Investment Thesis
General Motors demonstrates solid operational cash generation with $17.6B free cash flow, but profitability metrics are concerning with negative gross margin (-1.7%) and deteriorating earnings (net income down 15.2% YoY, EPS down 48.7%). The company faces structural margin pressure despite revenue growth, requiring careful monitoring of cost management and operational efficiency improvements.
GM Strengths
- Strong free cash flow generation of $17.6B with 9.5% FCF margin provides financial flexibility
- Revenue growth of 10.1% YoY demonstrates market demand and scale expansion
- Substantial cash position of $20.9B and solid current ratio of 1.17x support liquidity and debt service
GM Risks
- Negative gross margin of -1.7% indicates production costs exceed revenue, suggesting unfavorable product mix or manufacturing inefficiencies
- Significant earnings deterioration with net income declining 15.2% YoY and diluted EPS down 48.7%, raising profitability sustainability concerns
- Weak interest coverage ratio of 0.7x and elevated leverage (debt-to-equity metric) limit financial flexibility despite strong absolute debt position
Key Metrics to Watch
- Gross margin trend and path to profitability
- Operating margin sustainability and cost structure improvements
- Free cash flow generation and capital allocation decisions
- Net income trajectory and EPS recovery
- Debt levels and interest coverage ratio improvement
GM Financial Metrics
GM Profitability Ratios
GM Balance Sheet & Liquidity
GM 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 Growth Metrics (YoY)
GM Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $32.6B | $1.7B | $1.14 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
GM Capital Allocation
GM SEC Filings
Access official SEC EDGAR filings for General Motors Co (CIK: 0001467858)