company background image
GCMG

Grosvenor Capital Management NasdaqGM:GCMG Stock Report

Last Price

US$8.20

Market Cap

US$1.5b

7D

3.7%

1Y

-17.6%

Updated

06 Aug, 2022

Data

Company Financials +
GCMG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance4/6
Financial Health2/6
Dividends4/6

GCMG Stock Overview

Grosvenor Capital Management, L.P. is global alternative asset management solutions provider.

Grosvenor Capital Management Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Grosvenor Capital Management
Historical stock prices
Current Share PriceUS$8.20
52 Week HighUS$12.38
52 Week LowUS$6.26
Beta0.40
1 Month Change15.17%
3 Month Change-2.96%
1 Year Change-17.59%
3 Year Change-18.16%
5 Year Changen/a
Change since IPO-15.90%

Recent News & Updates

Jul 05

GCM Grosvenor, Blue Wolf agrees to acquire Hallcon

GCM Grosvenor (NASDAQ:GCMG) and Blue Wolf Capital Partners said on Tuesday that they have acquired Chicago-based Hallcon Corporation from Novacap. Terms of the transaction were not disclosed. Hallcon is the leading North American provider of mission-critical transportation services and infrastructure for a broad range of customers. With Blue Wolf and GCM Grosvenor’s backing, the company will be able to accelerate Hallcon’s expansion into new North American markets including Seattle, WA, Austin, TX, Atlanta, GA, Washington, D.C. and more. The firms also intend to enhance the Hallcon’s ability to scale its electric vehicle charging infrastructure to continue supporting the evolving needs of its customers that are transitioning to electric fleets.

Shareholder Returns

GCMGUS Capital MarketsUS Market
7D3.7%1.3%1.0%
1Y-17.6%-17.1%-12.9%

Return vs Industry: GCMG matched the US Capital Markets industry which returned -17% over the past year.

Return vs Market: GCMG underperformed the US Market which returned -12.8% over the past year.

Price Volatility

Is GCMG's price volatile compared to industry and market?
GCMG volatility
GCMG Average Weekly Movement5.2%
Capital Markets Industry Average Movement0.5%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: GCMG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GCMG's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1971524Michael Sackshttps://www.gcmgrosvenor.com

Grosvenor Capital Management, L.P. is global alternative asset management solutions provider. The firm primarily provides its services to pooled investment vehicles. It also provides its services to investment companies, high net worth individuals, pension and profit sharing plans and state or municipal government entities.

Grosvenor Capital Management Fundamentals Summary

How do Grosvenor Capital Management's earnings and revenue compare to its market cap?
GCMG fundamental statistics
Market CapUS$1.54b
Earnings (TTM)US$23.66m
Revenue (TTM)US$532.09m

15.1x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GCMG income statement (TTM)
RevenueUS$532.09m
Cost of RevenueUS$316.39m
Gross ProfitUS$215.70m
Other ExpensesUS$192.04m
EarningsUS$23.66m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 09, 2022

Earnings per share (EPS)0.54
Gross Margin40.54%
Net Profit Margin4.45%
Debt/Equity Ratio-731.3%

How did GCMG perform over the long term?

See historical performance and comparison

Dividends

4.9%

Current Dividend Yield

73%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is GCMG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GCMG?

Other financial metrics that can be useful for relative valuation.

GCMG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA4.7x
PEG Ratio0.3x

Price to Earnings Ratio vs Peers

How does GCMG's PE Ratio compare to its peers?

GCMG PE Ratio vs Peers
The above table shows the PE ratio for GCMG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average38.5x
VRTS Virtus Investment Partners
9.6xn/aUS$1.5b
AMK AssetMark Financial Holdings
20.6x16.9%US$1.5b
IPOF Social Capital Hedosophia Holdings VI
27.6xn/aUS$1.4b
PX P10
96.2x63.4%US$1.4b
GCMG Grosvenor Capital Management
15.1x50.3%US$1.5b

Price-To-Earnings vs Peers: GCMG is good value based on its Price-To-Earnings Ratio (15.1x) compared to the peer average (38.5x).


Price to Earnings Ratio vs Industry

How does GCMG's PE Ratio compare vs other companies in the US Capital Markets Industry?

Price-To-Earnings vs Industry: GCMG is good value based on its Price-To-Earnings Ratio (15.1x) compared to the US Capital Markets industry average (30.4x)


Price to Earnings Ratio vs Fair Ratio

What is GCMG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GCMG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.1x
Fair PE Ratio24.5x

Price-To-Earnings vs Fair Ratio: GCMG is good value based on its Price-To-Earnings Ratio (15.1x) compared to the estimated Fair Price-To-Earnings Ratio (24.5x).


Share Price vs Fair Value

What is the Fair Price of GCMG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GCMG ($8.2) is trading below our estimate of fair value ($9.3)

Significantly Below Fair Value: GCMG is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Future Growth

How is Grosvenor Capital Management forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


50.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GCMG's forecast earnings growth (50.3% per year) is above the savings rate (1.9%).

Earnings vs Market: GCMG's earnings (50.3% per year) are forecast to grow faster than the US market (12.8% per year).

High Growth Earnings: GCMG's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GCMG's revenue (7.5% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: GCMG's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GCMG's Return on Equity is forecast to be very high in 3 years time (80.7%).


Discover growth companies

Past Performance

How has Grosvenor Capital Management performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-16.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GCMG has high quality earnings.

Growing Profit Margin: GCMG's current net profit margins (4.4%) are higher than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: GCMG's earnings have declined by 16.8% per year over the past 5 years.

Accelerating Growth: GCMG's earnings growth over the past year (258.7%) exceeds its 5-year average (-16.8% per year).

Earnings vs Industry: GCMG earnings growth over the past year (258.7%) exceeded the Capital Markets industry 53.7%.


Return on Equity

High ROE: GCMG's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Discover strong past performing companies

Financial Health

How is Grosvenor Capital Management's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GCMG has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: GCMG has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: GCMG has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: GCMG's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: GCMG's debt is well covered by operating cash flow (52.2%).

Interest Coverage: GCMG earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Discover healthy companies

Dividend

What is Grosvenor Capital Management current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.88%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GCMG's dividend (4.88%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: GCMG's dividend (4.88%) is in the top 25% of dividend payers in the US market (4.09%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, GCMG has been paying a dividend for less than 10 years.

Growing Dividend: GCMG's dividend payments have increased, but the company has only paid a dividend for 2 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (73.2%), GCMG's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (37.1%), GCMG's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Michael Sacks (59 yo)

2.08yrs

Tenure

US$3,982,540

Compensation

Mr. Michael Jay Sacks has served as GCM Grosvenor Inc. 's Chief Executive Officer and Chairman of Board since GCM Grosvenor Inc. formation in July 2020. Mr. Sacks is also GCM Grosvenor’s Chief Executive Of...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Michael's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GCMG's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: GCMG's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Grosvenor Capital Management, L.P.'s employee growth, exchange listings and data sources


Key Information

  • Name: Grosvenor Capital Management, L.P.
  • Ticker: GCMG
  • Exchange: NasdaqGM
  • Founded: 1971
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Implied Market Cap: US$1.540b
  • Market Cap: US$357.510m
  • Shares outstanding: 187.83m
  • Website: https://www.gcmgrosvenor.com

Number of Employees


Location

  • Grosvenor Capital Management, L.P.
  • 900 North Michigan Avenue
  • Suite 1100
  • Chicago
  • Illinois
  • 60611-6558
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.