The Gabelli Equity Trust Inc.
The Gabelli Equity Trust Inc. Fundamental Analysis
The Gabelli Equity Trust Inc. (GAB) shows moderate financial fundamentals with a PE ratio of 5.75, profit margin of 1.96%, and ROE of 15.54%. The company generates $0.2B in annual revenue with moderate year-over-year growth of 4.96%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GAB's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGAB demonstrates superior asset utilization.
Valuation Score
ExcellentGAB trades at attractive valuation levels.
Growth Score
WeakGAB faces weak or negative growth trends.
Financial Health Score
ExcellentGAB maintains a strong and stable balance sheet.
Profitability Score
ModerateGAB maintains healthy but balanced margins.
Key Financial Metrics
Is GAB Expensive or Cheap?
P/E Ratio
GAB trades at 5.75 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GAB's PEG of 0.11 indicates potential undervaluation.
Price to Book
The market values The Gabelli Equity Trust Inc. at 0.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.50 times EBITDA. This signals the market has high growth expectations.
How Well Does GAB Make Money?
Net Profit Margin
For every $100 in sales, The Gabelli Equity Trust Inc. keeps $1.96 as profit after all expenses.
Operating Margin
Core operations generate 1.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.54 in profit for every $100 of shareholder equity.
ROA
The Gabelli Equity Trust Inc. generates $14.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Gabelli Equity Trust Inc. generates strong operating cash flow of $82.25M, reflecting robust business health.
Free Cash Flow
The Gabelli Equity Trust Inc. generates strong free cash flow of $82.25M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.26 in free cash annually.
FCF Yield
GAB converts 4.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
28.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How GAB Stacks Against Its Sector Peers
| Metric | GAB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.75 | 18.99 | Better (Cheaper) |
| ROE | 15.54% | 824.00% | Weak |
| Net Margin | 195.76% | 1603.00% | Weak |
| Debt/Equity | 0.05 | 0.99 | Strong (Low Leverage) |
| Current Ratio | 28.92 | 621.71 | Strong Liquidity |
| ROA | 14.51% | -24664.00% (disorted) | Strong |
GAB outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Gabelli Equity Trust Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-100.00%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-100.00%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
0.00%
Industry Style: Value, Dividend, Cyclical
Declining