Spar Group (SGRP) AI Stock Analysis

• Market Cap: $28.18M
• Dividend Yield: N/A
• Average Volume (3M): 224.39K
• Price to Earnings (P/E): 2.1
• Beta (1Y): -0.31
• Revenue Growth: -44.47%
• EPS Growth: -203.41%
• Country: US
• Employees: 1,384
• Sector: Industrials
• Sector Strength: 79
• Industry: Specialty Business Services
• EPS (TTM): 0.00
• Shares Outstanding: 23,684,752
• 10 Day Avg. Volume: 540,700
• 30 Day Avg. Volume: 224,394
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.12
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 1.91
• Enterprise Value/Ebitda: -5.24
• 1Y Price Target: $1.00
• Price Target Upside: -15.97% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: $1.00 ▼(-15.97% Downside)

The overall stock score of 52 reflects significant financial challenges, including declining revenues and negative profitability. While technical indicators show some positive momentum, valuation remains a concern due to negative earnings. Corporate events provide a mixed outlook, with strategic investments and board changes offering potential growth, but regulatory and shareholder concerns persist.

Spar Group Business Overview & Revenue Model

Company Description

SPAR Group, Inc., together with its subsidiaries, provides merchandising and brand marketing services worldwide. The company offers syndicated and dedicated merchandising services at the retail store level for retailers, manufacturers, and distributors; and project services, such as new product launches, special seasonal or promotional merchandising, product support, product recalls, and in-store product demonstrations and in-store product sampling, as well as kiosk product replenishment, inventory control, new and existing store resets, re-merchandising, remodels and category implementations, and under annual or stand-alone project contracts or agreements. It also provides retailer specific services consisting of in-store services, including new store openings, new store sets and existing store resets and remodels, and under annual or stand-alone project contracts or agreements. In addition, the company assembles furniture, grills, and other products in stores, homes, and offices; performs ongoing routed coverage at retail locations; and offers in-home and in-office assembly to customers who purchase their product from retailers. Further, it provides staff and distribution center experienced resources to retailers and consumer goods manufacturers; offers retail compliance and price audit services initiated by retailers and manufacturers and focuses on validating store promotions, auditing compliance with branding and signage, verifying product placement and displays, collecting inventory levels, and out-of-stock status; and competitive price intelligence gathering for retailers, as well as ensuring price accuracy and consistency within the retail itself. The company serves grocery and drug, discount, dollar, convenience, cash and carry, home improvement, consumer electronics, automotive, and office supply stores; pharmacies; and mass merchandisers. SPAR Group, Inc. was founded in 1967 and is headquartered in Auburn Hills, Michigan.

How the Company Makes Money

Spar Group generates revenue through multiple key streams, primarily by offering comprehensive merchandising and marketing services to consumer goods manufacturers and retailers. The company earns fees for its services, which include in-store product placement, promotional displays, and brand representation. Additionally, SGRP benefits from performance-based incentives tied to sales growth and product turnover. Strategic partnerships with major retail chains enhance its market presence, while its extensive network of field representatives enables efficient execution of marketing campaigns, driving both client satisfaction and repeat business.

Spar Group Financial Statement Overview

Summary

Spar Group faces significant financial challenges, with declining revenues and negative profitability metrics. While the balance sheet shows manageable leverage, the negative return on equity and cash flow issues highlight operational inefficiencies and cash management concerns. The company needs to focus on improving operational efficiency and profitability to enhance financial stability.

Income Statement

The income statement shows declining revenue with a negative growth rate of -11.51% in TTM, indicating a challenging business environment. Gross profit margin is relatively stable at 20.47%, but net profit margin is negative at -5.74%, reflecting ongoing profitability issues. EBIT and EBITDA margins are also negative, suggesting operational inefficiencies.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.94, indicating manageable leverage. However, the return on equity is negative at -34.60%, highlighting poor profitability for shareholders. The equity ratio stands at 34.79%, suggesting a balanced capital structure but with room for improvement.

Cash Flow

Cash flow analysis shows a significant improvement in free cash flow growth at 114.34%, but operating cash flow remains negative, indicating cash management challenges. The free cash flow to net income ratio is positive at 1.23, suggesting some efficiency in converting income to cash, but overall cash flow health is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	143.50M	196.81M	262.75M	261.27M	255.72M	230.52M
Gross Profit	31.27M	38.46M	55.48M	51.01M	47.52M	45.19M
EBITDA	-11.40M	2.91M	7.93M	8.55M	7.90M	14.14M
Net Income	-12.94M	-3.15M	3.90M	-732.00K	-1.78M	3.37M
Balance Sheet
Total Assets	71.56M	56.43M	90.28M	94.60M	89.02M	84.03M
Cash, Cash Equivalents and Short-Term Investments	13.93M	18.22M	10.72M	9.35M	13.47M	15.97M
Total Debt	27.43M	18.93M	23.37M	20.32M	13.52M	13.23M
Total Liabilities	46.67M	32.13M	50.03M	56.54M	51.67M	45.41M
Stockholders Equity	24.89M	24.31M	28.23M	22.43M	19.75M	22.16M
Cash Flow
Free Cash Flow	-14.05M	-1.80M	5.58M	-6.84M	907.00K	7.20M
Operating Cash Flow	-12.73M	-665.00K	6.82M	-5.04M	2.63M	8.80M
Investing Cash Flow	-2.04M	9.88M	-2.27M	-1.80M	-1.72M	-1.60M
Financing Cash Flow	7.00M	-1.66M	-3.02M	3.49M	1.33M	131.00K

Spar Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGRP, the sentiment is Positive. The current price of 1.19 is above the 20-day moving average (MA) of 1.16, above the 50-day MA of 1.09, and below the 200-day MA of 1.45, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 55.42 is Neutral, neither overbought nor oversold. The STOCH value of 42.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SGRP.

Spar Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLHC	66 Neutral	$80.28M	17.61	4.12%	―	-10.30%	86.44%
Sector *	64 Neutral	$10.74B	15.86	8.15%	2.00%	2.70%	-15.17%
NTIP	57 Neutral	$33.96M	―	-5.10%	6.69%	-92.03%	-20.56%
OMEX	54 Neutral	$88.57M	―		―	-18.53%	―
SGRP	52 Neutral	$28.18M	2.10	-47.70%	―	-44.47%	-203.41%
CVEO	52 Neutral	$298.10M	19.41	-13.15%	4.21%	-10.60%	-201.64%
SST	47 Neutral	$70.59M	―	-84.85%	―	-12.76%	56.53%

Spar Group Corporate Events

Spar Group Announces Executive Changes and Appointments

On August 25, 2025, Spar Group announced several executive changes. Michael R. Matacunas, the President and CEO, resigned as President and will retire as CEO on October 3, 2025. He entered into a transition agreement that includes a $2 million retention bonus and stock option benefits. William Linnane was appointed as the new President, transitioning from his role as Global Strategy & Growth Officer. Ron Lutz, Global Chief Commercial Officer, and Kori Belzer, Global Chief Operating Officer, both announced their retirements due to position eliminations, with agreements for severance and consulting roles.

SPAR Group Prepares for Midwest Ideas Conference

SPAR Group is preparing to present to potential investors and advisers on August 27, 2025, as part of the SPAR Midwest Ideas Conference. The presentation will include selected adjusted historical data and forward-looking statements. The company has outlined various risks and uncertainties, including potential non-compliance with Nasdaq rules and the impact of selling certain subsidiaries. These factors could significantly affect the company’s operations and financial condition.

Spar Group Attracts Major Investment with Share Acquisition

On August XX, 2025, SPAR Group announced that a group of high-net-worth investors acquired 220,000 shares of SPAR at a 75% premium over the previous closing price, investing $440,000 in cash. This strategic investment highlights the perceived potential and future value of SPAR’s stock. Additionally, SPAR has issued a demand letter to Highwire Capital for a termination fee of $1,758,728 due to a failed merger agreement, indicating ongoing financial maneuvers to secure the company’s interests.

Spar Group Board Restructuring with Tim Cook Appointment

On August 12, 2025, William H. Bartels resigned from the SPAR Group’s Board, nominating Tim Cook as his replacement. Cook, with extensive experience in the manufacturing industry, was appointed as Chairman of the Governance Committee and a member of the Audit and Compensation Committees. Additionally, John Bode and Linda Houston joined the Board, taking on significant roles in various committees. SPAR Group reported a 13.5% increase in second-quarter sales compared to the first quarter of 2025, with revenues reaching $38.6 million. The company achieved a gross margin of 23.5%, reflecting improved financial performance after divesting international joint ventures in 2024. The company is well-positioned for future growth with a solid balance sheet and available liquidity of over $15 million.

Spar Group Faces Mixed Results at Annual Meeting

On June 12, 2025, Spar Group held its annual stockholders meeting where several key proposals were voted upon. The reelection of directors saw mixed results, with some directors receiving strong support while others faced significant opposition. Additionally, the proposal to ratify BDO USA, P.C. as the independent registered accounting firm for 2025 was narrowly approved. The advisory vote on executive compensation, however, did not pass, reflecting shareholder concerns. The decision on the frequency of compensation votes was overwhelmingly in favor of an annual vote. Lastly, the 2025 Stock Compensation Plan was not approved, indicating potential dissatisfaction with the proposed plan.