Will General Motors Continue to Impress?

January 06, 2013

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E = Equity to Debt Ratio Is Strong

Yes, you read that correctly. The debt-to-equity ratio for General Motors is strong. The balance sheet is also strong. Based on recent events, it’s somewhat jaw-dropping to see that General Motors has better debt management than Ford Motor Company (NYSE:F) and Toyota Motor Company (NYSE:TM). This shouldn’t come as a surprise in our new perverse economy.

	Debt-To-Equity	Cash	Long-Term Debt
GM	0.39	$34.59 Billion	$16.65 Billion
TM	1.04	$38.05 Billion	$103.32 Billion
F	5.33	$35.54 Billion	$100.60 Billion

T = Technicals on the Stock Chart Are Strong

General Motors has underperformed Ford and Toyota over a three-year timeframe, but the new General Motors has picked up the slack recently.

	1 Month	Year-To-Date	1 Year	3 Year
GM	16.86%	3.40%	41.62%	2.33%
TM	11.32%	2.26%	40.69%	13.31%
F	17.88%	3.86%	23.10%	37.01%

At $29.86, General Motors is currently trading above all its averages.

50-Day SMA	25.49
100-Day SMA	24.16
200-Day SMA	23.10

E = Earnings Have Been Steady

We don’t have a large sampling, but earnings and revenue look good so far.

	2008	2009	2010	2011
Revenue ($)in billions	148.98	104.59	135.59	150.28
Diluted EPS ($)	-53.47	56.62	2.89	4.58

When we look at last quarter on a YoY basis, we see an increase in revenue and a decrease in earnings.

	9/2011	12/2011	3/2012	6/2012	9/2012
Revenue ($)in billions	36.72	37.99	37.76	37.61	37.58
Diluted EPS ($)	1.03	0.24	0.60	0.90	0.89

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