GROW  U.s. Global Investors Inc.

Exchange

NASDAQ

Sector

Finance

Industry

Investment Managers

Market Cap.

24.32M

Vuru Grade

41.00/100

Current Price

$1.60
+0.05 (+3.23%)

Growth Price

$2.90
Undervalued by 81.51%

Company Metrics

  • P/E 336.67
  • P/S 3.58
  • P/B 0.95
  • EPS -0.02
  • Cash ROIC -5.13%
  • Cash Ratio -
  • Dividend 0.03 / 1.89%
  • Avg. Vol. 37,510.00
  • Shares 15.20M
  • Market Cap. 24.32M

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

Insider Trading Activity US Global Investors, Inc. (NASDAQ:GROW) – CEO Bought ...
Market Exclusive - 12 hours ago
Frank E Holmes , CEO of U.S. Global Investors, Inc. (NASDAQ:GROW) reportedly Bought 330 shares of the company's stock at an average price of 1.53 for a total transaction amount of $504.90 SEC Form.
Frank Holmes Paid for 330 Shares of US Global Investors, Inc. (GROW), Trevena ... - Herald KS
US Global Investors Inc (GROW) Files Form 4 Insider Buying : Frank E Holmes ... - Energy Index
US Global Investors, Inc. (GROW) Ex-Dividend Date Scheduled for March 09, 2017
Nasdaq - Mar 8, 2017
U.S. Global Investors, Inc. ( GROW ) will begin trading ex-dividend on March 09, 2017. A cash dividend payment of $0.002 per share is scheduled to be paid on March 27, 2017.
US Global Investors' Gold Fund Earns Lipper Fund Award
Yahoo Finance - Mar 24, 2017
SAN ANTONIO, TX--(Marketwired - March 24, 2017) - U.S. Global Investors, Inc. (GROW), a boutique registered investment advisory firm with longstanding experience in global markets and specialized sectors, is pleased to announce positive recognition for ...
US Global Investors CEO and Fund Manager Win International Award
GlobeNewswire (press release) - Sep 29, 2016
The story of U.S. Global Investors goes back more than 40 years when it began as an investment club. Today, U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on niche markets around the world. Headquartered ...
Latest Stocks: US Global Investors Inc. Sells 3500 Shares of Papa John's ...
Petro Global News 24 - Mar 27, 2017
U S Global Investors Inc. decreased its position in Papa John's International Inc. (NASDAQ:PZZA) by 14.5% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission.
Insider Trading Activity US Global Investors, Inc. (NASDAQ:GROW) – CEO Bought ...
Market Exclusive - Mar 15, 2017
Frank E Holmes , CEO of U.S. Global Investors, Inc. (NASDAQ:GROW) reportedly Bought 362 shares of the company's stock at an average price of 1.48 for a total transaction amount of $535.76 SEC Form.
US Global Investors Inc (GROW) Files Form 4 Insider Buying : Frank E Holmes ... - Energy Index
A New Kind of Stock Chart: US Global Investors Inc (NASDAQ:GROW) Critical ...
CML News - Mar 23, 2017
This is a real time view of the critical technical pivot points for U.S. Global Investors Inc (NASDAQ:GROW) . The technical pivot points we look at all surround the stock price movement from the last 10-trading days through the last year.
The US Global Investors, Inc. (GROW) to Issue Monthly Dividend of $0.00
Petro Global News 24 - Mar 22, 2017
U.S. Global Investors, Inc. (NASDAQ:GROW) declared a monthly dividend on Wednesday, March 22nd. Investors of record on Monday, April 10th will be paid a dividend of 0.0025 per share on Monday, April 24th.
Traders Take Note: US Global Investors Inc (NASDAQ:GROW) Stock Drops, Weakness ...
CML News - Mar 20, 2017
Take Note: U.S. Global Investors Inc (NASDAQ:GROW) has hit some technical weakness in its momentum, and while it has not broken down all the way through support -- watch the key levels that we discuss below and further, watch the stochastics and ...
Trading Corner: Eye on Technical Levels for US Global Investors Inc (GROW)
BVN - 22 hours ago
U.S. Global Investors Inc (GROW)'s 14-day RSI is presently resting at 43.29, the 7-day is 42.16, and the 3-day is currently at 39.56.
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.

$1.60 Current Price

$2.90 Growth Price (DCF)

Undervalued by 81.51%


Growth Rate Assumed by Market: -140.63%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$4.38 Book Price

Undervalued by 173.84%


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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