GCM Grosvenor Inc. Fundamental Analysis (NASDAQ: GCMG)
GCM Grosvenor Inc. (NASDAQ: GCMG) shows weak financial fundamentals with a PE ratio of 16.95, profit margin of 7.88%, and ROE of 2.53%. The company generates $0.6B in annual revenue with moderate year-over-year growth of 9.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GCMG's fundamental strength across five key dimensions:
Efficiency Score
WeakGCMG struggles to generate sufficient returns from assets.
Valuation Score
ModerateGCMG shows balanced valuation metrics.
Growth Score
ModerateGCMG shows steady but slowing expansion.
Financial Health Score
ModerateGCMG shows balanced financial health with some risks.
Profitability Score
ModerateGCMG maintains healthy but balanced margins.
Key Financial Metrics
Is GCMG Expensive or Cheap?
P/E Ratio
GCMG trades at 16.95 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GCMG's PEG of 4.24 indicates potential overvaluation.
Price to Book
The market values GCM Grosvenor Inc. at 31.86 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 2.85 times EBITDA. This is generally considered low.
How Well Does GCMG Make Money?
Net Profit Margin
For every $100 in sales, GCM Grosvenor Inc. keeps $7.88 as profit after all expenses.
Operating Margin
Core operations generate 28.25 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.53 in profit for every $100 of shareholder equity.
ROA
GCM Grosvenor Inc. generates $6.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
GCM Grosvenor Inc. generates strong operating cash flow of $198.34M, reflecting robust business health.
Free Cash Flow
GCM Grosvenor Inc. generates strong free cash flow of $192.23M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.14 in free cash annually.
FCF Yield
GCMG converts 23.72% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.24
vs 25 benchmark
P/B Ratio
Price to book value ratio
31.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
16.30
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
2.53
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.26
vs 25 benchmark
How GCMG Stacks Against Its Sector Peers
| Metric | GCMG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.95 | 20.65 | Better (Cheaper) |
| ROE | 252.74% | 646.00% | Weak |
| Net Margin | 7.88% | -1501.00% (disorted) | Weak |
| Debt/Equity | 16.30 | 0.88 | Weak (High Leverage) |
| Current Ratio | 2.55 | 829.12 | Strong Liquidity |
| ROA | 6.57% | -568.00% (disorted) | Weak |
GCMG outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews GCM Grosvenor Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-2.59%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
761.63%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
107.03%
Industry Style: Value, Dividend, Cyclical
High Growth