U.S. Global Investors, Inc. (GROW) AI Stock Analysis
GROW AI stock analysis summary
AI ResearchU.S. Global Investors, Inc. (GROW) is an asset management firm specializing in mutual funds, ETFs, and hedge funds across global markets. In FY2026, the company generated $7.8M in revenue and net income of $3.1M, recovering from a net income of -$334,000 in FY2025. It maintains a debt-to-equity ratio of 0.00 and held $34.0M in net cash as of June 30, 2026.
- Market cap
- $33.5M
- Revenue (TTM)
- $10.3M
- P/E
- 11.3x fwd 28.8x
- 1Y return
- 8.9% S&P 500 16.8%
- Avg. target
- —
Bull case
- The company held $34.0M in net cash as of June 30, 2026, exceeding its total market capitalization of $33.5M.
- Quarterly revenue rose 39.1% year-over-year in the quarter ended June 30, 2026, accompanied by a 480.9% increase in quarterly earnings.
- Shareholders receive a 3.31% forward dividend yield with a low 12.4% payout ratio, supported by 20 consecutive years of dividend distributions.
Bear case
- Annual revenue has decreased from $24.7M in FY2022 to $7.8M in FY2026, marking a 5-year revenue CAGR of -18.5%.
- The stock trades at a forward P/E of 28.8x, representing a premium over the 10.8x median for US-listed Financial Services peers.
- Over a 5-year period, GROW's share price fell 46.5%, significantly trailing the 83.0% gain recorded by the S&P 500.
What U.S. Global Investors does
Founded in 1968 and based in San Antonio, Texas, U.S. Global Investors, Inc. specializes in offering a diverse range of financial services primarily to investment companies and pooled investment vehicles. The firm's portfolio management includes equity and fixed income mutual funds, hedge funds, and exchange traded funds (ETFs), catering to a global client base. U.S. Global Investors employs a dual investment strategy, blending Growth at a Reasonable Price (G.A.R.P.) and value investing methodologies. Its process integrates quantitative and fundamental analysis, utilizing both top-down macroeconomic insights and detailed bottom-up stock selection.
Growth and profitability
Annual revenue contracted from $24.7M in FY2022 to $15.1M in FY2023, $11.0M in FY2024, and $8.5M in FY2025, before reaching $7.8M in FY2026, reflecting a 5-year revenue CAGR of -18.5%. Despite the top-line decline of 8.1% in FY2026, operating margin rebounded to 29.3% from -35.3% in FY2025. Net income improved to $3.1M with a net margin of 39.3% in FY2026, compared to net income of -$334,000 in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue grew 39.1% year-over-year, while quarterly earnings grew 480.9% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, the company held $34.2M in cash and short-term investments against $148,000 in total debt, yielding net cash of $34.0M. Shareholders' equity totaled $45.1M, with a current ratio of 971.68 and a debt-to-equity ratio of 0.00. During FY2026, the firm produced $742,000 in operating cash flow and $682,000 in free cash flow after capital expenditures of $60,000. Cash deployed included $2.0M in share buybacks and $1.1M in dividends paid.
Valuation and performance
Trading at $2.72 as of October 16, 2026, GROW had a market capitalization of $33.5M and an enterprise value of $3.0M. The stock's trailing P/E of 11.3x sat below the 12.1x median of its US-listed Financial Services peers, while its forward P/E of 28.8x was higher than the peer median of 10.8x. Its price-to-book stood at 0.8x. Over the trailing 1-year period, the stock gained 8.9%, trailing the 16.8% return of the S&P 500. Over 5 years, GROW fell 46.5%, underperforming the 83.0% gain of the benchmark.
GROW dividend
GROW pays a monthly dividend with an annualized forward rate of $0.09 per share, equating to a 3.31% dividend yield. The payout ratio is 12.4%. The company has distributed dividends for 20 consecutive years, recording a 5-year annualized dividend growth rate of 24.6%.
What analysts expect
GROW has surpassed quarterly EPS expectations in 3 of the last 4 quarters. The company's next scheduled earnings date is November 11, 2026. Consensus analyst ratings and price targets are not recorded for the stock. Over the trailing twelve months, GROW generated diluted earnings per share of $0.24, with institutional ownership at 47.0% and insider ownership at 6.7%.
Key risks and what to watch
- Trailing twelve-month operating margin was -3.2%, reflecting pressure on operational profitability despite net income gains.
- Free cash flow of $682,000 in FY2026 did not fully cover the combined $2.0M in share buybacks and $1.1M in dividends paid.
- With 21 employees and an enterprise value of $3.0M, the firm's small operational scale leaves it sensitive to asset management fee fluctuations.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this GROW AI stock analysis
This page is an AI-written research summary of U.S. Global Investors, Inc. (GROW). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: GROW income statement, GROW balance sheet, GROW key metrics, GROW chart. See the GROW stock overview for the latest quote and news.
GROW AI stock analysis FAQ
Does U.S. Global Investors pay a dividend?
Yes, GROW pays a monthly dividend with an annualized forward payout of $0.09 per share, which equates to a 3.31% dividend yield. The firm maintains a payout ratio of 12.4% and has paid dividends for 20 consecutive years.
What is GROW's net cash position?
As of June 30, 2026, GROW had $34.2M in cash and short-term investments and $148,000 in total debt, resulting in a net cash position of $34.0M.
How has GROW performed compared to the S&P 500?
Over the past year, GROW generated an 8.9% return compared to 16.8% for the S&P 500. Over five years, the stock fell 46.5%, while the S&P 500 gained 83.0%.
When is GROW's next earnings release?
The company's next earnings date is November 11, 2026.