GM Z Score

GM
 Stock
  

USD 40.43  0.13  0.32%   

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Please check GM Piotroski F Score and GM Valuation analysis.
  
GM Return on Invested Capital is relatively stable at the moment as compared to the past year. The company's current value of Return on Invested Capital is estimated at 0.06. Working Capital is expected to hike to about 8.3 B this year, although the value of Capital Expenditure will most likely fall to (8.3 B). GM Operating Expenses is relatively stable at the moment as compared to the past year. The company's current value of Operating Expenses is estimated at 10.07 Billion. Operating Income is expected to hike to about 10.1 B this year, although the value of Gross Profit will most likely fall to nearly 16.1 B.

GM Z Score Analysis

GM's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )

GM Z Score Driver Correlations

Understanding the fundamental principles of building solid financial models for GM is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since GM's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of GM's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of GM's interrelated accounts and indicators.
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition

According to the company's disclosures, General Motors has a Z Score of 0.0. This is 100.0% lower than that of the Automobiles sector and 100.0% lower than that of the Consumer Discretionary industry. The z score for all United States stocks is 100.0% higher than that of the company.

GM Z Score Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses GM's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of GM could also be used in its relative valuation, which is a method of valuing GM by comparing valuation metrics of similar companies.
GM is currently under evaluation in z score category among related companies.

GM Current Valuation Drivers

We derive many important indicators used in calculating different scores of GM from analyzing GM's financial statements. These drivers represent accounts that assess GM's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of GM's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee(21.47 K)46.32 K41.05 K41.35 K63.81 K68.85 K
Revenue Per Employee808.82 K849.99 K836.81 K788.07 K808.94 K744.37 K
Average Assets228.27 B222.6 B231.61 B239.76 B240.87 B242.7 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA21.68 B17.29 B19.32 B20.76 B23.93 B25.82 B
Earnings Before Interest Taxes and Depreciation Amortization USD20.5 B22.81 B22.4 B22.11 B25.79 B24.51 B
Earnings before Tax7.67 B8.49 B7.5 B8.2 B12.79 B13.8 B
Average Equity42.18 B36.85 B42.48 B41.95 B53.48 B52.16 B
Enterprise Value138.1 B131.12 B136.71 B150.23 B176.71 B153.56 B
Free Cash Flow(3.64 B)623 M4.33 B9.54 B7.47 B8.06 B
Invested Capital208.45 B223.63 B222.05 B239.96 B254.53 B233.28 B
Invested Capital Average213.59 B218.52 B228.51 B243.95 B250.98 B228.15 B
Market Capitalization58.22 B47.21 B52.29 B59.6 B85.12 B76.29 B
Tangible Asset Value206.63 B221.76 B222.7 B229.96 B239.63 B236.7 B
Working Capital(8.15 B)(6.94 B)(9.91 B)1.01 B7.7 B8.3 B

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

GM Institutional Holders

Institutional Holdings refers to the ownership stake in GM that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of GM's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing GM's value.
Security TypeSharesValue
Zwj Investment Counsel IncCommon Shares301.4 K9.7 M
Zwj Investment Counsel IncCommon Shares484.8 K15.4 M
Zwj Investment Counsel IncCommon Shares476.4 K20.8 M
Zwj Investment Counsel IncCommon Shares428.9 K25.1 M
Zwj Investment Counsel IncCommon Shares421.2 K22.2 M
Zwj Investment Counsel IncCommon Shares291.2 K17.2 M
Zwj Investment Counsel IncCommon Shares169.5 K9.7 M
Zweigdimenna Associates LlcWarrants16.6 K337 K

GM Fundamentals

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.

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Please check GM Piotroski F Score and GM Valuation analysis. You can also try Piotroski F Score module to get Piotroski F Score based on binary analysis strategy of nine different fundamentals.

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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
56.5 B
Quarterly Revenue Growth YOY
0.56
Return On Assets
0.0301
Return On Equity
14.45
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.