NEW YORK (TheStreet) -- General Motors Co. (GM - Get Report) is in a "massive transformation" and will continue bringing new people into the organization, according to a key executive, the Wall Street Journal reports.
"I am absolutely open to bringing in fresh eyes," GM's global product chief Mark Reuss says. ""We are reinventing the place."
His comments come as GM is attempting to regain its footing in the quietness that has followed senate hearings in which CEO Mary Barra defended the company's handling of its ignition switch recall, the Journal noted.
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- GM's revenue growth trails the industry average of 23.5%. Since the same quarter one year prior, revenues slightly increased by 1.5%. 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.
- The debt-to-equity ratio is somewhat low, currently at 0.95, 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 ($2.71 versus $2.35).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Automobiles industry. The net income has significantly decreased by 80.3% when compared to the same quarter one year ago, falling from $1,414.00 million to $278.00 million.
- The share price of GENERAL MOTORS CO has not done very well: it is down 6.68% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Despite the stock's decline during the last year, it is still somewhat more expensive (in proportion to its earnings over the last year) than most other stocks in its industry. We feel, however, that other strengths this company displays offset this slight negative.
- You can view the full analysis from the report here: GM Ratings Report
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