General American Investors Company, Inc. Fundamental Analysis (NYSE: GAM)
General American Investors Company, Inc. Fundamental Analysis (NYSE: GAM)
General American Investors Company, Inc. (NYSE: GAM) shows moderate financial fundamentals with a PE ratio of 4.43, profit margin of 15.42%, and ROE of 20.46%. The company generates $0.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.8/100 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 GAM's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGAM demonstrates superior asset utilization.
Valuation Score
ExcellentGAM trades at attractive valuation levels.
Growth Score
ModerateGAM shows steady but slowing expansion.
Financial Health Score
ModerateGAM shows balanced financial health with some risks.
Profitability Score
ModerateGAM maintains healthy but balanced margins.
Key Financial Metrics
Is GAM Expensive or Cheap?
P/E Ratio
GAM trades at 4.43 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GAM's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values General American Investors Company, Inc. at 0.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 604.94 times EBITDA. This signals the market has high growth expectations.
How Well Does GAM Make Money?
Net Profit Margin
For every $100 in sales, General American Investors Company, Inc. keeps $15.42 as profit after all expenses.
Operating Margin
Core operations generate -4.92 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.46 in profit for every $100 of shareholder equity.
ROA
General American Investors Company, Inc. generates $19.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
General American Investors Company, Inc. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
General American Investors Company, Inc. generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
GAM converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
66.47
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.001
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
-0.00
vs 25 benchmark
How GAM Stacks Against Its Sector Peers
| Metric | GAM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.43 | 21.03 | Better (Cheaper) |
| ROE | 20.46% | 647.00% | Weak |
| Net Margin | 1542.35% | -1591.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 0.69 | 912.43 | Weak Liquidity |
| ROA | 19.27% | -579.00% (disorted) | Strong |
GAM outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews General American Investors Company, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical