General American Investors Company, Inc. (GAM) | Investment Case

1. Company Snapshot

1.a. Company Description

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 investments in Information Technology, Financials, Consumer Staples, Consumer Discretionary, Retailing, Communication Services, Industrials, Health Care, Energy and Materials.The firm employs fundamental analysis with a bottom-up stock picking approach to make its investments.

It conducts in-house research to make its investments.General American Investors Company, Inc.was founded in 1927 and is based in New York, New York.

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1.b. Last Insights on GAM

General American Investors Company, Inc.'s recent performance was positively driven by strategic board enhancements and robust reporting. The appointment of Sarah M. Ward, an experienced attorney and financial services leader, to the Board of Directors (July 31) brings fresh expertise. Additionally, the company filed its Certified Shareholder Report for the period ended June 30, 2025, providing transparency. These developments underscore the company's commitment to strong governance and investor communication, potentially bolstering investor confidence.

1.c. Company Highlights

Last Price	59.18
Change Percentage	0.44%
Open	59.1
Previous Close	58.92
Market Cap ( Millions)	1378
Volume	16681
Year High	64.4
Year Low	41.8
M A 50	61.55
M A 200	56.3

FCF Yield	0.00%
Dividend Yield	11.24%
ROE	12.53%
Debt / Equity	0.13%
Net Debt / EBIDTA	27.26%
Price To Book	0.85
Price Earnings Ratio	7.09
Price To FCF	0
Price To sales	49.83
EV / EBITDA	178.87

2. Transcript Summary

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3. NewsRoom

General American Investors Company Declares Year-End Dividends and Distributions on Common and Preferred Stock

Nov -05

Source: businesswire.com

Ready To Retire? These 8%+ CEFs Show The Way

Oct -18

Source: forbes.com

General American Investors Files Certified Shareholder Report for Period Ended June 30, 2025

Aug -01

Source: businesswire.com

General American Investors Company Announces Appointment of Sarah M. Ward to Board of Directors

Jul -31

Source: businesswire.com

GAM: Nearly 7% Average Income, Attractive Discount, And Solid Past Performance

Jun -08

Source: seekingalpha.com

2 Picks For Monthly Distributions And Participating With Activists

Jun -08

Source: seekingalpha.com

GAM: Tech Exposure Could Mean Short-Term Pain

Apr -19

Source: seekingalpha.com

GAM: A Value-Oriented Fund With A Strong Performance History

Feb -01

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.50%)

6. Segments

Investment and Related Activities

Expected Growth: 8.5%

General American Investors Company, Inc.'s growth is driven by increasing demand for investment advisory services, diversification of investment portfolios, and a strong track record of investment performance.

7. Detailed Products

Closed-End Funds

General American Investors Company, Inc. offers a range of closed-end funds that provide investors with a diversified portfolio of stocks, bonds, and other securities.

Open-End Funds

The company offers open-end funds that provide investors with a flexible investment option, allowing them to invest in a variety of asset classes.

Exchange-Traded Funds (ETFs)

General American Investors Company, Inc. offers a range of ETFs that track various market indices, providing investors with a low-cost investment option.

Alternative Investments

The company offers alternative investment options, including private equity, real estate, and hedge funds, providing investors with a diversified portfolio.

Wealth Management Services

General American Investors Company, Inc. provides wealth management services, including financial planning, investment management, and estate planning.

8. General American Investors Company, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for General American Investors Company, Inc. is medium due to the presence of alternative investment options available to investors.

Bargaining Power Of Customers

The bargaining power of customers for General American Investors Company, Inc. is low due to the company's diversified investment portfolio and lack of dependence on a single customer.

Bargaining Power Of Suppliers

The bargaining power of suppliers for General American Investors Company, Inc. is medium due to the company's reliance on a few key suppliers for investment research and data.

Threat Of New Entrants

The threat of new entrants for General American Investors Company, Inc. is high due to the relatively low barriers to entry in the investment management industry.

Intensity Of Rivalry

The intensity of rivalry for General American Investors Company, Inc. is high due to the highly competitive nature of the investment management industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	0.21%
Debt Cost	3.95%
Equity Weight	99.79%
Equity Cost	8.62%
WACC	8.61%
Leverage	0.21%

11. Quality Control: General American Investors Company, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

General American Investors Company

A-Score: 7.2/10

Value: 5.3

Growth: 2.8

Quality: 8.9

Yield: 9.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

Sixth Street Specialty Lending

A-Score: 6.9/10

Value: 5.2

Growth: 4.3

Quality: 6.5

Yield: 10.0

Momentum: 6.0

Volatility: 9.7

1-Year Total Return ->

Crescent Capital BDC

A-Score: 6.8/10

Value: 6.3

Growth: 7.4

Quality: 6.3

Yield: 10.0

Momentum: 1.5

Volatility: 9.3

1-Year Total Return ->

Carlyle Secured Lending

A-Score: 6.6/10

Value: 5.7

Growth: 7.1

Quality: 6.1

Yield: 10.0

Momentum: 1.0

Volatility: 9.7

1-Year Total Return ->

CION Investment

A-Score: 5.8/10

Value: 4.4

Growth: 4.9

Quality: 4.7

Yield: 10.0

Momentum: 2.0

Volatility: 9.0

1-Year Total Return ->

Oxford Square Capital

A-Score: 5.2/10

Value: 6.4

Growth: 3.9

Quality: 3.3

Yield: 10.0

Momentum: 0.0

Volatility: 7.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

10.00%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.61%

General American Investors Company, Inc. - US3688021043

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on GAM

1.c. Company Highlights

Better Quality

Higher Growth

Less Volatile

Cheaper

Lower Growth

Higher Yield

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.50%)

6. Segments

Investment and Related Activities

Expected Growth: 8.5%

7. Detailed Products

Closed-End Funds

Open-End Funds

Exchange-Traded Funds (ETFs)

Alternative Investments

Wealth Management Services

8. General American Investors Company, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: General American Investors Company, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

-0.04$

Current Price

59.18$

Potential

-100.07%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA