GM

Read This to Understand General Motors Company (GM)

General Motors Company shares fell by -1.4% during the day's afternoon session, and are now trading at a price of $35.73. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly in terms of its earnings and equity levels.

The Market May Be Undervaluing General Motors Company's Assets and Equity:

General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts; and provide software-enabled services and subscriptions worldwide. The company belongs to the Consumer Discretionary sector, which has an average price to earnings (P/E) ratio of 22.96 and an average price to book (P/B) ratio of 4.24. In contrast, General Motors Company has a trailing 12 month P/E ratio of 5.0 and a P/B ratio of 0.67.

General Motors Company's PEG ratio is 1.53, which shows that the stock is probably overvalued in terms of its estimated growth. For reference, a PEG ratio near or below 1 is a potential signal that a company is undervalued.

Overview of the Company's Finances:

2018 2019 2020 2021 2022 2023
Revenue (MM) $147,049 $137,237 $122,485 $127,004 $156,735 $171,970
Revenue Growth n/a -6.67% -10.75% 3.69% 23.41% 9.72%
Operating Margins 6% 5% 7% 10% 7% 7%
Net Margins 5% 5% 5% 8% 6% 6%
Net Income (MM) $8,084 $6,732 $6,427 $10,019 $9,934 $10,023
Net Interest Expense (MM) $2,596 $1,469 $4,121 $4,121 $1,432 $1,242
Earnings Per Share $5.53 $4.57 $4.33 $6.7 $6.13 $7.11
EPS Growth n/a -17.36% -5.25% 54.73% -8.51% 15.99%
Diluted Shares (MM) 1,431 1,439 1,442 1,468 1,454 1,231
Free Cash Flow (MM) $6,495 $7,429 $11,370 $7,679 $6,805 $12,328
Capital Expenditures (MM) $8,761 $7,592 $5,300 $7,509 $9,238 $10,569
Current Ratio 0.92 0.88 1.01 1.1 1.1 1.14
Total Debt (MM) $71,310 $64,992 $72,976 $75,299 $75,521 $96,759

General Motors Company has weak revenue growth and increasing reinvestment in the business, positive EPS growth, and irregular cash flows. Furthermore, General Motors Company has average net margins with a stable trend and an average amount of debt.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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