📊 GM Key Takeaways
Is General Motors Co (GM) a Good Investment?
GM exhibits severe fundamental weaknesses with negative gross margins indicating products are sold below production cost, while interest coverage of 0.7x means operating income cannot service debt obligations. Despite revenue growth and positive cash flow, deteriorating unit economics, near-zero quick ratio, and extreme capital inefficiency (4.2% ROE, 0.9% ROA) signal structural business challenges.
General Motors shows solid top-line growth and very strong free cash flow generation, which supports liquidity and operational resilience. However, weak profitability metrics, declining net income and EPS, and low interest coverage indicate that earnings quality and margin durability are under pressure. Fundamentally, the company appears financially stable but not strong enough to justify a more aggressive rating until profitability improves.
General Motors Co Key Strengths (GM)
- Revenue growth of 10.1% year-over-year demonstrates resilient market demand
- Positive operating cash flow of $3.0B and free cash flow of $1.4B provide near-term liquidity
- Strong absolute cash position of $19.8B enables strategic flexibility and debt service
- Revenue grew 10.1% year over year, indicating continued demand and scale
- Operating cash flow of $26.87B and free cash flow of $17.56B provide meaningful financial flexibility
- Liquidity is adequate with $20.95B in cash and current and quick ratios above 1.0x
GM Stock Risks: General Motors Co Investment Risks
- Negative gross margin of -7.2% indicates fundamental loss-making on products sold, likely reflecting transition costs or unsustainable pricing
- Interest coverage ratio of 0.7x is critically low; operating income cannot cover interest expenses, creating debt sustainability risk
- Severely depressed returns on capital (ROE 4.2%, ROA 0.9%) with quick ratio of 0.99x indicates liquidity stress and poor capital allocation
- EPS dilution of -48.7% year-over-year despite net income growth suggests aggressive share issuance masking underlying earnings quality issues
- Net income fell 15.2% and diluted EPS fell 48.7%, signaling deteriorating earnings power
- Profitability is weak, with negative gross margin and only 1.6% operating margin
- Interest coverage of 0.7x suggests limited earnings cushion against financing costs
Key Metrics to Watch
- Gross margin trend and path to profitability at product level
- Interest coverage ratio and ability to deleverage
- Free cash flow sustainability and working capital efficiency
- Operating margin and net margin trend
- Free cash flow sustainability versus capital expenditure needs
General Motors Co (GM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.3% FCF margin may limit capital allocation flexibility.
GM Profit Margin, ROE & Profitability Analysis
GM vs Automotive Sector: How General Motors Co Compares
How General Motors Co compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is General Motors Co Stock Overvalued? GM Valuation Analysis 2026
Based on fundamental analysis, General Motors Co has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
General Motors Co Balance Sheet: GM Debt, Cash & Liquidity
GM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: General Motors Co's revenue has grown significantly by 40% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.32 reflects profitable operations.
GM Revenue Growth, EPS Growth & YoY Performance
GM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $39.3B | $2.6B | $2.82 |
| Q3 2025 | $44.3B | $1.3B | $1.35 |
| Q2 2025 | $42.9B | $1.9B | $1.91 |
| Q1 2025 | $39.2B | $2.8B | $2.56 |
| Q3 2024 | $40.5B | $3.1B | $2.20 |
| Q2 2024 | $41.3B | $2.6B | $1.83 |
| Q1 2024 | $36.6B | $2.4B | $1.69 |
| Q3 2023 | $38.7B | $3.1B | $2.20 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
General Motors Co Dividends, Buybacks & Capital Allocation
GM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for General Motors Co (CIK: 0001467858)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GM
What is the AI rating for GM?
General Motors Co (GM) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GM's key strengths?
Claude: Revenue growth of 10.1% year-over-year demonstrates resilient market demand. Positive operating cash flow of $3.0B and free cash flow of $1.4B provide near-term liquidity. ChatGPT: Revenue grew 10.1% year over year, indicating continued demand and scale. Operating cash flow of $26.87B and free cash flow of $17.56B provide meaningful financial flexibility.
What are the risks of investing in GM?
Claude: Negative gross margin of -7.2% indicates fundamental loss-making on products sold, likely reflecting transition costs or unsustainable pricing. Interest coverage ratio of 0.7x is critically low; operating income cannot cover interest expenses, creating debt sustainability risk. ChatGPT: Net income fell 15.2% and diluted EPS fell 48.7%, signaling deteriorating earnings power. Profitability is weak, with negative gross margin and only 1.6% operating margin.
What is GM's revenue and growth?
General Motors Co reported revenue of $43.6B.
Does GM pay dividends?
General Motors Co pays dividends, with $223.0M distributed to shareholders in the trailing twelve months.
Where can I find GM SEC filings?
Official SEC filings for General Motors Co (CIK: 0001467858) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GM's EPS?
General Motors Co has a diluted EPS of $2.82.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is GM's fundamental grade?
Based on our AI fundamental analysis in June 2026, General Motors Co has a C grade with 75% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is GM stock overvalued or undervalued?
Valuation metrics for GM: ROE of 4.2% (sector avg: 12%), net margin of 6.0% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
What is GM's AI grade for 2026?
Our dual AI analysis gives General Motors Co a combined C grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is GM's free cash flow?
General Motors Co's operating cash flow is $3.0B, with capital expenditures of $1.5B. FCF margin is 3.3%.
How does GM compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 6.0% (avg: 6%), ROE 4.2% (avg: 12%), current ratio 1.15 (avg: 1.2).