Spar Group (SGRP) AI Stock Analysis

• Market Cap: $26.40M
• Dividend Yield: N/A
• Average Volume (3M): 42.18K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.34
• Revenue Growth: -35.72%
• EPS Growth: -277.39%
• Country: US
• Employees: 1,384
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -0.10
• Shares Outstanding: 23,684,752
• 10 Day Avg. Volume: 35,550
• 30 Day Avg. Volume: 42,177
• PEG Ratio: 0.08
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 0.23
• P/FCF Ratio: -25.33
• Enterprise Value/Market Cap: 2.26
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 1.96
• Enterprise Value/Ebitda: -3.74
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $1.00 ▲(13.64% Upside)

Spar Group's overall stock score is primarily impacted by its financial performance and technical analysis. The company faces significant financial challenges, including declining profitability and cash flow issues, which are reflected in its low financial performance score. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and close to oversold territory. Valuation is also a concern, with a negative P/E ratio and no dividend yield, further lowering the overall score.

Positive Factors

Revenue Growth

The 28.2% increase in U.S. and Canada net revenues suggests strong market demand and effective execution of merchandising services, indicating potential for sustained growth.

Leadership Change

The appointment of William Linnane as CEO may bring fresh strategic direction and operational improvements, potentially enhancing long-term business performance.

Strategic Focus

Emphasizing higher margin services can improve profitability and cash flow, supporting long-term financial health and competitive positioning.

Negative Factors

Declining Revenue

The negative revenue growth rate indicates challenges in maintaining sales momentum, which could hinder long-term financial stability and market position.

Negative Profitability

Negative profitability margins reflect operational inefficiencies, which could strain resources and limit the company's ability to invest in growth initiatives.

Cash Flow Challenges

Negative operating cash flow highlights cash management issues, potentially affecting the company's ability to fund operations and strategic investments.

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 a variety of channels, primarily by offering merchandising services to retailers and brands. The company's revenue model includes fees for in-store merchandising services, which involve activities such as product placement, inventory management, and promotional displays. Additionally, SGRP earns income from consulting services that provide retailers with insights and strategies to enhance sales performance. Key revenue streams also include performance-based incentives tied to sales outcomes, allowing the company to align its interests with those of its clients. Strategic partnerships with major retail chains and consumer brands further bolster SGRP's earnings, as they help secure long-term contracts and create a stable income base.

Spar Group Financial Statement Overview

Summary

Spar Group faces financial challenges with declining profitability and cash flow issues. The income statement reflects operational inefficiencies and losses, while the balance sheet shows high leverage and negative returns on equity. Cash flow remains a concern, with negative operating cash flows.

Income Statement

The income statement reveals a challenging period for Spar Group, with declining profitability. The TTM data shows a negative net profit margin of -9.02%, indicating losses. Revenue growth is modest at 2.53%, but EBIT and EBITDA margins are negative, reflecting operational inefficiencies. Historical data shows fluctuating revenue growth and margins, with a notable decline in revenue from 2023 to 2024.

Balance Sheet

The balance sheet indicates moderate financial leverage with a TTM debt-to-equity ratio of 1.10. However, the negative return on equity of -50.17% in the TTM period highlights profitability challenges. The equity ratio is relatively stable, suggesting a balanced asset structure, but the high leverage and negative ROE are concerning.

Cash Flow

Cash flow analysis shows significant stress, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is positive at 25.69%, but this follows a period of negative growth. The operating cash flow to net income ratio is negative, indicating cash flow issues, while the free cash flow to net income ratio is slightly above 1, suggesting some ability to cover net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	147.13M	43.40M	45.92M	261.27M	255.72M	230.52M
Gross Profit	30.51M	8.96M	10.20M	51.01M	47.52M	45.19M
EBITDA	-15.97M	1.43M	3.79M	8.55M	7.90M	14.14M
Net Income	-21.56M	-3.89M	639.00K	-732.00K	-1.78M	3.37M
Balance Sheet
Total Assets	61.66M	56.43M	90.28M	94.60M	89.02M	84.03M
Cash, Cash Equivalents and Short-Term Investments	8.21M	18.22M	4.49M	9.35M	13.47M	15.97M
Total Debt	26.23M	18.93M	19.77M	20.32M	13.52M	13.23M
Total Liabilities	45.08M	32.13M	50.03M	56.54M	51.67M	45.41M
Stockholders Equity	16.59M	24.31M	28.23M	22.43M	19.75M	22.16M
Cash Flow
Free Cash Flow	-17.66M	-1.80M	5.58M	-6.84M	907.00K	7.20M
Operating Cash Flow	-15.90M	-665.00K	6.82M	-5.04M	2.63M	8.80M
Investing Cash Flow	-1.18M	9.88M	-2.27M	-1.80M	-1.72M	-1.60M
Financing Cash Flow	5.60M	-1.66M	-3.02M	3.49M	1.33M	131.00K

Spar Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGRP, the sentiment is Negative. The current price of 0.88 is below the 20-day moving average (MA) of 1.00, below the 50-day MA of 1.04, and below the 200-day MA of 1.15, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 32.33 is Neutral, neither overbought nor oversold. The STOCH value of 13.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGRP.

Spar Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ACTG	63 Neutral	$316.34M	―	0.90%	―	71.28%	-89.20%
CASS	60 Neutral	$549.54M	18.05	11.44%	3.26%	-4.96%	39.42%
PMEC	42 Neutral	$49.56M	-24.90	-13.00%	―	2.52%	45.76%
SGRP	41 Neutral	$26.40M	-2.02	-93.99%	―	-35.72%	-277.39%
SST	40 Underperform	$56.41M	-0.59	-99.29%	―	-20.49%	25.95%
TISI	38 Underperform	$73.87M	-1.40	-210.92%	―	3.73%	3.56%

Spar Group Corporate Events

Spar Group Extends and Modifies Credit Facility

Spar Group, through its subsidiaries SPAR Marketing Force, Inc. and SPAR Canada Company ULC, has been managing a secured revolving credit facility in the US and Canada with North Mill Capital, LLC since April 2019. The company has undergone several modifications to its credit facility, with the latest being the Eighth Modification Agreement on October 9, 2025, which extended the credit facility’s term to October 10, 2027, increased the US Revolving Credit Facility to $30 million, and the Canadian Revolving Credit Facility to $6 million. This agreement also included waivers for certain financial statement delivery defaults and reaffirmed existing covenants, impacting the company’s financial operations and credit management.

The most recent analyst rating on (SGRP) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Spar Group stock, see the SGRP Stock Forecast page.

Spar Group CEO Michael Matacunas Resigns, Interim Appointed

On October 3, 2025, Michael R. Matacunas resigned as the Chief Executive Officer and board member of Spar Group, a decision not stemming from any disagreements with the company. Subsequently, William Linnane was appointed as the interim CEO while continuing his role as President, with no special arrangements influencing his selection.

The most recent analyst rating on (SGRP) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Spar Group stock, see the SGRP Stock Forecast page.

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.

The most recent analyst rating on (SGRP) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Spar Group stock, see the SGRP Stock Forecast page.

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.

The most recent analyst rating on (SGRP) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Spar Group stock, see the SGRP Stock Forecast page.

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.

The most recent analyst rating on (SGRP) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Spar Group stock, see the SGRP Stock Forecast page.

SPAR Group Reports Mixed Financial Results for Q2 2025

SPAR Group, Inc., a global merchandising and brand marketing services company, operates within the retail and consumer goods sectors, offering a wide range of services to retailers, manufacturers, and distributors worldwide.

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’s 2024 Risk Profile: Stability Amid Unchanged Challenges

The Spar Group continues to face existing risk factors as outlined in their 2024 Annual Report on Form 10-K/A, with no material changes reported in the subsequent Quarterly Report on Form 10-Q for the periods ending June 30, 2025. These risks, which remain consistent, are crucial for stakeholders to consider as they evaluate the company’s ongoing business environment and strategic positioning. The unchanged nature of these risk factors suggests stability in the company’s risk profile, yet also highlights areas that require continuous monitoring. Investors and analysts should remain vigilant in assessing how these risks might impact future performance and strategic decisions.