Gamco Investors (GAMI) AI Stock Analysis

• Market Cap: $550.33M
• Dividend Yield: 1.33%
• Average Volume (3M): 1.84K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.42
• Revenue Growth: -0.82%
• EPS Growth: 17.55%
• Country: US
• Employees: 181
• Sector: Financial
• Sector Strength: 73
• Industry: Asset Management
• EPS (TTM): 0.81
• Shares Outstanding: 3,918,362
• 10 Day Avg. Volume: 1,227
• 30 Day Avg. Volume: 1,845
• PEG Ratio: -0.62
• Price to Book (P/B): 2.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.56
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 2.29
• Enterprise Value/Ebitda: 1.19
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: $26.00 ▲(8.33%Upside)

Gamco Investors demonstrates solid financial health with strong profitability and liquidity, despite declining revenue trends. Technically, the stock shows moderate momentum, yet caution is advised due to potential overbought conditions. Valuation is a strong positive, with a low P/E ratio indicating potential undervaluation. Overall, the company's stable financials and appealing valuation create an optimistic outlook, though revenue improvement is essential for sustained growth.

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 asset management fees, which are based on a percentage of assets under management (AUM). These fees are collected from the various investment vehicles the company manages, such as mutual funds and separately managed accounts. Additionally, Gamco may earn performance-based fees, which are contingent upon achieving specific investment return thresholds. The company also benefits from forming strategic partnerships with financial institutions to expand its distribution network, enhancing its ability to attract and retain clients. Furthermore, Gamco may engage in proprietary investments, contributing to its earnings through capital appreciation and dividends.

Gamco Investors Financial Statement Overview

Summary

Gamco Investors presents a stable financial outlook with strong profitability and efficient cash flow management. The declining revenue trend poses a challenge, but the company maintains a robust balance sheet and liquidity position. Effective cost control and strategic initiatives to boost revenue will be critical for future growth and sustaining financial health.

Income Statement

Gamco Investors has demonstrated a mixed performance in recent years. The Gross Profit Margin has slightly decreased, reflecting some pressure on cost management. The Net Profit Margin, although lower than in previous years, remains robust, indicating strong profitability. Revenue growth has been negative, showing a declining trend, which is a concern. EBIT and EBITDA margins are stable, supporting overall profitability despite the revenue decline.

Balance Sheet

The balance sheet exhibits a strong equity position with an increasing Equity Ratio, enhancing financial stability. The Debt-to-Equity Ratio is low and improving, indicating effective leverage management. Return on Equity (ROE) has been decent, though slightly impacted by declining net income. The company's ability to maintain a strong equity base is a positive sign for investors.

Cash Flow

Gamco Investors' cash flow position is solid, with substantial Free Cash Flow and a strong Operating Cash Flow to Net Income Ratio. The Free Cash Flow has shown a growth trend, reinforcing liquidity and operational efficiency. However, the cash flow from operations has fluctuated, reflecting the need for careful cash management amid changing revenue dynamics.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
231.40M	248.73M	258.75M	301.13M	259.73M
	Gross Profit
122.43M	127.32M	147.51M	182.94M	157.38M
	EBIT
69.76M	66.21M	89.23M	117.42M	99.61M
	EBITDA
70.61M	71.11M	90.83M	118.59M	101.17M
	Net Income Common Stockholders
62.93M	60.21M	65.56M	73.20M	58.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
116.47M	160.83M	76.29M	142.03M	98.31M
	Total Assets
224.68M	249.43M	223.82M	232.00M	183.87M
	Total Debt
5.05M	5.14M	5.83M	50.99M	24.21M
	Net Debt
-12.20M	-56.66M	-60.55M	-91.04M	-9.11M
	Total Liabilities
87.37M	68.45M	84.77M	138.12M	96.96M
	Stockholders Equity
137.31M	180.98M	139.05M	93.88M	86.91M
Cash Flow		Free Cash Flow
72.47M	49.32M	86.78M	96.13M	40.73M
	Operating Cash Flow
72.47M	49.32M	86.78M	96.13M	40.73M
	Investing Cash Flow
-10.13M	-34.93M	-87.86M	59.52M	-63.51M
	Financing Cash Flow
-106.86M	-18.97M	-74.58M	-46.95M	-30.03M

Gamco Investors Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 24.00
• 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 Neutral. The current price of 24 is below the 20-day moving average (MA) of 24.12, above the 50-day MA of 22.58, and above the 200-day MA of 23.76, indicating a neutral trend. The MACD of 0.50 indicates Positive momentum. The RSI at 51.48 is Neutral, neither overbought nor oversold. The STOCH value of 54.31 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
FHI	80 Outperform	$3.33B	11.87	24.98%	3.23%	2.32%	1.08%
GAMI	78 Outperform	$550.33M	8.52	40.45%	1.33%	-0.82%	17.55%
WT	76 Outperform	$1.48B	29.87	10.77%	1.19%	20.66%	-47.25%
AMG	74 Outperform	$5.17B	14.28	12.81%	0.02%	-6.37%	-28.43%
DHIL	74 Outperform	$387.00M	9.58	24.80%	4.23%	9.58%	0.68%
VRTS	69 Neutral	$1.20B	10.30	13.66%	5.18%	0.63%	1.46%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.05%	12.07%	-7.97%