Spar Group (SGRP) AI Stock Analysis

• Market Cap: $18.45M
• Dividend Yield: N/A
• Average Volume (3M): 42.18K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.35
• 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: 23,949,991
• 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: 3.24
• 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: 40 Neutral
• Price Target: $0.81 ▲(5.58% Upside)

The overall stock score is primarily driven by financial performance and technical analysis, both of which highlight significant challenges. The financial performance score reflects declining profitability and cash flow issues, while technical analysis indicates bearish momentum. Valuation concerns further weigh down the score, with a negative P/E ratio and no dividend yield. The recent appointment of a new CFO is a positive development but does not immediately impact the financial metrics.

Positive Factors

Leadership Change

The appointment of Steven Hennen as CFO, with his extensive finance and operational experience, is expected to enhance SPAR's financial platform and drive strategic priorities, contributing to long-term value creation.

Market Expansion

The significant revenue growth in key markets like the U.S. and Canada indicates successful market expansion and the effectiveness of SPAR's strategic initiatives, which can lead to sustained revenue growth.

Credit Facility Extension

The extension and modification of the credit facility provide SPAR Group with enhanced financial flexibility and stability, supporting long-term operational and strategic initiatives.

Negative Factors

Declining Profitability

The negative net profit margin highlights ongoing profitability challenges, which could hinder SPAR Group's ability to reinvest in growth opportunities and maintain competitive positioning.

High Leverage

High leverage levels pose a risk to SPAR Group's financial health, potentially limiting its ability to invest in growth and manage economic downturns effectively.

Cash Flow Issues

Negative cash flows indicate liquidity challenges, which could constrain SPAR Group's operational flexibility and ability to fund strategic initiatives without external financing.

Spar Group Business Overview & Revenue Model

Company Description

Spar Group (SGRP) is a global leader in the retail and merchandising sector, specializing in providing comprehensive services that enhance brand visibility and drive sales for various consumer products. The company operates primarily in the retail merchandising space, offering solutions that include in-store merchandising, promotional marketing, and data analytics. With a strong presence in multiple markets, SGRP partners with major retailers and manufacturers to optimize product placement and improve the shopper experience.

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: 0.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 0.77 is below the 20-day moving average (MA) of 0.86, below the 50-day MA of 0.97, and below the 200-day MA of 1.09, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 20.80 is Positive, neither overbought nor oversold. The STOCH value of 11.04 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	$359.80M	73.84	0.90%	―	71.28%	-89.20%
CASS	60 Neutral	$554.25M	18.05	11.44%	2.95%	-4.96%	39.42%
PMEC	42 Neutral	$40.34M	-20.27	-13.00%	―	2.52%	45.76%
SST	41 Neutral	$45.30M	-0.54	-99.29%	―	-20.49%	25.95%
SGRP	40 Neutral	$18.45M	-0.84	-93.99%	―	-35.72%	-277.39%
TISI	38 Underperform	$61.30M	-1.12	-210.92%	―	3.73%	3.56%

Spar Group Corporate Events

Spar Group Appoints Steven Hennen as New CFO

On December 10, 2025, SPAR Group announced the appointment of Steven Hennen as the new Chief Financial Officer, effective December 8, 2025. Hennen, with over 25 years of experience in finance and operational leadership, is expected to drive strategic priorities and enhance SPAR’s financial platform, contributing to long-term value creation. This leadership change marks a pivotal point in SPAR’s growth journey, as the company continues to strengthen its capabilities and progress in the industry.

Spar Group Appoints William Linnane as New CEO

On November 12, 2025, SPAR Group appointed William Linnane as CEO, following his transition from Global Strategy & Growth Officer to President. The company reported a 28.2% increase in net revenues for the U.S. and Canada in the third quarter of 2025, despite challenges such as restructuring costs and a net loss of $8.8 million. SPAR Group is focusing on building a leaner, profit-driven organization by reducing costs, enhancing cash flow, and leveraging technology and AI to innovate its go-to-market strategy.

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.

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.