Today, General Motors (NYSE:GM) posted its best March sales in five years (up 6% to 245,950 vehicles in the U.S.). The stock has performed well over the past year but still has a lot of value and growth to offer investors. Below is a fundamental look at GM as well as an overview of its growing sales.
General Motors has a market cap of $37.99 billion and currently trades for $27.66 per share. Shares are down 3.5% YTD but trade 47% above their 52 week lows of $18.72. Analysts have a mean target price of $34.94 and median price target of $35.00 on GM shares. 17 analysts have an average EPS estimate for the first quarter of 2013 of $0.56 per share on estimated revenues of $36.85 billion. GM has beaten its earnings estimates in 3 of the last 4 quarters and I wouldn't be surprised if they did again because the sales release today had 1st quarter sales up 9% from the first quarter of 2012 and revenues from that quarter were below the estimated revenues of 1Q2013.
Fundamentals and Rising Sales
- GM's January U.S. sales were up 16% to 194,699 vehicles sold.
- February U.S. sales were up 7% to 224,314 vehicles sold.
- P/E of 9.5 and P/S of 0.3 are below the industry averages 29.9 and 0.5 respectfully.
- Average revenue growth for the last few years of 13.3% is above the industry averages 7.7%.
- ROE of 23.1 is above the industry averages 14.9.
- Lower debt, D/E of 0.4 is below the industry averages 0.8.
- On revenues of $152 billion last year, GM was able to generate $10.6 billion in cash from operating activities and buyback $5 billion shares.
- Lots of Cash, at the end of 2012 GM had $27.4 billion in cash and short-term investments.
Cheap financing has boosted sales this year and GM stands to profit from this and lower basic material prices. Despite its recent rise over the past year, GM still trades with a low P/E of 9.5 and has a lot of room to grow.
Disclosure: I am long F. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.