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General Motors
(NYSE:GM)
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Rating:56Neutral
Price Target:
$92.00
▲(11.33% Upside)
Action:Reiterated
Date:07/21/26
GM’s score is held back primarily by weakened profitability and high leverage in the financials, plus soft technical momentum (below key moving averages with negative MACD). These are partially offset by a strong, guidance-raising earnings call with improving North America margins and solid cash generation/buybacks, while valuation metrics (high P/E and low yield) provide limited support.
Positive Factors
Cash generation / FCF
Consistently positive and sizable free cash flow (~$13.4B TTM) and strong operating cash generation provide durable funding for capex, EV investments, onshoring and buybacks. This improves strategic optionality and reduces reliance on external financing across 2–6 months and beyond.
Negative Factors
Elevated leverage / weaker returns
High leverage and materially lower returns on equity reduce financial flexibility for a cyclical manufacturer. This constrains capacity to absorb demand shocks or fund costly launches/onshoring without increasing financing, raising medium-term refinancing and covenant risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation / FCF
Consistently positive and sizable free cash flow (~$13.4B TTM) and strong operating cash generation provide durable funding for capex, EV investments, onshoring and buybacks. This improves strategic optionality and reduces reliance on external financing across 2–6 months and beyond.
Read all positive factors
General Motors Key Performance Indicators (KPIs)
Any
Vehicles Delivered by Geography
Breaks down vehicle deliveries by region, highlighting where General Motors is seeing the most demand and potential growth opportunities or challenges.
Breaks down vehicle deliveries by region, highlighting where General Motors is seeing the most demand and potential growth opportunities or challenges.
Data provided by:
The Fly
The FlyGeneral Motors (GM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$77.97B
Dividend Yield0.74%
Average Volume (3M)7.79M
Price to Earnings (P/E)44.4
Beta (1Y)0.90
Revenue Growth-1.11%
EPS Growth-67.59%
CountryUS
Employees155,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)2.00
Shares Outstanding877,451,540
10 Day Avg. Volume7,463,459
30 Day Avg. Volume7,785,702
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$104.94Price Target Upside26.99% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
EPS Forecast (FY)13.48
Revenue Forecast (FY)$185.61B
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:Jul 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 20, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive picture driven by strong North American performance, record and improved financial metrics (revenue, EBIT, EPS, free cash flow), market leadership in full-size trucks, growing high-margin software and services revenue, and disciplined capital allocation including meaningful buybacks. Key achievements include raising 2026 guidance, margin recovery in North America (8.6%, +250 bps YoY), and strong subscriber/deferred revenue momentum. Offsetting risks and near-term headwinds include substantial EV-related restructuring charges (totaling $10.9B to date with ~$7.2B cash impact), continued commodity/DRAM/logistics cost pressure ($1.5B–$2.0B headwind), onshoring and launch costs ($1.0B–$1.5B this year), tariff exposure, and regional disruptions in the Middle East. Management framed many negatives as largely addressed or manageable and emphasized multi-year improvement drivers (warranty, EV profitability, digital revenue, product launches). Overall, the positives (guidance raise, margin recovery, cash generation, product and software momentum) materially outweigh the near-term lowlights, while management acknowledged assumptions and risks around commodities, geopolitics, and launch timing.Positive Updates
Raised 2026 Guidance
Company raised full-year guidance for a second time: EBIT adjusted to $14.0B–$16.0B (from $13.5B–$15.5B), EPS diluted adjusted to $12.00–$14.00 (from $11.50–$13.50), and adjusted automotive free cash flow to $9.5B–$11.5B (from $9.0B–$11.0B).
Negative Updates
Significant EV-Related Restructuring Charges
Recorded $2.3B of incremental EV-related charges in Q2 (including $900M supplier cash charges, $700M battery right-sizing cash charges, and $700M non-cash impairments). Total EV-related charges since H2 2025 are $10.9B, with an estimated $7.2B cash impact; $4.5B paid through Q2.
Read all updates
Q2-2026 Updates
Positive
Negative
Raised 2026 Guidance
Company raised full-year guidance for a second time: EBIT adjusted to $14.0B–$16.0B (from $13.5B–$15.5B), EPS diluted adjusted to $12.00–$14.00 (from $11.50–$13.50), and adjusted automotive free cash flow to $9.5B–$11.5B (from $9.0B–$11.0B).
Read all positive updates
Company Guidance
GM raised full‑year 2026 guidance to adjusted EBIT of $14.0–$16.0B (from $13.5–$15.5B), adjusted diluted EPS of $12.00–$14.00 (from $11.50–$13.50) and adjusted automotive free cash flow of $9.5–$11.5B (from $9.0–$11.0B), assuming no material Middle East escalation and U.S. SAAR in the low‑16M range; key assumptions include North America ICE wholesales ~+1% H1 and similar H2, EV losses improving $1.0–$1.5B for the year (≈$500M realized in H1), warranty improving $1.0–$1.5B (≈$500M realized in H1, most remaining in Q3), emissions savings $500–$750M (≈$400M realized in H1), gross tariffs of $2.5–$3.5B (≈$1.3B through H1 net of a $500M IEPA benefit, Q2 tariff ≈$900M), and a commodity/DRAM/logistics headwind of $1.5–$2.0B (≈$600M in H1); management expects onshoring spend of ~$1.0–$1.5B this year (≈$400M H1) and noted Q2 company revenue $48B (+$0.9B YoY), Q2 EBIT adj $3.9B (+$0.9B YoY), North America EBIT adj $3.4B and 8.6% margin (+250bps YoY), Q2 adj auto FCF $5.0B (+$2.2B YoY), automotive cash $19.7B, Q2 share repurchases $2.0B (~25M shares) and H1 repurchases $2.8B (36M retired) leaving 893M diluted shares and $3.5B authorization remaining; digital and adjacencies highlighted 1M new subscriptions in 2026, Q2 recognized digital revenue $800M and deferred revenue $6.3B, GM Defense revenue ~ $700M in 2026 (targeting positive EBIT and >30% CAGR), and cumulative EV‑related charges of $10.9B to date (≈$7.2B cash impact, $4.5B paid).General Motors Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
44
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 185.53B | 185.02B | 187.44B | 171.84B | 156.74B | 127.00B |
| Gross Profit | 10.64B | 20.10B | 32.60B | 29.04B | 30.78B | 25.78B |
| EBITDA | 13.21B | 18.43B | 21.75B | 23.20B | 23.87B | 25.72B |
| Net Income | 1.92B | 2.70B | 6.01B | 10.13B | 9.93B | 10.02B |
Balance Sheet | ||||||
| Total Assets | 282.74B | 281.28B | 279.76B | 273.06B | 264.04B | 244.72B |
| Cash, Cash Equivalents and Short-Term Investments | 24.72B | 27.67B | 27.14B | 26.47B | 31.30B | 28.68B |
| Total Debt | 37.01B | 130.28B | 130.69B | 122.65B | 115.67B | 110.39B |
| Total Liabilities | 219.10B | 218.12B | 214.17B | 204.76B | 191.75B | 178.90B |
| Stockholders Equity | 62.00B | 61.12B | 63.07B | 64.29B | 67.79B | 59.74B |
Cash Flow | ||||||
| Free Cash Flow | 16.50B | 11.07B | -5.98B | -3.68B | -5.14B | -6.92B |
| Operating Cash Flow | 23.20B | 26.87B | 20.13B | 20.93B | 16.04B | 15.19B |
| Investing Cash Flow | -8.46B | -16.13B | -20.52B | -14.66B | -17.88B | -16.36B |
| Financing Cash Flow | -16.73B | -9.59B | 1.94B | -6.35B | 383.00M | 1.74B |
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 | $208.47B | 10.39 | 10.10% | 3.38% | 6.73% | -16.97% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $1.23T | 263.74 | 4.58% | ― | 11.75% | -37.64% | |
56 Neutral | $77.97B | 44.43 | 3.04% | 0.80% | -1.11% | -67.59% | |
55 Neutral | $40.42B | -15.06 | -3.53% | 4.73% | 1.63% | -158.78% | |
54 Neutral | $58.54B | -7.89 | -18.90% | 4.18% | 1.47% | -315.47% | |
46 Neutral | $13.97B | -51.77 | -2.49% | ― | -23.38% | -123.25% |
* Consumer Cyclical Sector Average
GM
General Motors
87.68
35.39
67.68%
F
Ford Motor
14.43
3.99
38.28%
HMC
Honda Motor Company
29.60
-1.46
-4.71%
TSLA
Tesla
322.08
12.82
4.15%
TM
Toyota Motor
186.17
3.86
2.12%
LI
Li Auto
13.12
-12.60
-48.99%
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...
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.