U S Global Investors Inc (GROW) stock analysis

P/E below its 5-year median

U S Global Investors's P/E of 10.7 is below its own 5-year median of 13.9.

P/E below the industry

U S Global Investors's P/E of 10.7 is below the Services Allied with the Exchange of Securities median of 21.0.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B below the industry

U S Global Investors's price-to-book of 0.70 is below the Services Allied with the Exchange of Securities median of 3.70.

Trading below fair value

The share price of $2.57 is below our fair value estimate of $4.98.

Margin of safety over 20%

The price is 48.4% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -1.5% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 2.9% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 32.8% over the last twelve months; the Services Allied with the Exchange of Securities median is 8.7%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 6.8% over the last twelve months and averaged 4.2% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -4.1%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

U S Global Investors's return on equity of 6.8% is below the Services Allied with the Exchange of Securities median of 15.7%.

Earnings shrank over 5 years

Net income shrank 37.5% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 21.2% over the last twelve months, against a 5-year average of 13.0%.

Net margin above the industry

U S Global Investors's net margin of 21.2% is above the Services Allied with the Exchange of Securities median of 16.3%.

Low debt

Debt is 0.2% of shareholders' equity, under the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 989% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 19.71 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 8.80; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

U S Global Investors paid dividends worth 3.2% of the share price over the last twelve months.

Yield below Treasuries

The 3.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; U S Global Investors yields 3.2%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 37.3% of net income.

Not covered by free cash flow

Dividends take 167% of free cash flow.