GROW  U.s. Global Investors Inc.

Exchange

NASDAQ

Sector

Finance

Industry

Investment Managers

Market Cap.

31.43M

Vuru Grade

21.00/100

Current Price

$2.07
-0.16 (-7.17%)

Growth Price

$1.79
Overvalued by 13.31%

Company Metrics

  • P/E 336.67
  • P/S 5.01
  • P/B 1.42
  • EPS -0.03
  • Cash ROIC -5.45%
  • Cash Ratio -
  • Dividend 0.03 / 1.38%
  • Avg. Vol. 110,829.00
  • Shares 15.18M
  • Market Cap. 31.43M

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. Takes Position in Allergan PLC. (AGN)
Dispatch Tribunal - 5 hours ago
Allergan PLC. logo U S Global Investors Inc. acquired a new position in shares of Allergan PLC. (NYSE:AGN) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission.
US Global Investors, Inc. (NASDAQ:GROW) Trading Down – Insider Trading Activity
HugoPress - 21 hours ago
There has been some buying insider activity on U.S. Global Investors, Inc. (NASDAQ:GROW) recently. CEO Frank E. Holmes disclosed the purchase of 1,000 shares of (GROW).
Insider Activity – US Global Investors, Inc. (NASDAQ:GROW) - First News 24
US Global Investors, Inc. (GROW) At $2.07 Forms Bottom; Ferro Has 1.06 Sentiment
HuronReport - 10 hours ago
U.S. Global Investors, Inc. (GROW) formed multiple bottom with $1.93 target or 7.00% below today's $2.07 share price.
Analyst Views And Outlook On Two Stocks: BRF SA (BRFS), US Global Investors ...
Post Analyst - Oct 17, 2017
Turning to U.S. Global Investors, Inc. (NASDAQ:GROW), its shares were trading at $2.31 a retreat of $-0.13, on the trading floor.
US Global Investors, Inc. (GROW) Upgraded to Buy at ValuEngine
TrueBlueTribune - Oct 18, 2017
U.S. Global Investors, Inc. logo ValuEngine upgraded shares of U.S. Global Investors, Inc. (NASDAQ:GROW) from a hold rating to a buy rating in a research note issued to investors on Thursday, October 5th.
US Global Investors, Inc. (NASDAQ:GROW) Traded Much Higher Than Its 50 Day ... - Modern Readers
US Global Investors, Inc. (NASDAQ:GROW) Stock Closed Much Higher Than Its 50 ... - Finance Daily
Breaking: US Global Investors Inc (NASDAQ:GROW) Stock Through Resistance ...
CML News - Oct 16, 2017
Breaking: U.S. Global Investors Inc (NASDAQ:GROW) has hit maximum technical strength -- watch the technical oscillators for momentum gaps.
Since its 52-week low, US Global Investors, Inc. (GROW) has marched up 95.12%
Post Analyst - Oct 16, 2017
U.S. Global Investors, Inc. (NASDAQ:GROW) enjoyed a 95.12% run-up in share price since hitting record low of $1.32. The stock managed 4.68% rise and now stands at $2.44 as of Oct. 13, 2017.
US Global Investors, Inc. (NASDAQ:GROW) Among Today's Most Volatile Stocks ... - HugoPress
US Global Investors, Inc. (NASDAQ:GROW) Moving Aggressively – Up $0.21 - Modern Readers
Northstar Asset Management Cut Its General Electric (GE) Holding; US Global ...
UtahHerald.com - 5 hours ago
U S Global Investors Inc decreased Franco Nevada Corp (Call) (FNV) stake by 41.67% reported in 2017Q2 SEC filing. U S Global Investors Inc sold 100 shares as Franco Nevada Corp (Call) (FNV)'s stock rose 8.53%. The U S Global Investors Inc holds 140 ...
US Global Investors Inc. Buys New Position in Target Corporation (TGT)
StockNewsTimes - Oct 19, 2017
Target Corporation logo U S Global Investors Inc. bought a new stake in Target Corporation (NYSE:TGT) in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission.
US Global Investors Inc is the third biggest owner of Comstock Mining Inc. (LODE)
Post Analyst - Oct 16, 2017
Comstock Mining Inc. (NYSE:LODE) enjoyed a 15.72% run-up in share price since hitting record low of $0.13. The stock managed 4.32% rise and now stands at $0.14 as of October 13, 2017.
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.

$2.07 Current Price

$1.79 Growth Price (DCF)

Overvalued by 13.31%


Growth Rate Assumed by Market: 11.72%


Future Free Cash Flow Growth Rate: -8.4%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$3.35 Book Price

Undervalued by 61.76%


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 $5.45 of cash for every $100 invested.
Figures in USD. Fiscal year ends in June
20132014201520162017
Free Cash Flow 421,846.00 -15.22M -712,000.00 3.02M 690,000.00
divided by
Invested Capital 38.70M 37.85M 30.77M 26.35M 25.52M
Cash ROIC 1.09% -40.21% -2.31% 11.46% 2.70%

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 $6.91 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in June
20132014201520162017
Net Income -194,212.00 -970,000.00 -4.03M -3.68M -513,000.00
divided by
Stockholders' Equity 36.85M 35.07M 28.57M 24.53M 23.87M
Return on Equity -0.53% -2.77% -14.11% -14.98% -2.15%

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
2008200920102011201220132014201520162017
Free Cash Flow 13.91M 1.37M 7.08M 7.63M 1.80M 421,846.00 -15.22M -712,000.00 3.02M 690,000.00

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
2008200920102011201220132014201520162017
Cash - - - - - - - - - -
Current Assets - - - - - - - - - -
Total Assets 45.49M 37.15M 40.98M 45.97M 41.76M 38.70M 37.85M 30.77M 26.35M 25.52M
Current Liabilities - - - - - - - - - -
Total Liabilities 6.26M 2.53M 4.79M 4.91M 3.05M 1.85M 2.78M 2.20M 1.82M 1.65M
Stockholder' Equity 39.23M 34.63M 36.19M 41.06M 38.71M 36.85M 35.07M 28.57M 24.53M 23.87M
Current Ratio - - - - - - - - - -
TL-to-TA 0.14 0.07 0.12 0.11 0.07 0.05 0.07 0.07 0.07 0.06

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
2008200920102011201220132014201520162017
Retained Earnings 26.61M 20.70M 21.44M 25.58M 23.40M 21.27M 19.38M 14.42M 10.29M 9.32M
Retained Earnings Growth - -22.21% 3.61% 19.29% -8.52% -9.10% -8.92% -25.56% -28.66% -9.42%

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.

$7.68 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in June
2008200920102011201220132014201520162017
Net Income 10.84M -2.24M 5.35M 7.83M 1.53M -194,212.00 -970,000.00 -4.03M -3.68M -513,000.00
divided by
Revenue 56.04M 23.14M 35.03M 41.93M 23.85M 18.67M 11.44M 9.37M 5.51M 6.76M
Net Profit Margin 19.34% -9.67% 15.27% 18.68% 6.42% -1.04% -8.48% -43.01% -66.76% -7.59%

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
2008200920102011201220132014201520162017
Gross Profit - - - - - - - - - -
divided by
Revenue 56.04M 23.14M 35.03M 41.93M 23.85M 18.67M 11.44M 9.37M 5.51M 6.76M
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.

4.10% 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
2008200920102011201220132014201520162017
Capital Expenditure 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 10.84M -2.24M 5.35M 7.83M 1.53M -194,212.00 -970,000.00 -4.03M -3.68M -513,000.00
Capital Expenditure Ratio 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
2008200920102011201220132014201520162017
Dividend Paid 3.22M 3.67M 3.68M 3.69M 3.71M 2.63M 928,000.00 951,000.00 574,000.00 456,000.00
divided by
Shares Outstanding 15.28M 15.30M 15.34M 15.38M 15.44M 15.48M 15.46M 15.40M 15.29M 15.21M
Dividend Paid Per Share 0.21 0.24 0.24 0.24 0.24 0.17 0.06 0.06 0.04 0.03
Price at Year End 4.56 11.62 7.71 5.99 4.12 2.56 2.87 1.17 1.36 1.38
Dividend Yield 4.62% 2.07% 3.11% 4.01% 5.82% 6.64% 2.09% 5.28% 2.76% 2.17%

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
2008200920102011201220132014201520162017
Shares Outstanding 15.28M 15.30M 15.34M 15.38M 15.44M 15.48M 15.46M 15.40M 15.29M 15.21M
Stock Bought Back - -0.14% -0.29% -0.28% -0.37% -0.27% 0.15% 0.38% 0.69% 0.54%
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