The EPS of U.S. Global Investors (GROW) declined by -$0.01 in Q2 2024 compared to the previous quarter1. The factors contributing to this decline include:
- Dividend Payments: GROW was previously paying out 244% of its earnings and not generating any free cash flows. Such high dividend payments relative to earnings and the absence of free cash flows are red flags for the sustainability of dividends2.
- Earnings Decline Trend: The company has been experiencing a decline in earnings per share (EPS) over the past five years, with a 20% decrease recorded in the last five years alone2. This trend suggests underlying issues within the company that may be impacting profitability.
In summary, GROW's EPS decline in Q2 2024 was likely a result of a combination of high dividend payments and a sustained decline in earnings.
4/6/2025 07:23am
