General Motors Company (GM) is listed on NYSE and operates in the Auto - Manufacturers industry (Consumer Cyclical sector).
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 Moto...
| Rating | Analysts |
|---|---|
| Strong Buy | 2 |
| Buy | 31 |
| Hold | 14 |
| Sell | 4 |
| Strong Sell | 0 |
General Motors Company, founded in 1908 and headquartered in Detroit, Michigan, designs, manufactures, and sells vehicles and automotive parts globally. Operating through segments such as GM North America, GM International, Cruise, and GM Financial, the company markets its products under brands including Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling. General Motors serves both retail consumers and fleet customers, including rental car companies, commercial fleets, leasing firms, and government entities. The company provides a range of safety and security services, such as automatic crash response, emergency services, and roadside assistance. It also offers connected services, including mobile applications for vehicle control, electric vehicle charging station location, on-demand diagnostics, and in-vehicle commerce. Additionally, General Motors is involved in the development and commercialization of autonomous vehicle technology. The company extends its offerings to automotive financing, insurance services, and software-enabled services and subscriptions, enhancing the overall customer experience.
Over the past three fiscal years, the company has experienced a mixed performance across various financial metrics. Revenue showed an inconsistent trend, growing at a modest CAGR of 3.8% from $171.8 billion in 2023 to $185.0 billion in 2025. Despite this revenue growth, profitability metrics deteriorated, with gross margin declining by 4.9pp to 6.3%, and operating margin decreasing by 3.8pp to 1.6%. Net margin also consistently decreased by 4.4pp, ending at 1.5%, reflecting challenges in maintaining cost efficiency. Earnings per share (EPS) saw a significant decline, dropping from $7.32 to $3.27, a decrease of 33.2% annually, despite a 28.9% reduction in share count through buybacks, which typically enhances per-share metrics.
On the cash generation front, the company turned around its free cash flow (FCF) position, moving from a negative $3.7 billion in 2023 to a positive $11.1 billion in 2025, with FCF margin improving by 8.1pp to 6.0%. This positive cash flow shift indicates improved cash conversion, supported by a CCR that increased to 9.7, suggesting that earnings are increasingly backed by actual cash. Operational cash flow also grew at a healthy rate of 13.3% annually, reaching $26.9 billion by 2025. However, net debt increased slightly from $103.8 billion to $109.3 billion, reflecting a cautious approach to leverage amidst declining interest coverage, which fell to 5.3x.
Capital efficiency showed some positive signs, with capex intensity consistently decreasing to 8.5%, indicating a more capital-light operational model. The company's working capital efficiency improved significantly, as evidenced by a consistent decrease in the cash conversion cycle to just 4 days, driven by reductions in days sales outstanding (DSO) and days inventory outstanding (DIO). Despite these improvements, the return on invested capital (ROIC) consistently decreased to 2.1%, highlighting ongoing challenges in generating returns from invested capital.
Recent news for General Motors (GM) centers around its upcoming Q1 earnings report, with expectations of a decline as highlighted by Zacks Investment Research on April 21. This anticipated downturn in earnings is a critical focus for investors as they assess the company's financial health and future guidance. Additionally, GM Financial recently announced the winners of its 2025 Auction of the Year, showcasing its ongoing strategic initiatives. In terms of insider and institutional trading, Douglas Lane & Associates LLC reduced its stake in GM by 7% during the fourth quarter, while Personal CFO Solutions LLC and OFI Invest Asset Management made smaller adjustments to their positions. These transactions are part of routine portfolio management. Furthermore, GM has been involved in discussions with the Trump administration regarding potential contributions to a WWII-style weapons production effort, reflecting its strategic engagement with government initiatives. Lastly, GM attracted a new product chief with a substantial $40 million pay package, indicating its commitment to strengthening leadership in product development. These developments collectively paint a picture of GM's current strategic and financial positioning as it navigates industry challenges and opportunities.