Gamco Investors (GAMI) AI Stock Analysis

• Market Cap: $545.50M
• Dividend Yield: 1.18%
• Average Volume (3M): 8.50K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.39
• Revenue Growth: 2.96%
• EPS Growth: 28.67%
• Country: US
• Employees: 181
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.93
• Shares Outstanding: 3,918,362
• 10 Day Avg. Volume: 2,305
• 30 Day Avg. Volume: 8,504
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 1.83
• Enterprise Value/Gross Profit: 3.21
• Enterprise Value/Ebitda: 5.07
• 1Y Price Target: $26.00
• Price Target Upside: 9.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: $26.00 ▲(9.15% Upside)

Gamco Investors' strong valuation and financial stability are key strengths, with an attractive P/E ratio and low leverage. However, technical indicators suggest mixed market sentiment, and negative free cash flow growth is a concern.

Gamco Investors Business Overview & Revenue Model

Company Description

GAMCO Investors, Inc. is a publicly owned holding investment manager. The firm also provides wealth management, investment advisory, institutional research, brokerage, dealer, underwriting, and distribution services to its clients. It provides its services to individuals including high net worth individuals, corporate pension and profit-sharing plans, foundations, endowments, jointly trust plans, municipalities, and investment companies. The firm, through its subsidiaries, manages separate client-focused equity, fixed income, and balanced portfolios. It also launches equity, fixed income, and balanced mutual funds and manages equity mutual funds for its clients. Through its subsidiaries the firm invests in the public equity and fixed income markets across the globe. It invests in value stocks of companies. The firm employs fundamental analysis with a focus on bottom-up stock picking approach to create its portfolios. It conducts in-house research to make its investments. The firm was founded in 1976 and is based in Rye, New York with additional offices in Greenwich, Connecticut; Bannockburn, Illinois; and Tokyo, Japan. GAMCO Investors, Inc. operates as a subsidiary of Ggcp Holdings Llc.

How the Company Makes Money

Gamco Investors generates revenue primarily through investment management fees, which are charged as a percentage of assets under management (AUM) for the funds and accounts it manages. Additionally, the company earns performance fees for outperforming specific benchmarks, providing an incentive for superior investment performance. Its revenue model is supported by a blend of institutional and retail client bases, which helps stabilize cash flow. Strategic partnerships with financial institutions and advisors also contribute to its distribution channels, enhancing its market presence and client acquisition efforts. The firm may also generate income from the sale of mutual fund shares and related services, as well as through other investment-related services it provides to clients.

Gamco Investors Financial Statement Overview

Summary

Gamco Investors demonstrates strong profitability and financial stability, with impressive margins and low leverage. The main concerns are the historical revenue declines and recent negative free cash flow growth. Despite these challenges, the company maintains a solid financial foundation with efficient operations and strong equity returns.

Income Statement

Gamco Investors shows a strong income statement with consistent profitability. The TTM gross profit margin is healthy at 53.36%, and the net profit margin is robust at 27.29%. Revenue growth has been positive recently, with a 3.26% increase in the TTM period, reversing previous declines. EBIT and EBITDA margins are also strong, indicating efficient operations. However, the historical revenue decline in previous years is a concern.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.034 in the TTM period, indicating low leverage and financial stability. Return on equity is impressive at 41.74%, showcasing strong profitability relative to equity. The equity ratio is not explicitly provided, but the company's low debt levels suggest a strong equity position. The main risk is the potential for equity dilution or asset revaluation.

Cash Flow

Cash flow analysis reveals some challenges. The TTM free cash flow growth rate is negative at -27.54%, indicating a decline in free cash generation. However, the operating cash flow to net income ratio is reasonable at 0.76, and the free cash flow to net income ratio remains stable at 1.0. The decline in free cash flow is a concern, but the company maintains adequate cash flow coverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	239.34M	231.40M	248.73M	258.75M	301.13M	259.73M
Gross Profit	136.61M	122.43M	127.32M	147.51M	182.94M	157.38M
EBITDA	86.60M	70.61M	71.11M	90.83M	118.59M	101.17M
Net Income	71.20M	62.93M	60.21M	65.56M	73.20M	58.69M
Balance Sheet
Total Assets	235.36M	224.68M	249.43M	223.82M	232.00M	183.87M
Cash, Cash Equivalents and Short-Term Investments	106.49M	116.47M	160.83M	76.29M	142.03M	98.31M
Total Debt	4.63M	5.05M	5.14M	5.83M	50.99M	24.21M
Total Liabilities	82.99M	87.37M	68.45M	84.77M	138.12M	96.96M
Stockholders Equity	152.38M	137.31M	180.98M	139.05M	93.88M	86.91M
Cash Flow
Free Cash Flow	39.49M	72.47M	49.32M	86.78M	96.13M	40.73M
Operating Cash Flow	44.16M	72.47M	49.32M	86.78M	96.13M	40.73M
Investing Cash Flow	42.13M	-10.13M	-34.93M	-87.86M	59.52M	-63.51M
Financing Cash Flow	-105.41M	-106.86M	-18.97M	-74.58M	-46.95M	-30.03M

Gamco Investors Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GAMI, the sentiment is Neutral. The current price of 23.82 is above the 20-day moving average (MA) of 23.44, below the 50-day MA of 23.96, and above the 200-day MA of 23.63, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 52.16 is Neutral, neither overbought nor oversold. The STOCH value of 59.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GAMI.

Gamco Investors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GAMI	71 Outperform	$545.50M	7.61	42.19%	1.18%	2.96%	28.67%
GLAD	70 Neutral	$430.74M	5.73	16.23%	12.01%	47.88%	-5.08%
CCAP	68 Neutral	$497.00M	11.25	5.98%	13.34%	-7.13%	-56.63%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GAIN	64 Neutral	$531.25M	6.42	16.54%	10.79%	33.75%	6.20%
TCPC	58 Neutral	$477.05M	―	-1.48%	23.48%	-48.53%	73.29%
CION	58 Neutral	$476.07M	15.47	-1.27%	16.27%	-11.83%	-108.11%