NEW YORK (TheStreet) -- General Motors Co. (GM - Get Report) told Cadillac dealers to stop selling some versions of the Cadillac CTS model-range because the automaker does not have a fix yet for cars recalled in late June over an issue where engines can be shut off if the driver's knee bumps the ignition key, the company said on Saturday, Reuters reports.
The stop sale order to Cadillac dealers on the 2003-2014 CTS and 2004-2006 SRX was issued July 2 and updated July 8, according to GM documents posted by the National Highway Traffic Safety Administration.
The recall involved about 554,000 Cadillacs in the U.S.
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- GM's revenue growth trails the industry average of 22.2%. Since the same quarter one year prior, revenues slightly increased by 1.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 141.26% to $1,976.00 million when compared to the same quarter last year. In addition, GENERAL MOTORS CO has also vastly surpassed the industry average cash flow growth rate of 42.27%.
- The debt-to-equity ratio is somewhat low, currently at 0.89, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.81 is somewhat weak and could be cause for future problems.
- GENERAL MOTORS CO has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, GENERAL MOTORS CO reported lower earnings of $2.35 versus $2.93 in the prior year. This year, the market expects an improvement in earnings ($2.87 versus $2.35).
- In its most recent trading session, GM has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: GM Ratings Report
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