GCM Grosvenor (GCMG) AI Stock Analysis

• Market Cap: $2.30B
• Dividend Yield: 3.71%
• Average Volume (3M): 513.64K
• Price to Earnings (P/E): 88.3
• Beta (1Y): 0.58
• Revenue Growth: 17.33%
• EPS Growth: 1.83%
• Country: US
• Employees: 549
• Sector: Financial
• Sector Strength: 75
• Industry: Asset Management
• EPS (TTM): 0.18
• Shares Outstanding: 49,994,434
• 10 Day Avg. Volume: 402,486
• 30 Day Avg. Volume: 513,637
• PEG Ratio: -4.72
• Price to Book (P/B): -18.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.29
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 8.42
• Enterprise Value/Ebitda: 11.26
• 1Y Price Target: $14.88
• Price Target Upside: 25.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 62 Neutral
• Price Target: $13.00 ▲(9.70%Upside)

GCM Grosvenor's strong cash flow and earnings performance are offset by significant balance sheet risks and an extremely high P/E ratio, indicating potential overvaluation. Technical indicators show neutral market momentum, and while recent strategic initiatives and fundraising achievements are positive, they are tempered by industry challenges.

Positive Factors

Fee-Related Earnings

Management reiterated its confidence in being able to double fee-related earnings from 2023 to 2028.

Fundraising

Fundraising was at its highest level in more than two years and the pipeline remains strong despite increasingly challenging market conditions.

Growth Potential

Investors focused on strategies with strong growth potential, including infrastructure and private credit.

Negative Factors

Economic Uncertainty

Greater economic uncertainty and recession risks have weakened the outlook for deployments and realizations.

Market Valuation

Its valuation remains well below other alternative solutions.

GCM Grosvenor Business Overview & Revenue Model

Company Description

Grosvenor Capital Management, L.P. 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 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. Grosvenor Capital Management, L.P. was founded in 1971 and is based in Chicago, Illinois with additional offices in North America, Asia and Europe.

How the Company Makes Money

GCM Grosvenor primarily generates revenue through management and incentive fees. Management fees are charged to clients based on a percentage of assets under management (AUM) and are typically recurring, providing a steady income stream. Incentive fees, also known as performance fees, are earned when the firm achieves certain performance benchmarks or investment returns on behalf of its clients. Additionally, GCM Grosvenor may earn fees from advisory services and strategic partnerships. The firm's revenue model is supported by its extensive network of investment professionals and its ability to deliver superior risk-adjusted returns across various alternative asset classes.

GCM Grosvenor Financial Statement Overview

Summary

GCM Grosvenor shows strong cash flow management with rising EBIT and EBITDA margins, but the balance sheet poses significant risks due to negative equity and high leverage. The income statement highlights some profitability with potential revenue volatility.

Income Statement

The income statement displays a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at approximately 59.1%, indicating effective cost control despite a slight decline in total revenue. The net profit margin is modest at 3.2%, reflecting some profitability challenges. Revenue growth shows volatility with a recent decline, but EBIT and EBITDA margins improved, suggesting operational enhancements.

Balance Sheet

The balance sheet highlights significant risks with a negative stockholders' equity, indicating potential solvency issues. The debt-to-equity ratio is not calculable due to negative equity, but total debt is substantial. The equity ratio is negative, further emphasizing financial risk. However, the company maintains a reasonable level of cash and cash equivalents.

Cash Flow

Cash flow analysis is strong, with substantial free cash flow growth and a robust operating cash flow to net income ratio of approximately 9.3 times, suggesting efficient cash generation. The free cash flow to net income ratio is also high, indicating strong cash flow relative to net earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	514.01M	445.00M	446.53M	531.59M	429.98M
Gross Profit	177.78M	88.95M	169.22M	197.75M	41.52M
EBITDA	77.64M	-9.15M	84.17M	113.42M	-45.43M
Net Income	18.70M	12.77M	79.48M	142.07M	-67.63M
Balance Sheet
Total Assets	612.73M	504.94M	488.93M	581.62M	631.89M
Cash, Cash Equivalents and Short-Term Investments	89.45M	44.35M	85.16M	96.19M	198.15M
Total Debt	485.92M	426.21M	403.15M	390.52M	335.15M
Total Liabilities	703.07M	616.17M	582.94M	637.42M	556.17M
Stockholders Equity	-27.62M	-27.63M	-19.82M	-25.71M	-20.02M
Cash Flow
Free Cash Flow	132.04M	88.30M	215.73M	178.23M	66.86M
Operating Cash Flow	148.77M	92.06M	216.51M	178.80M	68.17M
Investing Cash Flow	-31.83M	-18.84M	-10.07M	-28.11M	-5.53M
Financing Cash Flow	-70.38M	-113.66M	-215.07M	-251.27M	54.76M

GCM Grosvenor Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GCMG, the sentiment is Neutral. The current price of 11.85 is above the 20-day moving average (MA) of 11.61, below the 50-day MA of 12.07, and below the 200-day MA of 12.30, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 56.77 is Neutral, neither overbought nor oversold. The STOCH value of 69.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GCMG.

GCM Grosvenor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FHI	80 Outperform	$3.59B	12.77	24.98%	2.92%	2.32%	1.08%
APAM	79 Outperform	$3.74B	13.17	69.81%	5.86%	7.18%	10.17%
GBDC	71 Outperform	$4.08B	13.77	8.88%	11.10%	16.10%	-24.30%
HTGC	70 Outperform	$3.34B	14.30	11.30%	9.78%	-7.29%	-38.60%
Sector *	68 Neutral	$16.73B	11.75	9.79%	3.76%	11.87%	-7.97%
BRDG	64 Neutral	$2.86B	72.24	-22.41%	4.09%	-1.09%	-120.06%
GCMG	62 Neutral	$2.30B	88.30	-12.68%	3.71%	17.33%	1.83%

GCM Grosvenor Corporate Events

Sandra Buchanan Resigns from GCM Grosvenor

On July 9, 2025, Sandra Buchanan resigned from her position at GCM Grosvenor Inc., with her resignation taking effect on October 3, 2025. She has agreed to assist the company in transitioning her responsibilities, which may impact the company’s operations during this period.

The most recent analyst rating on (GCMG) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on GCM Grosvenor stock, see the GCMG Stock Forecast page.

GCM Grosvenor Holds Annual Stockholders Meeting 2025

On June 5, 2025, GCM Grosvenor Inc. held its 2025 Annual Meeting of Stockholders, where Class A and Class C common stockholders participated, representing approximately 97.06% of the combined voting power. During the meeting, Michael J. Sacks, Angela Blanton, Francesca Cornelli, David A. Helfand, Jonathan R. Levin, Stephen Malkin, and Samuel C. Scott III were elected as directors, and Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

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.