Fundamental Global (FGF) AI Stock Analysis

• Market Cap: $20.75M
• Dividend Yield: N/A
• Average Volume (3M): 2.90K
• Price to Earnings (P/E): 11.5
• Beta (1Y): -0.04
• Revenue Growth: 72.44%
• EPS Growth: -185.91%
• Country: US
• Employees: 130
• Sector: Financial
• Sector Strength: 81
• Industry: Insurance - Diversified
• EPS (TTM): -4.07
• Shares Outstanding: 1,271,619
• 10 Day Avg. Volume: 1,522
• 30 Day Avg. Volume: 2,898
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.52
• Price to Cash Flow (P/CF): 2863.50
• P/FCF Ratio: 2863.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Fundamental Global is facing significant financial challenges with declining revenue, negative profitability, and cash flow issues. Technical indicators are also bearish, adding to the risk profile. The negative P/E ratio further suggests valuation concerns. Overall, these factors contribute to a low stock score, indicating potential risks for investors.

Fundamental Global Business Overview & Revenue Model

Company Description

FG Financial Group, Inc. operates as a reinsurance and investment management holding company in the United States. The company offers specialty property and casualty reinsurance products and services. It also operates a special purpose acquisition company platform (SPAC) that provides various strategic, administrative, and regulatory support services to newly formed SPACs for a monthly fee. The company was formerly known as 1347 Property Insurance Holdings, Inc. and changed its name to FG Financial Group, Inc. in December 2020. The company was incorporated in 2012 and is based in St. Petersburg, Florida.

How the Company Makes Money

Fundamental Global (FGF) generates revenue through a combination of investment income, management fees, and operational earnings from its subsidiaries. The company's investment income is derived from its portfolio of equity and debt securities, where it seeks to achieve capital appreciation and income generation. Additionally, FGF earns management fees from providing strategic advisory and management services to its portfolio companies. Revenue is further supplemented by the operational performance of its subsidiaries, which contribute earnings from their respective business activities in sectors such as financial services, technology, and real estate. Significant partnerships and collaborations with other industry players may also enhance its revenue streams by creating new business opportunities and expanding market reach.

Fundamental Global Financial Statement Overview

Summary

The company shows financial stability with a low debt-to-equity ratio but faces significant challenges in profitability and cash generation. Revenue contraction and negative margins highlight operational issues.

Income Statement

The income statement shows mixed performance with a notable decline in revenue from the previous year, reflecting a revenue contraction of 35.35%. The company experienced a negative EBIT and EBITDA margin of -143.36%, indicating operational challenges. Net profit margin also declined to -14.78%, impacting overall profitability.

Balance Sheet

The balance sheet is relatively strong with a low debt-to-equity ratio of 0.05, suggesting low financial leverage. Equity ratio stands at 67.78%, indicating a solid equity base. However, return on equity turned negative at -3.46%, highlighting profitability challenges.

Cash Flow

Cash flow analysis reveals consistent negative free cash flow, with a slight improvement in free cash flow growth rate at 2.85%. Operating cash flow remains negative, and the operating cash flow to net income ratio is also negative, indicating cash generation issues from core operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
28.64M	26.84M	20.09M	7.59M	-17.16M
	Gross Profit
17.35M	26.84M	-10.23M	-13.14M	-34.31M
	EBIT
-23.00M	3.13M	768.00K	-8.70M	-23.23M
	EBITDA
-21.81M	3.43M	1.09M	0.00	-22.46M
	Net Income Common Stockholders
-2.56M	3.85M	768.00K	-8.51M	-22.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.79M	2.40M	3.01M	15.54M	12.13M
	Total Assets
109.47M	65.74M	49.48M	40.83M	34.70M
	Total Debt
3.44M	56.00K	8.54M	6.71M	8.21M
	Net Debt
-4.35M	-2.40M	5.53M	-8.83M	-3.92M
	Total Liabilities
35.27M	23.24M	12.18M	502.00K	455.00K
	Stockholders Equity
74.20M	42.49M	37.30M	34.01M	34.19M
Cash Flow		Free Cash Flow
-4.76M	-4.21M	-11.10M	-14.42M	-11.30M
	Operating Cash Flow
-4.71M	-4.21M	-11.02M	-14.41M	-11.28M
	Investing Cash Flow
13.15M	4.11M	-3.45M	5.90M	-1.16M
	Financing Cash Flow
-6.86M	-506.00K	-924.00K	11.92M	-3.94M

Fundamental Global Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FGF, the sentiment is Negative. The current price of 16.32 is below the 20-day moving average (MA) of 17.01, below the 50-day MA of 18.62, and below the 200-day MA of 22.91, indicating a bearish trend. The MACD of -0.79 indicates Negative momentum. The RSI at 40.40 is Neutral, neither overbought nor oversold. The STOCH value of 38.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FGF.

Fundamental Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESGR	77 Outperform	$4.97B	9.27	9.91%	―	-15.68%	-47.11%
IGIC	75 Outperform	$1.12B	8.35	22.41%	0.34%	13.29%	17.14%
GSHD	71 Outperform	$3.49B	77.71	60.58%	―	21.60%	90.80%
FIHL	70 Outperform	$1.84B	16.75	4.63%	2.42%	-32.79%	-94.89%
WDH	68 Neutral	$470.11M	9.41	7.70%	―	3.76%	119.46%
Sector *	63 Neutral	$12.33B	9.59	8.02%	79.26%	12.87%	-4.61%
FGF	43 Neutral	$20.75M	11.46	-37.88%	―	72.44%	-185.91%

Fundamental Global Corporate Events

Fundamental Global Announces Reverse Stock Split and Updates

Fundamental Global Inc. announced a one-for-twenty-five reverse stock split, effective October 31, 2024, to potentially boost its market price. This adjustment will reduce the outstanding common shares from 31.4 million to approximately 1.3 million and will not affect shareholders’ percentage ownership, rounding up fractional shares to the nearest whole. The company’s stock will trade under the symbol ‘FGF’ with a new CUSIP number starting November 1, 2024.