General Motors Co

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GM : NYSE : Consumer Goods
$30.99 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 12,673,200
07/28/16 - 4:00 PM ET

Financial Analysis


GENERAL MOTORS CO's gross profit margin for the second quarter of its fiscal year 2016 has increased 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 company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 24.13% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)42372.038180.0
EBITDA ($mil)5689.04273.0
EBIT ($mil)3198.02571.0
Net Income ($mil)2866.01117.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)24765.026269.0
Total Assets ($mil)210449.0185812.0
Total Debt ($mil)75320.053517.0
Equity ($mil)43630.035146.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin19.8718.79
EBITDA Margin13.4211.19
Operating Margin7.556.73
Sales Turnover0.750.82
Return on Assets5.912.97
Return on Equity28.5212.94
Debt Q2 FY16 Q2 FY15
Current Ratio0.981.22
Debt/Capital0.630.6
Interest Expense147.0108.0
Interest Coverage21.7623.81


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)1600.01600.0
Div / share0.380.36
EPS1.810.67
Book value / share27.2721.97
Institutional Own % n/a n/a
Avg Daily Volume1.262212E71.3922255E7

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 9.29 for the Automobiles industry and a significant discount compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 1.17 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 5.00. 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 4.10 Peers 9.29   GM 4.07 Peers 5.32

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 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 5.48 Peers 43.11   GM NM Peers 0.63

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 1.17 Peers 5.00   GM 189.25 Peers 34.59

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 0.32 Peers 1.09   GM 3.49 Peers 10.81

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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