MMarketMath

GM

StalwartQuality: Medium (46/100)1 red flag

General Motors · Consumer Discretionary · Automobile Manufacturers

$86.98

52w 54.33 – 91.85

20y monthly, adjusted

Mkt cap

$76.3B

P/E

28.6

P/FCF

4.4

FCF yield

22.8%

ROE

4.4%

Shldr yield

8.6%

div 0.9% + bb 7.8%

What today's price assumes

At $76.3B, the market is pricing in -14.2% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 13.5% per year — expectations look undemanding relative to history.

Simple DCF per-share range: $305 · $612 · $763 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Historical multiple lens

At its own median P/OCF of 3.3× across 15 years, GM would trade near $101/share (25th–75th percentile: $93–$110); it trades at 2.8× today.

Assumes the historical multiple regime persists — re-ratings can be permanent.

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

+5.3%

Rev 5y

+9.1%

Rev 10y

+2.2%

EPS 5y

−5.5%

EPS 10y

−5.7%

FCF 5y

+9.1%

FCF 10y

+13.5%

Fundamentals

Fiscal 2010–2025, from SEC filings

Revenue

2010: $135.6B
2011: $150.3B
2012: $152.3B
2013: $155.4B
2014: $155.9B
2015: $135.7B
2016: $149.2B
2017: $145.6B
2018: $133.0B
2019: $122.7B
2020: $108.7B
2021: $113.6B
2022: $144.0B
2023: $157.7B
2024: $171.6B
2025: $168.0B
$0$50.0B$100.0B$150.0B
10
13
16
19
22
25

Net income

2010: $6.2B
2011: $9.2B
2012: $6.2B
2013: $5.3B
2014: $3.9B
2015: $9.7B
2016: $9.4B
2017: −$3.9B
2018: $8.0B
2019: $6.7B
2020: $6.4B
2021: $10.0B
2022: $9.9B
2023: $10.1B
2024: $6.0B
2025: $2.7B
$0$5.0B$10.0B
10
13
16
19
22
25

Free cash flow

2010: $2.6B
2011: $1.9B
2012: $2.5B
2013: $5.1B
2014: $3.0B
2015: $5.0B
2016: $8.2B
2017: $8.9B
2018: $6.5B
2019: $7.4B
2020: $11.4B
2021: $7.7B
2022: $6.8B
2023: $10.0B
2024: $9.3B
2025: $17.6B
$0$5.0B$10.0B$15.0B
10
13
16
19
22
25

Diluted shares (lower is better)

2011: 1.7B
2012: 1.7B
2013: 1.7B
2014: 1.7B
2015: 1.6B
2016: 1.6B
2017: 1.5B
2018: 1.4B
2019: 1.4B
2020: 1.4B
2021: 1.5B
2022: 1.5B
2023: 1.4B
2024: 1.1B
2025: 973.0M
0500.0M1.0B1.5B
10
13
16
19
22
25

Margins

0%5%10%1012141618202224
Net marginFCF marginGross margin

Capital returned (dividends + buybacks)

2010: $1.6B
2011: $916.0M
2012: $0
2013: $0
2014: $5.2B
2015: $5.8B
2016: $4.9B
2017: $6.7B
2018: $2.4B
2019: $2.4B
2020: $759.0M
2021: $186.0M
2022: $2.9B
2023: $11.7B
2024: $7.7B
2025: $6.7B
$0$5.0B$10.0B
10
13
16
19
22
25

Cash vs long-term debt

$50.0B$100.0B1012141618202224
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q2'23: $41.3B
Q3'23: $40.5B
Q4'23: $39.3B
Q1'24: $39.2B
Q2'24: $44.1B
Q3'24: $44.7B
Q4'24: $43.6B
Q1'25: $39.9B
Q2'25: $42.9B
Q3'25: $44.3B
Q4'25: $41.0B
Q1'26: $39.3B
Q2'26: $43.8B
$0$20.0B$40.0B
23
24
24
25
26

Net income by quarter

Q2'23: $2.6B
Q3'23: $3.1B
Q4'23: $2.1B
Q1'24: $3.0B
Q2'24: $2.9B
Q3'24: $3.1B
Q4'24: −$3.0B
Q1'25: $2.8B
Q2'25: $1.9B
Q3'25: $1.3B
Q4'25: −$3.3B
Q1'26: $2.6B
Q2'26: $1.3B
−$2.0B$0$2.0B
23
24
24
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q2'26$43.8B+2.1%$1.3B−31.1%1.41$6.4B
Q1'26$39.3B−1.3%$2.6B−5.6%2.82$3.0B
Q4'25 *$41.0B−6.0%−$3.3B-3.34$6.8B
Q3'25$44.3B−1.1%$1.3B−56.6%1.35$7.1B
Q2'25$42.9B−2.7%$1.9B−35.4%1.91$6.9B
Q1'25$39.9B+1.7%$2.8B−6.6%3.35$6.1B
Q4'24 *$43.6B+11.1%−$3.0B−240.9%-1.42$4.1B
Q3'24$44.7B+10.5%$3.1B−0.3%2.68$6.9B
Q2'24$44.1B+6.8%$2.9B+14.3%2.55$6.0B
Q1'24$39.2B+7.0%$3.0B+24.4%2.56$3.2B
Q4'23 *$39.3B−1.4%$2.1B+5.2%1.60$3.7B
Q3'23$40.5B+4.6%$3.1B−7.3%2.20$6.6B
Q2'23$41.3B+26.5%$2.6B+51.7%1.83$7.6B

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue+5.3%+9.1%+2.2%+1.4%
Operating cash flow+18.8%+10.0%+8.6%+9.6%
Free cash flow+37.2%+9.1%+13.5%+13.6%
EPS (diluted)−18.9%−5.5%−5.7%
Equity−3.4%+6.3%+4.4%+3.6%
LT debt+4.2%+3.6%+7.5%
Diluted shares−12.5%−7.6%−5.1%
Stock price+38.7%+13.1%+12.7%+11.1%

$100, 3 years ago

$267vs $176 in SPY

38.7% vs 20.7%/yr

$100, 5 years ago

$185vs $181 in SPY

13.1% vs 12.6%/yr

$100, 10 years ago

$332vs $412 in SPY

12.7% vs 15.2%/yr

$100, 15 years ago

$488vs $813 in SPY

11.1% vs 15.0%/yr

The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)

Last 5 years

$0.31

$11.2B created / $36.3B retained

Last 10 years

$0.80

$42.4B created / $53.2B retained

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

13.9%

OCF ÷ (equity + debt)

OCF / EV yield

14.3%

MC vs 10× OCF

0.29

≤1 = priced under 10× OCF

Debt / FCF

7.5y

SBC / FCF

1.9%

Owner earnings

$17.2B

OCF − capex − SBC

OE yield

22.3%

Share count 5y

−3.8%

per year; negative = buybacks

Capital intensity

net PP&E ÷ revenue

Sales efficiency

new PP&E per $1 new revenue, 5y

Growth engine (5y): reinvested 37.0% of operating cash flow at an incremental return of 27.8% — an organically fundable growth rate of about 10.3% per year (growth ≈ reinvestment rate × incremental ROIC).

Checklist

16 of 25 checks pass · 64%. Checks with structurally missing inputs are excluded.

Growth & Consistency

5/7

  • Revenue growth

    9.1% · 5y CAGR ≥ 5%

    pass
  • EPS growth

    -5.5% · 5y CAGR ≥ 5%

    fail
  • FCF growth

    9.1% · 5y CAGR ≥ 5%

    pass
  • Revenue rises consistently

    4 of 9 · up in ≥ 7 of last 10 years

    fail
  • FCF consistently positive

    10 of 10 · positive in ≥ 8 of last 10 years

    pass
  • Profitable every year

    9 of 10 · net income > 0 in ≥ 8 of last 10

    pass
  • Cash flow keeps up with sales

    10.0% vs 9.1% · OCF CAGR ≥ 0.9× revenue CAGR

    pass

Profitability

3/6

  • Net margin

    1.6% · ≥ 8%

    fail
  • Operating margin

    1.7% · ≥ 10%

    fail
  • Gross margin stable or rising

    · no drop > 2 pts over 3y

    na
  • Return on equity

    4.4% · ≥ 12%

    fail
  • Cash ROIC

    13.9% · ≥ 12%

    pass
  • FCF margin

    10.5% · ≥ 5%

    pass
  • Earnings back their cash

    OCF $26.9B vs NI $2.7B · OCF ≥ net income (latest FY)

    pass

Balance Sheet

1/4

  • Debt payable from cash flow

    7.5y · LT debt ≤ 3× FCF

    fail
  • Cash cushion

    16% · cash ≥ 50% of LT debt

    fail
  • Leverage

    2.15 · LT debt ≤ 1.5× equity

    fail
  • Equity positive and compounding

    $61.1B · equity > 0 and grew over ~5y

    pass
  • Interest burden

    · interest ≤ 15% of operating income

    na

Capital Allocation

4/4

  • Share count flat or shrinking

    -3.8% · ≤ +0.5%/yr over ~5y

    pass
  • Stock comp restrained

    2% · SBC ≤ 15% of FCF

    pass
  • Distributions funded by FCF

    38% · dividends + buybacks ≤ 100% of FCF

    pass
  • Repurchases are a habit

    8 of 10 · buybacks in ≥ 5 of last 10 years

    pass

Valuation Discipline

3/4

  • FCF yield

    22.8% · ≥ 3%

    pass
  • Earnings multiple

    28.6 · P/E ≤ 25

    fail
  • Price asks less than history delivered

    -14.2% vs 13.5% · implied FCF growth ≤ historical FCF CAGR

    pass
  • Shareholder yield

    8.6% · dividends + buybacks ≥ 2% of market cap

    pass

Red flags

Mechanical checks — a flag is a question to investigate, not a verdict

Heavy debt load

Long-term debt exceeds 5 years of free cash flow.

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
2025167,9712,9092,6973.2726,8679,30317,5646576,01233420,945131,57461,119973
2024171,60612,7846,0086.3720,12910,8309,2996537,06433219,872131,75863,0721,129
2023157,6589,29810,1277.3220,93010,9709,96059711,11534018,853123,49464,2861,369
2022143,97510,3159,9346.1316,0439,2386,8053972,50041919,153116,21767,7921,454
2021113,5909,32410,0196.7015,1887,5097,679186039120,067109,86759,7441,468
2020108,6736,6346,4274.3316,6705,30011,3706699035119,992110,02445,0301,442
2019122,6975,4816,7324.5715,0217,5927,4292,350045619,069103,95141,7921,439
2018133,0454,4458,0145.5315,2568,7616,4952,24219031620,844106,14838,8601,431
2017145,5888,661-3,864-2.6017,3288,4538,8752,2334,49258515,51295,29035,0011,492
2016149,1848,6869,4276.0016,6078,3848,2232,3682,50062712,57485,62143,8361,570
2015135,7255,5389,6875.9111,7696,8134,9562,2423,52042215,23863,83839,8711,640
2014155,9291,5303,9491.6510,0617,0912,9701,9283,27724518,95447,54035,4571,687
2013155,4275,1315,3462.3812,6307,5655,065031120,02142,6071,676
2012152,256-30,3636,1882.9210,6058,0682,537030218,42236,2441,675
2011150,2765,6569,1904.588,1666,2491,91791623316,07138,1201,668
2010135,5925,1086,1726,7804,2022,5781,57223521,25636,180

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.