General Motors Company (GM)

FairStock Score: 24/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach General Motors as a cyclical auto manufacturer, not a stable consumer franchise. It has real scale, with Buick, Cadillac, Chevrolet, and GMC, plus GM Financial, but auto making is capital-hungry and competitive. The filed figures show why I am cautious: in fiscal year 2024, the year ended 2024-12-31, revenue was $171.6B, net income was $6.0B, and diluted EPS was $6.37. In fiscal year 2025, the year ended 2025-12-31, revenue slipped to $168.0B, net income fell to $2.7B, and diluted EPS was $3.27. In fiscal Q1 2026, the quarter ended 2026-03-31, net income was $2.6B and diluted EPS was $2.82; in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $43.8B, net income was $1.3B, and diluted EPS was $1.41. Earnings are uneven. At the 2026-10-13 close of $84, FairStock calculates a P/E of 37.50, P/B of 1.19, ROE of 3.16%, ROCE of 2.25%, FCF yield of 0.8%, and debt-to-equity of 2.02. Its Graham Number is $59.68, so the price carries a negative 40.75% margin of safety. The Altman Z-Score of 0.71 suggests financial fragility. GM's brands and truck franchise are strengths, but low returns and thin free cash flow do not scream durable moat. The computed Lynch category is CYCLICAL — Auto Manufacturers, because earnings follow the economic cycle. I would want a much lower price or clear evidence of sustained cash generation before calling it a bargain.

In plain English: General Motors designs and sells cars, trucks, and SUVs, and also provides auto financing. The business looks weak, with recent filings showing falling and uneven profits. At $84 a share, the stock looks expensive compared with those profits and cash flow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer