Taking a look at a recent 8-K filing, we can gather what direction the company is headed. Second quarter net income is $2.9 billion, which is up 157 percent. Earnings per share diluted was $1.81, compared to $0.67 in the second quarter a year ago. Net revenue of $42.4 billion was a record, compared to $38.2 billion in the second quarter of 2015. Right now, GM is breaking records and proving they still have game. Let us take a look at the stock chart and see how price has rewarded investors.
Taking a look at the stock chart, the $37 area seems to be a resistance area that has yet to be broken. Prince has been range bound and is currently at the top of the range looking at a monthly chart. Right now, I would wait to see if volume kicks in and the resistance can be broken, or whether price is going to be rejected. Use this chart, along with fundamental analysis to gather your opinion before investing.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include GM income statement, its balance sheet, and the statement of cash flows. Potential GM investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although GM investors may use each financial statement separately, they are all related. The changes in GM's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on GM's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of GM
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of GM performance into the future periods or doing a reasonable stock valuation. The intrinsic value of GM shares is the value that is considered the true value of the share. If
the intrinsic value of GM is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares GM. Please read more on our
fundamental analysis page.
How effective is GM in utilizing its assets?
General Motors reports assets on its Balance Sheet. It represents the amount of GM resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, GM aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Automobile Manufacturers space. To get a better handle on how balance sheet or income statements item affect GM volatility, please check the breakdown of all its
fundamentals.
Are GM Earnings Expected to grow?
The
future earnings power of GM involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of GM factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. GM
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of GM
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of GM earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. GM dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. GM one year expected dividend income is about USD0.25 per share.
As of the 25th of April 2024,
Dividends Paid is likely to drop to about 567.1
M. In addition to that,
Dividend Yield is likely to drop to 0.01.
Investing in dividend-paying stocks, such as General Motors is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in GM must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for GM. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
GM Gross Profit
GM Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing GM previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show GM Gross Profit growth over the last 10 years. Please check GM's
gross profit and other
fundamental indicators for more details.
Breaking it down
Risks
Being in the auto industry certainly has its ups and downs, and in recent times we’ve seen both. Here are a couple risks to keep in mind before investing. Understand that the auto industry is at the mercy of the economy. GM sells large ticket items that are not purchased every day, so when the economy slows down and peoples jobs are on the line, they will no longer be shopping for vehicles. Secondly, as mentioned before, there is the subprime auto lending issue that is bubbling up. I would be sure to account for that risk before investing because that can certainly cause issues for GM and that would negatively impact any shareholders.
Conclusion
It is always a good idea to be diversified, and having GM in your portfolio will certainly help with that. Be sure to compare all the automakers before investing because GM may not provide the best value. Also, consult a professional before investing as they can point you in the right direction and ensure your portfolio is being maximized. Just keep in mind the few risks mentioned above and you should be just fine.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of General Motors. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com