GCM Grosvenor (GCMG) AI Stock Analysis

• Market Cap: $2.07B
• Dividend Yield: 4.21%
• Average Volume (3M): 875.22K
• Price to Earnings (P/E): 38.6
• Beta (1Y): 0.65
• Revenue Growth: 18.33%
• EPS Growth: 109.57%
• Country: US
• Employees: 549
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.19
• Shares Outstanding: 52,530,598
• 10 Day Avg. Volume: 1,064,632
• 30 Day Avg. Volume: 875,221
• PEG Ratio: -0.22
• Price to Book (P/B): -19.88
• Price to Sales (P/S): 1.07
• P/FCF Ratio: 4.16
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 4.83
• Enterprise Value/Gross Profit: 5.66
• Enterprise Value/Ebitda: 17.38
• 1Y Price Target: $13.25
• Price Target Upside: 26.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.78
• Revenue Forecast (FY): $534.73M

• Rating: 59 Neutral
• Price Target: $11.50 ▲(10.15% Upside)

GCM Grosvenor's overall score is driven by strong earnings call performance and cash flow generation. However, significant financial risks and bearish technical indicators weigh heavily on the stock's outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective client acquisition, enhancing long-term business sustainability.

Assets Under Management

Record AUM reflects successful client retention and acquisition, providing a stable base for future fee income and business expansion.

Cash Flow Generation

Robust cash flow generation enhances liquidity and operational efficiency, providing financial flexibility for strategic investments and debt management.

Negative Factors

Leverage and Negative Equity

High leverage and negative equity position pose financial risks, potentially limiting growth opportunities and increasing vulnerability to economic downturns.

Net Profit Margin

Low net profit margins suggest challenges in cost management and efficiency, which may hinder the company's ability to enhance shareholder value.

Challenges in ARS Net Flows

Stagnant net flows in Absolute Return Strategies indicate potential issues in product appeal or market competition, affecting future growth prospects.

GCM Grosvenor Business Overview & Revenue Model

Company Description

GCM Grosvenor Inc. is global alternative asset management solutions provider. The firm primarily provides its services to pooled investment vehicles. It also provides its services to investment companies, high net worth individuals, pension and profit sharing plans and state or municipal government entities. The firm invests in equity and alternative investment markets of the United States and internationally. The firm invests in multi-strategy, credit-focused, equity-focused, macro-focused, commodity-focused, and other specialty portfolios. It focuses in hedge fund asset classes, private equity, real estate, and/or infrastructure, credit and absolute return strategies. It also focuses in primary fund investments, secondary fund investments, and co-investments with a focus on buyout, distressed debt, mezzanine, venture capital/growth equity investments. The firm seeks to do seed investments in small, emerging, and diverse private equity firms. The firm seeks to make regionally-focused investments in middle-market buyout. It prefers to invest in aerospace and defense, advanced electronics, information technology, biosciences, and advanced materials. It focuses on Ohio and the Midwest region. The firm employs fundamental and quantitative analysis. GCM Grosvenor Inc. was founded in 1971 and is based in Chicago, Illinois with additional offices in North America, Asia, Australia and Europe.

How the Company Makes Money

GCM Grosvenor generates revenue primarily through management fees and performance fees associated with the assets under management (AUM). The management fees are typically charged as a percentage of AUM, providing a steady income stream based on the total capital managed for clients. Performance fees, on the other hand, are contingent on the investment performance exceeding a predefined benchmark, allowing the company to capitalize on successful investments. Additionally, GCMG may earn advisory fees for providing investment consulting services and may engage in co-investment opportunities alongside clients, further enhancing its revenue. Strategic partnerships with institutional investors and a strong track record in alternative investments also contribute significantly to its earnings.

GCM Grosvenor Financial Statement Overview

Summary

GCM Grosvenor shows promising revenue growth and improved profitability margins, but faces significant challenges with its leveraged balance sheet and negative equity. Strong cash flow generation provides a cushion, but addressing the high leverage and improving net profitability are crucial for long-term financial stability.

Income Statement

GCM Grosvenor's income statement shows a positive trajectory with a revenue growth rate of 10.5% in the TTM, indicating a recovery from previous declines. The gross profit margin improved to 39.1%, reflecting better cost management. However, the net profit margin remains low at 5.2%, suggesting challenges in translating revenue growth into net income. The EBIT and EBITDA margins have improved, but there is room for further enhancement to strengthen profitability.

Balance Sheet

The balance sheet reveals significant leverage with a negative equity position, resulting in a high debt-to-equity ratio of -23.44. This indicates financial instability and potential risk. The return on equity is negative, reflecting challenges in generating returns for shareholders. The equity ratio is also negative, underscoring the need for improved capital structure and financial health.

Cash Flow

Cash flow analysis shows strong free cash flow growth of 18.3% in the TTM, indicating robust cash generation capabilities. The operating cash flow to net income ratio is healthy at 1.48, suggesting efficient cash conversion. The free cash flow to net income ratio is above 1, highlighting the company's ability to generate cash beyond its net income, which is a positive sign for liquidity and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	557.89M	523.47M	451.99M	452.52M	577.56M	433.14M
Gross Profit	476.02M	235.40M	95.94M	175.21M	243.73M	44.67M
EBITDA	154.97M	77.64M	4.93M	116.26M	177.17M	-45.43M
Net Income	34.01M	18.70M	12.77M	19.82M	21.48M	4.05M
Balance Sheet
Total Assets	685.93M	612.73M	504.94M	488.93M	581.62M	632.28M
Cash, Cash Equivalents and Short-Term Investments	182.75M	89.45M	44.35M	85.16M	96.19M	198.15M
Total Debt	481.54M	485.92M	426.21M	403.15M	390.52M	335.15M
Total Liabilities	682.11M	703.07M	616.17M	582.94M	637.42M	599.35M
Stockholders Equity	-7.39M	-27.62M	-27.63M	-19.82M	-25.71M	-29.34M
Cash Flow
Free Cash Flow	188.10M	132.04M	88.30M	215.73M	178.23M	66.86M
Operating Cash Flow	193.16M	148.77M	92.06M	216.51M	178.80M	68.17M
Investing Cash Flow	-21.20M	-31.83M	-18.84M	-10.07M	-28.11M	-5.53M
Financing Cash Flow	-87.13M	-70.38M	-113.66M	-215.07M	-251.27M	54.76M

GCM Grosvenor Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GCMG, the sentiment is Negative. The current price of 10.44 is below the 20-day moving average (MA) of 11.37, below the 50-day MA of 11.76, and below the 200-day MA of 12.28, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 13.67 is Positive, neither overbought nor oversold. The STOCH value of 8.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GCMG.

GCM Grosvenor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HTGC	77 Outperform	$3.19B	10.20	15.21%	10.50%	-15.32%	-12.29%
PAX	74 Outperform	$2.29B	26.54	15.46%	4.17%	26.65%	-1.26%
GSBD	71 Outperform	$1.10B	8.43	8.75%	16.85%	-16.58%	65.24%
APAM	69 Neutral	$3.35B	11.54	62.04%	8.75%	5.46%	2.10%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CNS	60 Neutral	$3.16B	19.46	31.53%	4.00%	12.73%	19.01%
GCMG	59 Neutral	$2.07B	38.60	―	4.21%	18.33%	109.57%

GCM Grosvenor Corporate Events

GCM Grosvenor Announces $100M Equity Distribution Deal

On November 17, 2025, GCM Grosvenor Inc. entered into an Equity Distribution Agreement with Morgan Stanley & Co. LLC, allowing the company to sell up to $100 million of its Class A common stock through an at-the-market offering. The proceeds from this offering are intended for general working capital and corporate purposes, potentially impacting the company’s financial flexibility and market positioning.

The most recent analyst rating on (GCMG) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on GCM Grosvenor stock, see the GCMG Stock Forecast page.

GCM Grosvenor Reports Strong Q3 2025 Earnings Growth

GCM Grosvenor Inc. is a global alternative asset management solutions provider, specializing in private equity, infrastructure, real estate, credit, and absolute return investment strategies, with approximately $87 billion in assets under management.

GCM Grosvenor’s Earnings Call Highlights Record Growth

GCM Grosvenor Inc. recently held its earnings call, revealing a positive sentiment driven by strong financial performance and record-breaking achievements. Despite some challenges related to the seasonality of carry realizations and ARS net flows, the overall outlook remains optimistic, with continued growth in key areas.

GCM Grosvenor Increases Quarterly Dividend

On October 15, 2025, GCM Grosvenor Inc. held an Investor Day event, sharing a presentation on their website for public shareholders, which was also webcast live. The day prior, the company’s Board of Directors approved an increase in the quarterly cash dividend to $0.12 per share, reflecting a $0.01 rise from the previous dividend, payable on December 15, 2025.

The most recent analyst rating on (GCMG) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on GCM Grosvenor stock, see the GCMG Stock Forecast page.