Gamco Investors (GAMI) AI Stock Analysis

• Market Cap: $565.65M
• Dividend Yield: 1.39%
• Average Volume (3M): 2.43K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.39
• Revenue Growth: 3.65%
• EPS Growth: 19.72%
• Country: US
• Employees: 181
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.68
• Shares Outstanding: 3,918,362
• 10 Day Avg. Volume: 2,992
• 30 Day Avg. Volume: 2,430
• PEG Ratio: 1.12
• Price to Book (P/B): 4.30
• Price to Sales (P/S): 2.55
• P/FCF Ratio: 8.14
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 1.59
• Enterprise Value/Gross Profit: 3.06
• Enterprise Value/Ebitda: 4.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: $29.00 ▲(17.41% Upside)

Gamco Investors' strong financial performance and attractive valuation are the primary drivers of its high stock score. The company's robust profitability, efficient operations, and conservative financial leverage enhance its financial stability. The technical analysis supports a positive outlook, with bullish price trends and momentum indicators. The lack of earnings call and corporate events data does not detract from the overall positive assessment.

Positive Factors

Strong Financial Health

The company's robust profitability and efficient operations indicate a solid financial position, supporting long-term stability and growth potential.

Conservative Leverage Strategy

Low leverage enhances financial stability, reducing risk and providing flexibility for future investments and growth opportunities.

Effective Equity Utilization

High return on equity demonstrates efficient management and strong profitability, indicating effective use of capital to generate returns.

Negative Factors

Negative Free Cash Flow Growth

Declining free cash flow growth could impact the company's ability to fund operations and investments, potentially affecting long-term growth.

Revenue Volatility

Revenue volatility can create uncertainty in financial planning and may impact the company's ability to maintain consistent growth.

Decreasing Cash Flow Metrics

A decrease in cash flow metrics may indicate challenges in converting income to cash, potentially affecting liquidity and operational flexibility.

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 management fees charged on its investment products, including mutual funds and managed accounts. The company earns a percentage of assets under management (AUM), which is calculated based on the total value of the investments it manages for clients. Additionally, Gamco may earn performance fees if it exceeds specific investment benchmarks, providing an incentive to deliver strong returns. Another revenue stream includes advisory fees from institutional clients and private wealth management services. Strategic partnerships with financial advisors and institutions further enhance its distribution capabilities, contributing to increased AUM and revenue growth.

Gamco Investors Financial Statement Overview

Summary

Gamco Investors demonstrates strong profitability and financial stability, with impressive margins and low leverage. However, concerns include historical revenue declines and recent negative free cash flow growth.

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	251.23M	231.40M	248.73M	254.24M	301.94M	251.86M
Gross Profit	130.65M	122.43M	127.32M	137.31M	178.21M	144.13M
EBITDA	85.27M	70.61M	80.22M	85.99M	108.13M	87.28M
Net Income	69.58M	62.93M	60.21M	65.56M	73.20M	58.69M
Balance Sheet
Total Assets	254.41M	224.68M	249.43M	223.82M	231.67M	185.40M
Cash, Cash Equivalents and Short-Term Investments	122.09M	116.47M	160.83M	76.29M	142.03M	98.31M
Total Debt	4.38M	5.05M	5.14M	5.83M	57.79M	29.42M
Total Liabilities	94.51M	87.37M	68.45M	84.77M	137.79M	98.49M
Stockholders Equity	159.90M	137.31M	180.98M	139.05M	93.88M	86.91M
Cash Flow
Free Cash Flow	38.65M	72.47M	49.32M	86.78M	96.13M	40.73M
Operating Cash Flow	38.65M	72.47M	49.32M	86.78M	96.13M	40.73M
Investing Cash Flow	40.54M	-10.13M	-34.93M	-87.86M	59.52M	-63.51M
Financing Cash Flow	-109.39M	-106.86M	-18.97M	-74.58M	-46.95M	-30.03M

Gamco Investors Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GAMI, the sentiment is Positive. The current price of 24.7 is below the 20-day moving average (MA) of 24.75, above the 50-day MA of 24.56, and above the 200-day MA of 23.68, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 51.22 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GAMI.

Gamco Investors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GAMI	80 Outperform	$565.65M	7.91	45.12%	1.39%	3.65%	19.72%
GLAD	70 Neutral	$459.99M	8.07	11.86%	9.31%	41.12%	-40.68%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GAIN	67 Neutral	$542.36M	5.49	18.68%	11.02%	-45.46%	134.73%
CCAP	66 Neutral	$538.98M	15.00	4.92%	13.20%	-20.18%	-61.90%
TCPC	58 Neutral	$453.90M	-50.98	-1.15%	21.13%	-91.81%	78.46%
CION	58 Neutral	$491.91M	18.82	3.22%	15.77%	-11.01%	-65.56%