REUTERS/Rick WilkingThe U.S. flag flies at the Burt GM auto dealer in Denver June 1, 2009. Morningstar analyst Matthew Young published a research note on Wednesday in which he summarized the performance of numerous companies in his coverage area.
One of them is General Motors. Wall Street hasn't been all that kind to GM in 2014, but Young likes the stock.
He also offered this critical insight into why GM is a better company post-bankruptcy than it was before its crisis during the Great Recession.
"Old GM broke even with 25% U.S. share and a U.S. industry sales level of 15.5 million units, while new GM breaks even, depending on mix, at just 18%-19% share of 10.5 million to 11 million U.S. industry units," Young wrote.
In other words, new GM is a much leaner, meaner, and more agile company than old GM ever was.
And with new car sales in the US likely to get close to 17 million for 2014, GM is way above its break-even point.
GM has been trading modestly higher this week and was at $35 a share mid-morning on Wednesday.
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This story was originally published by Morningstar.