Home Sectors Consumer Cyclical Stock Valuation: General Motors Company (NYSE: GM)

Stock Valuation: General Motors Company (NYSE: GM)


General Motors Company trades as part of the autos industry and trades as part of the consumer cyclical sector. The company CEO is Mary Barra. General Motors Company is an American multinational corporation. It designs, builds and sells cars, trucks and automobile parts. The company also provides automotive financing services through General Motors Financial Company,

Previous Intraday Trading Performance:

The GM stock showed a previous change of 0.97% with an open at 39.60 and a close of 39.71. It reached an intraday high of 40.05 and a low of 39.53.

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The stock has a market cap of $57.6b with 1.5b shares outstanding, of which the float is 1.4b shares. Trading volume reached 4,913,496 shares compared to its average volume of 7,757,802 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, General Motors Company shares returned 1.66% and in the past 30 trading days it returned 2.18%. Over three months, it changed 6.80%. In one year it has changed 5.50% and within that year its 52-week high was 45.00 and its 52-week low was 30.56. GM stock is 29.94% above its 52 Week Low.

Our calculations show a 200 day moving average of 36.06 and a 50 day moving average of 38.46. Currently GM stock is trading 10.13% above its 200 day moving average.

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The last annual fiscal EPS for the company was reported at 5.53 that ended on 31st of December 2018, which according to the previous close, that is a PE of 7.18. Based on 5 analyst estimates, the consensus EPS for the next quarter is 1.07. The TTM EPS is 6.54, which comes to a TTM PE of 6.07.

The dividend per share is currently 1.52, which is a dividend yield of 3.83%. Also, the payout ratio is 23.24%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 66.62, which means it is possibly undervalued and has a margin of safety of 40.40%

Indicators to Watch:

Based on the latest filings, there is 0.30% of insider ownership and 119.10% of institutional ownership. Short-interest is 18,487,626, which is 1.27% of shares outstanding. The short-interest ratio or days-to-cover ratio is 2.16. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.28

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 21.43%, return on assets is 3.60%, profit margin is 6.28%, price-to-sales is 0.51 and price-to-book is 1.44.

Company Scores:

All scores are out of six:
 5  :Valuation Score
 3  :Past Performance Score
 1  :Financial Strength Score
 1  :Future Growth Score
 4  :Dividend Score
 2  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.