General Motors Company (GM) | Investment Case

1. Company Snapshot

1.a. Company Description

General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts and accessories in North America, the Asia Pacific, the Middle East, Africa, South America, the United States, and China.The company operates through GM North America, GM International, Cruise, and GM Financial segments.It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling brand names.

The company also sells trucks, crossovers, cars, and purpose-built vehicles to dealers for consumer retail sales, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments.In addition, it offers safety and security services for retail and fleet customers, including automatic crash response, emergency services, roadside assistance, crisis assist, stolen vehicle assistance, and turn-by-turn navigation; and connected services comprising mobile applications for owners to remotely control their vehicles and electric vehicle owners to locate charging stations, on-demand vehicle diagnostics, smart driver, marketplace in-vehicle commerce, in-vehicle voice, voice assistant, navigation and app ecosystem, connected navigation, SiriusXM with 360L, and 4G LTE wireless connectivity, as well as develops and commercializes autonomous vehicle technology.Further, the company provides automotive financing and insurance services; and software-enabled services and subscriptions.

General Motors Company was founded in 1908 and is headquartered in Detroit, Michigan.

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1.b. Last Insights on GM

General Motors' recent performance was driven by strong Q3 results, with adjusted EPS of $2.80 on revenue of $48.59 billion, surpassing Wall Street forecasts. The company raised its guidance for the year, citing manageable tariff headwinds and robust free cash flow. Additionally, GM's decision to trim EV production is expected to pay off next year, while benefiting from higher prices. The company's CFO discussed mitigated tariff concerns and EV demand, contributing to an improved profit forecast. (Source: Various recent news articles)

1.c. Company Highlights

Last Price	75.29
Change Percentage	0.80%
Open	75
Previous Close	74.69
Market Cap ( Millions)	70236
Volume	12425539
Year High	76.23
Year Low	41.6
M A 50	65.96
M A 200	54.56

FCF Yield	3.23%
Dividend Yield	0.76%
ROE	4.68%
Debt / Equity	199.63%
Net Debt / EBIDTA	579.77%
Price To Book	1.09
Price Earnings Ratio	23.81
Price To FCF	30.95
Price To sales	0.38
EV / EBITDA	9.51

2. General Motors' Q3 2025 Earnings: A Mixed Bag with Strategic Optimism

General Motors reported its third-quarter 2025 earnings, with EBIT-adjusted at $3.4 billion, down $700 million year-over-year. The actual EPS came out at $2.8, beating estimates of $2.29. The company's gross tariff impact was $1.1 billion. Despite the year-over-year decline in EBIT-adjusted, General Motors raised its full-year guidance, expecting EBIT-adjusted of $12 billion to $13 billion, EPS diluted adjusted of $9.75 to $10.50 per share, and adjusted automotive free cash flow of $10 billion to $11 billion.

Publication Date: Oct -24

                                    📋 Highlights
                                    Adjusted EBIT Decline::
                                                Q3 2025 EBIT-adjusted fell $700M YoY to $3.4B, despite a $1.1B gross tariff impact.
Full-Year Guidance Raised::
                                                Forecasting EBIT-adjusted of $12B–$13B, EPS diluted adjusted $9.75–$10.50, and $10B–$11B adjusted auto free cash flow.
Special Charges::
                                                $1.6B in Q3 special items, including $1.2B non-cash impairments and $0.4B in supplier contract cancellations.
Capital Discipline::
                                                $2.1B in capital projects, $1.3B debt repayment, and $1.5B stock repurchases in Q3, maintaining $10B–$11B CAPEX range.
Margin Targets::
                                                GM North America aims for 8%–10% margins over time, leveraging tariff offsets, warranty cost reductions, and EV capacity rightsizing.

                                

Operational Highlights and Strategic Decisions

CEO Mary Barra highlighted that General Motors achieved its highest third-quarter market share in the US since 2017, with strong margins, and a profitable restructured China business. The company decided to more than double the planned Chevrolet Equinox production at its Fairfax Assembly plant in Kansas, indicating confidence in its product lineup and manufacturing capabilities.

Financial Performance and Cash Flow

General Motors Financial posted Q3 EBT-adjusted of $800 million and paid a $350 million dividend. The company invested $2.1 billion in capital projects, paid down $1.3 billion of balance sheet debt, and repurchased $1.5 billion of stock in the quarter. The company's ability to generate cash and return value to shareholders is evident, but the net debt to EBITDA ratio of 5.89 suggests a relatively high debt burden.

Tariff Mitigation and Future Outlook

The company expects to offset around 35% of its lower gross tariff impact through go-to-market cost and footprint initiatives. General Motors also expects next year to be even better than 2025, with multiple levers to carry its current momentum forward, including progress on EV losses, warranty costs, tariff offsets, and fixed costs. The guidance for 2026 will include more details on these efforts, and analysts estimate next year's revenue growth at -0.1%.

Valuation and Comparables

With a P/E Ratio of 21.86 and an EV/EBITDA of 9.39, General Motors' valuation suggests that the market is pricing in a certain level of growth and profitability. The ROE of 4.68% and ROIC of 2.3% indicate that the company is generating returns, but there is room for improvement. The Free Cash Flow Yield of 3.48% is attractive, indicating that the company is generating cash relative to its market value.

3. NewsRoom

Univest Securities, LLC Congratulates Its Client General Enterprise Ventures, Inc. (NYSE American: CITR) on Its Uplisting to the NYSE American

Dec -04

Source: globenewswire.com

General Enterprise Ventures, NYSE American, to Share 2026 Outlook for CitroTech Fire Inhibitors and Growth Opportunities on December 10 Investor Call

Dec -04

Source: businesswire.com

Weak jobs data, Salesforce earnings, GM's 'Silicon Valley cowboy' and more in Morning Squawk

Dec -04

Source: cnbc.com

Casey's General Has the Economics of Convenience Stores Down

Dec -04

Source: barrons.com

Volatus Aerospace Appoints Lieutenant-General (Ret'd) Christopher J. Coates to Board of Advisors

Dec -04

Source: globenewswire.com

GM's new ‘Silicon Valley cowboy' eyes technology renaissance for automaker

Dec -04

Source: cnbc.com

Joe Biden Credited GM CEO Mary Barra For EVs, But She Said Credit Should Go To Elon Musk

Dec -04

Source: feeds.benzinga.com

Gavin Newsom Slams Trump For Letting China Dominate EVs — Criticizes CAFE Rollback Which Will 'Poison' Air: 'We'll Fight Tooth And Nail…'

Dec -04

Source: feeds.benzinga.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Automotive - GM North America (GMNA)

Expected Growth: 3.5%

The North American automotive market is expected to experience moderate growth, driven by steady consumer demand, technological advancements, and a recovering economy. However, growth will be tempered by intense competition and potential regulatory changes.

Automotive - GM International (GMI)

Expected Growth: 5.0%

Emerging markets are anticipated to drive growth, fueled by increasing consumer purchasing power, urbanization, and a rising middle class. Additionally, GM's strategic investments in electric and autonomous vehicles are expected to yield returns in these regions.

Cruise

Expected Growth: 20.0%

The autonomous vehicle market is poised for rapid expansion, driven by significant investments in technology and growing demand for innovative mobility solutions. Cruise's partnerships and advancements in AV technology position it for substantial growth.

GM Financial

Expected Growth: 4.5%

Growth in this segment is expected to be driven by increasing automotive sales, expanded product offerings, and a favorable interest rate environment. Additionally, digital transformation and improved customer experiences will contribute to its growth.

Corporate

Expected Growth: 2.0%

This segment's growth is anticipated to be relatively stable, reflecting the company's ongoing efforts to optimize operations and reduce costs. However, growth will be limited by the segment's primarily supportive nature.

Reclassifications/Eliminations

Expected Growth: 5.5%

Electric vehicle adoption, autonomous technology advancements, and strategic partnerships drive growth for General Motor’s reclassified financial data, with a focus on profitable segments and efficient cost structures.

7. Detailed Products

Chevrolet Silverado

A line of full-size and heavy-duty pickup trucks

Cadillac Escalade

A line of luxury SUVs

GMC Sierra

A line of full-size and heavy-duty pickup trucks

Buick Enclave

A line of luxury SUVs

OnStar

A subscription-based vehicle safety and security system

Maven

A car-sharing and mobility service

Cruise

A self-driving car technology company

GM Financial

A financial services company providing auto financing and insurance

8. General Motors Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for General Motors Company is medium due to the presence of alternative modes of transportation such as public transportation, bicycles, and electric vehicles.

Bargaining Power Of Customers

The bargaining power of customers for General Motors Company is low due to the lack of negotiating power of individual customers and the high switching costs.

Bargaining Power Of Suppliers

The bargaining power of suppliers for General Motors Company is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for General Motors Company is low due to the high barriers to entry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for General Motors Company is high due to the presence of several established competitors, including Ford, Toyota, and Volkswagen, and the high stakes of competition in the automotive industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	65.61%
Debt Cost	3.95%
Equity Weight	34.39%
Equity Cost	11.43%
WACC	6.52%
Leverage	190.78%

11. Quality Control: General Motors Company passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Booking

A-Score: 6.3/10

Value: 3.8

Growth: 8.7

Quality: 8.0

Yield: 1.0

Momentum: 7.5

Volatility: 8.7

1-Year Total Return ->

Ford

A-Score: 5.9/10

Value: 7.3

Growth: 4.7

Quality: 2.5

Yield: 8.0

Momentum: 6.5

Volatility: 6.3

1-Year Total Return ->

PulteGroup

A-Score: 5.8/10

Value: 5.9

Growth: 8.8

Quality: 7.6

Yield: 2.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

Lennar

A-Score: 5.4/10

Value: 7.5

Growth: 7.2

Quality: 7.1

Yield: 3.0

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

General Motors

A-Score: 4.8/10

Value: 5.9

Growth: 6.3

Quality: 2.5

Yield: 1.0

Momentum: 7.5

Volatility: 5.7

1-Year Total Return ->

Tesla

A-Score: 4.3/10

Value: 0.0

Growth: 8.7

Quality: 5.2

Yield: 0.0

Momentum: 9.5

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

39.06%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.52%

General Motors Company - US37045V1008

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on GM

1.c. Company Highlights

Cheaper

Stable Momentum

Medium Volatility

Earnings Beats

Revenues Beats

Less Volatile

Strong Momentum

Average Quality

Lower Quality

Average Yield

Fairly Valued

Average Growth

2. General Motors' Q3 2025 Earnings: A Mixed Bag with Strategic Optimism

Operational Highlights and Strategic Decisions

Financial Performance and Cash Flow

Tariff Mitigation and Future Outlook

Valuation and Comparables

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Automotive - GM North America (GMNA)

Expected Growth: 3.5%

Automotive - GM International (GMI)

Expected Growth: 5.0%

Cruise

Expected Growth: 20.0%

GM Financial

Expected Growth: 4.5%

Corporate

Expected Growth: 2.0%

Reclassifications/Eliminations

Expected Growth: 5.5%

7. Detailed Products

Chevrolet Silverado

Cadillac Escalade

GMC Sierra

Buick Enclave

OnStar

Maven

Cruise

GM Financial

8. General Motors Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: General Motors Company passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

75.29$

12.e Scoring ^Insights

12.f DCF ^BETA