OTCPK:GANS

Stock Analysis Report

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Executive Summary

GAINSCO, Inc. operates as a property and casualty insurance holding company.


Snowflake Analysis

Outstanding track record and good value.


Similar Companies

Share Price & News

How has GAINSCO's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GANS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.9%

GANS

-0.05%

US Insurance

0.5%

US Market


1 Year Return

-3.4%

GANS

-11.2%

US Insurance

18.0%

US Market

Return vs Industry: GANS exceeded the US Insurance industry which returned -10.9% over the past year.

Return vs Market: GANS underperformed the US Market which returned 18.7% over the past year.


Shareholder returns

GANSIndustryMarket
7 Day2.9%-0.05%0.5%
30 Day20.0%3.3%4.5%
90 Day24.1%21.0%19.7%
1 Year-3.4%-3.4%-8.9%-11.2%20.5%18.0%
3 Year123.6%105.7%6.9%-1.1%46.3%36.8%
5 Year259.1%157.1%43.3%25.4%87.2%66.8%

Price Volatility Vs. Market

How volatile is GAINSCO's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is GAINSCO undervalued compared to its fair value and its price relative to the market?

23.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GANS ($36) is trading below our estimate of fair value ($46.8)

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


Price To Earnings Ratio

PE vs Industry: GANS is good value based on its PE Ratio (5.7x) compared to the US Insurance industry average (14.5x).

PE vs Market: GANS is good value based on its PE Ratio (5.7x) compared to the US market (19.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GANS is overvalued based on its PB Ratio (1.2x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

How is GAINSCO forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

26.4%

Forecasted Insurance 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 GAINSCO 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

  • Examine whether GAINSCO 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.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on theOTC Markets Website. If you are looking for more of a qualitative research into the company, you can access GAINSCO's filings and announcementshere.
  • Explore growth companies in the Insurance industry.

Past Performance

How has GAINSCO performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GANS has high quality earnings.

Growing Profit Margin: GANS's current net profit margins (6.8%) are higher than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: GANS's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: GANS's earnings growth over the past year (47.1%) exceeds its 5-year average (14% per year).

Earnings vs Industry: GANS earnings growth over the past year (47.1%) exceeded the Insurance industry -4%.


Return on Equity

High ROE: GANS's Return on Equity (26.4%) is considered high.


Next Steps

Financial Health

How is GAINSCO's financial position?


Financial Position Analysis

Short Term Liabilities: GANS's short term assets ($123.6M) do not cover its short term liabilities ($248.7M).

Long Term Liabilities: GANS's short term assets ($123.6M) exceed its long term liabilities ($77.9M).


Debt to Equity History and Analysis

Debt Level: GANS's debt to equity ratio (70.7%) is considered high.

Reducing Debt: GANS's debt to equity ratio has increased from 65.5% to 70.7% over the past 5 years.

Debt Coverage: GANS's debt is well covered by operating cash flow (32.8%).

Interest Coverage: GANS's interest payments on its debt are well covered by EBIT (12.9x coverage).


Balance Sheet


Next Steps

Dividend

What is GAINSCO current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GANS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GANS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GANS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GANS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GANS is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GANS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

15.6yrs

Average management tenure


CEO

Glenn Anderson (67 yo)

22.33yrs

Tenure

US$633,717

Compensation

Mr. Glenn W. Anderson has been the President and Chief Executive Officer at Gainsco Inc., since April 17, 1998. Prior to joining Gainsco Inc., Mr. Anderson served as an Executive Vice President of USF&G Co ...


Leadership Team

NamePositionTenureCompensationOwnership
Robert Stallings
Executive Chairman of the Board15.58yrsno data39%
$ 52.3m
Glenn Anderson
President & CEO22.33yrsUS$633.72kno data
Daniel Coots
Senior VP33.58yrsUS$244.58kno data
Terence Lynch
Chief Investment Officer and Senior Vice President15.42yrsno datano data
Philip West
Chief Information Officer & Senior VPno datano datano data
Scott Marek
Assistant VPno datano datano data
Drew Nachowiak
General Counsel & Secretaryno datano datano data
Brian Dosser
Chief Compliance Officerno datano datano data
Tara Knight
Head of Human Resourcesno datano datano data
Michael Johnston
Head of Field Operations2.58yrsUS$1.37mno data
Gregory Castleman
Senior Vice President of Claimsno datano datano data
Nicole Dalal
Head of Customer Service & Policy Operationsno datano datano data

15.6yrs

Average Tenure

67yo

Average Age

Experienced Management: GANS's management team is seasoned and experienced (15.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Stallings
Executive Chairman of the Board15.58yrsno data39%
$ 52.3m
Glenn Anderson
President & CEO22.33yrsUS$633.72kno data
John Goff
Independent Director23.25yrsUS$28.00kno data
James Reis
Executive Vice Chairman12.75yrsUS$372.72k20%
$ 26.8m
Robert Boulware
Independent Director15.42yrsUS$33.00kno data

15.6yrs

Average Tenure

64yo

Average Age

Experienced Board: GANS's board of directors are seasoned and experienced ( 15.6 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

GAINSCO, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GAINSCO, Inc.
  • Ticker: GANS
  • Exchange: OTCPK
  • Founded: 1978
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$134.093m
  • Shares outstanding: 3.72m
  • Website: https://www.gainsco.com

Location

  • GAINSCO, Inc.
  • P.O. Box 199023
  • Dallas
  • Texas
  • 75219-5134
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GANSOTCPK (Pink Sheets LLC)YesCommon StockUSUSDNov 1986

Biography

GAINSCO, Inc. operates as a property and casualty insurance holding company. The company offers non-standard personal auto products, including coverage for third party liability, bodily injury, and physica ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 11:51
End of Day Share Price2020/08/11 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.