General Motors (GM) AI Stock Analysis

• Market Cap: $54.33B
• Dividend Yield: 0.87%
• Average Volume (3M): 8.98M
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.96
• Revenue Growth: 5.34%
• EPS Growth: -28.29%
• Country: US
• Employees: 162,000
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Auto - Manufacturers
• EPS (TTM): 2.53
• Shares Outstanding: 952,077,800
• 10 Day Avg. Volume: 6,280,284
• 30 Day Avg. Volume: 8,976,409
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.83
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 7.37
• Enterprise Value/Ebitda: 7.69
• 1Y Price Target: $59.00
• Price Target Upside: 4.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 75 Outperform
• Price Target: $66.00 ▲(16.79% Upside)

GM's strong technical momentum and undervaluation are key strengths, supported by solid revenue growth and market share gains. However, high leverage and profitability pressures, along with challenges in EV profitability, temper the overall score.

Positive Factors

Financial Performance

General Motors’ results come in better than Street’s expectations.

Free Cash Flow

GM is on track to print adjusted free cash flow of $7.5 billion to $10 billion, which gives optionality in terms of capital return to shareholders and investments in the business.

Profitability in China

The company's China operations have turned profitable for two consecutive quarters, showing a positive turnaround.

Negative Factors

Economic Outlook for BEVs

GM's commitment to BEVs is strong, but the rollbacks of incentives are worsening the economic outlook for electric vehicles.

North America Performance

The core GMNA business missed EBIT targets by 7.5%, and margins dropped significantly quarter-over-quarter.

Tariff Impact

Tariffs are becoming a permanent challenge for GM, with a full-year impact expected to be $4-5 billion.

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 under its various brands. The company also earns income from the sale of automotive parts and accessories, as well as from financing services offered through GM Financial, which provides vehicle financing solutions to customers and dealerships. Key revenue streams include direct vehicle sales to consumers and businesses, fleet sales to rental car companies and commercial customers, and leasing arrangements. Additionally, GM has established strategic partnerships and collaborations, particularly in the electric vehicle and autonomous driving sectors, which contribute to its earnings through joint ventures and technology sharing agreements. The company's focus on electric vehicle production and sustainable practices is expected to play a significant role in its revenue growth in the coming years.

General Motors Financial Statement Overview

Summary

GM demonstrates solid revenue growth and stable operational margins. However, profitability is under pressure, and the balance sheet shows significant leverage. Cash flow improvements are encouraging, but further optimization is needed for resilience.

Income Statement

General Motors has shown a steady revenue growth trajectory, with a notable increase from $122.5 billion in 2020 to $187.6 billion in TTM (Trailing-Twelve-Months) 2025. The company's gross profit margin for TTM 2025 is approximately 11.1%, and the net profit margin stands at 2.5%. Despite a decrease in net income in recent periods, the EBIT margin is relatively stable at 5.7%, indicating efficient operational management.

Balance Sheet

The debt-to-equity ratio for TTM 2025 is approximately 2.04, suggesting a high level of leverage, which could pose potential risks if not managed carefully. However, the company maintains a healthy equity ratio of about 22.9%, reflecting a stable capital structure. Return on Equity (ROE) is at 7.2%, indicating moderate profitability given the industry standards.

Cash Flow

GM's free cash flow improved to $2.1 billion in TTM 2025 from negative figures in previous years, highlighting better cash management. The operating cash flow to net income ratio is 5.02, suggesting strong cash generation relative to profits. However, the free cash flow to net income ratio is below 1, indicating room for improvement in cash efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	187.60B	187.44B	171.84B	156.74B	127.00B	122.48B
Gross Profit	20.85B	23.41B	19.14B	20.98B	17.88B	13.67B
EBITDA	19.96B	21.75B	23.05B	23.86B	25.71B	21.87B
Net Income	4.77B	6.01B	10.13B	9.93B	10.02B	6.43B
Balance Sheet
Total Assets	289.38B	279.76B	273.06B	264.04B	244.72B	235.19B
Cash, Cash Equivalents and Short-Term Investments	29.34B	27.14B	26.47B	31.30B	28.68B	29.04B
Total Debt	135.73B	130.69B	122.65B	115.67B	110.39B	110.86B
Total Liabilities	220.93B	214.17B	204.76B	191.75B	178.90B	185.52B
Stockholders Equity	66.36B	63.07B	64.29B	67.79B	59.74B	45.03B
Cash Flow
Free Cash Flow	-1.84B	-5.98B	-3.68B	-5.14B	-6.92B	-3.86B
Operating Cash Flow	23.97B	20.13B	20.93B	16.04B	15.19B	16.67B
Investing Cash Flow	-22.69B	-20.52B	-14.66B	-17.88B	-16.36B	-21.83B
Financing Cash Flow	-1.16B	1.94B	-6.35B	383.00M	1.74B	5.55B

General Motors Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 56.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 56.51 is above the 20-day moving average (MA) of 54.21, above the 50-day MA of 52.27, and above the 200-day MA of 50.30, indicating a bullish trend. The MACD of 1.30 indicates Negative momentum. The RSI at 65.35 is Neutral, neither overbought nor oversold. The STOCH value of 85.29 is Negative, 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	77 Outperform	$258.86B	9.16	12.05%	2.68%	4.14%	-12.12%
HMC	77 Outperform	$54.58B	11.95	5.17%	3.95%	1.68%	-39.28%
TSLA	76 Outperform	$1.06T	187.57	8.43%	―	-2.73%	-51.64%
GM	75 Outperform	$54.33B	9.05	7.07%	0.87%	5.34%	-28.29%
F	73 Outperform	$46.09B	14.77	7.11%	6.53%	2.72%	-17.58%
LI	66 Neutral	$24.00B	22.26	12.22%	―	10.28%	-29.75%
Sector *	61 Neutral	$17.16B	12.39	-5.32%	3.05%	1.51%	-15.30%

General Motors Corporate Events

General Motors Shareholders Approve Key Amendments

On June 3, 2025, General Motors held its Annual Meeting of Shareholders, where several key decisions were made. Shareholders approved the amended Certificate of Incorporation to limit certain officer liabilities and ratified the selection of Ernst & Young LLP as the independent auditor for 2025. Additionally, executive compensation was approved, but a proposal regarding supply chain GHG emissions reduction strategies was not passed.