Company Overview
Liberty All-Star Growth Fund, Inc. operates as a closed-ended equity mutual fund that invests directly in the public equity markets of the United States. The fund is launched and managed by ALPS Advisers, Inc., with co-management responsibilities held by Weatherbie Capital, LLC, Congress Asset Management Company, and Sustainable Growth Advisers, LP. This financial services entity functions within the asset management industry, providing a structured vehicle for equity exposure through a closed-end structure. The company currently maintains a market capitalization of $291.68M and reports annual revenue of $1.70M over the trailing twelve months. With an employee count listed as N/A, the organization operates with a specific scale that reflects its position as a specialized investment vehicle rather than a broad-based financial institution. The relatively modest market cap and revenue figures indicate that the fund targets a niche segment of the asset management landscape, focusing on specific growth objectives rather than mass-market liquidity.
Financial Health
The company reports revenue of $1.70M for the trailing twelve months, while generating net income of $14.70M, a discrepancy that reveals a cost structure with significant non-operating income or accounting adjustments affecting the bottom line. EBITDA figures are not available for this entity, limiting the ability to assess operational cash generation before interest and taxes through that specific metric. Free cash flow data is not provided in the available facts, which obscures the direct measure of financial flexibility available to the fund for reinvestment or debt servicing. The gross margin stands at 100.0%, indicating that the cost of goods sold is zero or negligible relative to revenue, a common characteristic of asset management firms where revenue is primarily fees. However, the operating margin is -153.3%, suggesting that operating expenses exceed operating revenue significantly, while the profit margin reaches 865.6%, highlighting the dominance of non-operating gains in the overall profitability calculation. Total cash holdings are not disclosed, but the company carries debt of $6.11M, resulting in a debt-to-equity ratio of 1.66. This leverage level suggests a balance sheet that is moderately leveraged, relying on borrowed capital to finance operations or leverage returns. The current ratio is 0.52, which indicates that short-term current assets are less than half of current liabilities, pointing to potential liquidity constraints in meeting immediate obligations. Return on equity is 4.0%, reflecting the return generated on shareholders' equity, while the return on assets is -0.4%, indicating that total assets are currently generating a negative return on a consolidated basis.
Valuation Assessment
The trailing twelve-month P/E ratio is 21.09, whereas the forward P/E ratio is not available, preventing a direct comparison that would otherwise imply expectations for future earnings trajectory. The price-to-book ratio is 0.79, which indicates that the market values the company at less than its book value, suggesting a potential discount relative to the net asset value per share. The price-to-sales ratio is 171.75, an exceptionally high multiple that suggests the market is pricing in substantial future growth expectations or valuing the fund based on earnings power rather than current sales volume. Additionally, the EV/EBITDA multiple is not available, leaving alternative valuation metrics incomplete for a comprehensive assessment of the enterprise value relative to earnings. The stock has traded between a 52-week low of $4.01 and a 52-week high of $5.69. Without a specific current price provided in the facts to calculate the exact percentage difference, the trading range establishes the volatility bounds within which the fund's share price fluctuates. The beta value is 1.19, which means the fund is expected to be 19% more volatile than the broader market, amplifying gains during bull markets and losses during downturns relative to a benchmark index.
Growth & Income
Revenue growth year-over-year is -24.5%, while earnings growth year-over-year is -66.0%, indicating that earnings are contracting at a significantly faster rate than revenue is declining. This divergence implies that fixed costs or structural changes are exerting disproportionate pressure on profitability compared to top-line revenue erosion. The dividend yield is 10.3%, and the payout ratio is 209.1%, which is unsustainable given that the payout ratio exceeds 100% of reported earnings. Such a high payout ratio suggests that the fund is likely paying out capital that exceeds its current net income, potentially drawing from reserves or capitalizing on non-recurring gains. The fact that the dividend yield is so high relative to the earnings growth rate signals a risk that the dividend may face pressure if earnings do not stabilize or grow in the future. Overall, the growth and income profile presents a challenging picture with negative growth rates in both revenue and earnings, coupled with a dividend payout that exceeds the company's reported net income generation.