General Motors: Packing More Debt


Steady market share but glowing amount of debt

Reflecting what the broader market has performed in multiples, General Motors has lost 13%+ in value so far this year.

Sponsoring 4.3% dividend yield, the $49 billion car company reported 2.4% revenue reduction along with a $3.8 billion loss for the whole fiscal year of 2017 compared to $9.4 billion profits in 2016.

General Motors could have had delivered some profits, about $300 million, but the possibly one-time hefty tax expense of $4.2 billion wipe all the profits away and some more.

“The actions we took to further strengthen our core business and advance our vision for personal mobility made 2017 a transformative year. We will continue executing our plan and reshaping our company to position it for long-term success.”

Mary Barra, Chairman and CEO

General Motors also had a market share of 10.2% worldwide in terms of car industry volume in 2017 compared to 10.8% in the year prior.

The car company also stated a book value of $36.2 billion  with $94.2 billion in debt. Its debt climbed some $19 billion from last year and most of it came from GM Financial.

Several analysts have an overweight recommendation with a price target of $48.41/share vs. $35.20 at the time of writing.

Personal estimates provided a per share figure of $37.

Disclosure: No shares in General Motors.