GEE Group (JOB) AI Stock Analysis

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GEE Group

(NYSE MKT:JOB)

Rating:52Neutral

Price Target:

$0.00

▼(-100.00%Downside)

The primary factors impacting GEE Group's score are its financial performance challenges, including declining revenues and profitability. The technical analysis shows some short-term stability, but long-term trends remain bearish. Valuation metrics are unattractive due to the company's negative earnings. While the earnings call highlighted some strategic initiatives and a strong liquidity position, these are overshadowed by current financial difficulties.

GEE Group (JOB) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$24.74M

Dividend YieldN/A

Average Volume (3M)131.51K

Price to Earnings (P/E)―

Beta (1Y)0.32

Revenue Growth-17.38%

EPS Growth-1165.13%

CountryUS

Employees210

SectorIndustrials

Sector Strength93

IndustryStaffing & Employment Services

Share Statistics

EPS (TTM)-0.10

Shares Outstanding109,413,246

10 Day Avg. Volume218,951

30 Day Avg. Volume131,512

Financial Highlights & Ratios

PEG Ratio<0.01

Price to Book (P/B)0.43

Price to Sales (P/S)0.00

P/FCF Ratio-16.46

Enterprise Value/Market Cap0.29

Enterprise Value/Revenue0.02

Enterprise Value/Gross Profit0.20

Enterprise Value/Ebitda-0.08

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusHold

Number of Analyst Covering0

GEE Group Business Overview & Revenue Model

Company DescriptionGEE Group Inc. (JOB) is a provider of professional staffing and recruitment services in the United States. The company operates across various sectors, including industrial, administrative, and information technology staffing. GEE Group offers a comprehensive suite of human resource solutions, including temporary and permanent staffing, executive search, and related services tailored to meet the diverse needs of its clients.

How the Company Makes MoneyGEE Group Inc. generates revenue primarily through fees charged for staffing and recruitment services. The company's key revenue streams include temporary staffing services, where clients are billed for the hours worked by temporary employees placed at their organizations, and permanent placement services, where the company earns a fee based on a percentage of the hired candidate's starting salary. Additionally, GEE Group may benefit from partnerships with other employment agencies or corporations seeking specialized recruiting expertise, contributing to its earnings. Significant factors impacting revenue include the demand for skilled labor across various industries and the company's ability to maintain a strong network of clients and job candidates.

GEE Group Earnings Call Summary

Earnings Call Date:May 14, 2025

(Q2-2025)

% Change Since: 16.67%|

Next Earnings Date:Aug 18, 2025

Earnings Call Sentiment Negative

The earnings call reflects significant challenges for GEE Group, with declining revenues and large net losses indicating a difficult operating environment. However, the company's strong liquidity position and strategic M&A activities provide some positive outlook for future growth and profitability restoration.

Q2-2025 Updates

Positive Updates

Direct Hire Placement Revenue Growth

Direct hire placement revenues for the quarter were up 22% compared to the prior year period, showing resilience in a challenging market.

Strong Liquidity Position

GEE Group maintained a strong liquidity position with $18.7 million in cash, an undrawn ABL facility of $7.4 million, and no outstanding debt.

M&A Activity and Strategic Initiatives

The company completed its first M&A transaction of the year with the acquisition of Hornet Staffing and is evaluating several other opportunities, indicating a focus on growth through strategic acquisitions.

Negative Updates

Decline in Overall Revenue

Consolidated revenues were $24.5 million for the quarter, down 4% from the comparable prior period, and $48.5 million year-to-date, down 10%. This decline reflects the challenging economic environment.

Negative EBITDA and Net Loss

The company reported negative EBITDA of $600,000 for the quarter and a net loss from continuing operations of $33 million, primarily due to a $22 million noncash goodwill impairment charge and a $9.9 million noncash charge related to deferred tax assets.

Headwinds in Staffing Industry

The company faced significant challenges in the staffing industry, including macroeconomic uncertainties, interest rate volatility, and a shift in client behavior towards layoffs and hiring freezes.

Company Guidance

During the GEE Group's 2025 second quarter earnings call, several key metrics were discussed. The company reported consolidated revenues of $24.5 million for the quarter and $48.5 million year-to-date. Gross profits and margins were $8.4 million and 34.1% for the quarter, respectively, and $16.3 million and 33.6% year-to-date. The non-GAAP adjusted EBITDA was negative $600,000 for the quarter and negative $900,000 year-to-date. GEE Group also reported a net loss from continuing operations of $33 million, or $0.30 per diluted share, for the quarter, primarily due to a $22 million noncash goodwill impairment charge and a $9.9 million noncash charge related to a valuation allowance on deferred tax assets. The company is actively pursuing M&A activities to improve financial performance and expects to achieve profitability in late 2025 or early 2026. They also reported having $18.7 million in cash, an undrawn ABL facility of $7.4 million, and no outstanding debt, with a focus on leveraging AI and offshore recruiting to enhance efficiency.

GEE Group Financial Statement Overview

Summary

GEE Group is facing significant challenges in sustaining revenue and profitability, with declining margins and revenue figures. Despite a strong equity position, negative return on equity and declining cash flows raise concerns about future financial performance and shareholder value.

Income Statement

Neutral

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.

Balance Sheet

Neutral

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.

Cash Flow

Neutral

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.

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
EBITDA	-27.06M	5.77M	25.79M	11.69M	5.39M
Net Income	-24.10M	9.42M	19.60M	6.00K	-14.35M
Balance Sheet
Total Assets	95.90M	123.49M	119.55M	117.59M	120.01M
Cash, Cash Equivalents and Short-Term Investments	20.83M	22.47M	18.85M	9.95M	14.07M
Total Debt	3.48M	3.94M	3.22M	21.43M	75.14M
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	144.00K	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

Technical Analysis Sentiment

Neutral

Last Price0.21

Price Trends

50DMA

0.20

Positive

100DMA

0.20

Positive

200DMA

0.22

Negative

Market Momentum

MACD

<0.01

Negative

RSI

50.93

Neutral

STOCH

68.94

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 0.21 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.20, and below the 200-day MA of 0.22, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.93 is Neutral, neither overbought nor oversold. The STOCH value of 68.94 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 (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MHH	66 Neutral	$94.47M	42.64	2.52%	―	3.93%	―
Sector *	65 Neutral	$11.14B	16.13	4.60%	2.08%	3.17%	-25.97%
DHX	61 Neutral	$137.48M	268.89	-7.21%	―	-7.42%	-567.61%
BGSF	60 Neutral	$70.86M	―	-3.95%	4.69%	-12.93%	-159.19%
JOB	52 Neutral	$24.74M	―	-70.70%	―	-17.38%	-1165.13%
HSON	52 Neutral	$25.60M	―	-8.66%	―	-9.28%	-244.22%
IPDN	48 Neutral	$5.12M	―	-67.31%	―	-12.88%	53.73%

* Industrials Sector Average

Performance Comparison

JOB

GEE Group

0.21

-0.12

-36.36%

DHX

DHI Group

2.83

0.72

34.12%

HSON

Hudson Global

9.15

-9.13

-49.95%

MHH

Mastech Holdings

7.45

-0.76

-9.26%

IPDN

Professional Diversity

2.24

-2.66

-54.29%

BGSF

6.47

-1.83

-22.05%

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.Date of analysis: Jul 30, 2025