Automotive giant General Motors (NYSE:GM) is still chastised for receiving government funding to fend off its demise during the height of the credit crisis. The coinciding trip through bankruptcy proceedings also helped clear billions of debt and legacy costs that were holding it back from competing successfully with larger rivals such as Toyota (NYSE:TM) and Honda (NYSE:HMC). It may take some time for the Government Motors stigma to subside, but like any company that is recapitalized, it has received a new lease on life that could end up quite lucrative for shareholders.

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Full-Year Recap
Net sales advanced 10.8% to $150.3 billion. Vehicle sales made up the vast majority of the top line and advanced 10% to $148.9 billion. Financial services revenue related to helping customers and dealers lease and borrow its automobiles, accounted for the rest and grew five-fold to $1.4 billion. For the year, GM sold more than 9 million vehicles throughout the world and did so with a total of 207,000 employees.

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EBIT advanced a healthy growth of 19% and reached $8.3 billion. Net income available to common shareholders jumped 62.5% to $7.6 billion, or $4.58 per dilutes share. (To know more about income statements, read Understanding The Income Statement.)

Outlook
GM only relayed that it expects to grow the top line in 2012. Analysts project modest total sales growth of roughly 3.4% and total sales just north of $155.4 billion. They expect earnings of $3.7 per share.

The Bottom Line
Thanks primarily to a trip through bankruptcy, GM has emerged as a healthy, profitable operator. It ended the year with $31.6 billion in cash on the balance sheet. It goes a long way to covering pension and related post-retirement benefits, which were stated on the balance sheet as a long-term liability of $31.9 billion.

GM's operations, along with archrival Ford (NYSE:F) and Chrysler, the latter of which made its own recent emergence from bankruptcy but no longer has a publicly-traded stock, is still very economically sensitive, but the trend for at least the next several years appears to support a continued recovery across the globe. At a forward P/E of only six, there appears to be significant recovery potential in the stock.

Investment positives continue to be a recovery in North American automotive demand, the low valuation and potential to grow financial services revenue significantly. And in similar fashion to international rivals, such as Tata Motors (NYSE:TTM), GM also has appealing growth potential in emerging markets, including China in particular. European trends remain a worry, but there weren't many surprised during the fourth quarter. (For additional reading, check out 5 Must-Have Metrics For Value Investors.)


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At the time of writing, Ryan C. Fuhrmann did not own shares in any of the companies mentioned in this article.