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General Motors Co GM

Morningstar Rating
$46.55 +0.03 (0.06%)
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Company Report

GM: Second-Quarter US Sales Are the Company’s Best Since 2020

Most automakers reported US auto sales on July 2. Wards Intelligence put June sales at 1.32 million, down 3.4% year over year. The seasonally adjusted annualized selling rate was 15.29 million versus 16.06 million last June. The ransomware attack on leading dealer management software vendor CDK affected sales starting June 19 and Wards estimates a 50,000 unit hit to June sales and a 0.6 million SAAR impact. CDK said on July 2 that substantially all of its over 15,000 dealer customers are back on the system, so we think the industry can make up lost June volume during the third quarter. Dealers will still need to spend considerable time manually entering all the transactions incurred since June 19 into their DMS. Vehicle inventories of about 2.7 million are at levels last seen in early 2021 just before the chip shortage began, and demand is there, especially for foreign automakers like Toyota. We think 2024 US light-vehicle sales will be about 15.8 million-16 million, a 2.9% increase from 2023.

Price vs Fair Value

GM is trading at a 445% premium.
Price
$46.55
Fair Value
$96.00
Uncertainty
High
1-Star Price
$616.40
5-Star Price
$27.40
Economic Moat
Kmhs
Capital Allocation
Pdtjdzdz

Bulls Say, Bears Say

Bulls

GMNA's breakeven point of about 10 million-11 million units is drastically lower than it was under old GM.

Bears

GM may have to see a U.S. recession to prove it can do much better than old GM before the market will award the stock a higher P/E multiple. The recession came in 2020, and may again in 2024 or 2025, but the P/E multiple well after the downturn is uncertain.

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News

Trading Information

Previous Close Price
$46.52
Day Range
$46.2247.48
52-Week Range
$26.3049.35
Bid/Ask
$46.44 / $46.95
Market Cap
$53.09 Bil
Volume/Avg
612 / 13.7 Mil

Key Statistics

Price/Earnings (Normalized)
5.78
Price/Sales
0.35
Dividend Yield (Trailing)
0.90%
Dividend Yield (Forward)
1.03%
Total Yield
21.67%

Company Profile

General Motors Co. emerged from the bankruptcy of General Motors Corp. (old GM) in July 2009. GM has eight brands and operates under four segments: GM North America, GM International, Cruise, and GM Financial. The United States now has four brands instead of eight under old GM. The company regained its U.S. market share leader crown in 2022, after losing it to Toyota due to the chip shortage in 2021. 2023's share was 16.5%. GM's Cruise autonomous vehicle arm has previously done driverless geofenced AV robotaxi services in San Francisco and other cities but stopped in late 2023 after an accident. It should restart in at least one city in 2024. GM owns over 80% of Cruise. GM Financial became the company's captive finance arm in October 2010 via the purchase of AmeriCredit.
Sector
Consumer Cyclical
Industry
Auto Manufacturers
Stock Style Box
Mid Value
Total Number of Employees
163,000

Competitors

Valuation

Metric
GM
TSLA
TM
Price/Earnings (Normalized)
5.7892.658.09
Price/Book Value
0.7712.531.22
Price/Sales
0.359.310.89
Price/Cash Flow
3.0161.444.89
Price/Earnings
No chart available

Financial Strength

Metric
GM
TSLA
TM
Quick Ratio
0.881.041.00
Current Ratio
1.161.721.19
Interest Coverage
12.5438.06101.57
Quick Ratio
No chart available

Profitability

Metric
GM
TSLA
TM
Return on Assets (Normalized)
3.80%9.74%6.15%
Return on Equity (Normalized)
15.07%16.96%16.12%
Return on Invested Capital (Normalized)
5.37%13.43%7.17%
Return on Assets
No chart available
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1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Tesla Inc
TSLA
JzrhwpxyMhmwy$806.7 Bil
Toyota Motor Corp ADR
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TsvydyqbHctbd$275.4 Bil
Ferrari NV
RACE
VbrqysxbYhrp$77.1 Bil
Mercedes-Benz Group AG
MBGAF
YqwsdgnxWkwwvg$75.7 Bil
Volkswagen AG ADR
VWAGY
JdpgzmflShzbw$59.9 Bil
Volkswagen AG ADR
VWAPY
NkjptfdcRlcyy$59.9 Bil
Bayerische Motoren Werke AG ADR
BMWYY
ScymjdyPjdnttp$59.9 Bil
Stellantis NV
STLA
ChnqckwqlJltv$57.4 Bil
Ford Motor Co
F
NjddvplwnPvzn$51.6 Bil

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