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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

2. GM's 2025 Earnings: A Strong Performance with Bullish Outlook

General Motors Company reported a robust full-year 2025 financial performance, with adjusted EBIT of $12.7 billion and adjusted automotive free cash flow of $10.6 billion, resulting in a year-end cash balance of $21.7 billion. The company's diluted EPS came in at $2.51, beating analyst estimates of $2.26. GM's financial highlights were driven by its strong market share gains in the US, where it achieved its highest full-year market share in a decade, growing for the fourth consecutive year with low inventory, low incentives, and strong pricing.

Publication Date: Feb -02

📋 Highlights
  • 2025 Financial Performance:: GM achieved $12.7 billion EBIT adjusted and $10.6 billion adjusted automotive free cash flow, with a year-end cash balance of $21.7 billion.
  • Shareholder Returns:: Repurchased $6 billion of shares, reducing shares by 35% (465 million), and increased dividends by 20% to 18¢ per share, while authorizing a new $6 billion buyback.
  • 2026 Guidance:: EBIT adjusted expected at $13–15 billion, EPS adjusted at $11–13, and auto free cash flow of $9–11 billion, despite $3–4 billion in tariff costs and EV-related charges.
  • EV and Software Growth:: Super Cruise saw 80% YoY growth, with $400 million revenue in 2025, and deferred revenue from software/services projected at $7.5 billion by 2026 (up 40% YoY).

Segment Performance

GM's leadership in full-size pickups and full-size SUVs, as well as its best year ever in crossovers, contributed to its strong financial performance. The company's OnStar services also had a record 12 million subscribers, and Super Cruise achieved nearly 80% year-over-year growth. The company's software and services business is expected to continue its momentum, with deferred revenue expected to reach approximately $7.5 billion by the end of 2026, up nearly 40% from 2025.

Outlook and Guidance

For 2026, GM expects adjusted EBIT of $13 billion to $15 billion, EPS diluted adjusted of $11 to $13 per share, and adjusted automotive free cash flow of $9 to $11 billion. The company anticipates gross tariff costs of $3 billion to $4 billion and material but smaller cash and non-cash EV-related charges. GM's guidance reflects its confidence in delivering improved EV profitability, warranty expense, and regulatory costs.

Valuation and Metrics

GM's current valuation metrics, including a P/E Ratio of 23.33 and an EV/EBITDA of 64.52, suggest that the market is pricing in a certain level of growth and profitability. With analysts estimating revenue growth of 2.6% for next year, it remains to be seen whether GM can meet or exceed these expectations. The company's Free Cash Flow Yield of 14.13% and ROIC of 1.3% also provide insight into its ability to generate cash and return on investment.

Key Drivers and Risks

GM's path to profitability in EVs, along with its plans to reduce costs and improve warranty expense, are key drivers of its future performance. However, the company faces potential headwinds, including tariff exposure and regulatory risks. GM's ability to offset these headwinds through self-help provisions, such as go-to-market strategies and cost efficiencies, will be crucial to its success.

3. NewsRoom

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Be The General Contractor: Build Your Double-Digit-Yielding Portfolio

Feb -20

Source: seekingalpha.com

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GM Recalls 43K SUVs Over Transmission Defect That Could Lock Rear Wheels

Feb -20

Source: feeds.benzinga.com

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Market Today: Amazon Overtakes Walmart; Blue Owl Rattles Credit; FDA Eyes Moderna Flu Shot

Feb -19

Source: gurufocus.com

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Amazon Reports $717 Billion, Overtakes Walmart in Annual Revenue

Feb -19

Source: gurufocus.com

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First Look: Walmart beat, Meta trial, FDA eyes Moderna

Feb -19

Source: gurufocus.com

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Ameritas Advisory Services LLC Sells 9,614 Shares of General Motors Company $GM

Feb -19

Source: defenseworld.net

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Market Today: Moderna rebounds; oil and gold jump

Feb -18

Source: gurufocus.com

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GM Stock Up 42% in 6 Months: Worth Holding Onto for More Gains?

Feb -18

Source: zacks.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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Ford

A-Score: 6.6/10

Value: 7.5

Growth: 4.7

Quality: 2.5

Yield: 10.0

Momentum: 8.0

Volatility: 6.7

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PulteGroup

A-Score: 5.8/10

Value: 6.0

Growth: 8.8

Quality: 7.7

Yield: 2.0

Momentum: 4.0

Volatility: 6.3

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Booking

A-Score: 5.8/10

Value: 3.6

Growth: 8.7

Quality: 8.0

Yield: 1.0

Momentum: 5.0

Volatility: 8.3

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General Motors

A-Score: 5.0/10

Value: 5.2

Growth: 6.3

Quality: 2.6

Yield: 1.0

Momentum: 8.5

Volatility: 6.3

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Lennar

A-Score: 4.8/10

Value: 6.8

Growth: 4.3

Quality: 5.9

Yield: 3.0

Momentum: 2.5

Volatility: 6.3

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Tesla

A-Score: 4.0/10

Value: 0.0

Growth: 8.7

Quality: 5.1

Yield: 0.0

Momentum: 7.5

Volatility: 2.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

81.51$

Current Price

81.51$

Potential

-0.00%

Expected Cash-Flows