At the end of January, 2021 EPS consensus was $5.85/share and has since fallen to $3.92/share. The push into the EV market is not just a technological difference, it is a business model shift towards the higher margin luxury market. See the math behind Tesla’s reverse DCF scenario. If I assume, as does the International Monetary Fund (IMF) and nearly every economist in the world, that the global economy rebounds and returns to growth starting in 2021, GM is significantly undervalued. Elite money managers, advisors and institutions have relied on us to lower risk and improve performance since 2004. Critical Details Found in Financial Filings by My Firm’s Robo-Analyst Technology. Figure 6 compares the firm’s implied future NOPAT in scenario 2 to its historical NOPAT. The company's position heading into the pandemic allowed it to "conserve cash and preserve liquidity," she added. Figure 6: Implied Profits Assuming Moderate Recovery: Scenario 2, Analyzing the Market’s Misallocation of Capital in Auto Stocks. General Motors increased its core earnings margin from 2% to 5% over the same time. EVs’ higher costs originate from the powertrain, which includes the battery. Photographer: Xabier Mikel Laburu/Bloomberg, EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, Michigan Economic Development Corporation BrandVoice, a strong correlation between improving ROIC and increasing shareholder value, See the math behind this reverse DCF scenario, See the math behind Tesla’s reverse DCF scenario, NOPAT margins fall to 2.5% (all-time low in 2012, compared to 5.0% in 2019) in 2020 and improve to 4.4% (equal to TTM margins) in each year thereafter, Revenue falls 28% in 2020 [in line with the 2020 sales decline in the first year of, Sales grow again in at 3.5% per year from 2025 and each year thereafter, which is the average global GDP growth rate since 1961, NOPAT margins fall to 2.5% (all-time low in 2012, compared to 5.0% in 2019) in 2020 and rise to 4.3% (vs. 4.4% TTM and below all-time average of 4.9%) each year thereafter, Revenue falls 22% in 2020 and grows 18% in 2021, 3% in 2022, 4% in 2023, and 3% in 2024 (in line with BCG’s Most Likely II 2020-2025 sales scenario for China, Europe, and U.S.A.), In 2025 and each year thereafter, I assume revenue grows at 2% per year (equal to BCG’s Most Likely II scenario estimate for 2025 and below the average global GDP growth rate since 1961of 3.5%), Strong balance sheet to survive the economic dip, Ability to scale its investments in driverless and EV technologies across its vast distribution capabilities, Growing market share of truck, crossover, and Cadillac brands, General Motors’ technological preparedness, Valuation implies automobile industry never recovers, First Trust NASDAQ Transportation ETF (FTXR) – 7.8% allocation and attractive rating, Absolute Shares Trust WBI Power Factor High Dividend ETF (WBIY) – 4.8% allocation and attractive rating, Transamerica Large Cap Value (TWQIX) – 4.4% allocation and very attractive rating, Kempner Multi Cap Deep Value Fund (FAKDX) – 3.6% allocation and attractive rating, Invesco Comstock Select Fund (OGRIX) – 3.5% allocation and very attractive rating, Hotchkis & Wiley Large Cap Value Fund (HWLCX) – 3.0% allocation and attractive rating. General Motors revenue for the quarter ending September 30, 2020 was $35.480B , a 0.02% increase year-over-year. Earnings per share: $2.83, versus the $1.45 estimate. General Motors’ invested capital turns, a measure of balance sheet efficiency, rank fifth among its peer group. General Motors rallied as much as 7% in early trading Thursday after the automaker trounced third-quarter profit expectations. The firm issues stock options and performance share units (PSUs) as part of its long-term incentive plan. He was a 5-yr member of FASB's Investors Advisory Committee.