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1. Company Snapshot

1.a. Company Description

U.S. Global Investors, Inc.is a publicly owned investment manager.The firm primarily provides its services to investment companies.


It also provides its services to pooled investment vehicles.The firm manages equity and fixed income mutual funds for its clients.It also manages hedge funds.


The firm also manages exchange traded funds.It invests in the public equity and fixed income markets across the globe.It invests in G.A.R.P. and value stocks to make its equity investments.


The firm employs a fundamental and quantitative analysis with top-down and bottom-up stock picking approach to make its investments.U.S. Global Investors, Inc.was founded in 1968 and is based in San Antonio, Texas.

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1.b. Last Insights on GROW

U.S. Global Investors, Inc.'s recent performance was negatively driven by weak Q2 2025 fiscal year results, with operating revenues of $2.2 million and a net loss of $86,000, or a loss of $0.01 per share. The company's inability to generate profits and its dependence on dividends to attract investors may be concerning. Despite maintaining a strong shareholder yield, more than double the yield on the 10-year US Treasury bond, the company's weak financial performance may be a hindrance to its growth.

1.c. Company Highlights

2. U.S. Global Investors' Fiscal 2025 Earnings: A Review of Financial Performance and Strategic Initiatives

The company's fiscal 2025 financial performance was marked by a net loss of $334,000, with operating revenues declining 23% to $8.5 million. Earnings per share (EPS) came in at $0.08, beating estimates of $0.07. The average assets under management (AUM) stood at $1.4 billion. The company's financials also showed a strong balance sheet with $37.2 million in net working capital.

Publication Date: Sep -13

📋 Highlights
  • Defense Spending Surge:: NATO members like Canada ($150B+) and Poland are boosting defense budgets amid geopolitical tensions, with U.S. defense spending projected at $1.5T.
  • AI Market Expansion:: The AI sector is growing at 28% CAGR, driving military modernization and airline industry efficiency through predictive analytics and cybersecurity.
  • ETF Market Shift:: Thematic ETFs (e.g., WAR, JETS) now outnumber public companies, with U.S. ETF assets reaching $11T, but liquidity risks rise as ETFs surpass stock issuance.
  • Financial Performance:: FY2025 reported a $0.33M net loss, 23% revenue decline to $8.5M, and $1.9M in share buybacks (801K shares), maintaining a 3.66% dividend yield.
  • Strategic Growth Plans:: Reinvesting $1.5M into crypto, targeting $1.9B assets, and launching webinars on defense/gold themes to capitalize on long-term secular bull trends.

Valuation Metrics and Shareholder Yield

U.S. Global Investors' valuation metrics provide insight into the company's market valuation. The Price-to-Sales (P/S) Ratio stands at 3.59, while the Dividend Yield is 3.66%. The company's shareholder yield is around 9%, indicating a significant return for shareholders through buybacks and dividends. As Frank Holmes noted during the earnings call, the company's focus on thematic ETFs and strategic buybacks positions it for long-term growth.

Strategic Initiatives and Future Outlook

The company remains focused on long-term themes, including defense spending, AI, and gold. The WAR ETF and JETS are examples of the company's thematic products, leveraging AI for military modernization and airline operational efficiency. U.S. Global Investors is also redeploying $1.5 million in debentures to crypto and targeting $1.9 billion in assets. The company's marketing efforts include webinars on defense and gold themes, as well as a white paper on defense spending.

Industry Trends and Market Outlook

NATO defense spending is projected to surge, with the U.S. expected to spend $1.5 trillion. The AI market is expanding at a 28% CAGR, driving military modernization and cybersecurity investments. ETFs now outpace public companies in number, raising concerns about liquidity. The company's emphasis on smart beta strategies and a two-pillar approach of dividends and buybacks positions it for future growth amidst these trends.

3. NewsRoom

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U.S. Global Investors, Inc. (GROW) Q1 2026 Earnings Call Prepared Remarks Transcript

Nov -13

Source: seekingalpha.com

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Frank Talk: Stocks have history on their side heading into year-end

Nov -07

Source: proactiveinvestors.com

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US Global Investors partners with Keystone School to support Model UN program

Oct -28

Source: proactiveinvestors.com

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U.S. Global Investors Partners with San Antonio's Keystone School to Support Model UN and Future Leaders

Oct -28

Source: globenewswire.com

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Frank Talk: The West fights back in the rare earth wars

Oct -27

Source: proactiveinvestors.com

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U.S. Global Investors Maintains Monthly Dividends as Its GOAU Gold Mining ETF Hits a New Record High

Sep -22

Source: globenewswire.com

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U.S. Global Investors, Inc. (GROW) Q4 2025 Earnings Call Prepared Remarks Transcript

Sep -09

Source: seekingalpha.com

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U.S. Global Investors broadens international ETF reach during fiscal 2025

Sep -08

Source: proactiveinvestors.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.30%)

6. Segments

Investment Management Services

Expected Growth: 10.3%

Increasing demand for diversified investment portfolios and strategies, growth in individual and institutional investments, and expansion of financial advisory services drive the market growth.

7. Detailed Products

Gold Funds

U.S. Global Investors offers a range of gold funds that provide investors with a convenient way to invest in gold, diversify their portfolios, and potentially hedge against inflation and market volatility.

Natural Resources Funds

The company's natural resources funds invest in companies involved in the exploration, production, and distribution of natural resources such as oil, gas, mining, and agriculture.

Emerging Europe Fund

This fund invests in companies based in emerging European markets, providing investors with exposure to the growth potential of these economies.

China Region Fund

The China Region Fund invests in companies based in China, Hong Kong, and Taiwan, providing investors with exposure to the growth potential of the Chinese economy.

Near-Term Tax Free Fund

This fund invests in short-term, high-quality municipal bonds, providing investors with a low-risk investment option that generates tax-free income.

U.S. Government Securities Ultra-Short Bond Fund

This fund invests in high-quality, short-term U.S. government securities, providing investors with a low-risk investment option that generates income.

8. U.S. Global Investors, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for U.S. Global Investors, Inc. is medium due to the presence of alternative investment options such as ETFs, mutual funds, and individual stocks.

Bargaining Power Of Customers

The bargaining power of customers for U.S. Global Investors, Inc. is low due to the company's diversified client base and lack of concentration of clients.

Bargaining Power Of Suppliers

The bargaining power of suppliers for U.S. Global Investors, Inc. is low due to the company's ability to negotiate with suppliers and the lack of concentration of suppliers.

Threat Of New Entrants

The threat of new entrants for U.S. Global Investors, Inc. is high due to the low barriers to entry in the investment management industry and the increasing trend of fintech companies entering the market.

Intensity Of Rivalry

The intensity of rivalry for U.S. Global Investors, Inc. is high due to the competitive nature of the investment management industry and the presence of established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.13%
Debt Cost 7.86%
Equity Weight 99.87%
Equity Cost 13.78%
WACC 13.77%
Leverage 0.13%

11. Quality Control: U.S. Global Investors, Inc. passed 7 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

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Tortoise Energy Infrastructure

A-Score: 7.6/10

Value: 4.3

Growth: 6.6

Quality: 9.0

Yield: 10.0

Momentum: 6.0

Volatility: 9.7

1-Year Total Return ->

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MidCap Financial

A-Score: 7.1/10

Value: 6.7

Growth: 5.8

Quality: 7.8

Yield: 10.0

Momentum: 3.0

Volatility: 9.7

1-Year Total Return ->

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First Financial

A-Score: 7.0/10

Value: 7.3

Growth: 5.4

Quality: 6.0

Yield: 7.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

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CB Financial Services

A-Score: 6.9/10

Value: 6.3

Growth: 4.8

Quality: 6.9

Yield: 7.0

Momentum: 8.0

Volatility: 8.7

1-Year Total Return ->

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WhiteHorse Finance

A-Score: 5.6/10

Value: 5.9

Growth: 3.6

Quality: 5.2

Yield: 10.0

Momentum: 0.5

Volatility: 8.3

1-Year Total Return ->

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U.S. Global Investors

A-Score: 5.6/10

Value: 6.2

Growth: 2.9

Quality: 4.5

Yield: 5.0

Momentum: 6.5

Volatility: 8.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.43$

Current Price

2.43$

Potential

-0.00%

Expected Cash-Flows