General Motors Co

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GM : NYSE : Consumer Goods
$31.48 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 13,513,400
09/29/16 - 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 managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. 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 Volume1.3972872E71.1671162E7

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 10.01 for the Automobiles industry and a significant discount compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 1.19 indicates a significant discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 3.79. 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 4.15 Peers 10.01   GM 4.12 Peers 4.60

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 5.52 Peers 10.21   GM NM Peers 0.71

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 1.19 Peers 3.79   GM 189.25 Peers 35.03

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 0.33 Peers 1.07   GM 3.49 Peers 19.07

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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