General Motors Co EBITDA jumped on 54.5% in 2016 and EBITDA Margin increased on 3.5 pp from 8.5% to 12.0%
07.02.2017 • About General Motors Co (
$GMM.U) • By InTwits
General Motors Co reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 12.0% in 2016, 8.5% in 2015, 5.6% in 2014, 8.5% in 2013, -14.1% in 2012
- General Motors Co has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.1%.
- CAPEX is quite volatile: 5,768,000 in FY2016, 8,548,933 in FY2015, 8,923,568 in FY2014, 14,227,777 in FY2013, 15,467,862 in FY2012
- The company has business model with low profitability: ROIC is at 8.2%
- It operates with high leverage: Net Debt/EBITDA is 3.6x while industry average is 2.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
General Motors Co ($GMM.U) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 152,256 | 155,427 | 155,929 | 152,356 | 166,380 | 9.2% |
| Gross Profit | 12,020 | 20,502 | 17,847 | 24,035 | 30,047 | 25.0% |
| SG&A | 13,593 | 12,382 | 12,158 | 13,405 | 11,710 | -12.6% |
| EBITDA | -21,498 | 13,172 | 8,768 | 12,914 | 19,953 | 54.5% |
| Net Income | 6,188 | 5,346 | 3,949 | 9,687 | 9,427 | -2.7% |
Balance Sheet
|
|---|
| Cash | 18,422 | 20,021 | 18,954 | 15,238 | 12,960 | -14.9% |
| Short Term Debt | 5,518 | 14,158 | 14,944 | 19,562 | 29,028 | 48.4% |
| Long Term Debt | 10,532 | 22,025 | 31,721 | 43,549 | 55,600 | 27.7% |
Cash flow
|
|---|
| Capex | 8,068 | 7,565 | 7,091 | 7,874 | 9,542 | 21.2% |
Ratios
|
|---|
| Revenue growth | 1.3% | 2.1% | 0.3% | -2.3% | 9.2% | |
| EBITDA growth | -264.3% | -161.3% | -33.4% | 47.3% | 54.5% | |
| Gross Margin | 7.9% | 13.2% | 11.4% | 15.8% | 18.1% | 2.3% |
| EBITDA Margin | -14.1% | 8.5% | 5.6% | 8.5% | 12.0% | 3.5% |
| Net Income Margin | 4.1% | 3.4% | 2.5% | 6.4% | 5.7% | -0.7% |
| SG&A, % of revenue | 8.9% | 8.0% | 7.8% | 8.8% | 7.0% | -1.8% |
| CAPEX, % of revenue | 5.3% | 4.9% | 4.5% | 5.2% | 5.7% | 0.6% |
| ROIC | -76.3% | 12.4% | 2.2% | 5.2% | 8.2% | 3.0% |
| ROE | 18.1% | 11.5% | 7.5% | 25.7% | 22.5% | -3.2% |
| Net Debt/EBITDA | | 1.2x | 3.2x | 3.7x | 3.6x | -0.1x |
General Motors Co ($GMM.U) key quoterly financial indicators
| mln. $ | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 37,265 | 42,372 | 42,825 | 43,918 | 4.3% | 11.0% | 10.3% | 10.8% |
| EBITDA | 4,194 | 5,685 | 5,703 | 4,371 | 67.1% | 64.4% | 91.5% | 10.2% |
| Net Income | 1,953 | 2,866 | 2,773 | 1,835 | 106.7% | 156.6% | 104.0% | -70.7% |
Balance Sheet
|
|---|
| Cash | 14,894 | 18,923 | 15,932 | 12,960 | -5.6% | 7.4% | 3.2% | -14.9% |
| Short Term Debt | 21,588 | 21,230 | 25,374 | 29,028 | 50.4% | 47.4% | 49.2% | 48.4% |
| Long Term Debt | 49,561 | 54,090 | 53,726 | 55,600 | 46.2% | 38.3% | 33.0% | 27.7% |
Ratios
|
|---|
| Gross Margin | 17.9% | 18.8% | 18.8% | 16.8% | 3.8% | 4.1% | 1.3% | 0.1% |
| EBITDA Margin | 11.3% | 13.4% | 13.3% | 10.0% | 4.2% | 4.4% | 5.7% | -0.1% |
| Net Income Margin | 5.2% | 6.8% | 6.5% | 4.2% | 2.6% | 3.8% | 3.0% | -11.6% |
Revenue and profitability
The company's Revenue increased on 9.2%. Revenue growth showed acceleration in 16Q4 - it increased 10.8% YoY. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.5 pp from 8.5% to 12.0% in 2016.
Gross Margin increased on 2.3 pp from 15.8% to 18.1% in 2016. SG&A as a % of Revenue decreased slightly on 1.8 pp from 8.8% to 7.0% in 2016.
Net Income marign decreased slightly on 0.69 pp from 6.4% to 5.7% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 the company had CAPEX/Revenue of 5.7%. The company's CAPEX/Revenue increased slightly on 0.87 pp from 4.9% in 2013 to 5.7% in 2016. It's average level of CAPEX/Revenue for the last three years was 5.2%.
Return on investment
The company operates at good ROE (22.52%) while ROIC is low (8.20%). ROIC increased on 3.0 pp from 5.2% to 8.2% in 2016. ROE decreased on 3.2 pp from 25.7% to 22.5% in 2016.
Leverage (Debt)
Debt level is 3.6x Net Debt / EBITDA and 4.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.1x from 3.7x to 3.6x in 2016. Debt jumped on 34.1% while cash dropped on 14.9%.
Management team
Mary T Barra is a General Motors Co's CEO. Mary T Barra has spent 4 years at the company. Charles K Stevens III "Chuck" is a General Motors Co's CFO. Charles K Stevens III "Chuck" has spent 7 years at the company.
Appendix 1: Peers in Consumer, Cyclical
Below you can find General Motors Co benchmarking vs. other companies in Consumer, Cyclical industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| New Flyer Industries Inc ($NFI) | | 38.6% | 21.0% | 6.1% | 47.8% |
| Hardwoods Distribution Inc ($HWD) | | 21.3% | 22.8% | 25.4% | 38.1% |
| Spin Master Corp ($TOY) | | 21.5% | 41.0% | 22.9% | 31.3% |
| Great Canadian Gaming Corp ($GC) | | -0.3% | 9.6% | 3.7% | 22.4% |
| CanWel Building Materials Group Ltd ($CWX) | | 2.1% | 4.6% | 8.6% | 18.6% |
| |
|---|
| Median (35 companies) | | 5.2% | 7.2% | 7.5% | 4.6% |
|---|
| General Motors Co ($GMM.U) | | 2.1% | 0.3% | -2.3% | 9.2% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Innova Gaming Group Inc ($IGG) | 89.3% | 82.4% | 85.3% | 92.9% | 88.1% |
| Second Cup Ltd/The ($SCU) | 86.6% | 85.1% | 72.7% | 81.1% | |
| New Look Vision Group Inc ($BCI) | 71.8% | 72.6% | 72.6% | 78.7% | |
| Cara Operations Ltd ($CAO) | | 79.2% | 78.9% | 78.4% | |
| Canlan Ice Sports Corp ($ICE) | 71.6% | 69.7% | 70.7% | 78.2% | |
| |
|---|
| Median (36 companies) | 38.1% | 34.2% | 33.5% | 32.6% | 36.2% |
|---|
| General Motors Co ($GMM.U) | 7.9% | 13.2% | 11.4% | 15.8% | 18.1% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Westshore Terminals Investment Corp ($WTE) | 49.7% | 65.9% | 60.9% | 59.6% | |
| Gamehost Inc ($GH) | 46.1% | 45.7% | 45.9% | 42.8% | 42.6% |
| Great Canadian Gaming Corp ($GC) | 16.8% | 41.1% | 40.1% | 36.6% | 34.4% |
| Restaurant Brands International Inc ($QSR) | | 51.1% | 20.8% | 33.9% | 44.4% |
| Cara Operations Ltd ($CAO) | | 9.6% | 22.6% | 32.6% | |
| |
|---|
| Median (38 companies) | 8.6% | 10.2% | 12.4% | 11.0% | 15.4% |
|---|
| General Motors Co ($GMM.U) | -14.1% | 8.5% | 5.6% | 8.5% | 12.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | 8.2% | 6.7% | 14.8% | 26.7% | 9.3% |
| WestJet Airlines Ltd ($WJA) | 7.9% | 19.5% | 18.6% | 22.5% | 22.4% |
| Westshore Terminals Investment Corp ($WTE) | 25.7% | 11.5% | 6.2% | 21.2% | |
| Innova Gaming Group Inc ($IGG) | 20.6% | 26.7% | 15.9% | 15.6% | 15.1% |
| Exchange Income Corp ($EIF) | 7.9% | 15.8% | 15.5% | 15.4% | 29.7% |
| |
|---|
| Median (41 companies) | 2.7% | 2.9% | 3.3% | 3.2% | 4.9% |
|---|
| General Motors Co ($GMM.U) | 5.3% | 4.9% | 4.5% | 5.2% | 5.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Spin Master Corp ($TOY) | | 19.2% | 56.9% | 48.2% | 44.5% |
| Magna International Inc ($MG) | 16.3% | 18.6% | 25.2% | 21.9% | 21.2% |
| Linamar Corp ($LNR) | 12.9% | 17.0% | 21.7% | 23.7% | 19.8% |
| Sleep Country Canada Holdings Inc ($ZZZ) | | | 9.7% | 12.7% | 19.0% |
| Air Canada ($AC) | | 37.0% | 23.2% | 28.4% | 18.8% |
| |
|---|
| Median (41 companies) | 11.0% | 12.6% | 10.9% | 10.9% | 11.4% |
|---|
| General Motors Co ($GMM.U) | -76.3% | 12.4% | 2.2% | 5.2% | 8.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Holloway Lodging Corp ($HLC) | | 5.8x | 8.4x | 17.1x | 8.6x |
| AutoCanada Inc ($ACQ) | 4.2x | 4.7x | 6.4x | 8.0x | 13.7x |
| Second Cup Ltd/The ($SCU) | 1.0x | 0.6x | 0.0x | 7.5x | 0.0x |
| Amaya Inc ($AYA) | 17.9x | 1.8x | 13.5x | 6.6x | 5.0x |
| Performance Sports Group Ltd ($PSG) | 2.6x | 3.5x | 12.2x | 6.5x | |
| |
|---|
| Median (34 companies) | 1.9x | 2.8x | 2.3x | 2.4x | 1.9x |
|---|
| General Motors Co ($GMM.U) | | 1.2x | 3.2x | 3.7x | 3.6x |
