GSG

We rate iShares S&P GSCI Commodity-Indexed Trust (GSG) as a Hold with a composite score of 58.5/100 at a current price of $25.62. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.

The rating is primarily driven by strength in stability (82th percentile) and quality (64th percentile), which together account for the majority of the composite score. Offsetting weakness in value (25th percentile) and investment (40th percentile) tempers our overall conviction. We assign a No Moat rating (36/100), Medium uncertainty, and Poor capital allocation.

Key items to watch: whether strong momentum is fundamentally supported by revenue trends; the path to profitability; valuation compression risk if growth disappoints. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

iShares S&P GSCI Commodity-Indexed Trust holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 58.5/100 places it at rank #833 in our full 7,333-stock universe. At N/A in market capitalization, iShares S&P GSCI Commodity-Indexed Trust is a small-cap player in the Finance, Insurance, And Real Estate space, which limits certain scale advantages but may allow for more agile strategic execution.

Despite positive momentum (61th percentile), revenue contraction of -23% creates a divergence between price action and fundamental trajectory. This divergence suggests either that the market is looking through near-term weakness or that technical factors are temporarily inflating the stock. Investors should assess whether the revenue decline reflects cyclical weakness or structural challenges.

The margin cascade tells an important story: gross margins of 99% (+22.1pp vs sector) narrow to operating margins of 82% (+64.9pp vs sector) and net margins of -15.2%, yielding a gross-to-net conversion rate of -15%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.

At a current price of $25.62, iShares S&P GSCI Commodity-Indexed Trust is trading at a premium to fundamental value. Our value factor score of 25/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The premium valuation implies the market is pricing in significant future growth or quality improvements that are not yet fully reflected in current fundamentals.

The stock currently trades at a P/E of 29.4x (a 147% premium to the sector median of 11.9x). The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis partially supports given strong quality metrics.

We assign a Medium uncertainty rating to iShares S&P GSCI Commodity-Indexed Trust. The stock presents a balanced risk profile: current negative profitability (net margin -15.2%) and low beta of 0.35 — while defensive, this may indicate limited upside participation in bull markets. While not risk-free, the core business fundamentals are adequate to withstand moderate economic stress, and the range of potential outcomes around our fair value estimate is manageable.

Specific risk factors that inform our assessment include: current negative profitability (net margin -15.2%); low beta of 0.35 — while defensive, this may indicate limited upside participation in bull markets. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 82th percentile and quality factor at the 64th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: healthy gross margins of 99% provide a buffer against cost pressures; above-average stability (82th percentile) suggests predictable business dynamics. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.

We rate iShares S&P GSCI Commodity-Indexed Trust's capital allocation as Poor. Key concerns include negative profitability. Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — iShares S&P GSCI Commodity-Indexed Trust significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.

Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.

In summary, iShares S&P GSCI Commodity-Indexed Trust receives a Hold rating with a composite score of 58.5/100 (rank #833 of 7,333). Our quantitative framework assigns a No Moat (36/100, trend: stable), Medium uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 54/100.

Our analysis supports a neutral stance on iShares S&P GSCI Commodity-Indexed Trust. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.