GROW  U.s. Global Investors Inc.

Exchange

NASDAQ

Sector

Finance

Industry

Investment Managers

Market Cap.

20.20M

Vuru Grade

41.00/100

Current Price

$1.33
+0.06 (+4.72%)

Growth Price

$2.91
Undervalued by 118.53%

Company Metrics

  • P/E 336.67
  • P/S 2.78
  • P/B 0.79
  • EPS -0
  • Cash ROIC -5.13%
  • Cash Ratio -
  • Dividend 0.03 / 2.36%
  • Avg. Vol. 15,608.00
  • Shares 15.19M
  • Market Cap. 20.20M

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 mutual funds for its clients. It invests in the public equity and fixed income markets across the globe. The firm invests in value stocks to make its equity investments. It employs a funda... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

US Global Investors Inc Buys American Airlines Group Inc, Southwest Airlines ...
Nasdaq - Aug 17, 2017
U S Global Investors Inc initiated holdings in Wheaton Precious Metals Corp. The purchase prices were between $18.93 and $22, with an estimated average price of $20.47.
US Global Investors, Inc. (GROW) Ex-Dividend Date Scheduled for August 10, 2017
Nasdaq - Aug 9, 2017
U.S. Global Investors, Inc. ( GROW ) will begin trading ex-dividend on August 10, 2017. A cash dividend payment of $0.002 per share is scheduled to be paid on August 28, 2017.
US Global Investors, Inc. (GROW) to Issue Monthly Dividend of $0.00 on August 28th - The Cerbat Gem
US Global Investors (GROW) Receiving Somewhat Favorable Media Coverage, Study ... - Stock Observer
US Global Investors Inc Buys American Airlines Group Inc, Southwest Airlines ...
GuruFocus.com - Aug 17, 2017
San Antonio, TX, based Investment company U S Global Investors Inc buys American Airlines Group Inc, Southwest Airlines Co, United Continental Holdings Inc, Delta Air Lines Inc, Allegiant Travel Co, Richmont Mines Inc, Wheaton Precious Metals Corp, ...
US Global Investors Inc (GROW) Ichimoku Reading Holds Below the Cloud
Rockville Register - 17 hours ago
Shares of U.S. Global Investors Inc (GROW) opened the last session at 1.28, touching a high of 1.30 and a low of 1.25 , yielding a change of 0.00.
US Global Investors Inc Buys A Lot More Newmont Mining Corporation (NEM) Stock ...
Modern Readers - Aug 17, 2017
U S Global Investors Inc says it increased its ownership in Newmont Mining Corporation by 50.0% as reported in a filing on 08/17/2017.
US Global Investors Inc Modifies Its Ownership in Newmont Mining Corporation (NEM) - Highlight Press
Newmont Mining Corporation (NEM) Ownership Increased by US Global Investors Inc - Finance Daily
US Global Investors Inc Bought A Lot More Sealed Air Corporation (SEE) Stock
Modern Readers - Aug 17, 2017
U S Global Investors Inc reports that it raised its investment in Sealed Air Corporation stock by 13,726 shares in the last quarter.
US STOCKS-Wall St flat; investors assess White House moves and earnings
Business Insider - Aug 18, 2017
"These last few weeks of August; there are lot of people on vacation, so markets are not nearly as liquid as they usually are," said Michael Matousek, head trader at U.S. Global Investors Inc in San Antonio. Advancing issues outnumbered declining ones ...
US Global Investors Inc (NASDAQ:GROW) Institutional Investors Sentiment Index ...
BZ Weekly - Aug 14, 2017
U S Global Investors Inc (NASDAQ:GROW) institutional sentiment increased to 2.4 in 2016 Q4. Its up 1.15, from 1.25 in 2016Q3.
Graham Holdings Co (GHC) At $586.45 Forms Top; US Global Investors (GROW)'s ... - NormanObserver.com
US Global Investors Inc Bought A Lot More Ryanair Holdings plc – American ...
Highlight Press - Aug 17, 2017
Advertisement. Ryanair Holdings plc - American (NASDAQ:RYAAY). U S Global Investors Inc bought 3,189 shares in the previous quarter increasing its exposure to Ryanair Holdings plc - American by 39.6%.
Ryanair Holdings plc – American (RYAAY) Investment Up in Latest Report from US ... - Modern Readers
US Global Investors Inc Adjusts Its Ownership in United Continental Holdings ...
Highlight Press - Aug 17, 2017
U S Global Investors Inc says it increased its investment in United Continental Holdings shares by 65.2% in its quarterly SEC filing.
US Global Investors Inc Significantly Raises Its Ownership in United ... - Finance Daily
United Continental Holdings' (NYSE:UAL) Buy Rating Reiterated at Buckingham ... - Markets Daily
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for GROW to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate GROW's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$1.33 Current Price

$2.91 Growth Price (DCF)

Undervalued by 118.53%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$4.34 Book Price

Undervalued by 226.51%


Very Poor Cash Return on Invested Capital over the past 5 years

GROW has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

GROW has lost $5.13 of cash for every $100 invested.
Figures in USD. Fiscal year ends in June
20122013201420152016
Free Cash Flow 1.80M 421,846.00 -15.22M -712,000.00 3.02M
divided by
Invested Capital 41.76M 38.70M 37.85M 30.77M 26.35M
Cash ROIC 4.31% 1.09% -40.21% -2.31% 11.46%

Very Poor Return on Equity over the past 5 years

GROW has shown an inability to deliver results for shareholders. This could be due to poor management, GROW operating in a highly competitive industry, or having a weak business in general.

GROW has generated a $5.69 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in June
20122013201420152016
Net Income 1.53M -194,212.00 -970,000.00 -4.03M -3.68M
divided by
Stockholders' Equity 38.71M 36.85M 35.07M 28.57M 24.53M
Return on Equity 3.95% -0.53% -2.77% -14.11% -14.98%

Good Business Performance over the past 10 years

It's likely GROW has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is GROW has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

GROW has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Free Cash Flow 8.44M 13.91M 1.37M 7.08M 7.63M 1.80M 421,846.00 -15.22M -712,000.00 3.02M

Good Balance Sheet

GROW's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Cash - - - - - - - - - -
Current Assets - - - - - - - - - -
Total Assets 39.79M 45.49M 37.15M 40.98M 45.97M 41.76M 38.70M 37.85M 30.77M 26.35M
Current Liabilities - - - - - - - - - -
Total Liabilities 8.70M 6.26M 2.53M 4.79M 4.91M 3.05M 1.85M 2.78M 2.20M 1.82M
Stockholder' Equity 31.10M 39.23M 34.63M 36.19M 41.06M 38.71M 36.85M 35.07M 28.57M 24.53M
Current Ratio - - - - - - - - - -
TL-to-TA 0.22 0.14 0.07 0.12 0.11 0.07 0.05 0.07 0.07 0.07

Low or No Reinvestment of Profits over the past 10 years

GROW has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to GROW operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Retained Earnings 18.99M 26.61M 20.70M 21.44M 25.58M 23.40M 21.27M 19.38M 14.42M 10.29M
Retained Earnings Growth - 40.12% -22.21% 3.61% 19.29% -8.52% -9.10% -8.92% -25.56% -28.66%

Loss Making Entity over the past 10 years

GROW has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$4.58 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Net Income 13.76M 10.84M -2.24M 5.35M 7.83M 1.53M -194,212.00 -970,000.00 -4.03M -3.68M
divided by
Revenue 58.60M 56.04M 23.14M 35.03M 41.93M 23.85M 18.67M 11.44M 9.37M 5.51M
Net Profit Margin 23.48% 19.34% -9.67% 15.27% 18.68% 6.42% -1.04% -8.48% -43.01% -66.76%

Weak Pricing Power over the past 10 years

GROW is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that GROW has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Gross Profit - - - - - - - - - -
divided by
Revenue 58.60M 56.04M 23.14M 35.03M 41.93M 23.85M 18.67M 11.44M 9.37M 5.51M
Gross Margin - - - - - - - - - -

Low Capital Intensity over the past 10 years

GROW has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that GROW may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

3.83% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Capital Expenditure 381,467.00 402,733.00 1.67M 554,933.00 86,512.00 18,374.00 39,159.00 30,000.00 40,000.00 13,000.00
divided by
Net Income 13.76M 10.84M -2.24M 5.35M 7.83M 1.53M -194,212.00 -970,000.00 -4.03M -3.68M
Capital Expenditure Ratio 2.77% 3.72% -74.51% 10.37% 1.10% 1.20% -20.16% -3.09% -0.99% -0.35%

Very Strong Dividend History over the past 10 years

GROW has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests GROW is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Dividend Paid 3.97M 3.22M 3.67M 3.68M 3.69M 3.71M 2.63M 928,000.00 951,000.00 574,000.00
divided by
Shares Outstanding 15.24M 15.28M 15.30M 15.34M 15.38M 15.44M 15.48M 15.46M 15.40M 15.29M
Dividend Paid Per Share 0.26 0.21 0.24 0.24 0.24 0.24 0.17 0.06 0.06 0.04
Price at Year End 15.61 4.56 11.62 7.71 5.99 4.12 2.56 2.87 1.17 1.36
Dividend Yield 1.67% 4.62% 2.07% 3.11% 4.01% 5.82% 6.64% 2.09% 5.28% 2.76%

History of Stock Buybacks over the past 10 years

GROW has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Shares Outstanding 15.24M 15.28M 15.30M 15.34M 15.38M 15.44M 15.48M 15.46M 15.40M 15.29M
Stock Bought Back - -0.22% -0.14% -0.29% -0.28% -0.37% -0.27% 0.15% 0.38% 0.69%
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