Company Overview
Ellsworth Growth and Income Fund Ltd. operates as a closed-ended equity mutual fund launched by GAMCO Investors, Inc., which is managed by Gabelli Funds, LLC. The entity primarily invests in the public equity markets with a specific focus on convertible securities, targeting stocks across various market capitalizations to generate returns through both capital appreciation and income generation. This financial services company operates within the asset management industry, where its role involves pooling capital from investors to manage a portfolio of public equities and convertible instruments. The company's current market capitalization stands at $147.91M, while its annual revenue generated over the trailing twelve months is $5.61M. The employee count is listed as N/A, indicating that staffing details are not publicly disclosed in the available data. These valuation and revenue figures suggest a mid-sized scale for an asset management vehicle, positioning the fund as a specialized instrument within the broader asset management sector rather than a massive institutional behemoth. The relatively modest revenue base compared to the market cap highlights the asset-light nature of the asset management business model, where value is derived from assets under management rather than traditional operational revenue streams.
Financial Health
The fund reported revenue of $5.61M for the trailing twelve months, with net income reaching $46.85M, while EBITDA figures are not available in the provided data. The significant gap between the $5.61M revenue and the $46.85M net income reveals a highly leveraged income structure typical of asset management firms, where expenses are low relative to the income generated from investment performance and fee structures. Free cash flow is not explicitly listed in the available facts, but the presence of $883,892 in cash on hand indicates a positive liquidity position without explicit debt obligations listed. The gross margin is reported at 100.0%, which reflects the asset-light operational model where revenue is not directly tied to the cost of goods sold in a traditional manufacturing sense. The operating margin stands at 65.2%, demonstrating strong efficiency in managing overhead and administrative costs relative to revenue. The profit margin is exceptionally high at 866.9%, a metric that underscores the leverage inherent in the investment business where a small increase in net assets can significantly boost profitability. The company holds $883,892 in cash and has no listed debt, resulting in a debt-to-equity ratio of N/A, which suggests a conservative balance sheet free from leverage concerns. The current ratio is 1.41, indicating that the company possesses 1.41 times more current assets than current liabilities, which points to robust short-term liquidity and the ability to meet immediate financial obligations. Return on Equity is 25.3%, showing that the company generates substantial returns relative to the shareholder equity invested. Return on Assets is 1.2%, which, while lower than ROE, is consistent with asset-heavy investment portfolios where returns are driven by asset growth rather than asset turnover efficiency.
Valuation Assessment
The trailing twelve-month P/E ratio is 3.02, while the forward P/E is not available in the provided data. The absence of a forward P/E prevents a direct comparison regarding expected earnings trajectory, but the low trailing P/E suggests the market prices the fund at a level close to its current earnings generation. The price-to-book ratio is 0.83, indicating that the market values the fund at 83% of its book value, which typically implies the stock is trading at a discount to the net asset value of its holdings. The price-to-sales ratio is 26.35, and the EV/EBITDA is not available; these alternative metrics highlight the disconnect between revenue generation and valuation multiples common in financial services where earnings are the primary driver of price. The stock has a 52-week high of $12.65 and a 52-week low of $8.15. Without the current share price provided in the facts, the exact percentage distance from the high or low cannot be calculated, but the range defines the volatility envelope for the security. The beta is 1.06, which means the fund's price volatility is slightly higher than the broader market, moving 6% more than the market index on average during periods of fluctuation. This beta value indicates that the asset behaves similarly to the market but with a slight inclination toward increased sensitivity to market movements.
Growth & Income
Revenue growth over the last year is -3.7%, while earnings growth over the same period is 270.4%. This divergence indicates that earnings are growing significantly faster than revenue, a dynamic often seen in asset management firms where fee income scales with asset growth while revenue (fees) may lag behind asset appreciation, or where cost efficiencies drive profit expansion despite flat or declining revenue. The fund offers a dividend yield of 7.0%, with a payout ratio of 16.5%. This low payout ratio suggests that the company retains the majority of its earnings, implying that the dividend is highly sustainable given the high net income relative to the small revenue base. Because the revenue growth is negative at -3.7% while earnings surge, the company appears to be managing costs exceptionally well or benefiting from asset appreciation rather than expanding its fee base. The overall growth and income profile presents a high-yield opportunity with earnings that are expanding rapidly, though revenue contraction suggests the fund may be navigating a period of asset consolidation or market headwinds that affect fee recognition differently than realized investment gains.