Fundamental Global (FGNX) AI Stock Analysis

• Market Cap: $9.53M
• Dividend Yield: N/A
• Average Volume (3M): 314.46K
• Price to Earnings (P/E): 1.9
• Beta (1Y): -0.86
• Revenue Growth: 10.82%
• EPS Growth: N/A
• Country: US
• Employees: 130
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): N/A
• Shares Outstanding: 1,328,554
• 10 Day Avg. Volume: 160,085
• 30 Day Avg. Volume: 314,464
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 5.09
• Enterprise Value/Revenue: 4.08
• Enterprise Value/Gross Profit: -7.04
• Enterprise Value/Ebitda: -2.30
• 1Y Price Target: $7.00
• Price Target Upside: 2.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: $7.00 ▲(2.19% Upside)

FGNX's overall stock score is primarily impacted by its challenging financial performance and bearish technical indicators. However, the undervaluation based on the P/E ratio and the positive sentiment from the share buyback program provide some support to the stock's outlook.

Positive Factors

Share Buyback Program

The share buyback program indicates management's confidence in the company's future and aims to enhance shareholder value by reducing the number of outstanding shares.

Stable Balance Sheet

A stable balance sheet with low leverage provides financial flexibility and reduces the risk of financial distress, supporting long-term business stability.

Strategic Partnerships

Partnerships with financial institutions and venture capital firms expand investment opportunities and improve capital access, supporting growth and diversification.

Negative Factors

Declining Revenue

A significant decline in revenue suggests challenges in maintaining market position and could impact long-term growth prospects if not addressed.

Negative Cash Flow

Negative cash flow indicates difficulties in generating sufficient cash from operations, which may hinder the company's ability to invest in growth opportunities.

Profitability Challenges

High expenses relative to revenue lead to negative profit margins, highlighting operational inefficiencies that could affect long-term profitability.

Fundamental Global Business Overview & Revenue Model

Company Description

Fundamental Global 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 generates revenue primarily through management fees and performance-based incentives from its investment funds. The company charges a percentage of assets under management (AUM) as a management fee, which provides a steady income stream. Additionally, FGF earns performance fees when its investment returns exceed predefined benchmarks, aligning its interests with those of its investors. Key revenue streams also include dividends and capital gains from successful exits of portfolio companies, as well as advisory fees for consulting services provided to businesses within its investment scope. Strategic partnerships with other financial institutions and venture capital firms enhance FGF's capital-raising capabilities and broadens its investment opportunities, contributing significantly to its overall earnings.

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. 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	11.89M	17.35M	17.09M	12.48M	4.15M	-17.42M
Gross Profit	-6.88M	-8.14M	-4.38M	1.82M	-1.60M	-17.42M
EBITDA	-21.08M	-21.81M	-11.94M	1.09M	-7.33M	-23.12M
Net Income	4.77M	-1.16M	-14.08M	1.09M	-8.51M	-22.46M
Balance Sheet
Total Assets	92.86M	109.47M	62.14M	49.48M	75.81M	34.70M
Cash, Cash Equivalents and Short-Term Investments	11.08M	7.79M	6.00M	3.01M	15.54M	12.13M
Total Debt	3.25M	3.74M	9.46M	8.54M	6.71M	8.21M
Total Liabilities	23.52M	35.27M	25.14M	12.18M	6.82M	455.00K
Stockholders Equity	69.35M	74.20M	35.15M	37.30M	34.01M	34.19M
Cash Flow
Free Cash Flow	-3.79M	-4.76M	-8.00K	-11.10M	-14.42M	-11.30M
Operating Cash Flow	-3.75M	-4.71M	156.00K	-11.02M	-14.41M	-11.28M
Investing Cash Flow	17.96M	13.15M	-695.00K	-3.45M	10.04M	-1.16M
Financing Cash Flow	-7.73M	-6.86M	3.38M	1.94M	7.77M	-3.94M

Fundamental Global Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FGNX, the sentiment is Negative. The current price of 6.85 is below the 20-day moving average (MA) of 12.59, below the 50-day MA of 18.62, and below the 200-day MA of 19.76, indicating a bearish trend. The MACD of -3.68 indicates Positive momentum. The RSI at 32.98 is Neutral, neither overbought nor oversold. The STOCH value of 6.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FGNX.

Fundamental Global Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IGIC	79 Outperform	$1.09B	8.75	20.11%	4.14%	9.52%	―
ESGR	77 Outperform		―		―	10.70%	-39.16%
WDH	74 Outperform	$683.54M	11.35	9.11%	0.86%	9.50%	69.82%
Sector *	68 Neutral	$18.10B	11.52	9.93%	3.73%	9.70%	1.14%
FIHL	66 Neutral	$1.79B	17.57	-1.83%	2.34%	20.42%	-110.82%
GSHD	63 Neutral	$2.98B	69.48	60.58%	―	23.49%	60.38%
FGNX	52 Neutral	$9.53M	1.89	-24.49%	―	10.82%	―

Fundamental Global Corporate Events

Fundamental Global Approves $200 Million Share Buyback

On September 5, 2025, FG Nexus Inc.’s Board of Directors approved a share repurchase program, allowing the company to buy back up to $200 million of its common stock. This move is aimed at utilizing the company’s surplus capital, potentially enhancing shareholder value and signaling confidence in the company’s future prospects.