General Motors: Strong Free Cash Flow Can Be Sustained And The Stock Is Cheap

Ken Taylor
447 Followers
(21min)

Summary

  • General Motors has significantly improved operational efficiency, leading to healthy free cash flow and expanded operating margins.
  • GM's market share gains in both ICE and EV segments, coupled with disciplined leadership, position it well for sustained growth despite economic uncertainties.
  • The company's strategic approach to EV production and prudent management under Mary Barra, support long-term profitability and market competitiveness.
  • GM's current valuation suggests substantial upside potential, even with zero growth in free cash flow, making it a strong buy.

Black Chevrolet Silverado pickup truck

Wirestock/iStock Editorial via Getty Images

Investment Thesis

General Motors (NYSE:GM) is not the poorly run, fragile company it once was. Fears of its long-term decline may have provided an opportunity to buy a solid business at a cheap price. Operating margins

This article was written by

447 Followers
I hold a Master's in Accounting, am a small business owner, and am an assistant investing educator for beginning and intermediate individual investors. My investing analysis focus is on identifying and developing deep knowledge of great businesses. I have helped manage businesses, spend most of my extra time learning about investing and finance, and have been investing in the stock market for three years with a long-term investment focus. I do not consider myself an expert in stock analysis, but I seek to provide value for investors looking for stock and business information. I will never write about an investing idea without spending hours of research on it. I am not a registered advisor. Nothing I write should be considered personal finance or investment advice.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of GM either through stock ownership, options, or other derivatives. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About GM Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on GM

Related Stocks

SymbolLast Price% Chg
GM
--