General American Investors Company, Inc.
General American Investors Company, Inc. Fundamental Analysis
General American Investors Company, Inc. (GAM) shows moderate financial fundamentals with a PE ratio of 8.78, profit margin of 8.76%, and ROE of 10.59%. The company generates $0.0B in annual revenue with weak year-over-year growth of -12.90%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 30.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GAM's fundamental strength across five key dimensions:
Efficiency Score
WeakGAM struggles to generate sufficient returns from assets.
Valuation Score
ModerateGAM shows balanced valuation metrics.
Growth Score
WeakGAM faces weak or negative growth trends.
Financial Health Score
ExcellentGAM maintains a strong and stable balance sheet.
Profitability Score
WeakGAM struggles to sustain strong margins.
Key Financial Metrics
Is GAM Expensive or Cheap?
P/E Ratio
GAM trades at 8.78 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GAM's PEG of 2.39 indicates potential overvaluation.
Price to Book
The market values General American Investors Company, Inc. at 0.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 387.97 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 $8.76 as profit after all expenses.
Operating Margin
Core operations generate 20.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.59 in profit for every $100 of shareholder equity.
ROA
General American Investors Company, Inc. generates $9.93 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
8.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.39
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
74.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.001
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.002
vs 25 benchmark
How GAM Stacks Against Its Sector Peers
| Metric | GAM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.78 | 19.11 | Better (Cheaper) |
| ROE | 10.59% | 821.00% | Weak |
| Net Margin | 875.99% | 1655.00% | Weak |
| Debt/Equity | 0.00 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 1.26 | 659.22 | Neutral |
| ROA | 9.93% | 1976.00% | Weak |
GAM outperforms its industry in 2 out of 6 key metrics, 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
-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