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Great Elm Group (GEG)
NASDAQ:GEG
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Great Elm Group
(NASDAQ:GEG)
60Neutral
Great Elm Group (GEG) vs. S&P 500 (SPY)
Market Cap
$54.42M
Dividend YieldN/A
Average Volume (3M)12.21K
Price to Earnings (P/E)―
Beta (1Y)-0.06
Revenue Growth73.74%
EPS Growth-98.00%
CountryUS
Employees31
SectorFinancial
Sector Strength88
IndustryMedical - Distribution
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding28,341,553
10 Day Avg. Volume5,718
30 Day Avg. Volume12,207
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.27
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit15.31
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Great Elm Group Business Overview & Revenue Model
Company DescriptionGreat Elm Group, Inc. engages in the durable medical equipment and investment management businesses. The company distributes respiratory care equipment, including positive air pressure equipment and supplies, ventilators and oxygen equipment, and replacement parts, as well as provides sleep study services; and rents medical equipment. It also offers investment management services. The company was formerly known as Great Elm Capital Group, Inc. and changed its name to Great Elm Group, Inc. in December 2020. Great Elm Group, Inc. was founded in 1994 and is headquartered in Waltham, Massachusetts.
How the Company Makes MoneyGreat Elm Group generates revenue through a combination of asset management fees, investment income, and real estate operations. In its investment management segment, GEG earns fees based on assets under management and performance incentives from managing investment funds and accounts. The company's real estate segment contributes to revenue through rental income from owned properties and potential capital gains from property sales. Additionally, GEG may invest in strategic business opportunities that can provide further financial returns. Key factors influencing the company's earnings include market conditions, the performance of its investment portfolio, and the operational efficiency of its real estate holdings.
Great Elm Group Financial Statement Overview
Summary
Great Elm Group shows signs of financial stabilization with improved gross margins and manageable debt levels. However, the company faces challenges in achieving consistent profitability and positive operational cash flows. Strategic improvements may be necessary to enhance financial performance and strengthen cash flow generation.Income Statement
The income statement shows fluctuating revenues with a recent decline from 2022 to TTM (Trailing-Twelve-Months). The gross profit margin improved in TTM to 34.3%, indicating better cost management. However, net profit margin remains extremely low at 0.02% in TTM, reflecting minimal profitability. Historical EBIT and EBITDA margins have been inconsistent, demonstrating operational challenges.45
Neutral
Balance Sheet
The balance sheet reflects moderate financial health. The debt-to-equity ratio in TTM is 0.60, indicating manageable debt levels relative to equity. The equity ratio stands at 45.0%, suggesting a solid equity base. However, asset base and equity have shrunk compared to previous years, indicating potential strategic or operational adjustments.60
Neutral
Cash Flow
Cash flows show volatility with negative operating cash flow in TTM, raising concerns about operational efficiency. Free cash flow has improved to $1.42M in TTM, indicating some level of cash generation capability. However, the operating cash flow to net income ratio is negative, highlighting cash conversion issues.50
Neutral
| Breakdown | ||||
| Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 17.83M | 8.66M | 67.97M | 60.85M | 64.10M | Gross Profit |
| 977.00K | -1.53M | 4.27M | 4.61M | 11.37M | EBIT |
| -7.84M | -11.21M | -4.11M | -3.69M | 667.00K | EBITDA |
| 4.60M | 21.91M | -13.15M | 6.77M | 2.06M | Net Income Common Stockholders |
| -1.39M | 27.73M | -15.04M | -9.33M | -13.13M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 116.50M | 117.37M | 73.43M | 74.92M | 49.22M | Total Assets |
| 140.45M | 135.89M | 168.09M | 161.87M | 195.44M | Total Debt |
| 61.18M | 63.44M | 73.92M | 29.61M | 112.26M | Net Debt |
| 10.67M | 3.27M | 50.32M | 5.23M | 71.74M | Total Liabilities |
| 70.25M | 72.05M | 125.83M | 97.96M | 130.76M | Stockholders Equity |
| 62.71M | 63.84M | 33.50M | 54.36M | 60.79M |
| Cash Flow | Free Cash Flow | |||
| -15.55M | -2.43M | 22.73M | -25.95M | 4.54M | Operating Cash Flow |
| -15.55M | -2.37M | 29.28M | -18.98M | 13.39M | Investing Cash Flow |
| 2.27M | 83.96M | -40.05M | -15.48M | -6.63M | Financing Cash Flow |
| 2.84M | -47.62M | 9.98M | 18.34M | 21.78M |
Great Elm Group Technical Analysis
Positive
1.92
Price Trends
1.90
Positive
1.86
Positive
1.84
Positive
Market Momentum
<0.01
Negative
53.67
Neutral
41.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEG, the sentiment is Positive. The current price of 1.92 is above the 20-day moving average (MA) of 1.90, above the 50-day MA of 1.90, and above the 200-day MA of 1.84, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.67 is Neutral, neither overbought nor oversold. The STOCH value of 41.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GEG.
Great Elm Group Risk Analysis
Great Elm Group disclosed 23 risk factors in its most recent earnings report. Great Elm Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Great Elm Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $12.64B | 9.74 | 8.05% | 17044.60% | 12.66% | -4.62% | |
60 Neutral | $54.42M | ― | <0.01% | ― | 73.74% | -98.00% | |
47 Neutral | $18.64M | 1.17 | -23.21% | ― | ― | ― | |
42 Neutral | $580.18M | ― | -48.70% | ― | 3.55% | -757.75% | |
40 Underperform | $6.64M | ― | -27.69% | ― | -4.87% | 94.14% | |
38 Underperform | $69.85M | 24.14 | -27.52% | ― | -8.63% | -202.31% |
* Financial Sector Average
Performance Comparison
GEG
Great Elm Group
1.92
0.06
3.23%
RDGT
Ridgetech
1.07
-1.40
-56.68%
OMI
Owens & Minor
7.51
-11.71
-60.93%
ZYXI
Zynex
2.31
-8.43
-78.49%
SNYR
Synergy CHC
2.13
2.01
1675.00%
Great Elm Group Earnings Call Summary
Earnings Call Date:Feb 05, 2025
(Q2-2025)
| % Change Since: 5.49%|
Next Earnings Date:May 08, 2025
Earnings Call Sentiment Positive
The earnings call demonstrated a strong performance with significant revenue growth, successful capital raises, strategic acquisitions, and improvement in net income. The company has maintained a strong financial position with substantial cash reserves and a successful share buyback program.Q2-2025 Updates
Positive Updates
Revenue Growth
Total revenue grew 24% year-over-year to $3.5 million, primarily driven by increased revenue from Monomoy BTS and management fees from GECC.
Increased Assets Under Management
Fee-paying assets under management (AUM) increased by 17% year-over-year, reaching approximately $538 million.
Equity Capital Raise
Great Elm Capital Corp. (GECC) raised an additional $13.2 million of equity at net asset value in December 2024, marking the third equity capital raise in calendar 2024.
Net Income Improvement
The company generated net income from continuing operations of $1.4 million for the quarter, compared to a net loss of $0.2 million in the prior year period.
Strategic Acquisition
Acquired Greenfield CRE, expanding real estate capabilities and launching Monomoy Construction Services to enhance construction management expertise.
Share Buyback Program
Repurchased approximately 4.1 million shares for $7.4 million, at an average price of $1.83 per share, representing a 20% discount to book value.
Strong Financial Position
Ended the quarter with over $44 million in cash available to facilitate continued growth across asset management platforms.
High Returns on Investments
GECC declared a special cash distribution of $0.05 per share, driven by the portfolio's strong income generation throughout '24.
Negative Updates
Adjusted EBITDA Decline
Adjusted EBITDA for the quarter decreased to $1.3 million from $1.7 million in the prior year period.
Unrealized Losses on Investments
Although a reversal occurred this quarter, there remains an aggregate net unrealized loss of approximately $300,000.
Company Guidance
During the fiscal second quarter of 2025, Great Elm Group achieved significant growth, with a 24% year-over-year increase in total revenue to $3.5 million and a 17% rise in fee-paying assets under management (AUM) to approximately $538 million. The company's strategic moves included launching Monomoy Construction Services through the acquisition of Greenfield CRE and raising $13.2 million in equity for Great Elm Capital Corp (GECC), contributing to a 40% increase in GECC's fee-paying AUM. GECC also announced a 5.7% increase in its quarterly base distribution and declared a special cash distribution due to strong income generation. Great Elm Group ended the quarter with a robust cash position of over $44 million and continued to enhance shareholder value through share repurchases and unique investment opportunities, maintaining a strong balance sheet to support future growth initiatives.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.