company background image
GAM

General American Investors Company NYSE:GAM Stock Report

Last Price

US$34.33

Market Cap

US$823.1m

7D

-2.1%

1Y

-21.0%

Updated

28 Sep, 2022

Data

Company Financials
GAM fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance0/6
Financial Health4/6
Dividends3/6

GAM Stock Overview

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

General American Investors Company Competitors

Price History & Performance

Summary of all time highs, changes and price drops for General American Investors Company
Historical stock prices
Current Share PriceUS$34.33
52 Week HighUS$46.75
52 Week LowUS$33.58
Beta1.02
1 Month Change-8.65%
3 Month Change-2.91%
1 Year Change-21.04%
3 Year Change-3.35%
5 Year Change-4.77%
Change since IPO85.57%

Recent News & Updates

Dec 27

GAM: When Looking For A CEF With Over 50 Years Of Track Record

General American Investors is an equity focused closed end fund. GAM has outperformed the S&P 500 on a 50-year lookback period. The analytics for the fund as reflected in its Sharpe ratio, standard deviation and drawdowns are inferior to the index on a 10-year lookback period. With an above average expense ratio and layered leverage, we expect more from this fund.

Shareholder Returns

GAMUS Capital MarketsUS Market
7D-2.1%-3.5%-2.0%
1Y-21.0%-23.7%-20.3%

Return vs Industry: GAM exceeded the US Capital Markets industry which returned -25.5% over the past year.

Return vs Market: GAM exceeded the US Market which returned -22.1% over the past year.

Price Volatility

Is GAM's price volatile compared to industry and market?
GAM volatility
GAM Average Weekly Movement3.0%
Capital Markets Industry Average Movement0.4%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

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

Volatility Over Time: GAM's weekly volatility (3%) 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$823.08m
Earnings (TTM)-US$132.20m
Revenue (TTM)US$15.63m

52.7x

P/S Ratio

-6.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GAM income statement (TTM)
RevenueUS$15.63m
Cost of RevenueUS$0
Gross ProfitUS$15.63m
Other ExpensesUS$147.83m
Earnings-US$132.20m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-5.51
Gross Margin100.00%
Net Profit Margin-845.81%
Debt/Equity Ratio0%

How did GAM perform over the long term?

See historical performance and comparison

Dividends

9.6%

Current Dividend Yield

-64%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book 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 GAM?

Other financial metrics that can be useful for relative valuation.

GAM 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/Revenue65.1x
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Book Ratio vs Peers

How does GAM's PB Ratio compare to its peers?

GAM PB Ratio vs Peers
The above table shows the PB ratio for GAM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPBEstimated GrowthMarket Cap
Peer Average20202.8x
AC Associated Capital Group
0.9xn/aUS$803.4m
SCRM Screaming Eagle Acquisition
46238.1xn/aUS$910.3m
PEO Adams Natural Resources Fund
0.9xn/aUS$481.4m
GHIX Gores Holdings IX
34571.4xn/aUS$635.3m
GAM General American Investors Company
0.8xn/aUS$823.1m

Price-To-Book vs Peers: GAM is good value based on its Price-To-Book Ratio (0.8x) compared to the peer average (20202.8x).


Price to Earnings Ratio vs Industry

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

Price-To-Book vs Industry: GAM is expensive based on its Price-To-Book Ratio (0.8x) compared to the US Capital Markets industry average (-23.3x)


Price to Book Ratio vs Fair Ratio

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

GAM PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio0.8x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate GAM's Price-To-Book Fair Ratio for valuation analysis.


Share Price vs Fair Value

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

Below Fair Value: GAM ($34.33) is trading below our estimate of fair value ($54.53)

Significantly Below Fair Value: GAM is trading below fair value by more than 20%.


Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.


Discover undervalued companies

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.8%

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.


Discover growth companies

  • Examine whether General American Investors Company is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • General American Investors Company competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


10.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GAM is currently unprofitable.

Growing Profit Margin: GAM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GAM is unprofitable, but has reduced losses over the past 5 years at a rate of 10.3% per year.

Accelerating Growth: Unable to compare GAM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GAM is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (33.2%).


Return on Equity

High ROE: GAM has a negative Return on Equity (-10.09%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is General American Investors Company's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GAM's short term assets ($2.2M) do not cover its short term liabilities ($9.9M).

Long Term Liabilities: GAM's short term assets ($2.2M) do not cover its long term liabilities ($10.1M).


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


Discover healthy companies

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


9.61%

Current Dividend Yield

Dividend Yield vs Market

General American Investors Company Dividend Yield vs Market
How does General American Investors Company dividend yield compare to the market?
SegmentDividend Yield
Company (General American Investors Company)9.6%
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.6%
Industry Average (Capital Markets)2.9%
Analyst forecast in 3 Years (General American Investors Company)n/a

Notable Dividend: GAM's dividend (9.61%) is higher than the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: GAM's dividend (9.61%) is in the top 25% of dividend payers in the US market (4.69%)


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.


Earnings Payout to Shareholders

Earnings Coverage: GAM is paying a dividend but the company is unprofitable.


Cash Payout to Shareholders

Cash Flow Coverage: Insufficient data to calculate cash payout ratio to determine if its dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

7.7yrs

Average management tenure


CEO

Jeffrey Priest (59 yo)

9.67yrs

Tenure

US$2,378,000

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

Jeffrey Priest's Compensation vs General American Investors Company Earnings
How has Jeffrey Priest's remuneration changed compared to General American Investors Company's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

-US$132m

Mar 31 2022n/an/a

US$180m

Dec 31 2021US$2mUS$2m

US$282m

Sep 30 2021n/an/a

US$293m

Jun 30 2021n/an/a

US$362m

Mar 31 2021n/an/a

US$396m

Dec 31 2020US$2mUS$2m

US$66m

Sep 30 2020n/an/a

US$28m

Jun 30 2020n/an/a

-US$37m

Mar 31 2020n/an/a

-US$109m

Dec 31 2019US$2mUS$2m

US$286m

Sep 30 2019n/an/a

US$14m

Jun 30 2019n/an/a

US$93m

Mar 31 2019n/an/a

US$56m

Dec 31 2018US$2mUS$2m

-US$83m

Sep 30 2018n/an/a

US$125m

Jun 30 2018n/an/a

US$95m

Mar 31 2018n/an/a

US$83m

Dec 31 2017US$2mUS$2m

US$159m

Sep 30 2017n/an/a

US$147m

Jun 30 2017n/an/a

US$152m

Mar 31 2017n/an/a

US$142m

Dec 31 2016US$2mUS$2m

US$73m

Sep 30 2016n/an/a

US$92m

Jun 30 2016n/an/a

-US$58m

Mar 31 2016n/an/a

-US$55m

Dec 31 2015US$2mUS$2m

-US$40m

Compensation vs Market: Jeffrey's total compensation ($USD2.38M) is below average for companies of similar size in the US market ($USD4.14M).

Compensation vs Earnings: Jeffrey's compensation has increased whilst the company is unprofitable.


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 ( 11.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GAM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NYSE:GAM Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
23 Sep 22BuyUS$17,000Jeffrey PriestIndividual500US$34.00
15 Jun 22BuyUS$10,668Jeffrey PriestIndividual300US$35.56
24 May 22BuyUS$4,837Jeffrey PriestIndividual134US$36.10
20 May 22BuyUS$18,060Jeffrey PriestIndividual500US$36.12

Ownership Breakdown

What is the ownership structure of GAM?
Owner TypeNumber of SharesOwnership Percentage
Private Companies00%
Individual Insiders1,233,7625.1%
Institutions7,118,23929.7%
General Public15,623,60965.2%

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


Top Shareholders

Top 25 shareholders own 29.95% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
5.48%
Lazard Asset Management LLC
1,314,303$45.1m0%0.04%
4.21%
1607 Capital Partners, LLC
1,009,014$34.6m12.83%1.28%
2.66%
Blue Bell Private Wealth Management, LLC
636,680$21.9m1.24%7.56%
2.22%
Eaton Vance Management
532,308$18.3m7.42%0.01%
1.84%
Cornerstone Advisors, Inc.
441,530$15.2m0%1.02%
1.7%
Saba Capital Management, L.P.
408,126$14.0m-5.57%0.19%
1.63%
Cornerstone Advisors, LLC
391,630$13.4m-1.01%0.71%
1.38%
Bulldog Investors, LLP
329,858$11.3m0.61%3.4%
1.14%
John Gordan
273,554$9.4m0%no data
0.94%
Jeffrey Priest
225,836$7.8m-0.44%no data
0.86%
Allspring Global Investments, LLC
207,255$7.1m6.25%0.01%
0.64%
Shaker Financial Services, LLC
152,248$5.2m-20.87%2.65%
0.62%
Andrew Vindigni
148,984$5.1m0%no data
0.56%
1832 Asset Management L.P.
133,300$4.6m0%0.01%
0.54%
Bank of America Corporation, Asset Management Arm
129,883$4.5m-0.47%no data
0.43%
Levin Capital Strategies, L.P.
103,175$3.5m0%0.44%
0.42%
Royal Bank of Canada, Banking & Securities Investments
101,470$3.5m17.76%no data
0.38%
Overbrook Management Corporation
92,252$3.2m0%0.9%
0.37%
Sally Lynch
89,419$3.1m0%no data
0.36%
Morgan Stanley, Investment Banking and Brokerage Investments
86,466$3.0m-17.9%no data
0.33%
Sidney Knafel
78,588$2.7m0%no data
0.32%
Eugene Stark
77,193$2.7m0%no data
0.31%
Cohen & Steers Capital Management, Inc.
73,966$2.5m14.92%no data
0.31%
Thomas J. Herzfeld Advisors, Inc.
73,494$2.5m-4.14%1.14%
0.29%
Arthur Altschul
70,101$2.4m0%no data

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
  • Implied Market Cap: US$823.083m
  • Shares outstanding: 23.98m
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/28 00:00
End of Day Share Price2022/09/28 00:00
Earnings2022/06/30
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.