One-glance verdict
Undervalued
$166.23 our estimate vs market $87.16
Wall Street consensus: $101.64 (-38.9% lower than our fair-value estimate)
48% below our estimate, below the bear case
Fundamentals snapshot
General Motors Company
GM · NYQ · Consumer Cyclical · Auto Manufacturers
Current price
$87.16
52-week range
$54.33 - $91.85
Market cap
$78.83B
Balance sheet
Stretched
4.00x Stretched
Net debt $104.05B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 0.3% last year.
- Reward Returns 3.2% on equity, ahead of 50% of its peers.
- Risk Stock trades 256.8% above its 5-year average P/E.
- Risk Net debt grew 22.9% over 3 years.
What this company does
General Motors Company
General Motors is a global automaker that designs and sells vehicles under well-known brands like Chevrolet, Cadillac, and GMC. While the company's main business is selling cars and trucks, especially in North America, it also earns significant money from its financing division, which offers car loans to customers. This mix is important because the steady income from financing can help balance out the ups and downs of the car sales market.
How the company got here
General Motors was founded in 1908 by William C. Durant, who brought several car companies like Buick, Oldsmobile, and Cadillac under one roof. For 77 years, it was the world's largest seller of automobiles, known for offering "a car for every purse and purpose." Facing significant financial trouble, the company went through a government-backed bankruptcy in 2009, re-emerging as a more focused company. This restructuring led to the sale of several brands and a renewed focus on its core North American operations and a major push into new technologies.
What it actually does
General Motors designs, builds, and sells cars, trucks, and crossovers that people see on the road every day. You would probably recognize their main brands: Chevrolet, GMC, Cadillac, and Buick. Beyond just selling the vehicles, the company also provides financing (loans and leases for car buyers) and after-sale services like maintenance and repairs through its dealer network. It is also developing software and services for its vehicles, like the OnStar safety system and Super Cruise hands-free driving technology.
GM North America
This is GM's largest and most profitable business segment, covering the United States, Canada, and Mexico. It's responsible for the design, manufacturing, and sale of vehicles from Chevrolet, GMC, Buick, and Cadillac to both individual customers and fleet customers (rental car companies, commercial businesses, and governments). This part of the company is the main engine of GM's business, generating the vast majority of its revenue, especially from popular and high-margin (profitable) trucks and SUVs.
GM International
This segment handles GM's automotive operations outside of North America. Its primary markets are in South America and parts of Asia, with a significant presence in China through joint ventures (partnerships with local companies). While much smaller than the North American business in terms of revenue, it provides GM with a foothold in important global and emerging markets. This segment has been streamlined over the years, with GM selling its European brands (Opel and Vauxhall) to focus on more profitable regions.
GM Financial
This is the financing arm of General Motors, operating as its own business. When a customer buys or leases a GM vehicle at a dealership, GM Financial is often the company that provides the loan or lease agreement. It makes money from the interest paid on these loans and lease payments. GM Financial also provides loans to dealerships to help them manage their inventory of cars, a service known as floorplan financing.
What management is betting on now
Management's core strategy is to use the profits from its popular gasoline-powered trucks and SUVs to fund a major transition into new technologies. A huge focus is on electric vehicles (EVs), with the company investing heavily in new battery manufacturing and launching electric versions of its popular models. Another major bet is on autonomous (self-driving) technology, aiming to eventually offer vehicles that can drive themselves under certain conditions. The company is also working to generate more recurring revenue (ongoing income) from software and connected services within its cars.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$4.62B
FY2024 Q4
$907.00M
FY2025 Q1
$4.25B
FY2025 Q2
$4.77B
FY2025 Q3
$4.97B
FY2025 Q4
$3.58B
FY2026 Q1
$1.44B
FY2026 Q2
$4.41B
Revenue
$48.03B
Net income
$1.30B
Diluted EPS
1.41
Operating cash flow
$6.35B
Free cash flow
$4.41B
Fetching…
Sources
Revenue
$43.62B
Net income
$2.63B
Diluted EPS
2.82
Operating cash flow
$2.95B
Free cash flow
$1.44B
Fetching…
Sources
Revenue
$45.29B
Net income
$-3.31B
Diluted EPS
-3.34
Operating cash flow
$6.79B
Free cash flow
$3.58B
Fetching…
Sources
Revenue
$48.59B
Net income
$1.33B
Diluted EPS
1.35
Operating cash flow
$7.10B
Free cash flow
$4.97B
Fetching…
Sources
Revenue
$47.12B
Net income
$1.90B
Diluted EPS
1.91
Operating cash flow
$6.91B
Free cash flow
$4.77B
Fetching…
Sources
Revenue
$44.02B
Net income
$2.78B
Diluted EPS
3.35
Operating cash flow
$6.06B
Free cash flow
$4.25B
Fetching…
Sources
Revenue
$47.70B
Net income
$-2.96B
Diluted EPS
-1.42
Operating cash flow
$4.14B
Free cash flow
$907.00M
Fetching…
Sources
Revenue
$48.76B
Net income
$3.06B
Diluted EPS
2.68
Operating cash flow
$6.86B
Free cash flow
$4.62B
Fetching…
Sources
Is it cheap or expensive?
Fair value $166.23 vs current price $87.16
Wall Street consensus is the average analyst price target: $101.64 (-38.9% lower than our fair-value estimate).
Our most-likely fair value is $166.23 a share — about 90.7% above today's price of $87.16, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $104.1B. Interest coverage 4.0x.
Net debt
$104.05B
Interest coverage
4.00x
General Motors Company's profit covers its interest bill about 4.0 times over. which is stronger than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
GM
BASELINE
General Motors Company
Total debt $128.77B Interest coverage 4.00x This is the baseline the peer rows are being compared against.
Total debt $163.30B Interest coverage -6.88x -100% vs GM This peer has almost no interest-payment cushion compared with GM.
Total debt $60.12B Interest coverage -15.06x -100% vs GM This peer has almost no interest-payment cushion compared with GM.
Total debt $92.62B Interest coverage -4.96x -100% vs GM This peer has almost no interest-payment cushion compared with GM.
Total debt $283.15B Interest coverage 62.47x +1,461% vs GM Carries about 15.6x more debt cushion than GM.
Total debt $3.65B Interest coverage 50.94x +1,173% vs GM Carries about 12.7x more debt cushion than GM.
What you should know
The case for and against GM
3 Rewards
3 Risks
Rewards
-
Revenue grew 0.3% last year.
-
Returns 3.2% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 256.8% above its 5-year average P/E.
-
Net debt grew 22.9% over 3 years.
-
Operating margin compressed from 6.6% to 3.2% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
38.91x
Forward P/E
5.87x
P/B
1.23x
P/S
0.42x
EV/EBITDA
10.98x
PEG ratio
0.30x
Profitability
How much profit each dollar creates
Gross margin
10.2%
Operating margin
3.2%
Net margin
1.1%
ROE
3.2%
ROA
2.2%
Health
Liquidity and balance-sheet strength
Debt / equity
2.02x
Current ratio
1.14x
Quick ratio
0.89x
Total debt
$128.77B
Total cash
$24.72B
Growth
How the business has been compounding
Revenue TTM
$185.53B
Revenue 5Y CAGR
9.9%
EPS TTM
2.24
EPS 5Y CAGR
-18.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$23.20B
Free CF TTM
$17.56B
FCF margin
9.5%
Dividend
Shareholder payout
Yield
0.8%
Payout ratio
29.5%
Last ex-div date
2026-09-04