GM
General Motors Company
Consumer Cyclical · Auto Manufacturers · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The growth sub-score was heavily penalized by a 55.1% collapse in net income and a 48.7% drop in diluted EPS in FY2025, representing severe broad-based contraction [growth.net_income.yoy, growth.eps_diluted.yoy].
- Profitability metrics — 1.6% net margin, 1.7% operating margin, and 1.0% return on assets — are very thin, leaving little room for error and contributing to a low profitability sub-score [profitability.net_margin_pct, profitability.operating_margin_pct, profitability.roa_pct].
- GM is not assigned to any of the 24 tracked macro themes, meaning it receives zero theme-based score contribution, which further suppresses the composite score [theme.none].
Why Not Higher
- Despite consistent dividend growth, the near-halving of earnings and persistently thin margins across FY2025 cap the overall score, as the company retains very little profit relative to its revenue and asset base [growth.net_income.yoy, profitability.net_margin_pct, profitability.roa_pct].
- Highly erratic quarterly results — including a -$3,646,000,000 operating loss in 2025Q4 — and a persistent downward revenue trend prevent a stronger momentum contribution to the score [momentum.operating_income_quarterly, momentum.revenue_quarterly].
Data Confidence
9 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue declined from FY2024's $171,606,000,000 to FY2025's $167,971,000,000, a drop of 2.1%. Net income fell sharply from FY2024's $6,008,000,000 to FY2025's $2,697,000,000 (-55.1%), and diluted EPS dropped from $6.37 in FY2024 to $3.27 in FY2025 (-48.7%).
The model penalized GM heavily for broad-based contraction across all three key growth metrics in FY2025, with the near-halving of earnings per share and net income representing particularly severe deterioration that drove the low sub-score.
In FY2025, GM reported a net margin of 1.6%, an operating margin of 1.7%, and a return on assets of 1.0%, all of which are very thin by typical industrial standards.
The model reflects that these slim margins and low asset returns leave little buffer for adverse conditions, indicating that GM retains only a small fraction of revenue as profit and generates minimal earnings relative to its asset base.
Filing evidence currently available does not support a more specific explanation for this factor.
Over the last four quarters, revenue moved from $42,869,000,000 in 2025Q2 to $44,256,000,000 in 2025Q3, then declined to $40,985,000,000 in 2025Q4 and further to $39,349,000,000 in 2026Q1. Operating income followed a volatile path, rising to $2,127,000,000 in 2025Q2, falling to $1,076,000,000 in 2025Q3, swinging to a loss of -$3,646,000,000 in 2025Q4, and recovering to $2,926,000,000 in 2026Q1. Net income mirrored this pattern, including a net loss of -$3,309,000,000 in 2025Q4 before rebounding to $2,627,000,000 in 2026Q1.
The model captured a highly erratic quarterly trend marked by a severe 2025Q4 loss and a partial 2026Q1 recovery, alongside a persistent downward drift in revenue, resulting in a below-average momentum score.
GM has grown its dividends per share each year from $0.18 in FY2022 to $0.36 in FY2023, $0.48 in FY2024, and $0.57 in FY2025, while maintaining a dividend payout ratio of 24.4% of net income in FY2025.
The model rewarded the consistent multi-year dividend growth trajectory and a conservative payout ratio that suggests the dividend is well-covered and has room to grow, supporting a moderately strong sub-score despite the company's broader earnings pressures.
GM is not currently assigned to any of the 24 tracked macro themes in the model.
Without an active macro theme assignment, GM does not receive any theme-based score contribution under the model's current methodology; this reflects the model's classification state and is not an indicator of the company's broader strategic positioning.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
General Motors posted a difficult FY2025, with revenue slipping 2.1% to $167,971,000,000 and net income collapsing 55.1% to $2,697,000,000, leaving the company with razor-thin margins of 1.6% net and 1.7% operating [growth.revenue.yoy, growth.net_income.yoy, profitability.net_margin_pct, profitability.operating_margin_pct]. Quarterly momentum has been highly erratic, highlighted by a severe operating loss of -$3,646,000,000 in 2025Q4 followed by a partial recovery in 2026Q1, while revenue has drifted persistently lower [momentum.operating_income_quarterly, momentum.revenue_quarterly]. On a brighter note, GM has grown its dividend per share every year from $0.18 in FY2022 to $0.57 in FY2025, supported by a conservative 24.4% payout ratio [dividend.dps_trend, dividend.payout_ratio]. Overall, the combination of broad earnings deterioration, thin profitability, and volatile quarterly results drives a Very High risk rating and a total model score of 27.8/100.
Plain English
GM made less money in 2025 than the year before — profits were nearly cut in half — and its quarterly results swung wildly, including a big loss late in the year, though it does keep steadily raising its dividend [growth.net_income.yoy, growth.eps_diluted.yoy, momentum.net_income_quarterly, dividend.dps_trend].
Bull Case vs. Bear Case
Bull Case
- GM has raised its dividend per share every single year from $0.18 in FY2022 to $0.57 in FY2025, signaling a commitment to returning cash to shareholders [dividend.dps_trend].
- The dividend payout ratio of 24.4% in FY2025 is conservative, suggesting the dividend is well-covered and has room to grow even under earnings pressure [dividend.payout_ratio].
- Operating income rebounded to $2,926,000,000 in 2026Q1 after the severe 2025Q4 loss, indicating some capacity for recovery [momentum.operating_income_quarterly].
Bear Case
- Net income fell 55.1% year-over-year to $2,697,000,000 in FY2025, and diluted EPS dropped nearly in half from $6.37 to $3.27, reflecting a sharp and broad-based earnings deterioration [growth.net_income.yoy, growth.eps_diluted.yoy].
- Net margin of 1.6% and return on assets of 1.0% in FY2025 leave almost no buffer to absorb adverse conditions [profitability.net_margin_pct, profitability.roa_pct].
- Revenue has drifted steadily lower over the last four quarters, falling from $42,869,000,000 in 2025Q2 to $39,349,000,000 in 2026Q1, suggesting a persistent top-line headwind [momentum.revenue_quarterly].
What Could Change the Picture
Bullish Triggers
- A sustained multi-quarter recovery in operating income above the 2026Q1 level of $2,926,000,000, combined with stabilizing revenue, would signal that the 2025Q4 loss was an anomaly rather than a trend [momentum.operating_income_quarterly, momentum.revenue_quarterly].
- Meaningful expansion of net margin well above the current 1.6% would indicate GM is regaining pricing power or cutting costs effectively [profitability.net_margin_pct].
Bearish Triggers
- A reduction or suspension of the dividend, which has grown every year from FY2022 to FY2025, would signal serious deterioration in financial confidence [dividend.dps_trend].
- Further acceleration of the revenue decline beyond the current downward drift from $42,869,000,000 to $39,349,000,000 over four quarters would deepen concerns about demand [momentum.revenue_quarterly].
Risk Profile
Very High RiskGM's quarterly performance has been highly volatile, swinging from an operating loss of -$3,646,000,000 in 2025Q4 to a recovery of $2,926,000,000 in 2026Q1, while revenue has trended persistently lower over the same period [momentum.operating_income_quarterly, momentum.revenue_quarterly]. Combined with total assets of $281,284,000,000 and very thin margins, the company's financial position offers limited cushion against further adverse developments [financial_health.total_assets, profitability.net_margin_pct].
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.