Generation Cap (GNRS) AI Stock Analysis

• Market Cap: 1.45B
• Dividend Yield: 2.07%
• Average Volume (3M): 2.73M
• Price to Earnings (P/E): 16.0
• Beta (1Y): 1.94
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 1
• Sector: Real Estate
• Sector Strength: 47
• Industry: Asset Management
• EPS (TTM): N/A
• Shares Outstanding: 1,270,044,900
• 10 Day Avg. Volume: 3,756,029
• 30 Day Avg. Volume: 2,732,837
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 119.00
• Price Target Upside: 4.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: 119.00 ▲(4.39% Upside)

Generation Cap's stock is supported by strong financial performance and technical indicators. The company's valuation is attractive due to a reasonable P/E ratio and an exceptionally high dividend yield. However, the increasing leverage and need for improved cash flow alignment are areas to watch.

Generation Cap Business Overview & Revenue Model

Company Description

Generation Cap (GNRS) is a diversified investment firm focused on providing innovative financial solutions across various sectors, including technology, healthcare, and renewable energy. The company specializes in venture capital investments, private equity, and asset management, aiming to identify and nurture high-potential startups and growth companies. With a commitment to sustainability and social impact, Generation Cap leverages its expertise to drive value creation for its investors while fostering advancements in key industries.

How the Company Makes Money

Generation Cap generates revenue primarily through management fees and performance-based incentives from its investment funds. The company charges a management fee, typically a percentage of the assets under management (AUM), for overseeing the investment portfolios. Additionally, Generation Cap earns significant income through performance fees, which are calculated as a percentage of the profits generated by the funds, aligning the company's interests with those of its investors. The firm also engages in co-investment opportunities alongside its partners, enhancing potential returns. Strategic partnerships with established financial institutions and corporations further expand its investment reach and offer access to exclusive deals, contributing to its overall earnings.

Generation Cap Financial Statement Overview

Summary

Generation Cap has strong profitability and operational efficiency with healthy margins, evidenced by a commendable return on equity and robust EBIT margin. The declining revenue growth and fluctuating cash flows present challenges, and a decreasing equity ratio indicates a potential risk in financial stability.

Income Statement

Generation Cap shows a strong gross profit margin and net profit margin, indicating efficient revenue generation relative to costs. However, there is a concerning decline in revenue growth, with a significant drop from 2020 to 2024. The EBIT margin remains robust, suggesting operational efficiency, although the decrease in revenue limits potential growth.

Balance Sheet

The debt-to-equity ratio indicates moderate leverage, which is manageable but requires monitoring. The return on equity is commendable, reflecting the company's ability to generate returns for shareholders. However, the equity ratio has decreased over recent years, pointing to a potential risk in financial stability.

Cash Flow

The cash flow statement highlights positive free cash flow, but the growth rate is inconsistent, with fluctuations over the years. The operating cash flow to net income ratio is healthy, indicating good cash conversion. However, the free cash flow to net income ratio presents some volatility, suggesting potential cash flow management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	105.06M	106.97M	482.22M	103.89M	133.68M	8.25M
Gross Profit	80.89M	83.88M	80.08M	69.90M	106.30M	-9.10M
EBITDA	103.85M	132.50M	427.44M	0.00	0.00	0.00
Net Income	67.90M	90.11M	277.20M	175.45M	229.87M	256.07M
Balance Sheet
Total Assets	4.28B	4.24B	4.05B	3.48B	2.58B	1.61B
Cash, Cash Equivalents and Short-Term Investments	40.45M	50.30M	96.00M	253.24M	72.64M	174.09M
Total Debt	1.77B	1.76B	1.72B	1.48B	738.70M	174.94M
Total Liabilities	2.06B	2.04B	1.97B	1.68B	900.89M	276.45M
Stockholders Equity	2.21B	2.20B	2.08B	1.81B	1.68B	1.33B
Cash Flow
Free Cash Flow	41.30M	50.18M	24.28M	33.23M	85.93M	-9.39M
Operating Cash Flow	41.30M	50.18M	24.28M	33.23M	85.93M	-9.39M
Investing Cash Flow	-89.17M	-98.04M	-358.68M	-481.09M	-852.17M	-394.79M
Financing Cash Flow	-116.12M	2.16M	177.16M	628.47M	664.80M	258.82M

Generation Cap Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 114.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:GNRS, the sentiment is Positive. The current price of 114 is above the 20-day moving average (MA) of 108.77, above the 50-day MA of 102.01, and above the 200-day MA of 84.20, indicating a bullish trend. The MACD of 3.00 indicates Negative momentum. The RSI at 64.50 is Neutral, neither overbought nor oversold. The STOCH value of 75.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:GNRS.

Generation Cap Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALTF	79 Outperform	1.26B	11.53		6.52%	-4.43%	-14.04%
MPP	76 Outperform	1.70B	30.65		3.91%	―	―
GNRS	74 Outperform	1.45B	16.01		2.07%	―	―
MRIN	68 Neutral	2.61B	27.41		3.24%	22.46%	38.85%
Sector *	63 Neutral	$6.83B	13.32	-1.02%	7.20%	3.66%	-22.87%