Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a hold with a ratings score of C- . The company's strengths can be seen in multiple areas, such as its attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and poor profit margins.
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Highlights from the ratings report include:
- The current debt-to-equity ratio, 0.36, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.86 is somewhat weak and could be cause for future problems.
- The revenue fell significantly faster than the industry average of 53.5%. Since the same quarter one year prior, revenues slightly dropped by 4.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The gross profit margin for GENERAL MOTORS CO is rather low; currently it is at 16.70%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.90% trails that of the industry average.
- Net operating cash flow has decreased to $3,942.00 million or 22.15% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
General Motors Company (GM) designs, manufactures, and markets cars, crossovers, trucks, and automobile parts worldwide. General has a market cap of $39.04 billion and is part of the consumer goods sector and automotive industry. The company has a P/E ratio of 9.4, below the S&P 500 P/E ratio of 17.7. Shares are up 21.4% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.
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