General Motors (GM) AI Stock Analysis

• Market Cap: $49.61B
• Dividend Yield: 0.96%
• Average Volume (3M): 10.26M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.98
• 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: 12,579,203
• 30 Day Avg. Volume: 10,263,036
• PEG Ratio: -0.13
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.87
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: 0.04
• Enterprise Value/Gross Profit: 1.53
• Enterprise Value/Ebitda: 0.57
• 1Y Price Target: $57.58
• Price Target Upside: 7.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21

• Rating: 72 Outperform
• Price Target: $58.00 ▲(8.74%Upside)

GM's overall score is driven by solid financial performance, with strong revenue growth and stable margins. Valuation metrics suggest the stock is undervalued. However, financial challenges such as tariff impacts and EV profitability concerns, alongside significant leverage, weigh on the score.

Positive Factors

China Operations

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

Financial Performance

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

Negative Factors

Margins

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

Tariffs

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 (GM) is a leading American automotive corporation, headquartered in Detroit, Michigan. Established in 1908, GM designs, manufactures, and sells vehicles and vehicle parts globally. The company operates under several brands, including Chevrolet, Buick, GMC, and Cadillac, catering to a diverse consumer base. GM also invests in electric and autonomous vehicle technologies, striving to innovate and lead in sustainable transportation solutions.

How the Company Makes Money

General Motors makes money primarily through the production and sale of vehicles, which include a range of cars, trucks, and SUVs under its various brand names. The company generates revenue from the sale of new vehicles, parts, and accessories. Additionally, GM provides financial services through GM Financial, offering automotive financing solutions to both retail customers and dealerships. The company also invests in emerging technologies, such as electric vehicles (EVs) and autonomous driving systems, positioning itself for future growth in these sectors. Significant partnerships, like those with technology firms and battery suppliers, enhance GM's capabilities in the EV market, contributing to its revenue generation.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	187.44B	171.84B	156.74B	127.00B	122.48B
Gross Profit	23.41B	19.14B	20.98B	17.88B	13.67B
EBITDA	21.75B	23.05B	23.86B	25.71B	21.87B
Net Income	6.01B	10.13B	9.93B	10.02B	6.43B
Balance Sheet
Total Assets	279.76B	273.06B	264.04B	244.72B	235.19B
Cash, Cash Equivalents and Short-Term Investments	27.14B	26.47B	31.30B	28.68B	29.04B
Total Debt	130.69B	122.65B	114.70B	109.38B	110.86B
Total Liabilities	214.17B	204.76B	191.75B	178.90B	185.52B
Stockholders Equity	63.07B	64.29B	67.79B	59.74B	45.03B
Cash Flow
Free Cash Flow	-5.98B	-3.68B	-5.14B	-6.92B	-3.86B
Operating Cash Flow	20.13B	20.93B	16.04B	15.19B	16.67B
Investing Cash Flow	-20.52B	-14.66B	-17.88B	-16.36B	-21.83B
Financing Cash Flow	1.94B	-6.35B	383.00M	1.74B	5.55B

General Motors Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 53.34
• 50DMA: Positive
• 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 53.34 is above the 20-day moving average (MA) of 52.68, above the 50-day MA of 50.42, and above the 200-day MA of 49.97, indicating a bullish trend. The MACD of 0.67 indicates Positive momentum. The RSI at 56.17 is Neutral, neither overbought nor oversold. The STOCH value of 65.29 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	74 Outperform	$240.18B	7.81	13.36%	3.02%	1.06%	-7.05%
GM	72 Outperform	$49.61B	8.26	7.07%	0.96%	5.34%	-28.29%
F	71 Outperform	$44.06B	8.88	7.11%	6.78%	2.72%	-17.58%
TSLA	71 Outperform	$1.04T	184.76	8.43%	―	-2.73%	-51.64%
HMC	71 Outperform	$52.55B	9.31	6.54%	4.38%	0.83%	-26.70%
LI	68 Neutral	$30.62B	25.05	12.22%	―	10.28%	-29.75%
Sector *	62 Neutral	$16.51B	10.46	-8.28%	3.32%	1.44%	-22.58%

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.

The most recent analyst rating on (GM) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on General Motors stock, see the GM Stock Forecast page.

General Motors Closes $2 Billion Senior Notes Sale

On May 5, 2025, General Motors entered into an underwriting agreement to sell $2 billion in senior notes, which closed on May 7, 2025. The proceeds will be used for general corporate purposes, including refinancing existing debt and funding a loan to Ultium Cells LLC, a joint venture with LG Energy Solution, to prepay loans from the U.S. Department of Energy.

General Motors Revises 2025 Earnings Guidance Downward

On May 1, 2025, General Motors updated its full-year earnings guidance for 2025, reflecting a downward revision due to an estimated tariff-related impact of $4.0 billion to $5.0 billion. The updated financial outlook includes reduced expectations for net income, EBIT-adjusted, automotive operating cash flow, and adjusted automotive free cash flow. Despite these adjustments, the company plans to maintain its capital spending, including investments in battery cell manufacturing joint ventures, at $10.0 billion to $11.0 billion. This announcement may affect stakeholders’ perceptions of GM’s financial health and its ability to navigate regulatory and policy challenges.