GM Stock Risk & Deep Value Analysis
General Motors Co
Consumer Cyclical • Auto Manufacturers
DVR Score
out of 10
What You Need to Know About GM Stock
We analyzed General Motors Co using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran GM through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Moderate. Here's what we found.
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GM Risk Analysis & Red Flags
What Could Go Wrong
The biggest risk is the prolonged unprofitability of the EV segment. If EV losses continue to widen despite increased production, it could significantly erode overall company profitability, strain capital, and force a slowdown or re-evaluation of the strategic pivot, leading to investor skepticism and a potential stock price decline.
Risk Matrix
Overall
Moderate
Financial
Medium
Market
Medium
Competitive
High
Execution
Medium
Regulatory
Medium
Red Flags
- ⚠
Continued significant losses from the EV segment without a clear path to profitability
- ⚠
Material negative revisions to full-year guidance in subsequent quarters
- ⚠
Loss of market share in either ICE or EV segments to competitors
Upcoming Risk Events
- 📅
Next earnings report (Q2 2026) if guidance is not met or lowered
- 📅
Increased competition in the EV market leading to price wars
- 📅
Significant slowdown in overall automotive demand due to economic recession
When to Reconsider
- 🚪
Exit if full-year adjusted EPS guidance is revised below $10.00
- 🚪
Sell if the EV segment's quarterly loss exceeds $2 billion for two consecutive quarters
- 🚪
Exit if the stock breaches critical support levels like the 200-day moving average on heavy volume (if visible on chart)
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What Does General Motors Co (GM) Do?
Market Cap
$67.89B
Sector
Consumer Cyclical
Industry
Auto Manufacturers
Employees
162,000
General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts worldwide. 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, Baojun, and Wuling brand names. In addition, the company sells trucks, crossovers, cars, and automobile parts through retail dealers, distributors and dealers, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. Further, it offers software-enabled services and subscriptions; and various range of after-sale services through dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories, and extended service warranties. Additionally, the company provides automotive financing; and software-enabled services and subscriptions. General Motors Company was founded in 1908 and is headquartered in Detroit, Michigan.
Visit General Motors Co WebsiteInvestment Thesis
General Motors represents a value play in the automotive sector, leveraging its highly profitable internal combustion engine (ICE) business to aggressively fund a strategic pivot towards electric vehicles (EVs) and autonomous driving (AV) through its Ultium platform and Cruise subsidiary. Strong operational execution in its core business and improving financial metrics, coupled with a commitment to shareholder returns, provide a solid foundation while it invests for future market leadership in new mobility segments.
Is GM Stock Undervalued?
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GM Price Targets & Strategy
12-Month Target
$95.00
Bull Case
$125.00
Bear Case
$75.00
Valuation Basis
Based on 7.6x forward P/E applied to the midpoint of raised FY2026 Adjusted EPS guidance of $12.50 ($76.44 / $12.50 = ~6.1x current P/E, 7.6x is a modest expansion for strong performance).
Entry Strategy
Consider dollar-cost averaging at current levels around $76-$78. Accumulate on dips towards $70-$72, which could serve as a psychological support level.
Exit Strategy
Take partial profits at $95-$100 if the stock approaches these levels within 12 months. Set a stop-loss order at $68-$70 to protect against significant downside or worsening EV profitability.
Portfolio Allocation
3% for moderate risk tolerance, given the stability of the core business but long-term uncertainty in the EV transition.
Price Targets & Strategy
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Is GM Financially Healthy?
Valuation
P/E Ratio
26.75
Forward P/E
15.54
EV/EBITDA
3.89
PEG Ratio
0.35
Price/Book
1.08
Price/Sales
0.37
Profitability
Gross Margin
5.88%
Operating Margin
0.93%
Net Margin
1.37%
Return on Equity
3.96%
Revenue Growth
-2.03%
EPS
$2.58
Balance Sheet
Current Ratio
1.17
Quick Ratio
1.01
Debt/Equity
2.13
Total Debt
$127.76B
Cash & Equivalents
$18.50B
Cash Flow
Operating Cash Flow
$23.76B
Free Cash Flow
$1.90B
EBITDA
$18.50B
Other
Beta (Volatility)
1.29
Dividend Yield
0.88%
Does GM Have a Competitive Moat?
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Moat Trend
Stable to slightly Expanding. While brand and scale are somewhat stable, investments in Ultium and Cruise aim to expand the moat into new, high-growth areas of mobility.
Moat Sources
3 Identified
GM's brand power and scale in traditional manufacturing are durable, but the new moats (EV platform, AV tech) are still developing and face intense competition. Durability relies on successful execution of the EV transition.
Moat Erosion Risks
- •Rapid technological advancements by pure-play EV or AV competitors
- •Inability to achieve economies of scale and profitability in EV production quickly
- •Customer preference shifting rapidly away from traditional automotive brands in the EV era
GM Competitive Moat Analysis
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GM Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral. While recent earnings were positive, retail investor sentiment for legacy auto in the EV transition can be mixed, balancing strong core business with EV challenges.
Institutional Sentiment
Positive. The Q1 2026 earnings beat and raised guidance likely led to positive sentiment among institutions, though specific upgrades/downgrades were not available in search.
Insider Activity (Form 4)
No specific Form 4 filings identified in search results for the last 90 days. Recommend checking SEC EDGAR directly.
Options Flow
Normal options activity. No unusual options flow indicating significant institutional positioning was identified in the search results.
Earnings Intelligence
Next Earnings
Estimated late July 2026
Surprise Probability
Medium. While Q1 beat, the market will be keenly watching EV segment profitability and overall margin trends amidst competitive pressures.
Historical Earnings Pattern
GM tends to react positively to earnings beats and upward guidance revisions, as seen with Q1 2026 results. Conversely, misses or downward revisions can lead to short-term pullbacks.
Key Metrics to Watch
Competitive Position
Top Competitor
TSLA
Market Share Trend
Stable to slightly gaining in traditional truck/crossover segments; facing intense competition and currently ceding ground in EV profitability but aiming to gain EV market share with new launches.
Valuation vs Peers
Trading at a significant discount to growth-oriented EV pure-plays (like TSLA) on P/E and other growth multiples. Generally trades at a discount or in line with traditional automakers (Ford, Stellantis).
Competitive Advantages
- •Strong legacy brand recognition and extensive dealer network
- •Massive manufacturing scale and global supply chain expertise
- •Significant R&D investments in next-gen EV and AV technologies (Ultium, Cruise)
Market Intelligence
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What Could Drive GM Stock Higher?
Near-Term (0-6 months)
- •Q2 2026 Earnings (Estimated late July 2026)
- •Continued strong sales performance of high-margin ICE trucks and SUVs
- •Further operational efficiencies in EV production or reduced EV losses
Medium-Term (6-18 months)
- •Successful rollout and scaling of key Ultium platform EV models
- •Expansion of Cruise autonomous vehicle services into new markets
- •Strategic partnerships or collaborations in EV battery technology
Long-Term (18+ months)
- •Achievement of consistent profitability in the EV segment
- •Widespread adoption and commercialization of autonomous driving technology (Cruise)
- •Transformation into a leading mobility-as-a-service provider
Catalysts & Growth Drivers
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What's the Bull Case for GM?
- ✓
Acceleration in EV revenue growth combined with significant reduction in EV segment losses
- ✓
Positive developments and commercial deployment milestones for Cruise
- ✓
Consistent growth in adjusted automotive free cash flow
Bull Case Analysis
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Competing with GM
See how General Motors Co compares to related companies
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
General Motors Co GM | $67.9B | 0.9 | 26.7 | $184.6B | 1.4% | -2.0% | |
Amazon.com Inc AMZN | $2.7T | 2.1 | 30.0 | — | 12.2% | 14.2% | Compare → |
Home Depot Inc HD | $307.8B | 0.5 | 21.7 | $159.5B | 8.6% | 3.2% | Compare → |
McDonald's Corp MCD | $221.1B | 0.1 | 26.4 | — | — | — | Compare → |
Nike Inc NKE | $65.8B | 1.0 | 29.2 | $46.3B | 4.8% | -2.7% | Compare → |
Tesla Inc TSLA | $1.6T | 5.5 | 412.1 | $94.8B | 4.0% | 2.3% | Compare → |
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How General Motors Co Makes Money
General Motors designs, manufactures, and sells a wide range of trucks, crossovers, cars, and electric vehicles across various brands like Chevrolet, GMC, Cadillac, and Buick globally. It generates revenue primarily through vehicle sales to dealers and directly to fleet customers, along with financing services (GM Financial) and aftermarket parts. The company is also investing heavily in future mobility solutions, aiming to monetize autonomous vehicle services through Cruise and expand its EV ecosystem with charging and software-defined vehicle capabilities.
Read Full Business Model BreakdownFAQ
What is the DVR Score for General Motors Co (GM)?
As of May 13, 2026, General Motors Co has a DVR Score of 0.9 out of 10, placing it in the "Distressed" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of General Motors Co?
General Motors Co's market capitalization is approximately $67.9B. The company operates in the Consumer Cyclical sector within the Auto Manufacturers industry.
What ticker symbol does General Motors Co use?
GM is the ticker symbol for General Motors Co. The company trades on the NYQ.
What is the risk level for GM stock?
Our analysis rates General Motors Co's overall risk as Moderate. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of GM?
General Motors Co currently has a price-to-earnings (P/E) ratio of 26.7. This is in line with broader market averages.
Does General Motors Co pay a dividend?
Yes, General Motors Co pays a dividend with a current yield of approximately 0.88%.
Is General Motors Co's revenue growing?
General Motors Co has reported revenue growth of -2.0%. Revenue has been declining, which warrants closer examination.
Is GM stock profitable?
General Motors Co has a profit margin of 1.4%. The company is profitable but margins are modest.
How often is the GM DVR analysis updated?
Our AI-powered analysis of General Motors Co is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on May 13, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for GM (General Motors Co) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.