General Motors (GM) AI Stock Analysis

• Market Cap: $77.48B
• Dividend Yield: 0.69%
• Average Volume (3M): 9.40M
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.93
• 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: 10,244,297
• 30 Day Avg. Volume: 9,395,465
• 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: 2.07
• Enterprise Value/Revenue: 0.87
• Enterprise Value/Gross Profit: 9.15
• Enterprise Value/Ebitda: 8.50
• 1Y Price Target: $79.72
• Price Target Upside: -4.02% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $85.00 ▲(2.34% Upside)

General Motors' stock score reflects a mix of strong technical momentum and positive earnings call sentiment, offset by financial challenges and valuation concerns. The company's strategic focus on EV growth and market share gains supports its resilience, but financial stability and cash flow management need improvement.

Positive Factors

EV Market Share Growth

GM's growing EV market share reflects its strategic focus on electric vehicles, positioning it well for future industry shifts towards sustainable transport.

Leadership Changes

Strategic leadership changes are aimed at enhancing GM's global market presence and operational efficiency, particularly in China, a key growth market.

OnStar and Software Revenue

Growing revenue from software services like OnStar indicates GM's successful diversification beyond traditional vehicle sales, enhancing long-term revenue streams.

Negative Factors

High Leverage

High leverage can pose financial risks, limiting GM's flexibility to invest in new opportunities or weather economic downturns, impacting long-term stability.

Cash Flow Constraints

Negative cash flow growth suggests challenges in generating sufficient cash from operations, potentially affecting GM's ability to fund strategic initiatives.

EV Demand Challenges

Lower than expected EV adoption could impact GM's strategic plans and financial performance, requiring adjustments in production and investment strategies.

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

General Motors faces challenges in revenue growth and profitability, with high leverage and cash flow constraints. Operational efficiency is a strength, but the company needs to improve revenue growth and manage debt levels to enhance financial stability.

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	23.15B	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: Positive
• Last Price: 83.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 83.06 is above the 20-day moving average (MA) of 79.02, above the 50-day MA of 72.52, and above the 200-day MA of 56.83, indicating a bullish trend. The MACD of 3.32 indicates Positive momentum. The RSI at 77.26 is Negative, neither overbought nor oversold. The STOCH value of 76.46 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	81 Outperform	$281.37B	9.16	12.51%	2.57%	7.30%	12.42%
GM	73 Outperform	$77.48B	16.69	4.44%	0.69%	2.58%	-46.27%
TSLA	73 Outperform	$1.58T	317.51	7.03%	―	-1.56%	-59.09%
F	71 Outperform	$53.04B	11.41	10.26%	5.64%	3.75%	33.37%
HMC	69 Neutral	$40.20B	9.87	5.23%	4.19%	0.34%	-25.49%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LI	55 Neutral	$16.90B	29.19	6.53%	―	-10.00%	-54.75%

General Motors Corporate Events

GM Announces $1.6 Billion Charge for EV Strategy

On October 7, 2025, GM’s Board of Directors approved a $1.6 billion charge in GM North America due to a strategic realignment of its EV capacity and manufacturing footprint following changes in U.S. Government policies. This includes $1.2 billion in non-cash impairment charges and $0.4 billion in contract cancellation fees, reflecting a response to expected slower EV adoption rates, although the current retail portfolio remains unaffected.