Is General Motors (GM) stock a good buy?

This is a step-by-step stock review to answer the question, is General Motors (GM) stock a good buy?

This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.

What are the 4Ms?

• MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
• Meaning – The meaning is the business model and how scalable the revenue streams are.
• Moat – The moat is how the business compares to other companies in the same Sector and Industry.
• Management – The management is the track record of the CEO.

What 4M score are we going for?

• 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
• 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
• 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.

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Table of Contents

The following links will direct you to key topics to help answer the question, is General Motors (GM) stock a good buy?

1. General Motors Company History
2. MOS
3. Meaning
4. Moat
5. Management
6. 4M Score
7. Is General Motors (GM)  stock a good buy?

1. General Motors Company History

When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.

• Founded in 1908: General Motors (GM) was established by William C. Durant in Flint, Michigan.
• Early Growth: Quickly grew by acquiring several car companies, including Buick, Cadillac, and Oldsmobile.
• Innovation: Introduced pioneering automotive technologies, like the electric starter in 1912.
• Global Expansion: Expanded internationally, becoming a leading car manufacturer worldwide.
• Diversified Brands: Launched and acquired multiple brands over the years, including Chevrolet, GMC, and Pontiac.
• Leadership: Became the world’s largest automaker from the 1930s to 2008.
• Technological Advances: Invested in research and development, leading to innovations like the automatic transmission and electric cars.
• Financial Challenges: Filed for Chapter 11 bankruptcy in 2009 during the financial crisis.
• Restructuring: Emerged from bankruptcy with a focus on core brands and streamlined operations.
• Sustainability: Committed to electric vehicles and sustainability, introducing models like the Chevrolet Bolt EV.
• Autonomous Driving: Invested in autonomous vehicle technology, partnering with companies like Cruise Automation.
• Global Presence: Maintains a strong presence in North America, China, and other international markets.
• Commitment: Dedicated to safety, quality, and innovation in the automotive industry.
• Future Vision: Aims to lead the industry in electric and autonomous vehicles, driving towards a zero-emissions future.

2. MOS (Margin of Safety)

When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.

• Summary: watch
• Score: 67/100
• MOS: 1%

To see the most up-to-date Summary, Score, and MOS, please log into Tykr.

3. Meaning

When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.

Here is how General Motors (GM) makes money:

• Vehicle Sales: Generates revenue by selling a wide range of vehicles under brands like Chevrolet, GMC, Cadillac, and Buick.
• Aftermarket Parts: Sells automotive parts and accessories through dealerships and online platforms.
• Financial Services: Earns money through GM Financial, providing automotive financing, leasing, and insurance services.
• Electric Vehicles: Invests in and sells electric vehicles (EVs) like the Chevrolet Bolt EV and upcoming models.
• Autonomous Vehicles: Invests in self-driving technology and aims to commercialize autonomous vehicles.
• Fleet Sales: Sells vehicles to commercial fleets, governments, and rental car companies.
• Global Operations: Generates revenue from operations in North America, Europe, China, and other international markets.
• Technology Licensing: Earns money by licensing automotive technologies and patents to other manufacturers.
• Connected Services: Offers connected vehicle services, generating revenue from subscriptions and data services.
• Software and Apps: Develops and sells software and apps related to vehicle connectivity and digital services.

General Motors uses these various streams to maximize their earnings and provide diverse services to moviegoers.

Here are a few of the other companies that General Motors has acquired over the years.

• Cruise LLC
• SideCar LLC (Side.cr)
• Strobe, Inc.
• OEConnection LLC

4. Moat

When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how General Motors (GM) stacks up against other companies.

1. Ferrari N.V.RACE – 89
2. Stellantis N.V.STLA – 72
3. General Motors Company.(GM) – 67
4. Toyota Motor Corporation.(TM) – 56
5. Ford Motor Company.(F&D) – 45
6. Honda Motor Co., Ltd.(HMC) – 45

To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.

5. Management

When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.

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To truly know if General Motors is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.

If you found this stock review interesting, you may also like this review on AMD.