Fundamental Global Inc. (NASDAQ:FGF) declares a quarterly cash dividend of $0.50 per share on its 8.00% Cumulative Preferred Stock, Series A.
A 10 percent owner of FGF, Fundamental Global GP, LLC, purchased 2,712 shares of the Preferred Stock at $18.50 per share, indicating a strategic acquisition.
FGF’s financial metrics suggest an undervalued stock with a P/E ratio of approximately 5.37 and an earnings yield of around 18.63%, highlighting potential for strong shareholder returns.
Fundamental Global Inc. (NASDAQ:FGF) is a diversified company with interests in reinsurance, asset management, merchant banking, and managed services. The company, previously known as FG Financial Group, Inc., has announced a quarterly cash dividend of $0.50 per share on its 8.00% Cumulative Preferred Stock, Series A. This dividend is payable on December 15, 2024, to shareholders recorded by December 1, 2024. The Preferred Stock trades under the ticker symbol “FGFPP” on the Nasdaq Stock Market.
On November 25, 2024, Fundamental Global GP, LLC, a 10 percent owner of FGF, purchased 2,712 shares of the 8.00% Cumulative Preferred Stock, Series A, at $18.50 per share. This transaction increased their total holdings to 71,131 shares. The purchase price is below the par value of $25.00, which may indicate a strategic acquisition at a discount.
FGF’s financial metrics reveal a company with a relatively low valuation. The price-to-earnings (P/E) ratio is approximately 5.37, suggesting that the stock is undervalued compared to its earnings. The price-to-sales ratio of about 1.50 indicates that investors are paying $1.50 for every dollar of sales, while the enterprise value to sales ratio of approximately 1.42 reflects the company’s valuation, including debt and excluding cash.
The company’s earnings yield is around 18.63%, showing a strong return on investment for shareholders. A low debt-to-equity ratio of 0.033 suggests a conservative approach to leveraging equity, minimizing financial risk. Additionally, FGF’s current ratio of approximately 6.98 indicates a strong ability to cover short-term liabilities with short-term assets, highlighting its financial stability.
Fundamental Global Inc. emphasizes that its press release contains forward-looking statements subject to risks and uncertainties. These include challenges in identifying business opportunities, maintaining reinsurance approvals, and executing asset management strategies. The company advises caution in relying on these statements, as they are based on current expectations that may not materialize.
