General Motors is an automobile manufacturer whose brands include Buick, Cadillac and Chevrolet. CEO Mary Barra has been leading GM since 2014. In June 2018, the company announced that Dhivya Suryadevara would be the company’s chief financial officer, which meant that GM was only the second Fortune 500 company, behind Hershey, to have both a woman CEO and CFO.
Check out the company’s financial stats, including GM’s share price, to see how its Fortune 500 status translates to expectations of its market performance and decide if it’s the right investment for you.
|About General Motors|
|CEO Mary Barra’s Salary||$2,100,000|
|What General Motors Is Worth|
|Share Price, 52-Week Range||$33.55-$64.30|
|GOBankingRates’ Evaluation of GM’s Net Worth||$148.1B|
|Information on 52-week range is accurate as of Oct. 26, 2021.
GM’s Q3 2021 Earnings Report
Semiconductor chip shortages resulting from the pandemic forced GM to shut down production in much of North America during the second quarter of 2021. GM began reopening closed facilities on Oct. 3 and will have all pandemic-affected facilities reopened by Nov. 1.
Despite the closures, GM beat analysts’ earnings and revenue estimates for Q3, and in a statement, the company announced that its full-year performance would fall at the high end of its guidance range. However, shares fell after the release on the news that GM had lowered cash-flow and investor-earnings expectations, according to CNBC. In addition, the company noted that it expects chip shortages to continue through the first half of 2022.
GM’s Market Cap: $83.176B
Market capitalization considers all of a company’s stock in order to gauge its worth. The higher the cap, the more value investors find with the company. GM’s market cap climbed to its current level from $41.43 billion on Sept. 30, 2020, and has been fairly stable since the first quarter of 2021, which might signal that investors currently find the stock less volatile than other investments. Although the stock suffered a steep decline in March 2020, it since has recovered to pre-COVID levels and has held fairly steady. The stock is up 38.71% year to date.
GM’s Net Worth: $148.1B
Market cap gives you a sense of what the market values a company at, but it is based entirely on market sentiment, which, in turn, is based on a multitude of consumer variables and market players. The GOBankingRates Evaluation of a company’s net worth, however, considers solid figures like assets and revenue, taking into account full-year profits and revenue from the last three years and the company’s assets and debts.
Based on GM’s revenue and profits from the last three years, GM is worth over $148 billion.
GM Rides Auto Industry Ups and Downs
Pandemic shutdowns and chip shortages have created shockwaves across the auto industry for the last 19 months or so. In addition to gauging the impact in the shorter term, analysts will be watching for signs indicating whether GM will meet its long-term goal to increase revenue more than 100% and increase earnings 300% by 2030. Of course, GM has a history of riding out whatever storms have crossed its path.
The company lost billions toward the end of 2017 due to inventory issues but managed to make a comeback in the first quarter of 2018 thanks to strong crossover sales and adept cost control.
The company suffered perhaps its biggest financial blowback in 2009, when it had to declare bankruptcy after suffering losses and market share declines. The move forced GM to close dozens of facilities and left thousands of people out of work.
GM survived its bankruptcy because of government intervention. The company returned to the public in 2010, after the government began selling the majority of its shares. Its 2010 IPO, at the time, was the largest offering ever.
The company lists its brands as Chevrolet, Buick, GMC and Cadillac, and it has international ventures such as Baojun and Wuling. Its EV1 model was one of the earliest attempts to mass-produce an electric car but was discontinued due to high production costs. This year, it plans to launch two Ultium battery vehicles — the Hummer EV and the BrightDrop EV 600 delivery van, according to Investor’s Business Daily. Cadillac and Silverado EVs scheduled to go into production next year are already sold out.
The Ultium battery is the result of a June 2018 deal GM signed with Honda to develop a more efficient battery for electric cars. GM plans to open its first Ultium battery factory in Ohio early next year.
The Cruise AV, GM’s all-electric autonomous vehicle, is currently being tested in San Francisco.
General Motors’ History and CEO
William Crapo Durant founded GM in 1908 after achieving financial success from building horse-drawn carriages. Since its founding, GM has contributed to several iconic American events, including collaborating with NASA to build the Lunar Rover, outfitting presidents in stylish Cadillacs, and even assisting in the creation of the first human heart pump.
Mary Barra is GM’s first woman CEO and the first woman to head an automobile manufacturer. She took her first step to leading the Fortune 500 company at age 18, when she interned at the Pontiac Motor Division. She has served as GM’s CEO since January 2014 and was elected chairman of GM’s board in January 2016. Her total compensation reached $23.7 million last year, making her the highest-paid Detroit Three CEO for the second year running.
Sean Dennison contributed to the reporting for this article.
Data was compiled between Oct. 26 and Oct. 27, 2021, and is subject to change.
Methodology: The GOBankingRates Evaluation assesses a company’s net worth based on the company’s total assets, total liabilities, and revenue and net income from the last three years. Base value is established by subtracting total liabilities from total assets from the company’s last full fiscal year. Income value is established by taking the average of the revenue from the last three full fiscal years, plus 10 times the average of the net profits from the last three full fiscal years, and then calculating the average of those two figures. The final GOBankingRates Evaluation number is the sum of the base value and the income value.