General American Investors CoGAM -0.02%47 ROA % is 21.86% as of Dec. 2025, which is 46% above its 10-year median of 14.97. GuruFocus rates GAM with a GF Score™ of 47/100 and a GF Value™ of $63.56 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,635 Asset Management companies, General American Investors Co ranks better than 89.11% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. General American Investors Co's annualizedNet Income for the quarter that ended in Dec. 2025 was $378.9 Mil.
General American Investors Co's average Total Assets over the quarter that ended in Dec. 2025 was $1,733.1 Mil. Therefore, General American Investors Co's annualized ROA % for the quarter that ended in Dec. 2025 was 21.86%.
The historical rank and industry rank for General American Investors Co's ROA % or its related term are showing as below:
GAM'
s ROA % Range Over the Past 10 Years
Min: -12.9 Med: 14.97 Max: 24.71
Current: 20.27
During the past 10 years, General American Investors Co's highest ROA % was 24.71%. The lowest was -12.90%. And the median was 14.97%.
GAM's ROA % is ranked better than 89.11% of 1635
companies
in the Asset Management industry
Industry Median: 3.97
vs GAM: 20.27
General American Investors Co (NYSE:GAM) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
General American Investors Co ROA % Related Terms
General American Investors Co ROA % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Asset Management subindustry, General American Investors Co's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
General American Investors Co ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, General American Investors Co's ROA % distribution charts can be found below:
* The bar in red indicates where General American Investors Co's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
General American Investors Co (GAM) has a ROA % of 21.86% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on General American Investors Co and its competitors. This is 46% above median its historical median of 14.97. According to the industry distribution chart, General American Investors Co ranks #178 out of 1635 companies in the Asset Management industry, placing it in the top 10.9%.
Is General American Investors Co's ROA % too high?
General American Investors Co's current ROA % of 21.86% is 46% above median its 10-year median of 14.97. The Asset Management industry median ROA % is 3.97. General American Investors Co's value of 21.86% is 450.6% above this industry median. Based on the distribution chart, General American Investors Co ranks #178 out of 1635 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, General American Investors Co has a GF Score™ of 47/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does General American Investors Co's ROA % compare to TRIN and QQQX?
According to the Asset Management industry distribution chart, General American Investors Co ranks #178 out of 1635 companies for ROA %. This places General American Investors Co in the top 11% of its industry — outperforming the majority of peers. The industry median ROA % is 3.97. General American Investors Co's value of 21.86% is 450.6% above this benchmark. While the company's 10-year median is 14.97 vs. the industry median of 3.97, General American Investors Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for an Asset Management company?
The median ROA % among Asset Management companies is 3.97, based on 1,635 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. General American Investors Co's current ROA % of 21.86% is 450.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on General American Investors Co and its competitors. For the Asset Management industry, the median ROA % is 3.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. General American Investors Co's current ROA % is 21.86%, which is 46% above median its own 10-year median of 14.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is General American Investors Co stock overvalued right now?
Based on GuruFocus' analysis, General American Investors Co (GAM) is currently considered Fairly Valued. The stock's GF Value™ is $63.56, compared to a current price of $62.42 — trading 1.8% below its estimated fair value. The current ROA % is 21.86%, which is 46% above median its 10-year median of 14.97 and 450.6% above the Asset Management industry median of 3.97. General American Investors Co's overall GF Score™ is 47/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For General American Investors Co (GAM), the current ROA % is 21.86% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is General American Investors Co (GAM) Overvalued in 2026?
Based on GuruFocus' analysis, General American Investors Co stock appears to be undervalued.
The current stock price of $62.42 is trading 1.8% below its estimated GF Value™ of $63.56.
GuruFocus considers General American Investors Co to be Fairly Valued.
Key valuation signals for GAM:
ROA %: 21.86% (46% above median its 10-year median of 14.97)
GF Value™: $63.56 vs. price of $62.42 (1.8% below fair value)
Industry Position: 450.6% above the Asset Management median (#178 of 1635)
No single metric tells the full story. See the GAM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
General American Investors Co Business Description
General American Investors Co Inc is a closed-end, diversified management investment company. The primary investment objective of the company is long-term capital appreciation through investment in companies with above-average growth potential. It focuses on equity securities with growth potential at reasonable valuations. The company invests principally in common stocks believed by management to have growth potential.
47GF Score
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