GM – Market expectations are for Uniform ROA to remain stable at current levels, but management has concerns about margins, autonomous vehicles, and costs

• General Motors Company (GM:USA)currently trades near historical averages relative to UAFRS-based (Uniform) Earnings, with a 17.4x Uniform P/E, implying somewhat bullish expectations for the firm. However, management has concerns about margins, autonomous vehicles, and costs
• Specifically, management may lack confidence in the sustainability of EBIT adjusted margin at current levels, and may have concerns about their negative free cash flow resulting from incremental capital spending to support their new truck launches and GEM vehicles. Additionally, they may be concerned about their AV testing in New York and San Francisco, and may also be concerned about higher-than-expected commodity headwinds