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GEE Group (JOB)
:JOB
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GEE Group
(NYSE MKT:JOB)
45Neutral
GEE Group (JOB) vs. S&P 500 (SPY)
Market Cap
$20.36M
Dividend YieldN/A
Average Volume (3M)201.17K
Price to Earnings (P/E)―
Beta (1Y)0.35
Revenue Growth-21.17%
EPS Growth-441.21%
CountryUS
Employees210
SectorIndustrials
Sector Strength75
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)-0.21
Shares Outstanding109,413,246
10 Day Avg. Volume148,898
30 Day Avg. Volume201,173
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 Cap0.30
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit0.16
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
GEE Group Business Overview & Revenue Model
Company DescriptionGEE Group, Inc. provides permanent and temporary professional and industrial staffing and placement services in the United States. The company operates through two segments, Industrial Staffing Services and Professional Staffing Services. It offers placement of information technology, accounting, finance, office, engineering, and medical professionals for direct hire and contract staffing services; and temporary staffing services for light industrial clients. The company also provides medical scribes, who offer electronic medical record services for emergency departments, specialty physician practices, and clinics. It offers professional and commercial staffing services under the names of Access Data Consulting, Agile Resources, Ashley Ellis, GEE Group, Omni One, Paladin Consulting, and Triad; medical staffing services under the Scribe Solutions brand; and contract and direct hire professional staffing services under the Accounting Now, Staffing Now, SNI Banking, SNI Certes, SNI Energy, SNI Financial, and SNI Technology brands. The company was formerly known as General Employment Enterprises, Inc. and changed its name to GEE Group, Inc. in July 2016. GEE Group, Inc. was founded in 1893 and is based in Jacksonville, Florida.
How the Company Makes MoneyGEE Group Inc. generates revenue primarily through the provision of staffing and workforce solutions. The company's key revenue streams include fees from temporary staffing services, where businesses are charged for the placement of skilled professionals on a temporary basis, and permanent placement services, where fees are earned upon successfully filling full-time positions. GEE Group also benefits from strategic partnerships and alliances that enhance its service offerings and expand its market reach. The company leverages its expertise in specialized staffing to cater to industries with high demand for skilled professionals, thus maintaining a steady flow of revenue.
GEE Group Financial Statement Overview
Summary
GEE Group is facing significant challenges in sustaining revenue and profitability, as evidenced by declining margins and revenue figures. While the company maintains a strong equity position, the negative return on equity and declining cash flows raise concerns about its future financial performance and ability to generate shareholder value. The company needs to address its operational inefficiencies and improve its cash flow generation to enhance its financial health.Income Statement
The company has experienced significant revenue decline from previous years, with total revenue dropping from $165.1 million in 2022 to $111.9 million in TTM 2024. Profitability has also been poor, with negative EBIT and EBITDA margins for the TTM period and annual 2023 report, indicating challenges in managing operational costs effectively. The gross profit margin has decreased over the years, reflecting declining efficiency in cost management.45
Neutral
Balance Sheet
The balance sheet shows a relatively strong equity position with a high equity ratio, illustrating financial stability. However, the company's return on equity has turned negative in recent periods, indicating inefficiencies in generating profits from shareholders' equity. Despite low total debt, the declining net income poses a risk to overall financial health.55
Neutral
Cash Flow
The company's cash flow situation is concerning, with operating cash flow dropping significantly. Free cash flow remains positive, but its growth is limited. The operating cash flow to net income ratio is low, suggesting potential cash management issues. The free cash flow to net income ratio has been positive but decreasing over time.50
Neutral
| Breakdown | ||||
| Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 116.48M | 152.44M | 165.11M | 148.88M | 129.84M | Gross Profit |
| 37.65M | 52.87M | 61.68M | 52.54M | 44.70M | EBIT |
| -27.06M | 2.87M | 5.94M | 6.49M | -4.98M | EBITDA |
| -27.06M | 5.77M | 25.79M | 11.69M | 5.39M | Net Income Common Stockholders |
| -24.10M | 9.42M | 19.60M | 6.00K | -14.35M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 20.83M | 22.47M | 18.85M | 9.95M | 14.07M | Total Assets |
| 95.90M | 123.49M | 119.55M | 117.59M | 120.01M | Total Debt |
| 3.48M | 3.94M | 3.22M | 21.43M | 75.14M | Net Debt |
| -17.35M | -18.53M | -15.63M | 11.48M | 61.07M | Total Liabilities |
| 11.69M | 14.19M | 18.55M | 36.82M | 92.64M | Stockholders Equity |
| 84.21M | 109.30M | 101.00M | 80.77M | 27.38M |
| Cash Flow | Free Cash Flow | |||
| 202.00K | 5.80M | 8.90M | 244.00K | -2.37M | Operating Cash Flow |
| 202.00K | 5.89M | 9.23M | 370.00K | -2.25M | Investing Cash Flow |
| -58.00K | -89.00K | -328.00K | -126.00K | -119.00K | Financing Cash Flow |
| -1.79M | -2.18M | -167.00K | -4.37M | 12.38M |
GEE Group Technical Analysis
Neutral
0.19
Price Trends
0.21
Negative
0.22
Negative
0.25
Negative
Market Momentum
>-0.01
Negative
46.32
Neutral
68.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JOB, the sentiment is Neutral. The current price of 0.19 is above the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.21, and below the 200-day MA of 0.25, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.32 is Neutral, neither overbought nor oversold. The STOCH value of 68.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JOB.
GEE Group Risk Analysis
GEE Group disclosed 40 risk factors in its most recent earnings report. GEE 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
GEE Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $4.30B | 11.36 | 5.41% | 214.65% | 4.15% | -9.13% | |
63 Neutral | $89.33M | 26.83 | 4.03% | ― | -1.07% | ― | |
53 Neutral | $66.16M | 320.00 | 0.23% | ― | -6.55% | -93.52% | |
50 Neutral | $36.89M | ― | -3.98% | 4.50% | -12.99% | -152.96% | |
45 Neutral | $20.36M | ― | -24.47% | ― | -21.17% | -441.21% | |
45 Neutral | $27.01M | ― | -10.72% | ― | -13.19% | -320.59% | |
32 Underperform | $2.94M | ― | -60.02% | ― | -12.58% | 50.29% |
* Industrials Sector Average
Performance Comparison
JOB
GEE Group
0.19
-0.12
-38.71%
DHX
DHI Group
1.44
-0.90
-38.46%
HSON
Hudson Global
8.83
-7.67
-46.48%
MHH
Mastech Holdings
7.60
-1.28
-14.41%
IPDN
Professional Diversity
1.56
-16.74
-91.48%
BGSF
BGSF
3.33
-5.24
-61.14%
GEE Group Earnings Call Summary
Earnings Call Date:Feb 13, 2025
(Q1-2025)
| % Change Since: -20.83%|
Next Earnings Date:May 19, 2025
Earnings Call Sentiment Negative
The earnings call highlighted strategic initiatives such as the acquisition of Hornet Staffing and cost reduction efforts. However, these positives were overshadowed by significant declines in revenue, profitability, and a challenging hiring environment, resulting in a negative EBITDA.Q1-2025 Updates
Positive Updates
Strategic Acquisition of Hornet Staffing Inc.
On January 3, 2025, GEE Group acquired Hornet Staffing Inc., enhancing their ability to compete effectively, particularly in IT, professional, and customer service staffing verticals. The acquisition is expected to be accretive to earnings.
Cost Reduction Initiatives
GEE Group eliminated an estimated $3 million in annual SG&A costs last fall and continues to look for further cost reduction opportunities.
Improved Gross Margin
The gross margin for Professional Contract Services increased by 20 basis points to 25.2%, and Industrial Contract Services increased by 250 basis points to 18.5%.
Strong Liquidity Position
As of December 31, 2024, GEE Group had $19.7 million in cash, an undrawn ABL credit facility with $7 million availability, and no outstanding debt.
Negative Updates
Decline in Revenue and Profitability
Consolidated revenues were $26 million, down 15% from the prior year quarter. The company reported a net loss of $700,000 for the quarter.
Negative EBITDA
Consolidated non-GAAP adjusted EBITDA was negative $300,000 for the quarter.
Challenging Hiring Environment
The company continues to face difficult conditions in the hiring environment due to macroeconomic uncertainty, interest rate volatility, and overhiring post-pandemic.
Decrease in Direct Hire and Contract Staffing Revenues
Direct hire revenues were down 18%, and contract staffing services revenues were down 15% compared to the prior year quarter.
Company Guidance
During the GEE Group's Fiscal Year 2025 First Quarter earnings call, several key metrics were discussed, reflecting the challenging conditions faced by the company. Consolidated revenues for the quarter ended December 31, 2024, were reported at $26 million, marking a 15% decline from the prior year. Gross profits stood at $8.3 million with a gross margin of 31.9%, slightly up from 31.8% in the previous year. The company reported a net loss of $700,000 or $0.01 per diluted share, improved from a $1.6 million loss in the prior year. Non-GAAP adjusted EBITDA was negative $300,000. Liquidity remained strong with $19.7 million in cash and a working capital ratio of 4.7-to-1. The call highlighted strategic actions, including cost reductions and the acquisition of Hornet Staffing Inc., aimed at improving financial performance and positioning the company for future growth.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.