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GEE Group (JOB)
:JOB
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GEE Group
(NYSE MKT:JOB)
Rating:47Neutral
Price Target:
$0.00
▼(-100.00%Downside)
GEE Group (JOB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.60M
Dividend YieldN/A
Average Volume (3M)95.48K
Price to Earnings (P/E)―
Beta (1Y)0.27
Revenue Growth-17.38%
EPS Growth-1165.13%
CountryUS
Employees210
SectorIndustrials
Sector Strength89
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)-0.10
Shares Outstanding109,413,246
10 Day Avg. Volume74,559
30 Day Avg. Volume95,476
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.71
Price to Sales (P/S)0.00
P/FCF Ratio8.09
Enterprise Value/Market Cap2.61
Enterprise Value/Revenue0.12
Enterprise Value/Gross Profit1.58
Enterprise Value/Ebitda-0.61
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. (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: 11.11%|
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, 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 | TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 108.32M | 116.48M | 152.44M | 165.11M | 148.88M | 129.84M |
| Gross Profit | 35.80M | 37.65M | 52.87M | 61.68M | 52.54M | 44.70M |
| EBITDA | -23.30M | -27.06M | 5.77M | 25.79M | 11.69M | 5.39M |
| Net Income | -55.35M | -24.10M | 9.42M | 19.60M | 6.00K | -14.35M |
Balance Sheet | ||||||
| Total Assets | 61.77M | 95.90M | 123.49M | 119.55M | 117.59M | 120.01M |
| Cash, Cash Equivalents and Short-Term Investments | 18.50M | 20.83M | 22.47M | 18.85M | 9.95M | 14.07M |
| Total Debt | 3.67M | 3.48M | 4.09M | 3.22M | 21.43M | 75.14M |
| Total Liabilities | 11.13M | 11.69M | 14.19M | 18.55M | 36.82M | 92.64M |
| Stockholders Equity | 50.64M | 84.21M | 109.30M | 101.00M | 80.77M | 27.38M |
Cash Flow | ||||||
| Free Cash Flow | -1.30M | 144.00K | 5.80M | 8.90M | 244.00K | -2.37M |
| Operating Cash Flow | -1.34M | 202.00K | 5.89M | 9.23M | 370.00K | -2.25M |
| Investing Cash Flow | -21.00K | -58.00K | -89.00K | -328.00K | -126.00K | -119.00K |
| Financing Cash Flow | -147.00K | -1.79M | -2.18M | -167.00K | -4.37M | 12.38M |
GEE Group Technical Analysis
Negative
0.20
Price Trends
0.19
Negative
0.20
Negative
0.22
Negative
Market Momentum
<0.01
Positive
45.57
Neutral
48.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JOB, the sentiment is Negative. The current price of 0.2 is above the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.19, and below the 200-day MA of 0.22, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.57 is Neutral, neither overbought nor oversold. The STOCH value of 48.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $78.71M | 41.50 | 2.52% | ― | 3.93% | ― | |
62 Neutral | $158.44M | 268.89 | -7.21% | ― | -7.42% | -567.61% | |
60 Neutral | $84.09M | ― | -3.95% | 4.69% | -12.93% | -159.19% | |
58 Neutral | HK$13.89B | 4.44 | -3.01% | 7.32% | 3.67% | -54.16% | |
50 Neutral | $23.13M | ― | -8.66% | ― | -9.28% | -244.22% | |
50 Neutral | $4.37M | ― | -67.31% | ― | -12.88% | 53.73% | |
47 Neutral | $21.60M | ― | -70.70% | ― | -17.38% | -1165.13% |
* Industrials Sector Average
Performance Comparison
JOB
GEE Group
0.19
-0.11
-36.67%
DHX
DHI Group
3.02
0.87
40.47%
HSON
Hudson Global
8.38
-9.17
-52.25%
MHH
Mastech Holdings
7.25
0.02
0.28%
IPDN
Professional Diversity
2.33
-2.67
-53.40%
BGSF
BGSF
7.06
-1.40
-16.55%
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.