Great Elm Group (GEG) AI Stock Analysis

• Market Cap: $77.13M
• Dividend Yield: N/A
• Average Volume (3M): 635.31K
• Price to Earnings (P/E): 8.6
• Beta (1Y): -0.07
• Revenue Growth: -8.51%
• EPS Growth: N/A
• Country: US
• Employees: 31
• Sector: Financial
• Sector Strength: 70
• Industry: Medical - Distribution
• EPS (TTM): 0.36
• Shares Outstanding: 28,996,786
• 10 Day Avg. Volume: 111,348
• 30 Day Avg. Volume: 635,308
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 3.51
• P/FCF Ratio: -6.35
• Enterprise Value/Market Cap: 0.54
• Enterprise Value/Revenue: 2.55
• Enterprise Value/Gross Profit: -385.24
• Enterprise Value/Ebitda: 1.98
• 1Y Price Target: $3.50
• Price Target Upside: 31.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: $3.50 ▲(31.58% Upside)

Great Elm Group's overall stock score is driven by strong technical indicators and strategic corporate events, which are offset by financial performance challenges and mixed earnings call results. The stock shows potential for growth, but operational and cash flow improvements are necessary for long-term stability.

Great Elm Group Business Overview & Revenue Model

Company Description

Great 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 Money

Great Elm Group generates revenue through multiple streams, primarily from management fees and performance-based incentives associated with its investment funds. The company earns management fees by providing investment management services to its funds, typically calculated as a percentage of the assets under management (AUM). Additionally, GEG benefits from performance fees, which are contingent upon achieving specific investment returns, aligning its interests with those of its investors. The firm also engages in direct investments in portfolio companies, generating earnings from operational profits and eventual exits through sales or public offerings. Strategic partnerships with other financial institutions and investment firms further enhance GEG's capabilities, allowing for access to larger deals and diversified investment opportunities, thereby contributing to its overall revenue growth.

Great Elm Group Financial Statement Overview

Summary

Great Elm Group faces challenges in stabilizing its financial performance. Despite high profitability margins and reduced leverage, the company struggles with revenue growth and cash flow management. Operational inefficiencies and cash flow issues need addressing for future stability.

Income Statement

Great Elm Group's income statement shows significant volatility. The company has experienced a decline in revenue growth, with a notable drop of 16.87% in the latest year. Although the gross profit margin is high at 93.37%, the net profit margin is also high at 79.01%, indicating profitability. However, the negative EBIT margin suggests operational inefficiencies. The company needs to stabilize its revenue and improve operational efficiency to enhance profitability.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved to 0.89, indicating a decrease in leverage. Return on equity is positive at 18.33%, showing some profitability. However, the equity ratio is not provided, which limits a full assessment of financial stability. The company should focus on maintaining its leverage and improving asset utilization.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows. Despite a significant increase in free cash flow growth, the operating cash flow to net income ratio is negative, indicating cash flow issues. The free cash flow to net income ratio is stable at 1.0, suggesting that cash flow generation aligns with net income. The company needs to enhance cash flow management to support operations and growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.32M	16.32M	17.83M	8.66M	4.52M	60.85M
Gross Profit	-108.00K	15.23M	977.00K	-1.53M	4.27M	4.61M
EBITDA	21.04M	21.04M	4.60M	21.91M	-13.15M	6.77M
Net Income	12.89M	12.89M	-1.39M	27.73M	-14.89M	-7.54M
Balance Sheet
Total Assets	153.94M	153.94M	140.45M	135.89M	168.09M	161.87M
Cash, Cash Equivalents and Short-Term Investments	109.45M	109.45M	116.50M	117.37M	72.12M	74.92M
Total Debt	62.59M	62.59M	61.18M	63.44M	101.90M	76.42M
Total Liabilities	73.27M	73.27M	70.25M	72.05M	125.83M	97.96M
Stockholders Equity	70.32M	70.32M	62.71M	63.84M	33.50M	43.24M
Cash Flow
Free Cash Flow	-7.47M	-9.01M	-15.55M	-2.43M	22.73M	-25.95M
Operating Cash Flow	-7.47M	-9.01M	-15.55M	-2.37M	29.28M	-18.98M
Investing Cash Flow	-1.22M	-1.11M	2.27M	83.96M	-40.05M	-15.48M
Financing Cash Flow	-8.89M	-9.00M	2.84M	-47.62M	9.98M	18.34M

Great Elm Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2.66 is below the 20-day moving average (MA) of 2.79, above the 50-day MA of 2.44, and above the 200-day MA of 2.06, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 49.83 is Neutral, neither overbought nor oversold. The STOCH value of 5.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GEG.

Great Elm Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GEG	63 Neutral	$77.13M	8.57	19.38%	―	-8.51%	―
RDGT	49 Neutral	$7.38M	-1.28	34.40%	―	-22.37%	63.14%
SNYR	47 Neutral	$27.98M	6.73	―	―	―	―
ZYXI	44 Neutral	$43.93M	-1.55	-2272.96%	―	-25.21%	-631.48%
OMI	41 Neutral	$368.45M	-0.31	428.07%	―	-17.10%	-2720.40%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Great Elm Group Corporate Events

Great Elm Group Secures Strategic Investment from Woodstead

On August 27, 2025, Great Elm Group, Inc. announced a strategic investment from Woodstead Value Fund, L.P., which purchased 4 million shares of GEG’s common stock for $9 million and received warrants for additional shares, aligning Woodstead with GEG’s shareholders. Additionally, Booker Smith joined GEG’s Board of Directors, bringing expertise in corporate credit and real estate, supporting GEG’s strategic priorities. This transaction provides GEG with growth capital to expand assets under management and enhance profitability, while a separate transaction involving Great Elm Capital Corp. strengthens its balance sheet and reflects investor confidence.

Great Elm Group Partners with KLIM for Expansion

On July 31, 2025, Great Elm Group entered a strategic partnership with Kennedy Lewis Investment Management (KLIM), involving the sale of 4.9% of its common stock and a $150 million debt investment to expand its industrial real estate platform. This partnership enhances Great Elm’s financial position, allowing for refinancing and new acquisitions, and strengthens its market position by consolidating its real estate assets under Great Elm Real Estate Ventures, LLC. The collaboration also includes board appointments from KLIM, highlighting a long-term commitment to the partnership.