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Gamco Investors (GAMI)
OTHER OTC:GAMI
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Gamco Investors (GAMI) AI Stock Analysis

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GAMI

Gamco Investors

(OTC:GAMI)

Rating:73Outperform
Price Target:
$27.00
â–²(7.57% Upside)
GAMI's overall stock score is driven by its strong valuation, with a low P/E ratio and high dividend yield, making it attractive for value and income investors. Financial performance is solid, with strong profitability and low leverage, despite concerns over historical revenue declines and negative free cash flow growth. Technical analysis indicates moderate strength, with positive price trends but potential overbought conditions.

Gamco Investors (GAMI) vs. SPDR S&P 500 ETF (SPY)

Gamco Investors Business Overview & Revenue Model

Company DescriptionGAMCO 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 MoneyGamco 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
GAMI's financial statements depict a generally stable and profitable company with strong margins and low leverage. The balance sheet is notably robust, with a high equity ratio and low debt levels. However, the declining revenue trend and fluctuating cash flows highlight potential areas for improvement, particularly in maintaining revenue growth and cash generation.
Income Statement
72
Positive
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
78
Positive
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
68
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue239.34M231.40M248.73M258.75M301.13M259.73M
Gross Profit136.61M122.43M127.32M147.51M182.94M157.38M
EBITDA86.60M70.61M71.11M90.83M118.59M101.17M
Net Income71.20M62.93M60.21M65.56M73.20M58.69M
Balance Sheet
Total Assets235.36M224.68M249.43M223.82M232.00M183.87M
Cash, Cash Equivalents and Short-Term Investments106.49M116.47M160.83M76.29M142.03M98.31M
Total Debt4.63M5.05M5.14M5.83M50.99M24.21M
Total Liabilities82.99M87.37M68.45M84.77M138.12M96.96M
Stockholders Equity152.38M137.31M180.98M139.05M93.88M86.91M
Cash Flow
Free Cash Flow39.49M72.47M49.32M86.78M96.13M40.73M
Operating Cash Flow44.16M72.47M49.32M86.78M96.13M40.73M
Investing Cash Flow42.13M-10.13M-34.93M-87.86M59.52M-63.51M
Financing Cash Flow-105.41M-106.86M-18.97M-74.58M-46.95M-30.03M

Gamco Investors Technical Analysis

Technical Analysis Sentiment
Positive
Last Price25.10
Price Trends
50DMA
24.27
Positive
100DMA
23.42
Positive
200DMA
24.04
Positive
Market Momentum
MACD
0.23
Negative
RSI
63.15
Neutral
STOCH
60.09
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 25.1 is above the 20-day moving average (MA) of 24.29, above the 50-day MA of 24.27, and above the 200-day MA of 24.04, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 63.15 is Neutral, neither overbought nor oversold. The STOCH value of 60.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GAMI.

Gamco Investors Risk Analysis

Gamco Investors disclosed 32 risk factors in its most recent earnings report. Gamco Investors reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Gamco Investors Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$6.43B16.8913.47%0.02%-5.87%-21.51%
79
Outperform
$1.97B33.9411.22%0.89%15.43%-19.63%
78
Outperform
$4.12B11.8932.69%2.40%5.92%54.93%
74
Outperform
$1.35B9.6516.46%4.46%0.66%36.96%
73
Outperform
$574.81M8.0142.19%8.92%2.96%28.67%
69
Neutral
$406.05M8.4129.24%4.03%8.34%21.65%
68
Neutral
$17.82B11.9010.30%3.72%9.69%0.80%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GAMI
Gamco Investors
25.10
2.70
12.05%
AMG
Affiliated Managers
227.79
54.48
31.44%
DHIL
Diamond Hill Investment Group
148.97
-4.47
-2.91%
FHI
Federated Hermes
54.10
21.24
64.64%
VRTS
Virtus Investment Partners
201.63
3.35
1.69%
WT
WisdomTree
13.51
3.53
35.37%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025