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GAM

General American Investors CompanyNYSE:GAM Stock Report

Market Cap

US$1.1b

7D

1.7%

1Y

30.5%

Updated

27 Sep, 2021

Data

Company Financials
GAM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance3/6
Financial Health4/6
Dividends4/6

GAM Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for General American Investors Company
Historical stock prices
Current Share PriceUS$44.20
52 Week HighUS$32.76
52 Week LowUS$45.41
Beta1.06
1 Month Change-1.25%
3 Month Change1.96%
1 Year Change30.54%
3 Year Change19.14%
5 Year Change36.00%
Change since IPO138.93%

Recent News & Updates

Shareholder Returns

GAMUS Capital MarketsUS Market
7D1.7%3.6%2.0%
1Y30.5%63.3%32.8%

Return vs Industry: GAM underperformed the US Capital Markets industry which returned 63.3% over the past year.

Return vs Market: GAM underperformed the US Market which returned 32.8% over the past year.

Price Volatility

Is GAM's price volatile compared to industry and market?
GAM volatility
GAM Beta1.06
Industry Beta1.19
Market Beta1

Stable Share Price: GAM is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: GAM's weekly volatility (1%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1927n/aJeffrey Priesthttps://www.generalamericaninvestors.com

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.

General American Investors Company Fundamentals Summary

How do General American Investors Company's earnings and revenue compare to its market cap?
GAM fundamental statistics
Market CapUS$1.09b
Earnings (TTM)US$361.93m
Revenue (TTM)US$15.18m

3.0x

P/E Ratio

71.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GAM income statement (TTM)
RevenueUS$15.18m
Cost of RevenueUS$0
Gross ProfitUS$15.18m
Expenses-US$346.74m
EarningsUS$361.93m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)14.71
Gross Margin100.00%
Net Profit Margin2,383.77%
Debt/Equity Ratio0%

How did GAM perform over the long term?

See historical performance and comparison

Dividends

5.7%

Current Dividend Yield

17%

Payout Ratio

Valuation

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

3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GAM ($44.2) is trading above our estimate of fair value ($31.38)

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 (3x) compared to the US Capital Markets industry average (15.5x).

PE vs Market: GAM is good value based on its PE Ratio (3x) compared to the US market (18.1x).


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 (61.3x).


Future Growth

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

4.1%

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.


Past Performance

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

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GAM has a large one-off gain of $372.0M impacting its June 30 2021 financial results.

Growing Profit Margin: GAM became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GAM has become profitable over the past 5 years, growing earnings by 15.9% per year.

Accelerating Growth: GAM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GAM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (78.6%).


Return on Equity

High ROE: GAM's Return on Equity (26.3%) is considered high.


Financial Health

How is General American Investors Company's financial position?


Financial Position Analysis

Short Term Liabilities: GAM's short term assets ($8.2M) do not cover its short term liabilities ($25.4M).

Long Term Liabilities: GAM's short term assets ($8.2M) do not cover its long term liabilities ($11.0M).


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


Dividend

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

5.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GAM's dividend (5.66%) is higher than the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: GAM's dividend (5.66%) is in the top 25% of dividend payers in the US market (3.57%)


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 low payout ratio (16.7%), GAM's dividend payments are 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?

7.7yrs

Average management tenure


CEO

Jeffrey Priest (58 yo)

8.67yrs

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 ($USD1.83M) is about average for companies of similar size in the US market ($USD2.28M).

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


Leadership Team

Experienced Management: GAM's management team is seasoned and experienced (7.7 years average tenure).


Board Members

Experienced Board: GAM's board of directors are seasoned and experienced ( 10.2 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.


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 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$1.087b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 23:00
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
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.