General Motors Co (GM) Stock Analysis
General Motors Co (GM) Stock Analysis
Analysis from 10-Q filed 2025-10-21. Data as of Q4 2025.
Overall Grade: F (Concerning)
General Motors Co faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 4.0% | Below expectations |
| FCF Margin | 9.5% | Healthy cash flow |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
Explore General Motors Co: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: General Motors Co earns 4.0% ROIC, Bottom 50% in Industrials
General Motors Co's trailing-twelve-month ROIC of 4.0% ranks Bottom 50% in Industrials companies (sector median: 7.3%), driven by NOPAT margin of 1.4% combined with asset turnover of 0.6x. Source: 10-Q filed 2025-10-21. Gross margin of 14.0% with operating margin at 1.6% reflects a competitive pricing environment.
| Metric | GM | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 4.0% | Warning | Below sector median of 7.3% |
| Return on Equity (ROE) | 4.9% | Warning | Moderate equity returns |
| Gross Margin | 14.0% | Warning | Competitive pricing environment |
| Operating Margin | 1.6% | Warning | Moderate operational efficiency |
Cash Flow: General Motors Co generates $17.6B FCF at 9.5% margin, positive NaN/8 quarters
General Motors Co generated $17.6B in free cash flow (TTM), a 9.5% FCF margin, a margin that ranks Top 50% in Industrials. Operating cash flow exceeds net income by 8.4x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-21.
| Metric | GM | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 9.5% | Adequate | Healthy cash generation |
| Free Cash Flow (TTM) | $17.6B | Good | Positive cash generation |
| OCF/Net Income | 8.4x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: General Motors Co at 0.0x leverage
General Motors Co's debt-to-equity ratio of 0.0x reflects conservative leverage. Source: 10-Q filed 2025-10-21.
| Metric | GM | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Valuation: General Motors Co trades at 24.7x earnings
General Motors Co trades at a P/E of 24.7x. Free cash flow yield of 22.6% offers attractive cash returns relative to price.
| Metric | GM | Rating | Context |
|---|---|---|---|
| P/E Ratio | 24.7x | Adequate | Premium valuation |
| EV/Sales | 0.2x | Excellent | Attractive revenue multiple |
| FCF Yield | 22.6% | Excellent | Attractive cash return |
| Dividend Yield | 0.7% | Adequate | Growth focus over income |
Capital Allocation: General Motors Co returns 8.4% shareholder yield
General Motors Co's total shareholder yield is 8.4% (dividends 0.7% + buybacks 7.7%). Source: 10-Q filed 2025-10-21.
| Metric | GM | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 8.4% | Excellent | Dividend + buyback yield combined |
| Buyback Yield | 7.7% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $6.7B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 4.0% | Bottom 50% | 0.5x below |
| Free Cash Flow Margin | 9.5% | Top 50% | 2.0x above |
| Gross Margin | 14.0% | Bottom 25% | 0.4x below |
| Operating Margin | 1.6% | Bottom 50% | 0.2x below |
| Return on Equity (ROE) | 4.9% | Bottom 50% | 0.6x below |
| P/E Ratio | 24.7x | N/A | - |
Financial Scorecard
| Metric | GM | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 4.0% | Warning | Bottom 50% of sector (median: 7.3%) |
| Free Cash Flow Margin | 9.5% | Adequate | Top 50% of sector (median: 4.7%) |
| Gross Margin | 14.0% | Warning | Bottom 25% of sector (median: 33.1%) |
| Debt to Equity Ratio | 0.0% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 24.7x | Adequate | Fair value |
| Free Cash Flow Yield | 22.6% | Excellent | High cash return |
Frequently Asked Questions
Q: What is General Motors Co's Return on Invested Capital (ROIC)?
General Motors Co (GM) has a trailing twelve-month Return on Invested Capital (ROIC) of 4.0%. This compares below the sector median of 7.3%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is General Motors Co's Free Cash Flow Margin?
General Motors Co (GM) has a free cash flow margin of 9.5%, generating $17.6 billion in free cash flow over the trailing twelve months. A FCF margin between 5-10% is typical for capital-intensive businesses.
Q: Is General Motors Co stock overvalued or undervalued?
General Motors Co (GM) trades at a P/E ratio of 24.7x, which is above the sector median of N/A. The EV/Sales multiple is 0.2x. Free cash flow yield is 22.6%, which represents an attractive cash return to investors.
Q: Does General Motors Co pay a dividend?
General Motors Co (GM) currently pays a dividend yield of 0.7%. Including share buybacks, the total shareholder yield is 8.4%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: What is General Motors Co's revenue and earnings growth?
General Motors Co (GM) declined revenue by 1.3% year-over-year. Earnings per share decreased by 49.3% compared to the prior year. Revenue decline may indicate market challenges or industry headwinds.
Q: Is General Motors Co buying back stock?
General Motors Co (GM) repurchased $6.0 billion of stock over the trailing twelve months. This represents a buyback yield of 7.7%.
Q: How does General Motors Co compare to competitors in Industrials?
Compared to other companies in Industrials, General Motors Co (GM) shows: ROIC of 4.0% is below the sector median of 7.3% (Bottom 37%). FCF margin of 9.5% exceeds the sector median of 4.7% (Top 29% of sector). Gross margin at 14.0% is 19.1 percentage points lower than sector peers. These rankings are based on MetricDuck's analysis of all Industrials companies with available SEC filings.
Q: What warning signs should I watch for with General Motors Co?
Investors in General Motors Co (GM) should monitor these potential warning signs: 1) ROIC has been declining, potentially signaling deteriorating competitive position. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-10-21. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.