Fundamental Global (FGF) AI Stock Analysis

• Market Cap: $21.51M
• Dividend Yield: N/A
• Average Volume (3M): 4.69K
• Price to Earnings (P/E): 11.5
• Beta (1Y): -0.09
• Revenue Growth: 27.74%
• EPS Growth: -33.99%
• Country: US
• Employees: 130
• Sector: Financial
• Sector Strength: 80
• Industry: Insurance - Diversified
• EPS (TTM): -4.07
• Shares Outstanding: 1,272,320
• 10 Day Avg. Volume: 10,656
• 30 Day Avg. Volume: 4,691
• PEG Ratio: -7.04
• Price to Book (P/B): 15.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -51.53
• Enterprise Value/Market Cap: 26.85
• Enterprise Value/Revenue: 6.07
• Enterprise Value/Gross Profit: 97.50
• Enterprise Value/Ebitda: -7.84
• 1Y Price Target: $16.50
• Price Target Upside: 1.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: $17.00 ▲(4.29%Upside)

The overall stock score reflects significant weaknesses in financial performance due to declining revenues and profitability, coupled with valuation concerns driven by negative earnings. Technical analysis provides a marginally stabilizing factor with neutral signals, but the overall outlook remains cautious.

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 makes money primarily through its investment activities and management of its portfolio companies. The company generates revenue by acquiring stakes in businesses across various sectors and leveraging its expertise to enhance their operational performance and market value. Additionally, FGF earns income through management fees, dividends, and interest from its investment holdings. Key revenue streams include capital appreciation from strategic acquisitions and returns from its investments in financial services, industrial operations, and real estate ventures. Significant partnerships with industry players and financial institutions may also contribute to its earnings by facilitating co-investment opportunities and expanding its market reach.

Fundamental Global Financial Statement Overview

Summary

Fundamental Global exhibits a challenging financial position with declining revenues and profitability. The income statement shows significant volatility with a negative trend in profitability, including a net profit margin of -55.7%. The balance sheet is stable with low leverage, but cash flow analysis reveals negative operating and free cash flow, indicating cash generation issues.

Income Statement

The income statement shows significant volatility with a negative trend in profitability. The TTM period reports a gross profit margin of 50.9% and a net profit margin of -55.7%, indicating high expenses relative to revenue. Revenue has declined from $26.84M in 2023 to $11.64M in the TTM, a significant decrease, suggesting a challenging revenue environment. Additionally, both EBIT and EBITDA margins are negative, pointing to operational inefficiencies.

Balance Sheet

The balance sheet reflects a stable capital structure, with a debt-to-equity ratio of 0.05, indicating low leverage. The equity ratio stands at 63.9%, demonstrating a strong equity base relative to total assets. However, return on equity has been negative in the TTM, reflecting ongoing losses. Overall, the balance sheet is relatively stable, but profitability challenges persist.

Cash Flow

Cash flow analysis reveals negative operating cash flow and free cash flow in the TTM, suggesting cash generation issues. The free cash flow to net income ratio is negative due to both negative free cash flow and net income. Despite this, the company has managed to maintain positive investing cash flow, perhaps indicating strategic asset investments. However, the overall cash flow situation remains concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.64M	17.35M	17.09M	20.09M	7.59M	-17.16M
Gross Profit	5.92M	-8.14M	-4.38M	-10.23M	-13.14M	-34.31M
EBITDA	-26.00M	-21.81M	-11.94M	1.09M	-7.33M	-22.46M
Net Income	-6.48M	-1.16M	-14.08M	1.09M	-8.66M	-22.46M
Balance Sheet
Total Assets	100.31M	109.47M	65.74M	49.48M	40.83M	34.70M
Cash, Cash Equivalents and Short-Term Investments	5.67M	7.79M	6.00M	3.01M	15.54M	12.13M
Total Debt	3.18M	3.74M	9.46M	8.54M	6.71M	8.21M
Total Liabilities	36.16M	35.27M	23.24M	12.18M	502.00K	455.00K
Stockholders Equity	64.15M	74.20M	35.15M	37.30M	34.01M	34.19M
Cash Flow
Free Cash Flow	-5.22M	-4.76M	-4.21M	-11.10M	-14.42M	-11.30M
Operating Cash Flow	-5.18M	-4.71M	-4.21M	-11.02M	-14.41M	-11.28M
Investing Cash Flow	12.43M	13.15M	-695.00K	-3.45M	5.90M	-1.16M
Financing Cash Flow	-6.94M	-6.86M	3.38M	-924.00K	11.92M	-3.94M

Fundamental Global Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 16.3 is below the 20-day moving average (MA) of 17.22, below the 50-day MA of 16.86, and below the 200-day MA of 20.92, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 43.53 is Neutral, neither overbought nor oversold. The STOCH value of 29.27 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
IGIC	79 Outperform	$1.08B	8.80	20.50%	7.62%	13.29%	17.14%
ESGR	77 Outperform	$5.04B	10.80	8.56%	―	10.70%	-39.16%
WDH	72 Outperform	$513.56M	9.78	8.26%	1.12%	2.64%	100.00%
Sector *	67 Neutral	$16.81B	11.85	9.77%	3.76%	12.07%	-8.35%
FIHL	66 Neutral	$1.75B	17.57	-0.42%	2.49%	23.28%	-103.35%
GSHD	58 Neutral	$3.73B	82.91	60.58%	―	21.60%	90.80%
FGF	45 Neutral	$21.51M	11.46	-41.35%	―	27.74%	-33.99%

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.