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General Motors Co
GM : NYSE : Consumer Goods
$27.71 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 14,892,100
02/10/16 - 4:01 PM ET

Financial Analysis


GENERAL MOTORS CO's gross profit margin for the fourth quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. GENERAL MOTORS CO has weak liquidity. Currently, the Quick Ratio is 0.72 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 12.44% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY15 Q4 FY14
Net Sales ($mil)39621.039617.0
EBITDA ($mil)3754.03719.0
EBIT ($mil)1645.01897.0
Net Income ($mil)6266.01987.0


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)24991.029514.0
Total Assets ($mil)194520.0177677.0
Total Debt ($mil)63111.046841.0
Equity ($mil)39871.035457.0


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin16.9416.84
EBITDA Margin9.479.38
Operating Margin4.154.79
Sales Turnover0.780.88
Return on Assets4.972.22
Return on Equity24.297.9
Debt Q4 FY15 Q4 FY14
Current Ratio1.091.27
Debt/Capital0.610.57
Interest Expense113.0104.0
Interest Coverage14.5618.24


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)1500.01600.0
Div / share0.360.3
EPS3.920.66
Book value / share26.5822.16
Institutional Own % n/a n/a
Avg Daily Volume1.4123967E71.6312178E7

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 11.93 for the Automobiles industry and a significant discount compared to the S&P 500 average of 21.13. For additional comparison, its price-to-book ratio of 1.08 indicates a discount versus the S&P 500 average of 2.51 and a discount versus the industry average of 2.33. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, GENERAL MOTORS CO proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
GM 4.78 Peers 11.93   GM 3.59 Peers 5.24

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

GM is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

GM is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
GM 4.96 Peers 8.71   GM NM Peers 0.87

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

GM is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

GM's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
GM 1.08 Peers 2.33   GM 265.24 Peers 27.33

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

GM is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

GM is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
GM 0.28 Peers 0.99   GM -2.30 Peers 1.48

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

GM is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

GM significantly trails its peers on the basis of sales growth

 

 

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