Descripción de la empresa
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 to invest primarily in the public equity markets with a specific focus on convertible securities. The company functions within the Financial Services sector, specifically under the Asset Management industry, where its role involves selecting stocks across various market capitalizations to generate returns for shareholders. The enterprise's market capitalization stands at $152.01M, supported by an annual revenue of $5.61M, while the specific employee count is not disclosed in the available data. These valuation figures indicate that the fund operates on a specialized scale typical for niche asset management vehicles, where revenue is often derived from management fees and performance incentives rather than product sales, resulting in a capitalization that reflects the size of its underlying assets and investor base rather than traditional operational volume.
Salud financiera
The company reported revenue of $5.61M over the trailing twelve months, yet it generated a net income of $46.85M, highlighting an exceptional cost structure where operating expenses are negligible relative to the income stream, a characteristic common in fund structures that pass investment gains directly to investors. Since the free cash flow data is not provided, the analysis of financial flexibility relies on the reported cash balance of $883,892, which represents the liquid assets available to meet immediate obligations or cover transaction costs. The margin profile is distinctively high, featuring a gross margin of 100.0% which implies no cost of goods sold, an operating margin of 65.2% indicating efficient management of overhead, and a profit margin of 866.9% that underscores the leverage of the income statement relative to the revenue base. On the balance sheet, the firm holds $883,892 in cash against N/A for debt, with a debt-to-equity ratio listed as N/A, suggesting a capital structure that does not rely on significant external borrowing or leverage. The current ratio stands at 1.41, signaling that the company maintains sufficient short-term liquid assets to cover its current liabilities with a comfortable buffer above the one-to-one benchmark. Furthermore, the Return on Equity is 25.3% while the Return on Assets is 1.2%, revealing a management strategy that generates substantial returns on shareholder capital despite the lower efficiency measured against total assets, likely due to the high equity multiplier inherent in the asset management business model.
Evaluación de valoración
The valuation metrics present a trailing P/E ratio of 3.11 with a forward P/E listed as N/A, implying that the market is pricing current earnings at a low multiple without available guidance on future earnings trajectory adjustments for this specific closed-ended structure. The price-to-book ratio is 0.85, indicating that the market values the company at a discount to its book value, which often occurs in asset-heavy or capital-intensive financial models, though the high profit margins suggest the book value may not fully capture the intangible value of the investment portfolio. Alternative valuation measures include a price-to-sales ratio of 27.08 and an EV/EBITDA of N/A, suggesting that sales multiples are the preferred metric for assessing value given the lack of EBITDA data and the unique revenue recognition patterns of mutual funds. Regarding price movement, the stock has a 52-week high of $12.65 and a 52-week low of $8.24, and while the current price point is not explicitly provided in the source facts to calculate a precise percentage deviation, the range establishes the volatility band within which the security has traded over the past year. The beta is 1.05, which indicates that the stock's price volatility is slightly higher than the broader market, meaning the fund is expected to move marginally more than the general market index in response to systemic factors.
Growth & Income
The growth dynamics show a revenue decline of -3.7% year-over-year contrasted with a significant earnings growth of 270.4% year-over-year, implying that the company is retaining a much larger portion of its income or benefiting from one-time gains rather than expanding its top line, which is typical for funds experiencing a shift in portfolio composition or redemption flows. As a dividend payer, the fund offers a dividend yield of 6.8% with a payout ratio of 16.5%, indicating that the distribution to shareholders is highly sustainable given that the payout constitutes only a fraction of the generated net income. This low payout ratio leaves ample room for the company to reinvest earnings into portfolio growth or cover the revenue contraction without compromising shareholder income expectations. Overall, the Ellsworth Growth and Income Fund Ltd. presents a profile characterized by high income generation relative to revenue, a conservative cash position, and a valuation that trades at a discount to book value while offering substantial current yield to income-focused investors.