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Great Elm Group (GEG)
NASDAQ:GEG
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Great Elm Group
(NASDAQ:GEG)
Rating:51Neutral
Price Target:
$2.00
▼(-12.28%Downside)
Great Elm Group (GEG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$62.31M
Dividend YieldN/A
Average Volume (3M)16.35K
Price to Earnings (P/E)―
Beta (1Y)-0.02
Revenue Growth64.34%
EPS Growth70.95%
CountryUS
Employees31
SectorFinancial
Sector Strength76
IndustryMedical - Distribution
Share Statistics
EPS (TTM)-0.17
Shares Outstanding27,940,475
10 Day Avg. Volume8,064
30 Day Avg. Volume16,352
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)0.93
Price to Sales (P/S)0.00
P/FCF Ratio-24.43
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue0.83
Enterprise Value/Gross Profit9.52
Enterprise Value/Ebitda3.40
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 makes money through a combination of its operating subsidiaries and investment activities. In the healthcare sector, the company generates revenue primarily from its durable medical equipment business, which involves the sale or rental of respiratory-related products and services to patients, insurers, and healthcare providers. In addition, GEG earns income through its investment management division by managing assets for third-party clients and collecting management and performance-based fees. The company's diverse revenue streams are supported by strategic acquisitions and partnerships, which enhance its market position and operational capabilities.
Great Elm Group Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q3-2025)
| % Change Since: 18.75%|
Next Earnings Date:Sep 17, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook for Great Elm Group, highlighted by significant growth in assets under management, increased revenues, and strategic acquisitions. However, the net loss and decrease in adjusted EBITDA due to market volatility present challenges that the company expects to overcome as conditions stabilize.Q3-2025 Updates
Positive Updates
Growth in Assets Under Management
Fee-paying AUM increased by 15% year-over-year, reaching approximately $565 million, driven by Great Elm Capital Corp.'s equity and debt issuances.
Revenue Increase
Total revenue for the fiscal third quarter grew 15% year-over-year to $3.2 million, primarily due to increased revenues from real estate project management fees and rental income.
Strategic Acquisition and Expansion
Launched Monomoy Construction Services by acquiring Greenfield CRE, enhancing the real estate platform and creating revenue and operational synergies.
Strong Cash Position
Ended the quarter with approximately $32 million in cash, positioning the company well for future growth and investment opportunities.
GECC Performance
GECC generated record total investment income of $12.5 million in Q1 2025, supported by strong cash flows from its CLO JV, and increased base management fees by over 40% year-over-year.
Share Buyback Program
Repurchased approximately 4.8 million shares for $8.7 million at an average cost of $1.84 per share, a 15% discount to the quarter-end book value per share of $2.14.
Negative Updates
Net Loss for the Quarter
Reported a net loss of $4.5 million for the quarter, primarily driven by unrealized losses related to investments in CoreWeave and GECC shares due to broader market volatility.
Decrease in Adjusted EBITDA
Adjusted EBITDA decreased to $0.5 million from $1.2 million in the prior year period.
Company Guidance
During the Great Elm Group's Fiscal 2025 Third Quarter Conference Call, significant metrics highlighted included a 15% year-over-year increase in fee-paying assets under management (AUM), reaching approximately $565 million, primarily driven by Great Elm Capital Corp. (GECC), which raised about $147 million through equity and debt issuances. The company's total revenue grew by 15% to $3.2 million, and base management fees from GECC increased by over 40% to $1.3 million. The firm reported a net loss of $4.5 million for the quarter, attributed mainly to unrealized losses in investments, yet maintained a strong cash position with approximately $32 million. Furthermore, the company executed a $20 million share buyback program, repurchasing roughly 4.8 million shares at an average cost of $1.84 each, representing a 15% discount to the quarter-end book value per share of $2.14.Great Elm Group Financial Statement Overview
Summary
Great Elm Group's financial performance is struggling, with declining revenues and continuous net losses impacting its income statement. Despite a moderate level of stability from reasonable equity levels, the negative returns and cash flow challenges highlight significant profitability issues.Income Statement
The income statement reveals a struggling performance with declining total revenues in the TTM, down from previous years. Gross Profit Margin stands at a modest 33.5%, signaling some ability to manage costs relative to revenue. However, the Net Profit Margin is negative due to continuous net losses, indicating poor bottom-line profitability. The negative EBIT and EBITDA margins further highlight operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet presents a mixed picture. The Debt-to-Equity ratio is 0.66, indicating a moderate level of leverage. The Return on Equity (ROE) is negative due to net losses, raising concerns about shareholder value creation. However, the Equity Ratio stands at 41.7%, suggesting a reasonable level of equity to support assets, which provides some financial stability.50
Neutral
Cash Flow
Cash flow analysis shows a negative free cash flow in the TTM, reflecting challenges in generating cash after capital expenditures. The Operating Cash Flow to Net Income ratio is negative, indicating cash outflows in operations. However, improvements in free cash flow compared to previous periods suggest some attempts at better cash management.40
Negative
| Breakdown | |||||
| TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 19.63M | 17.83M | 8.66M | 67.97M | 60.85M | 64.10M | Gross Profit |
| 6.57M | 977.00K | -1.53M | 4.27M | 4.61M | 11.37M | EBIT |
| -5.33M | -7.84M | -11.21M | -4.11M | -3.69M | 667.00K | EBITDA |
| 2.69M | 4.60M | 21.91M | -13.15M | 6.77M | 2.06M | Net Income Common Stockholders |
| -1.39M | -1.39M | 27.73M | -15.04M | -9.33M | -13.13M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 31.53M | 116.50M | 117.37M | 73.43M | 74.92M | 49.22M | Total Assets |
| 137.19M | 140.45M | 135.89M | 168.09M | 161.87M | 195.44M | Total Debt |
| 37.56M | 61.18M | 63.44M | 73.92M | 29.61M | 112.26M | Net Debt |
| 6.03M | 10.67M | 3.27M | 50.32M | 5.23M | 71.74M | Total Liabilities |
| 71.88M | 70.25M | 72.05M | 125.83M | 97.96M | 130.76M | Stockholders Equity |
| 57.23M | 62.71M | 63.84M | 33.50M | 54.36M | 60.79M |
| Cash Flow | Free Cash Flow | ||||
| -1.29M | -15.55M | -2.43M | 22.73M | -25.95M | 4.54M | Operating Cash Flow |
| -8.19M | -15.55M | -2.37M | 29.28M | -18.98M | 13.39M | Investing Cash Flow |
| 6.15M | 2.27M | 83.96M | -40.05M | -15.48M | -6.63M | Financing Cash Flow |
| -4.07M | 2.84M | -47.62M | 9.98M | 18.34M | 21.78M |
Great Elm Group Technical Analysis
Positive
2.28
Price Trends
2.01
Positive
1.94
Positive
1.89
Positive
Market Momentum
0.06
Negative
70.91
Negative
85.61
Negative
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 2.28 is above the 20-day moving average (MA) of 2.14, above the 50-day MA of 2.01, and above the 200-day MA of 1.89, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 70.91 is Negative, neither overbought nor oversold. The STOCH value of 85.61 is Negative, 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 1 New Risks
1.
The replacement of the London Interbank Offered Rate (LIBOR) with the Secured Overnight Financing Rate (SOFR) may affect the funds we manage and our results of operations and financial results. Q2, 2023
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 | $12.73B | 9.92 | 7.90% | 78.88% | 12.06% | -7.95% | |
51 Neutral | $62.31M | ― | -2.28% | ― | 64.34% | 70.95% | |
49 Neutral | $571.54M | ― | -49.91% | ― | 2.84% | -828.91% | |
47 Neutral | $19.92M | 2.37 | -23.21% | ― | ― | ― | |
42 Neutral | $72.88M | 24.14 | -27.52% | ― | -8.63% | -202.31% | |
40 Underperform | $6.92M | ― | -27.69% | ― | -4.87% | 94.14% |
* Financial Sector Average
Performance Comparison
GEG
Great Elm Group
2.28
0.53
30.29%
RDGT
Ridgetech
1.08
-1.30
-54.62%
OMI
Owens & Minor
7.34
-8.83
-54.61%
ZYXI
Zynex
2.49
-6.25
-71.51%
SNYR
Synergy CHC
2.65
2.53
2108.33%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.