Gamco Investors (GAMI) AI Stock Analysis

• Market Cap: $548.03M
• Dividend Yield: 9.18%
• Average Volume (3M): 4.51K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.42
• Revenue Growth: 2.96%
• EPS Growth: 28.67%
• Country: US
• Employees: 181
• Sector: Financial
• Sector Strength: 67
• Industry: Asset Management
• EPS (TTM): 0.93
• Shares Outstanding: 3,918,362
• 10 Day Avg. Volume: 5,009
• 30 Day Avg. Volume: 4,515
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 1.77
• Enterprise Value/Gross Profit: 3.32
• Enterprise Value/Ebitda: 5.54
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: $27.00 ▲(10.70% Upside)

GAMI's overall stock score is primarily driven by its strong valuation, with a low P/E ratio and high dividend yield making it attractive to value and income investors. The company's financial performance is stable, though attention is needed to address declining revenue and fluctuating cash flows. Technical analysis presents mixed signals, indicating a lack of strong momentum in either direction.

Gamco Investors Business Overview & Revenue Model

Company Description

Gamco Investors, Inc. (GAMI) is a prominent investment management firm headquartered in the United States. The company primarily operates in the asset management sector, offering a range of investment services and products to its clients, including mutual funds, closed-end funds, and institutional and private wealth management. Gamco Investors is well-known for its value-oriented investment philosophy and actively managed portfolio strategies.

How the Company Makes Money

Gamco Investors generates revenue primarily through management fees and performance-based fees associated with its investment advisory services. The company earns management fees based on a percentage of assets under management (AUM) from mutual funds, institutional clients, and private wealth clients. Additionally, Gamco may receive performance fees when investment returns exceed predefined benchmarks, offering an incentive for superior portfolio performance. The firm may also engage in strategic partnerships and collaborations to expand its investment offerings and client base, further contributing to its revenue streams.

Gamco Investors Financial Statement Overview

Summary

GAMI's financial performance is stable with strong margins and low leverage. The balance sheet is robust with a high equity ratio and low debt levels, though revenue decline and fluctuating cash flows are concerns.

Income Statement

The income statement for GAMI shows moderate profitability and stable margins. The TTM gross profit margin is approximately 53.37%, and the net profit margin is around 27.28%, indicating a solid ability to convert revenue into profit. Despite a decline in total revenue from 2022 to 2024, the company has maintained healthy EBIT and EBITDA margins, reflecting operational efficiency. However, the revenue growth rate is negative over the observed period, which may raise concerns about future revenue-generating capabilities.

Balance Sheet

GAMI's balance sheet is relatively strong, with a low debt-to-equity ratio of approximately 0.03, indicating conservative financial leverage. The equity ratio stands at about 64.92%, showcasing a strong equity base and financial stability. Return on equity (ROE) is around 46.18% in the TTM, indicating efficient use of equity to generate profits. Overall, the balance sheet reflects a robust financial position with low leverage risk.

Cash Flow

The cash flow statement reveals a mixed picture. While the operating cash flow to net income ratio is approximately 0.83, which is reasonable, the free cash flow growth rate has seen fluctuations. The free cash flow to net income ratio is about 0.83, indicating a relatively stable conversion of net income into free cash flow. However, the decline in operating cash flow from 2022 to the TTM suggests potential challenges in sustaining cash generation.

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
EBITDA	70.61M	71.11M	90.83M	118.59M	101.17M
Net Income	62.93M	60.21M	65.56M	73.20M	58.69M
Balance Sheet
Total Assets	224.68M	249.43M	223.82M	232.00M	183.87M
Cash, Cash Equivalents and Short-Term Investments	116.47M	160.83M	76.29M	142.03M	98.31M
Total Debt	5.05M	5.14M	5.83M	50.99M	24.21M
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: Negative
• Last Price: 24.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 24.39 is above the 20-day moving average (MA) of 24.18, above the 50-day MA of 24.23, and above the 200-day MA of 24.02, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 32.81 is Neutral, neither overbought nor oversold. The STOCH value of 26.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GAMI.

Gamco Investors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FHI	82 Outperform	$3.99B	11.42	32.69%	2.56%	5.92%	54.93%
AMG	79 Outperform	$6.05B	16.01	13.47%	0.02%	-6.17%	-21.51%
WT	79 Outperform	$1.91B	33.51	11.22%	0.92%	15.43%	-19.63%
GAMI	73 Outperform	$548.03M	7.63	42.19%	9.18%	2.96%	28.67%
VRTS	68 Neutral	$1.32B	9.30	16.46%	4.81%	0.66%	36.96%
Sector *	62 Neutral	C$15.26B	6.94	19.04%	5.60%	33.29%	-34.45%
DHIL	60 Neutral	$385.80M	8.04	29.24%	4.26%	8.34%	21.65%