ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. GAMCO Investors's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 38.90%.
As of today (2026-06-25), GAMCO Investors's WACC % is 7.98%. GAMCO Investors's ROC % is 56.21% (calculated using TTM income statement data).
GAMCO Investors generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
GAMCO Investors (OTCPK:GAMI) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, GAMCO Investors's WACC % is 7.98%. GAMCO Investors's ROC % is 56.21% (calculated using TTM income statement data).
GAMCO Investors generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of 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.
GAMCO Investors ROC % Related Terms
GAMCO Investors ROC % Historical Data
* Premium members only.
The historical data trend for GAMCO Investors's ROC % can be seen below:
* 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
GAMCO Investors (GAMI) has a ROC % of 38.90% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on GAMCO Investors and its competitors.
Is GAMCO Investors' ROC % too high?
GAMCO Investors' current ROC % is 38.90%. The Asset Management industry median ROC % is 1.20. GAMCO Investors' value of 38.90% is 3155.2% above this industry median. Overall, GAMCO Investors has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does GAMCO Investors' ROC % compare to IFN and HPS?
GAMCO Investors' ROC % of 38.90% can be compared against companies in the Asset Management industry. The industry median ROC % is 1.20. GAMCO Investors' value of 38.90% is 3155.2% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Asset Management company?
The median ROC % among Asset Management companies is 1.20, based on 710 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. GAMCO Investors's current ROC % of 38.90% is 3155.2% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on GAMCO Investors and its competitors. For the Asset Management industry, the median ROC % is 1.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GAMCO Investors's current ROC % is 38.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GAMCO Investors stock overvalued right now?
Based on GuruFocus' analysis, GAMCO Investors (GAMI) is currently considered Modestly Undervalued. The stock's GF Value™ is $27.15, compared to a current price of $23.65 — trading 12.9% below its estimated fair value. The current ROC % is 38.90% and 3155.2% above the Asset Management industry median of 1.20. GAMCO Investors' overall GF Score™ is 73/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For GAMCO Investors (GAMI), the current ROC % is 38.90% as of Mar. 2026. 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 GAMCO Investors (GAMI) Overvalued in 2026?
Based on GuruFocus' analysis, GAMCO Investors stock appears to be undervalued.
The current stock price of $23.65 is trading 12.9% below its estimated GF Value™ of $27.15.
GuruFocus considers GAMCO Investors to be Modestly Undervalued.
Key valuation signals for GAMI:
ROC %: 38.90%
GF Value™: $27.15 vs. price of $23.65 (12.9% below fair value)
Industry Position: 3155.2% above the Asset Management median
No single metric tells the full story. See the GAMI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GAMCO Investors Inc is a provider of Investment Advisory services to open-end funds, closed-end funds, Exchange Traded Managed Funds (ETMFs), and institutional and private wealth management investors principally in the United States. The company invests in a variety of U.S. and international securities through various investment styles including value, growth, non-market correlated, and convertible securities. Its revenues are based on the company's levels of assets under management (AUM) and fees associated with its various investment products. Its AUM is organized into three groups; Open and Closed-End Funds; Institutional and Private Wealth Management; and SICAV.
73GF Score
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