NYSE:GAM

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General American Investors Company

Executive Summary

General American Investors Company, Inc. is a publicly owned investment manager. More Details


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

How has General American Investors Company's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GAM is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: GAM's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

-0.08%

GAM

1.5%

US Capital Markets

-0.4%

US Market


1 Year Return

10.4%

GAM

45.4%

US Capital Markets

36.2%

US Market

Return vs Industry: GAM underperformed the US Capital Markets industry which returned 45.4% over the past year.

Return vs Market: GAM underperformed the US Market which returned 36.2% over the past year.


Shareholder returns

GAMIndustryMarket
7 Day-0.08%1.5%-0.4%
30 Day-1.5%3.3%-2.3%
90 Day3.6%14.5%5.0%
1 Year19.4%10.4%49.0%45.4%39.1%36.2%
3 Year31.9%6.7%35.9%25.9%48.4%39.0%
5 Year88.3%23.6%145.9%115.5%116.6%92.4%

Long-Term Price Volatility Vs. Market

How volatile is General American Investors Company's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is General American Investors Company undervalued compared to its fair value and its price relative to the market?

14.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GAM ($37.81) is trading above our estimate of fair value ($27.78)

Significantly Below Fair Value: GAM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GAM is good value based on its PE Ratio (14.2x) compared to the US Capital Markets industry average (23.4x).

PE vs Market: GAM is good value based on its PE Ratio (14.2x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GAM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GAM is good value based on its PB Ratio (0.9x) compared to the US Capital Markets industry average (19.8x).


Next Steps

Future Growth

How is General American Investors Company forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.5%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as General American Investors Company has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has General American Investors Company performed over the past 5 years?

1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GAM has a large one-off gain of $70.6M impacting its December 31 2020 financial results.

Growing Profit Margin: GAM's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: GAM has become profitable over the past 5 years, growing earnings by 1.3% per year.

Accelerating Growth: GAM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GAM had negative earnings growth (-76.7%) over the past year, making it difficult to compare to the Capital Markets industry average (10.4%).


Return on Equity

High ROE: GAM's Return on Equity (6%) is considered low.


Next Steps

Financial Health

How is General American Investors Company's financial position?


Financial Position Analysis

Short Term Liabilities: GAM's short term assets ($4.5M) do not cover its short term liabilities ($18.2M).

Long Term Liabilities: GAM's short term assets ($4.5M) do not cover its long term liabilities ($10.4M).


Debt to Equity History and Analysis

Debt Level: GAM is debt free.

Reducing Debt: GAM has not had any debt for past 5 years.

Debt Coverage: GAM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GAM has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is General American Investors Company current dividend yield, its reliability and sustainability?

6.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GAM's dividend (6.61%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: GAM's dividend (6.61%) is in the top 25% of dividend payers in the US market (3.64%)


Stability and Growth of Payments

Stable Dividend: GAM's dividend payments have been volatile in the past 10 years.

Growing Dividend: GAM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (94.2%), GAM's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

7.2yrs

Average management tenure


CEO

Jeffrey Priest (57 yo)

8.17yrs

Tenure

US$1,828,000

Compensation

Mr. Jeffrey W. Priest has been the President since February 1, 2012, Chief Executive Officer and Portfolio Manager since January 1, 2013 and Director of General American Investors Company, Inc from 2013. H...


CEO Compensation Analysis

Compensation vs Market: Jeffrey's total compensation ($USD1.83M) is about average for companies of similar size in the US market ($USD2.21M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Priest
CEO, President8.17yrsUS$1.83m0.80%
$ 7.4m
Andrew Vindigni
Senior VP & Analyst14.25yrsUS$976.00k0.56%
$ 5.2m
Anang Majmudar
Senior VP & Analyst2.17yrsUS$998.00k0.079%
$ 732.0k
Eugene Stark
VP of Administration16.17yrsUS$271.88k0.29%
$ 2.7m
Samantha Jin
Treasurer & Principal Accounting Officer2.17yrsno data0.0099%
$ 92.1k
Craig Grassi
VP & Director of Information Technologyno datano data0.21%
$ 1.9m
Connie Santa Maria
Assistant Corporate Secretary and Human Resources & Benefits Manager6.17yrsno data0.026%
$ 238.6k
Linda Genid
Corporate Secretary5.17yrsno data0.21%
$ 2.0m
Sally Lynch
VP & Analyst15.17yrsUS$864.00k0.33%
$ 3.1m
Liron Kronzon
VP & Analystno datano datano data

7.2yrs

Average Tenure

57yo

Average Age

Experienced Management: GAM's management team is seasoned and experienced (7.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Priest
CEO, President8.17yrsUS$1.83m0.80%
$ 7.4m
Rose Lynch
Independent Director3.83yrsUS$25.25kno data
Arthur Altschul
Independent Director26.17yrsUS$26.25k0.29%
$ 2.7m
Spencer Davidson
Independent Chairman13.92yrsUS$25.25k0.30%
$ 2.8m
Rodney Berens
Independent Director13.67yrsUS$22.75k0.013%
$ 124.4k
John Gordan
Independent Director35.17yrsUS$27.75k1.11%
$ 10.3m
Betsy Gotbaum
Independent Director11.17yrsUS$24.00k0.011%
$ 104.0k
Clara Del Villar
Independent Director4.17yrsUS$26.50kno data
Henry Schirmer
Independent Director5.42yrsUS$25.00kno data
Savannah Sachs
Independent Director0.25yrno datano data

9.7yrs

Average Tenure

65yo

Average Age

Experienced Board: GAM's board of directors are considered experienced (9.7 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

General American Investors Company, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: General American Investors Company, Inc.
  • Ticker: GAM
  • Exchange: NYSE
  • Founded: 1927
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$929.984m
  • Shares outstanding: 24.60m
  • Website: https://www.generalamericaninvestors.com

Location

  • General American Investors Company, Inc.
  • 530 Fifth Avenue
  • 26th Floor
  • New York
  • New York
  • 10036
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GAMNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
GAM.PRBNYSE (New York Stock Exchange)PFD B 5.95%USUSDSep 2003

Biography

General American Investors Company, Inc. is a publicly owned investment manager. The firm invests in the public equity markets of United States. It invests in growth stocks of companies. It makes investmen...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/06 23:38
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.