near‑term headwinds for onshoring/software and another $1–$1.5B from commodities/DRAM/FX; GM Financial is forecast to deliver EBT adjusted of $2.5–$3B, and the board approved a new $6B buyback authorization and a 20% dividend increase to $0.18 per share.General Motors Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
52
Neutral
Cash Flow
57
Neutral
| 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 | 20.10B | 32.60B | 29.04B | 30.78B | 25.78B |
| EBITDA | 17.50B | 25.17B | 21.19B | 21.60B | 21.38B |
| 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
Positive
76.73
Price Trends
77.85
Negative
78.14
Negative
68.01
Positive
Market Momentum
-0.45
Negative
52.95
Neutral
88.08
Negative
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 76.73 is above the 20-day moving average (MA) of 74.40, below the 50-day MA of 77.85, and above the 200-day MA of 68.01, indicating a neutral trend. The MACD of -0.45 indicates Negative momentum. The RSI at 52.95 is Neutral, neither overbought nor oversold. The STOCH value of 88.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $272.81B | 8.55 | 9.96% | 2.57% | 7.28% | 12.41% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $1.30T | 432.45 | 4.83% | ― | -2.93% | -47.22% | |
59 Neutral | $31.21B | 9.64 | 4.09% | 4.19% | 0.32% | -25.51% | |
55 Neutral | $18.73B | 109.05 | 1.55% | ― | -9.99% | -54.75% | |
51 Neutral | $69.36B | 27.72 | 5.13% | 0.69% | -1.29% | -49.96% | |
48 Neutral | $48.83B | ― | -18.91% | 5.64% | 3.75% | 33.37% |
* Consumer Cyclical Sector Average
GM
General Motors
76.42
33.23
76.94%
F
Ford Motor
12.13
3.26
36.69%
HMC
Honda Motor Company
24.04
-3.02
-11.14%
TSLA
Tesla
348.95
96.64
38.30%
TM
Toyota Motor
210.64
41.22
24.33%
LI
Li Auto
19.21
-4.02
-17.31%
General Motors Corporate Events
Business Operations and StrategyPrivate Placements and Financing
General Motors Adds New 364-Day Revolving Credit Facility
Positive
Mar 23, 2026
On March 23, 2026, General Motors entered into an Eighth Amended and Restated 364-Day Revolving Credit Agreement, establishing an unsecured $2.0 billion 364-day credit facility maturing on March 22, 2027, with JPMorgan Chase as administrative agen...
Business Operations and StrategyFinancial Disclosures
General Motors Faces Major 2025 EV-Related Charges
Negative
Jan 8, 2026
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 capaci...
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.