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General Motors (GM): Balancing Innovation and Income as Part of Cheap Quarterly Dividend Stocks
Yahoo Finance· 2025-09-25 16:02
Group 1 - General Motors Company (NYSE:GM) is recognized as one of the 11 Cheap Quarterly Dividend Stocks to consider for investment [1] - The company is a global automaker that produces vehicles under various brands, including Chevrolet, GMC, Cadillac, and Buick, while also investing in electric vehicles and driver-assistance technologies [2] - GM has been actively engaging in share repurchases, trading at eight times earnings, and utilizing strong free cash flow to buy back shares, which has reduced its share count and increased earnings per share [3] Group 2 - GM has maintained a consistent dividend payment to shareholders since 2014, currently offering a quarterly dividend of $0.15 per share, resulting in a dividend yield of 1.02% as of September 23 [4]
3 Reasons General Motors Stock Is a Screaming Buy
The Motley Fool· 2025-08-16 13:23
Core Viewpoint - General Motors is emerging as a strong automotive investment due to its strategic share buybacks, significant investments in brands and products, and a successful turnaround in the Chinese market [1][13]. Group 1: Share Buybacks - General Motors has focused heavily on share buybacks, trading at a low price-to-earnings ratio of eight [2]. - The company has spent nearly $25 billion on share repurchases over the past three years, reducing shares outstanding from 1.5 billion to 950 million [5]. - This aggressive buyback strategy is beneficial for investors as long as the stock remains undervalued [5]. Group 2: Investment in Brands and Products - General Motors has invested billions in its portfolio of brands and vehicles, leading to strong performance for Chevrolet and GMC in 2025 [6][10]. - The company has launched updated crossovers, SUVs, and electric vehicles (EVs), with profitable trucks set to follow [8]. - Chevrolet has become the second-largest EV brand in the U.S., with the Equinox EV achieving record sales in July [9]. Group 3: Turnaround in China - General Motors faced challenges in China due to a price war with domestic brands, prompting a $4 billion restructuring strategy [11][12]. - The company has recently reported two consecutive quarters of sales increases, with a 20% rise in Q2 [12]. - GM's focus on local innovations and customer choices is driving profitable growth in the Chinese market [12].
General Motors Offers Senior Unsecured Notes
Prnewswire· 2025-05-05 13:38
Core Viewpoint - General Motors (GM) has launched an offering of senior unsecured fixed rate notes to refinance existing debt and fund a loan to its joint venture, Ultium Cells LLC, aimed at facilitating the prepayment of loans received under the U.S. Department of Energy's program [1][2] Group 1: Financial Details - GM intends to use the net proceeds from the sale of the notes for general corporate purposes, including refinancing a portion of the $1.25 billion outstanding of its 6.125% senior notes maturing on October 1, 2025 [1] - The company has agreed to provide a $1.8 billion five-year term loan to Ultium Cells LLC [1] Group 2: Regulatory and Offering Information - GM has filed a registration statement with the Securities and Exchange Commission (SEC) for this offering, which includes a prospectus and preliminary prospectus supplement [2] - The documents related to the offering are publicly available for free on the SEC's EDGAR website [3] Group 3: Company Overview - GM is focused on advancing transportation technology to create safer, smarter, and lower-emission vehicles, including a wide range of electric vehicles (EVs) [4]
General Motors CEO Mary Barra warns Trump's tariffs will cost automaker up to $5B this year
New York Post· 2025-05-01 15:47
Group 1: Financial Forecast and Impact of Tariffs - General Motors has reduced its full-year profit forecast to between $8.2 billion and $10.1 billion, down from previous estimates of $11.2 billion to $12.5 billion, due to a projected tariff exposure of $4 billion to $5 billion [1][4] - The company expects adjusted earnings to be between $8.25 and $10 per share, a decrease from the earlier forecast of $11 to $12 per share [2][4] Group 2: Capital Spending and Management's Response - Despite the anticipated financial hit from tariffs, General Motors plans to maintain capital spending between $10 billion and $11 billion for the year [4] - CEO Mary Barra expressed appreciation for the Trump administration's efforts to understand the automotive industry and its challenges, indicating ongoing discussions with the President and his team [5][4] Group 3: Market Dynamics and Sales Trends - In the first quarter, General Motors reported a 2.3% increase in revenue, driven by a surge in consumer demand as buyers rushed to purchase vehicles ahead of expected price hikes due to tariffs [12][13] - The automotive industry experienced a 13% growth in US car sales in March, although analysts caution that this may be a temporary spike as price increases are anticipated in response to tariffs [14]
GM Q1 Earnings Preview: Should You Buy the Stock Before the Results?
ZACKS· 2025-04-25 14:15
Core Viewpoint - General Motors (GM) is expected to report its first-quarter 2025 results on April 29, with earnings estimated at $2.66 per share and revenues at $42.37 billion, reflecting a modest year-over-year earnings increase but a revenue decline [1][2]. Financial Performance - The earnings estimate for the upcoming quarter has increased by 2 cents, indicating a 1.5% year-over-year growth in earnings, while revenues are projected to decrease by 1.5% [2]. - For the full year 2025, GM's revenue is estimated at $179.3 billion, representing a 4.3% year-over-year contraction, while the EPS is projected to grow by approximately 6% to $11.21 [3]. Sales and Market Position - In Q1 2025, GM sold 693,363 units, marking a 17% year-over-year increase, with significant gains across key brands: Chevrolet (up 13.7%), GMC (up 17.6%), Cadillac (up 17.8%), and Buick (up 39.3%) [6]. - GM's retail sales increased by 15%, achieving its best first-quarter performance since 2018, and electric vehicle (EV) sales surged by 94% to 31,887 units, making GM the second-largest EV seller in the U.S. after Tesla [7]. Regional Performance - In China, GM delivered 442,000 vehicles, nearly flat year-over-year but down 26.3% sequentially, although new energy vehicle sales rose by 53.2% [8]. - The wholesale vehicle sales volume for GM North America is projected at 807,000 units, indicating a 1.9% year-over-year growth, with revenues expected to reach $36.46 billion [9]. Valuation and Market Comparison - Year-to-date, GM shares have declined by 12%, outperforming the auto sector and Tesla, which has seen a 36% drop [11]. - GM is trading at a forward price/sales ratio of 0.26, significantly lower than the industry average of 2.19, indicating a relatively cheap valuation [15]. Strategic Developments - GM's EV portfolio became "variable profit positive" in Q4 2024, with a production goal of 300,000 units in 2025, and the company expects to reduce EV losses by $2 billion this year [19]. - The company ended 2024 with $35.5 billion in automotive liquidity and returned $7.6 billion to shareholders, including a 25% dividend hike and a $6 billion repurchase authorization [20]. Challenges and Outlook - GM anticipates a slight decline in internal combustion engine vehicle volumes in North America and a 1-1.5% decrease in vehicle pricing, which may impact margins [21]. - Despite the challenges, GM is viewed as a solid long-term investment, although new investors may consider waiting for more clarity on tariff tensions and pricing pressures before making purchases [22].
How's General Motors Faring in China Amid Fierce Competition?
ZACKS· 2025-04-04 17:40
Core Viewpoint - General Motors (GM) is facing significant challenges in the Chinese market, which is crucial for its operations, while also experiencing growth in new energy vehicle (NEV) sales. The company is restructuring its operations to regain profitability amidst increasing competition from local automakers and other global players like Tesla and BYD [1][4][6]. Group 1: Market Performance - In Q1 2025, GM delivered 442,000 vehicles in China, showing a nearly flat performance year over year but a decline of 26.3% sequentially [2]. - NEV sales for GM surged by 53.2% year over year, indicating a strong demand for electric vehicles [2]. - The Buick GL8 led the premium MPV segment with 24,000 units sold, while the Wuling Hong Guang MINIEV remained popular [3]. Group 2: Competitive Landscape - Tesla's sales in China have faced challenges, with a reported decline of 11.5% year over year in January, February, and March [5]. - BYD has emerged as a strong competitor, delivering 416,388 battery electric vehicles (BEVs) in Q1 2025, surpassing Tesla's 336,681 units [6]. - GM is under pressure to expand its market share as local players like BYD increasingly dominate the industry [6]. Group 3: Strategic Initiatives - GM has initiated a major restructuring of its China operations, which includes cost-cutting measures, rightsizing, and refreshing its product lineup [4]. - Positive equity income was reported in the last quarter of 2024, excluding $5 billion in restructuring costs, indicating that restructuring efforts are beginning to yield results [4]. - GM aims to restore profitability in China within the current year [4]. Group 4: Financial Metrics - GM's shares have declined approximately 14% year to date, which is better than the industry's decline of 24% [7]. - The company trades at a forward price-to-earnings ratio of 3.96, significantly lower than the industry average, and carries a Value Score of A [9]. - The Zacks Consensus Estimate for GM's Q1 EPS has decreased over the past 30 days, while estimates for Q2 have increased [10].
U.S. Vehicle Sales Rise in Q1: A Boost Before Trump Tariffs Kick In?
ZACKS· 2025-04-02 14:46
Core Viewpoint - The imposition of 25% tariffs on imported cars and parts by the U.S. government is expected to disrupt the supply chain, increase vehicle costs, and challenge affordability, potentially leading to decreased demand in the automotive market [1][6][7]. Group 1: Market Performance - In Q1 2025, U.S. vehicle deliveries were strong, driven by consumers purchasing vehicles ahead of anticipated price increases due to tariffs, with March's seasonally adjusted annual rate estimated at 15.9 million units, a 0.2 million increase from the previous year [2]. - General Motors (GM) sold 693,363 units in Q1 2025, marking a 17% year-over-year increase, with significant gains across its brands and a 94% rise in electric vehicle sales to 31,887 units, making GM the second-largest EV seller in the U.S. [3]. - Toyota, Honda, and Nissan reported modest sales increases of 1%, 5.3%, and 5.7%, respectively, with Toyota's electrified vehicles accounting for 50.6% of total sales [4]. Group 2: Competitive Landscape - Ford's sales declined by 1.3% in Q1 2025 to 501,291 units, attributed to rental fleet sales timing and model discontinuations, although retail sales grew by 5% [5]. - All major automakers, including GM, Toyota, Honda, and Nissan, hold a Zacks Rank of 3 (Hold), while Ford has a Zacks Rank of 5 (Strong Sell) [5]. Group 3: Future Outlook - The automotive industry faces uncertainty due to tariffs, with new vehicle prices nearing $48,000, and potential price hikes could further strain consumer affordability [6][7]. - S&P Global Mobility forecasts U.S. vehicle sales may decline to 14.5–15 million units in 2025 if tariffs persist, down from 16 million in 2024, due to economic uncertainty and inflation concerns [8].
GM vs. F: Which Legacy Automaker is a Stronger Play Now?
ZACKS· 2025-04-01 14:30
Core Viewpoint - General Motors (GM) is currently positioned as a more attractive investment compared to Ford, driven by its successful cost-cutting initiatives, positive momentum in electric vehicles (EVs), and improving performance in China, while Ford faces significant challenges in its EV segment and pricing pressures [18][19]. Group 1: General Motors - GM retained its title as the top-selling automaker in the U.S. in 2024, with a market share increase of 30 basis points to 16.5% and annual earnings rising 38% to a record $10.60 per share, with expectations for 2025 EPS in the range of $11-$12 [2]. - GM's EV portfolio became "variable profit positive" in Q4 2024, producing 189,000 EVs last year and aiming for 300,000 in 2025, while reducing EV operating losses by about $2 billion this year [3]. - The company reported positive equity income in China in Q4 2024, excluding $5 billion in restructuring costs, and aims for profitability in its China business this year [4]. - GM achieved its $2 billion cost-cutting target by 2024 and expects $1 billion in annual savings from halting robotaxi development, ending 2024 with total automotive liquidity of $35.5 billion, including $21.7 billion in cash [5]. - GM anticipates a slight decline in ICE wholesale volume in North America, with pricing expected to decline by 1-1.5% year over year, which may pressure margins [6]. Group 2: Ford - Ford was the third-best seller in the U.S. in 2024, selling slightly more than 2 million vehicles, with a strong lineup including F-series trucks and new models like Maverick and Bronco [7]. - Ford ended 2024 with around $28 billion in cash and $47 billion in liquidity, reducing net costs by $500 million in the second half of 2024 and identifying $1 billion in product design cost reductions for 2025 [8]. - Ford's Model e segment incurred losses of $5.07 billion in 2024, with expectations of segmental losses between $5-5.5 billion this year due to pricing pressure and increased investments in EVs [9]. - The Ford Blue division is projected to generate EBIT of $3.5-4 billion in 2025, down from $5.3 billion in 2024, with anticipated declines in ICE vehicle sales [10]. - Ford plans to inject up to €4.4 billion ($4.8 billion) into its German operations to reduce debt and improve competitiveness amid challenges in the European auto industry [11]. Group 3: Comparative Analysis - The Zacks Consensus Estimate for Ford's 2025 sales and EPS implies a year-over-year decline of 4% and 27%, respectively, with EPS estimates trending downward [12]. - In contrast, GM's 2025 sales estimates also imply a 4% decline, but EPS estimates are expected to increase by 9%, with upward revisions over the past 60 days [13]. - GM's forward earnings multiple is 4.06X, below its three-year median of 4.96X, while Ford's forward earnings multiple is 7.25X, above its median of 6.44X, indicating GM's valuation is more attractive [14]. - GM has better prepared for potential tariff impacts by cutting international inventory by 30% and optimizing supply chains, while Ford's CEO warned of significant costs and chaos due to tariffs [17].
Why Tesla is the big winner in Trump's auto tariffs
Business Insider· 2025-03-27 16:36
Group 1 - President Trump's new 25% tariffs on imported passenger vehicles have negatively impacted shares of Ford, GM, and Stellantis, while benefiting Tesla, whose stock rose by 4% [1] - The tariffs could cost the auto industry up to $82 billion and reduce earnings for Detroit's Big Three by as much as 60%, but Tesla's domestic production allows it to avoid these costs [2] - Tesla's Model Y SUV is expected to benefit significantly, as nearly 50% of its competitors may face increased input costs of $4,000 to $5,000 per vehicle due to the tariffs [3][4] Group 2 - The scope of the tariffs has expanded to include imports from all countries, affecting vehicles from South Korea and Italy, in addition to existing tariffs on non-US-produced vehicles [4] - Tesla is currently facing declining sales and scrutiny over CEO Elon Musk's involvement with the Trump Administration, despite Trump's support for the brand [5]