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General Motors
(NYSE:GM)
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Rating:58Neutral
Price Target:
$85.00
▲(4.53% Upside)
Action:Reiterated
Date:06/05/26
The score is held back primarily by weak recent income-statement performance (sharp revenue decline and thin margins) and elevated leverage, partially offset by improved cash generation. Technicals and the latest earnings call are supportive (uptrend, raised full-year guidance and ongoing capital returns), but valuation is a notable drag given the high P/E and low dividend yield.
Positive Factors
Cash generation
Sustained strong operating cash flow and positive free cash flow materially improve GM’s ability to fund capex, EV investment, buybacks and dividends without immediate reliance on capital markets. This cash cushion enhances durability through auto cycles and supports strategic repositioning.
Negative Factors
Elevated leverage
High debt relative to equity constrains financial flexibility in a cyclical industry, increasing vulnerability to revenue or margin shocks. Elevated leverage limits capacity for opportunistic investment, raises interest exposure, and places more emphasis on consistent cash conversion to service obligations.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Sustained strong operating cash flow and positive free cash flow materially improve GM’s ability to fund capex, EV investment, buybacks and dividends without immediate reliance on capital markets. This cash cushion enhances durability through auto cycles and supports strategic repositioning.
Read all positive factors
General Motors Key Performance Indicators (KPIs)
Any
Total Vehicles Delivered
Data provided by:
The Fly
The FlyGeneral Motors (GM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$68.53B
Dividend Yield0.69%
Average Volume (3M)7.98M
Price to Earnings (P/E)29.8
Beta (1Y)0.92
Revenue Growth-2.03%
EPS Growth-63.41%
CountryUS
Employees162,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)2.55
Shares Outstanding901,665,200
10 Day Avg. Volume9,334,836
30 Day Avg. Volume7,977,449
Financial Highlights & Ratios
PEG Ratio-0.50
Price to Book (P/B)1.22
Price to Sales (P/S)0.40
P/FCF Ratio6.75
Enterprise Value/Market Cap2.62
Enterprise Value/Revenue0.97
Enterprise Value/Gross Profit15.97
Enterprise Value/Ebitda11.63
Forecast
1Y Price Target
$97.94Price Target Upside20.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)12.93
Revenue Forecast (FY)$185.59B
General Motors Business Overview & Revenue Model
Company Description
General Motors Company, a prominent global automotive enterprise, is engaged in the design, manufacturing, and distribution of a wide array of vehicles—including trucks, crossovers (SUVs), and passenger cars—along with related parts and accessorie...
How the Company Makes Money
GM primarily makes money through (1) selling vehicles and related parts/services and (2) earning interest and fee income through its finance operations.
1) Vehicle sales (Automotive): The largest revenue stream comes from wholesale sales of vehic...
General Motors Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 21, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial picture for Q1 2026: strong adjusted EBIT, raised full-year guidance, solid cash balances, active capital return, continued profitability in China, and accelerating digital services (OnStar/Super Cruise) with meaningful recurring revenue growth. However, material near-term headwinds were clearly disclosed—notably large EV-related restructuring charges and cash outflows, elevated commodity and tariff costs, inventory constraints from planned downtime, and geopolitical uncertainty (Iran conflict) that could pressure costs and certain international markets. Management emphasized disciplined inventory and incentive management, active cost mitigation, and a multiyear strategy that supports confidence in achieving targeted North American margins, which leads to a cautiously optimistic overall view.Positive Updates
Strong Q1 Profitability
Q1 EBIT adjusted of $4.3 billion, roughly $750 million higher year-over-year (driven in part by tariff adjustment and other tailwinds). North America Q1 EBIT adjusted of $3.7 billion with a 10.1% margin (includes ~1.5 pts benefit from tariff adjustment; nets to ~8.6%).
Negative Updates
Revenue Pressure from Lower EV Wholesales
Total company revenue was down approximately $400 million year-over-year in Q1, primarily driven by lower EV wholesale volumes as market adoption stabilizes at a lower level.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Q1 Profitability
Q1 EBIT adjusted of $4.3 billion, roughly $750 million higher year-over-year (driven in part by tariff adjustment and other tailwinds). North America Q1 EBIT adjusted of $3.7 billion with a 10.1% margin (includes ~1.5 pts benefit from tariff adjustment; nets to ~8.6%).
Read all positive updates
Company Guidance
GM raised 2026 EBIT‑adjusted guidance by $500M to $13.5B–$15.5B (Q1 EBIT‑adjusted was $4.3B) and lifted adjusted diluted EPS to $11.50–$13.50; it reiterated a North America margin target of 8%–10% (Q1 NA EBIT‑adjusted $3.7B, 10.1% including ~1.5 pts from a $0.5B tariff adjustment, netting to 8.6%). Management now assumes incremental commodity/logistics/DRAM inflation of $1.5B–$2B for the year (up $500M, roughly equally weighted over the next three quarters) and full‑year gross tariff costs of $2.5B–$3.5B (Q1 included ~$200M incremental tariff costs); SAAR is assumed in the low‑16M range. EV actions: Q1 EV charges were $1.1B (≈$1B cash impact), $5.6B of EV‑related cash charges recorded since H2‑2025 with $2.6B paid as of Mar‑31 and $600M more paid in April, and management still expects a $1B–$1.5B benefit from rightsizing EV capacity for the calendar year. Other guidance/metrics: warranty tailwind ~$1B for the year (Q1 improvement ≈$200M); OnStar recognized revenue guide $3.1B (+15% YoY) with ~13M subscribers by year‑end (Q1 recognized >$750M, ARPU ≈$20/month, deferred revenue $5.8B at Q1 and ~ $7.5B expected for year); adjusted auto free cash flow $9B–$11B (heavier H2 weighting); GM Financial EBT‑adjusted $2.5B–$3B (Q1 EBT‑adjusted $700M); and capital actions included $800M of buybacks in Q1 (≈11M shares at $75.02), $164M dividends, $19B cash on hand and $5.5B remaining on the repurchase authorization.General Motors Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
52
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 184.62B | 185.02B | 187.44B | 171.84B | 156.74B | 127.00B |
| Gross Profit | 11.25B | 20.10B | 32.60B | 29.04B | 30.78B | 25.78B |
| EBITDA | 15.45B | 18.43B | 21.75B | 23.20B | 23.87B | 25.72B |
| Net Income | 2.54B | 2.70B | 6.01B | 10.13B | 9.93B | 10.02B |
Balance Sheet | ||||||
| Total Assets | 280.97B | 281.28B | 279.76B | 273.06B | 264.04B | 244.72B |
| Cash, Cash Equivalents and Short-Term Investments | 24.42B | 27.67B | 27.14B | 26.47B | 31.30B | 28.68B |
| Total Debt | 127.76B | 130.28B | 130.69B | 122.65B | 115.67B | 110.39B |
| Total Liabilities | 216.28B | 218.12B | 214.17B | 204.76B | 191.75B | 178.90B |
| Stockholders Equity | 62.66B | 61.12B | 63.07B | 64.29B | 67.79B | 59.74B |
Cash Flow | ||||||
| Free Cash Flow | 12.48B | 11.07B | -5.98B | -3.68B | -5.14B | -6.92B |
| Operating Cash Flow | 23.76B | 26.87B | 20.13B | 20.93B | 16.04B | 15.19B |
| Investing Cash Flow | -11.01B | -16.13B | -20.52B | -14.66B | -17.88B | -16.36B |
| Financing Cash Flow | -12.74B | -9.59B | 1.94B | -6.35B | 383.00M | 1.74B |
General Motors Technical Analysis
Negative
81.32
Price Trends
78.82
Negative
77.85
Negative
74.92
Positive
Market Momentum
-0.86
Positive
39.50
Neutral
13.14
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GM, the sentiment is Negative. The current price of 81.32 is above the 20-day moving average (MA) of 80.04, above the 50-day MA of 78.82, and above the 200-day MA of 74.92, indicating a neutral trend. The MACD of -0.86 indicates Positive momentum. The RSI at 39.50 is Neutral, neither overbought nor oversold. The STOCH value of 13.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GM.
General Motors Risk Analysis
General Motors disclosed 29 risk factors in its most recent earnings report. General Motors reported the most risks in the "Macro & Political" 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $186.48B | 9.59 | 10.10% | 2.57% | 6.73% | -16.97% | |
62 Neutral | $1.48T | 326.89 | 4.79% | ― | 2.25% | -39.81% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $68.53B | 29.80 | 3.96% | 0.69% | -2.03% | -63.41% | |
55 Neutral | $53.24B | -8.67 | -14.72% | 5.64% | 3.82% | -209.77% | |
55 Neutral | $36.83B | -14.15 | -3.53% | 4.19% | 1.63% | -158.78% | |
50 Neutral | $12.03B | -45.70 | -2.49% | ― | -23.38% | -123.25% |
* Consumer Cyclical Sector Average
GM
General Motors
76.00
24.65
48.00%
F
Ford Motor
13.36
2.31
20.96%
HMC
Honda Motor Company
28.02
-0.50
-1.74%
TSLA
Tesla
393.45
99.51
33.85%
TM
Toyota Motor
174.59
6.73
4.01%
LI
Li Auto
12.02
-14.72
-55.05%
General Motors Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
General Motors Shareholders Approve Directors and Governance Measures
Positive
Jun 4, 2026
At its annual meeting held on June 2, 2026, General Motors shareholders elected all 10 director nominees, including Chair and CEO Mary Barra, to one-year terms and ratified Ernst Young as the independent auditor for 2026. Investors also approved ...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
General Motors Director McNeill Retires, Board Size Reduced
Neutral
May 26, 2026
On May 26, 2026, General Motors director Jonathan McNeill informed the company’s board that he would not stand for reelection at the June 2, 2026 annual shareholders’ meeting and would retire from the board at its conclusion. The compa...
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...
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.