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GMGeneral Motors CompanySell4.7·$78.27-0.33%
SellModerate Confidence
Investment thesis

GM screens inexpensively on earnings multiples but business quality sits below the minimum acceptable threshold, the franchise is heavily concentrated in North American internal combustion vehicles, and with only about 1.5% headroom to the analyst consensus target the risk/reward is approximately 0.1-to-1 — conditions that collectively argue against new capital deployment.

Thesis pillars

  • Below Floor Quality No MoatStable
  • Near Zero Price UpsideStable
  • Cheap Multiple Masks Weak FundamentalsStable
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

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General Motors Company (GM) Stock Analysis

Catalyst-Driven edge

SellVALUE-TRAP 1/5Moderate Confidence

Consumer Cyclical · Auto Manufacturers

Sell if holding. Engine safety override at $78.27: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.7/10. Specifically: Below-average business quality; Negative price momentum.

General Motors designs, builds, and sells trucks, crossovers, cars, and automobile parts worldwide under the Buick, Cadillac, Chevrolet, and GMC brands through the GMNA (86.8% of 2025 wholesale volume) and GMI segments, supported by GM Financial as the captive finance arm. The... Read more

$78.27+9.3% A.UpsideScore 4.7/10#12 of 16 Auto Manufacturers
QualityF-score3 / 9FCF yield31.90%
IncomeYield0.92%(5y avg 4.06%)Payout22.99%sustainable
Stop $75.48Target $85.36(analyst − 10%)A.R:R 1.3:1
Analyst target$94.85+21.2%26 analysts
$85.36our TP
$78.27price
$94.85mean
$60
$131

Sell if holding. Engine safety override at $78.27: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.7/10. Specifically: Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Score 4.7/10, moderate confidence.

Passes 4/7 gates (clean insider activity, earnings proximity 23d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.

10-K grounded · weekly refresh

About General Motors Company

About General Motors Company

General Motors sold 3,799 thousand wholesale vehicles in fiscal year 2025, with North America (GMNA) contributing 86.8% of that volume and international operations (GMI) the remaining 13.2%; the U.S. market saw GM sell 2,853 thousand vehicles at a 17.2% share. Research and development spending declined to $8.5 billion in 2025 from $9.2 billion in 2024 and $9.9 billion in 2023, as the company wound down Cruise's robotaxi development following the December 2024 announcement and refocused on advanced driver-assistance systems for personal vehicles.

General Motors earns revenue primarily through wholesale vehicle sales to its 4,566 GMNA and 6,276 GMI authorized dealerships, supplemented by GM Financial's retail loan and lease income across North America, South America, and China joint ventures. The highest profit margins come from full-size ICE SUVs and pickup trucks — the 10-K states these carry the company's highest margins and that ICE cash flow funds EV and ADAS development. In 2025, GM captured 33.0% of the U.S. truck segment with 1,517 thousand units. Fleet sales represented 17.7% of total vehicle sales in 2025 — a generally less profitable channel. The company recorded $7.9 billion in total EV-related charges in GMNA for fiscal 2025 as it realigned production capacity to slower-than-expected consumer demand; battery cell production is sourced in part from Ultium Cells Holdings LLC, a joint venture with LG Energy Solution operating plants in Warren, Ohio and Spring Hill, Tennessee.

Show full overview

Near-term profitability concentrates on full-size ICE trucks and SUVs, which the 10-K explicitly identifies as the vehicles on which GM currently recognizes its highest profit margins, with ICE-generated cash used to fund next-generation EV and ADAS investment. Any sustained shift toward smaller or more fuel-efficient vehicles — from fuel-price volatility, tightening emissions regulations at the federal or state level, or policy reversals on EV consumer incentives — could weigh on the primary profit driver while capital commitments to EV production capacity and autonomous development continue.

See also: Consumer Cyclical · Auto Manufacturers

From General Motors Company's most recent 10-K filing, extracted June 10, 2026.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-06-29
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Tue, Jul 21, 202623d to earnings· next earnings call

Thesis

Rewards
No bull case signals
Risks
Concentration risk — Geographic: GMNA (86.8%)
Concentration risk — Product: full-size ICE SUVs and pickup trucks
Quality below floor (3.2 < 4.0)

Key Metrics

P/E (TTM)28.5
P/E (Fwd)5.5
Mkt Cap$70.4B
EV/EBITDA9.7
Profit Mgn1.4%
ROE4.0%
Rev Growth-0.9%
Beta1.30
Dividend0.92%
Rating analysts39

Quality Signals

Piotroski F3/9

Options Flow

P/C0.26bullish
IV44%normal

Concentration Risks(10-K Item 1A)

  • HIGHGeographicGMNA87%
    10-K Item 1: 'GMNA | 3,296 | | | 86.8 | %'
  • HIGHProductfull-size ICE SUVs and pickup trucks
    10-K Item 1A: 'our near-term profitability is dependent upon the success of our current line of vehicles, particularly our full-size ICE SUVs and full-size ICE pickup trucks'

Material Events(8-K, last 90d)

  • 2026-06-04Item 5.02LOW
    Amendment No. 2 to 2020 Long-Term Incentive Plan approved at Annual Meeting on June 2, 2026. Added 27 million shares available; extended LTIP term to June 3, 2036. Routine compensatory arrangement amendment, no officer departure.
    SEC filing →
  • 2026-05-26Item 5.02LOW
    Director Jonathan McNeill notified board he will not stand for reelection at June 2, 2026 Annual Meeting, retiring at meeting's conclusion. No disagreement with company cited. Board to reduce from 11 to 10 directors.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

3 floor-breakers·1 ceiling hit

Revenue shrinking — -0.9% YoY. Growth thesis broken unless recovery story develops.static

Earnings Growth
0.0
Revenue Growth
2.3
Declining revenue: -1%

Quality below the gate floor. Component breakdown shows what dragged the score down.static

Gross Margin
0.0
Net Margin
0.7
Roe
1.3
Roa
1.8
Moat
3.1
Piotroski F
3.3
Operating Margin
3.7
Current Ratio
4.5
Fcf Quality
10.0
Excellent cash conversion: 884% FCF/NINo competitive moatWeak Piotroski F-Score: 3/9

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Macd
0.0
Obv
1.0
Ma Position
4.0
Volume
5.3
Rsi
7.6
Uptrend pullback (RSI 39) - buy opportunityVolume distribution (falling OBV)Above 200-day MA
GatesMomentum 3.6<4.5A.R:R 1.3 < 1.5@spotExecutive change: officer departure/appointmentInsider activity: OKEARNINGS PROXIMITY 23d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Moderate
RSI
39 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $77.81Resistance $85.41

Price Targets

$75
$85
A.Upside+9.1%
A.R:R1.3:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Quality below floor (3.2 < 4.0)
! momentum at 3.6 (below the engine's 4.5 threshold)
! asymmetry at 1.3 (below the engine's 1.5 threshold)@spot

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-07-21 (23d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is GM stock a buy right now?

Sell if holding. Engine safety override at $78.27: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.7/10. Specifically: Below-average business quality; Negative price momentum. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $75.48. Score 4.7/10, moderate confidence.

What is the GM stock price target?

Take-profit target: $85.36 (+9.3% upside). Prior stop was $75.48. Stop-loss: $75.48.

What are the risks of investing in GM?

Concentration risk — Geographic: GMNA (86.8%); Concentration risk — Product: full-size ICE SUVs and pickup trucks; Quality below floor (3.2 < 4.0).

Is GM overvalued or undervalued?

General Motors Company trades at a P/E of 28.5 (forward 5.5). TrendMatrix value score: 7.9/10. Verdict: Sell.

What do analysts say about GM?

39 analysts cover GM with a consensus score of 3.9/5. Average price target: $95.

What does General Motors Company do?General Motors designs, builds, and sells trucks, crossovers, cars, and automobile parts worldwide under the Buick,...

General Motors designs, builds, and sells trucks, crossovers, cars, and automobile parts worldwide under the Buick, Cadillac, Chevrolet, and GMC brands through the GMNA (86.8% of 2025 wholesale volume) and GMI segments, supported by GM Financial as the captive finance arm. The company spent $8.5 billion on R&D in 2025 and operated 4,566 GMNA and 6,276 GMI authorized dealerships. Full-size ICE SUVs and pickup trucks carry the highest profit margins, funding EV and ADAS development alongside a battery cell joint venture with LG Energy Solution.

Related stocks: NIO (NIO Inc.) · VFS (VinFast Auto Ltd.) · TM (Toyota Motor Corporation) · RACE (Ferrari N.V.) · STLA (Stellantis N.V.)
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