General Motors Company (GM: NYE) has announced the addition of a new risk to its portfolio, specifically in the Employment/Personnel category. As the company braces to steer towards a future filled with autonomous and electric vehicles, its competitive edge critically hinges on cultivating a diverse and adept talent pool.
Stock Target Advisor’s Take on General Motors:
General Motors’ stock performance presents a mixed bag, according to Stock Target Advisor‘s analysis. The current stock price stands at $38.80, with an average analyst target price hovering around $46.06. The advisor’s own target price for the stock is slightly higher at $46.84, indicating a projected price change of 20.73% in a year. The average analyst rating for General Motors is ‘Buy’, though Stock Target Advisor strikes a more cautious note with a ‘Sell’ rating.
A glimpse into the positive signals identified reveals General Motors underpricing compared to its book value. The free cash flow and positive cash flow, coupled with high earnings growth, are points in the company’s favor.
However, the picture is not entirely rosy, with the advisor identifying several negative signals. Among these are the below-median total returns, high volatility along with poor risk-adjusted returns, overpricing on a cash flow basis, low dividend and revenue growth, and a highly leveraged structure.
What Do the Financials of General Motors Company Portray?
The one-year capital gain for the company stands at -1.27% with the dividend return and total return pegged at 0.92% and -0.36%, respectively. A five-year growth analysis reveals a slightly troubling scenario with a revenue growth of 7.66% but quite a sharp downturn in dividend growth at -82.78%.
General Motors has a reasonable analyst coverage with 13 analysts tracking its progress. The average analyst rating for the sector tilts towards ‘Buy’ while Stock Target Advisor is ‘Slightly Bearish’ about the auto manufacturers sector.
Conclusion:
General Motors’ future trajectory is intrinsically linked to how it grapples with its new workforce diversity risk. Successful integration and cultivation of a diverse talent pool could potentially mitigate some of the identified negative signals and inject further momentum into GM’s strategic goals.
