U S Global Investors Inc (NASDAQ: GROW)

Sector: Financial Services Industry: Asset Management CIK: 0000754811
Market Cap 50.42 Mn
P/B 0.95
P/E 45.71
P/S 2.23
ROIC (Qtr) -5.26
Div Yield % 3.36
Rev 1y % (Qtr) 4.36
Total Debt (Qtr) 167,000.00
Debt/Equity (Qtr) 0.00
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About

U.S. Global Investors Inc., popularly known as GROW, operates in the investment advisory services industry. The company, founded in 1968 and headquartered in San Antonio, Texas, manages two business segments: Investment Management Services and Corporate Investments. The Investment Management Services segment is the primary business for GROW. This segment provides investment advisory services to U.S. Global Investors Funds (USGIF) and exchange-traded funds (ETFs). The company offers a variety of investment management products and services to cater...

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Investment thesis

Bull case

  • Healthy cash reserves of 25.59M provide 984.08x coverage of short-term debt 26000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 48.93M provides 292.99x coverage of total debt 167000, indicating robust asset backing and low credit risk.
  • Retained earnings of 37.16M provide full 263.51x coverage of long-term debt 141000, indicating strong internal capital position.
  • Long-term investments of 7.51M provide solid 53.28x coverage of long-term debt 141000, indicating strategic financial planning.
  • Short-term investments of 9.73M provide solid 5.23x coverage of other current liabilities 1.86M, indicating strong liquidity.

Bear case

  • Operating cash flow of (870000) barely covers its investment activities of 1.04M, with a coverage ratio of -0.83, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (870000) provides thin coverage of dividend payments of (1.19M) with a 0.73 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • The company's operating cash flow of (870000) shows concerning coverage of stock compensation expenses of 133000, with a -6.54 ratio indicating potential earnings quality issues.
  • Free cash flow of (877000) provides weak coverage of capital expenditures of 7000, with a -125.29 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (870000) provides minimal -3.03x coverage of tax expenses of 287000, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Segments Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Asset Management
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BLK BlackRock, Inc. 199.59 Bn 85.40 21.98 15.04 Bn
2 BN BROOKFIELD Corp /ON/ 103.94 Bn 31.52 5.64 262.97 Bn
3 AMP Ameriprise Financial Inc 88.69 Bn 55.02 7.20 5.89 Bn
4 BX Blackstone Inc. 88.51 Bn 49.39 10.93 12.89 Bn
5 KKR KKR & Co. Inc. 55.86 Bn 28.33 13.23 53.12 Bn
6 STT State Street Corp 46.52 Bn 21.77 3.91 34.72 Bn
7 NTRS Northern Trust Corp 34.14 Bn 33.31 6.71 15.64 Bn
8 RJF Raymond James Financial Inc 32.89 Bn 37.63 4.14 5.10 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.56 0.94
EV to Cash from Ops. EV/CFO 2.92 41.10
EV to Debt EV to Debt 162.89 15.28
EV to EBIT EV/EBIT 12.08 23.47
EV to EBITDA EV/EBITDA 2.87 47.80
EV to Free Cash Flow [EV/FCF] EV/FCF 2.99 38.62
EV to Market Cap EV to Market Cap 0.54 7.81
EV to Revenue EV/Rev 1.20 27.38
Price to Book Value [P/B] P/B 0.95 2.34
Price to Earnings [P/E] P/E 45.71 11.81
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.72 4.66
Dividend Payout Ratio % Div Payout % (Qtr) 150.00 -5.56
Dividend per Basic Share Div per Share (Qtr) 0.09 1.73
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -132.35 49.83
Interest Coverage Int. cover (Qtr) 573.50 25.16
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 95.45 -35.10
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -9.70 15.43
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 1.65
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -52.93 -90.82
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -118.14 35.24
EBIT Growth (1y) % EBIT 1y % (Qtr) -55.80 -22.13
EBT Growth (1y) % EBT 1y % (Qtr) -55.83 -163.05
EPS Growth (1y) % EPS 1y % (Qtr) -53.85 -20.61
FCF Growth (1y) % FCF 1y % (Qtr) -2,640.62 220.21
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -14.62 -53.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.17 0.22
Cash Payout Ratio Cash Payout (Qtr) -1.38 0.36
Cash Ratio Cash Ratio (Qtr) 13.42 0.38
Current Ratio Curr Ratio (Qtr) 20.51 0.86
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.70
Interest Cover Ratio Int Coverage (Qtr) 573.50 25.16
Times Interest Earned Times Interest Earned (Qtr) 573.50 25.16
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 12.40 -114.76
EBIT Margin % EBIT Margin % (Qtr) 13.42 -127.24
EBT Margin % EBT Margin % (Qtr) 13.40 -150.97
Gross Margin % Gross Margin % (Qtr) 100.00 67.88
Net Profit Margin % Net Margin % (Qtr) 10.00 -148.68