General Motors Co

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GM : NYSE : Consumer Goods
$35.62 up 0.08 | 0.23%
Today's Range: 35.315 - 35.79
Avg. Daily Volume: 1.59125E7
03/30/17 - 11:58 AM ET

Financial Analysis


GENERAL MOTORS CO's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. GENERAL MOTORS CO has weak liquidity. Currently, the Quick Ratio is 0.68 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 9.94% 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 FY16 Q4 FY15
Net Sales ($mil)43918.039621.0
EBITDA ($mil)4543.03698.0
EBIT ($mil)1755.01645.0
Net Income ($mil)1835.06266.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)26414.024991.0
Total Assets ($mil)221690.0194520.0
Total Debt ($mil)84628.063111.0
Equity ($mil)43836.039871.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin17.3716.8
EBITDA Margin10.349.33
Operating Margin4.04.15
Sales Turnover0.750.78
Return on Assets4.254.97
Return on Equity21.524.29
Debt Q4 FY16 Q4 FY15
Current Ratio0.891.09
Debt/Capital0.660.61
Interest Expense150.0113.0
Interest Coverage11.714.56


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)1500.01500.0
Div / share0.380.36
EPS1.193.92
Book value / share29.2226.58
Institutional Own % n/a n/a
Avg Daily Volume1.4996655E71.4036524E7

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 11.17 for the Automobiles industry and a significant discount compared to the S&P 500 average of 26.33. For additional comparison, its price-to-book ratio of 1.17 indicates a significant discount versus the S&P 500 average of 2.93 and a significant discount versus the industry average of 3.60. 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 5.71 Peers 11.17   GM 3.11 Peers 5.30

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 5.59 Peers 10.61   GM 3.12 Peers 2.62

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.

 

Premium. 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 trades at a premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
GM 1.17 Peers 3.60   GM 0.16 Peers 50.72

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.

 

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

However, GM is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
GM 0.31 Peers 1.15   GM 9.20 Peers 13.07

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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