GM Beneish M Score

GM
 Stock
  

USD 39.90  0.53  1.31%   

This module uses fundamental data of GM to approximate the value of its Beneish M Score. GM M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please check GM Piotroski F Score and GM Altman Z Score analysis.
  
Issuance Repayment of Debt Securities is expected to hike to about 416.7 M this year, although the value of Total Debt will most likely fall to nearly 98.2 B. GM Accrued Expenses Turnover is relatively stable at the moment as compared to the past year. The company's current value of Accrued Expenses Turnover is estimated at 7.82. Operating Margin is expected to hike to 7.92 this year, although the value of Calculated Tax Rate will most likely fall to 21.81.
At this time, it appears that General Motors is an unlikely manipulator. The earnings manipulation may begin if GM's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by GM executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of GM's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-5.69
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.84Focus
Asset Quality-6.67Focus
Expense Coverage0.88Focus
Gross Margin Strengs0.87Focus
Accruals Factor0.88Focus
Depreciation Resistance0.98Focus
Net Sales Growth1.19Focus
Financial Leverage Condition1.03Focus

GM Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if GM's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative ExpenseB8.6 B
Sufficiently Up
Decreasing
Slightly volatile
Revenues151.2 B127 B
Fairly Up
Decreasing
Slightly volatile
Trade and Non Trade Receivables7.4 B7.4 B
Slightly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net75.6 B79 B
Sufficiently Down
Increasing
Slightly volatile
Operating Income10.1 B9.3 B
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations13.5 B15.2 B
Fairly Down
Increasing
Slightly volatile
Liabilities Non Current104 B104.5 B
Slightly Down
Increasing
Slightly volatile
Current Liabilities68.4 B74.4 B
Significantly Down
Increasing
Slightly volatile
Total Liabilities162.2 B185 B
Fairly Down
Increasing
Slightly volatile
Investments Non Current40.8 B45.8 B
Fairly Down
Increasing
Slightly volatile
Investments Current34.5 B35.3 B
Fairly Down
Increasing
Slightly volatile
Investments75.3 B81.1 B
Significantly Down
Increasing
Slightly volatile
Gross Margin12.1814.0767
Fairly Down
Increasing
Stable
Depreciation Amortization and Accretion11.8 B12.1 B
Fairly Down
Decreasing
Very volatile
Debt Non Current67.3 B75.7 B
Fairly Down
Increasing
Slightly volatile
Debt Current30.9 B33.7 B
Significantly Down
Increasing
Slightly volatile
Total Debt98.2 B109.4 B
Moderately Down
Increasing
Slightly volatile
Assets Non Current157.9 B162.6 B
Fairly Down
Increasing
Slightly volatile
Current Assets74.3 B82.1 B
Moderately Down
Increasing
Slightly volatile
Total Assets210.9 B244.7 B
Fairly Down
Increasing
Slightly volatile

General Motors Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between GM's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards GM in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find GM's degree of accounting gimmicks and manipulations.

About GM Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Cost of Revenue

111.1 Billion

GM Cost of Revenue is relatively stable at the moment as compared to the past year. The company's current value of Cost of Revenue is estimated at 111.1 Billion

GM Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as GM. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues145.59 B147.05 B137.24 B122.48 B127 B151.16 B
Total Assets212.48 B227.34 B228.04 B235.19 B244.72 B210.94 B
Current Assets68.74 B75.29 B74.99 B80.92 B82.1 B74.26 B
Assets Non Current143.74 B152.05 B153.04 B154.27 B162.62 B157.9 B
Total Liabilities177.48 B188.48 B186.25 B190.16 B184.97 B162.2 B
Current Liabilities76.89 B82.24 B84.91 B79.91 B74.41 B68.4 B
Total Debt94.22 B104.95 B103.32 B109.89 B109.38 B98.24 B
Debt Current26.96 B31.89 B37.4 B36.91 B33.72 B30.94 B
Debt Non Current67.25 B73.06 B65.92 B72.98 B75.66 B67.3 B
Operating Income10.02 B4.45 B5.48 B6.63 B9.32 B10.06 B
Investments59.12 B67.11 B65.69 B75.44 B81.1 B75.27 B
Investments Current28.83 B32.82 B30.77 B35.26 B35.26 B34.5 B
Gross Margin13.469.5910.1811.1614.0812.18

GM ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, GM's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to GM's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About GM Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze General Motors's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of GM using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of General Motors based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts and accessories in North America, the Asia Pacific, the Middle East, Africa, South America, the United States, and China. General Motors Company was founded in 1908 and is headquartered in Detroit, Michigan. GM operates under Auto Manufacturers classification in the United States and is traded on New York Stock Exchange. It employs 157000 people.

GM Investors Sentiment

The influence of GM's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in GM. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to GM's public news can be used to forecast risks associated with investment in GM. The trend in average sentiment can be used to explain how an investor holding GM can time the market purely based on public headlines and social activities around General Motors. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
GM's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for GM's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average GM's news discussions. The higher the estimated score, the more favorable is the investor's outlook on GM.

GM Implied Volatility

    
  35.73  
GM's implied volatility exposes the market's sentiment of General Motors stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if GM's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that GM stock will not fluctuate a lot when GM's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards GM in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, GM's short interest history, or implied volatility extrapolated from GM options trading.

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as General Motors using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

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Please check GM Piotroski F Score and GM Altman Z Score analysis. You can also try Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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When running General Motors price analysis, check to measure GM's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy GM is operating at the current time. Most of GM's value examination focuses on studying past and present price action to predict the probability of GM's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move GM's price. Additionally, you may evaluate how the addition of GM to your portfolios can decrease your overall portfolio volatility.
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Is GM's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of GM. If investors know GM will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about GM listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.39
Market Capitalization
57.4 B
Quarterly Revenue Growth YOY
0.56
Return On Assets
0.0301
Return On Equity
0.15
The market value of General Motors is measured differently than its book value, which is the value of GM that is recorded on the company's balance sheet. Investors also form their own opinion of GM's value that differs from its market value or its book value, called intrinsic value, which is GM's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because GM's market value can be influenced by many factors that don't directly affect GM's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between GM's value and its price as these two are different measures arrived at by different means. Investors typically determine GM value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GM's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.