NasdaqGS:GEC

Stock Analysis Report

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Executive Summary

Great Elm Capital Group, Inc. operates in durable medical equipment, investment management, and real estate businesses. More Details


Snowflake Analysis

Mediocre balance sheet and overvalued.


Similar Companies

Share Price & News

How has Great Elm Capital Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GEC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-13.5%

GEC

-5.5%

US Capital Markets

-5.3%

US Market


1 Year Return

-41.6%

GEC

0.2%

US Capital Markets

10.4%

US Market

Return vs Industry: GEC underperformed the US Capital Markets industry which returned 0.6% over the past year.

Return vs Market: GEC underperformed the US Market which returned 12% over the past year.


Shareholder returns

GECIndustryMarket
7 Day-13.5%-5.5%-5.3%
30 Day-16.8%-1.7%-2.1%
90 Day-25.8%-1.4%1.7%
1 Year-41.6%-41.6%2.7%0.2%12.9%10.4%
3 Year-46.4%-46.4%14.3%5.6%34.3%25.4%
5 Year-81.7%-81.7%53.1%34.0%73.7%54.3%

Price Volatility Vs. Market

How volatile is Great Elm Capital Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Great Elm Capital Group undervalued compared to its fair value and its price relative to the market?

0.79x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate GEC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate GEC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: GEC is unprofitable, so we can't compare its PE Ratio to the US Capital Markets industry average.

PE vs Market: GEC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GEC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GEC is good value based on its PB Ratio (0.8x) compared to the US Capital Markets industry average (4.4x).


Next Steps

Future Growth

How is Great Elm Capital Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.7%

Forecasted Diversified Financials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Great Elm Capital Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Great Elm Capital Group performed over the past 5 years?

-12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GEC is currently unprofitable.

Growing Profit Margin: GEC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GEC is unprofitable, and losses have increased over the past 5 years at a rate of 12.6% per year.

Accelerating Growth: Unable to compare GEC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GEC is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (8.1%).


Return on Equity

High ROE: GEC has a negative Return on Equity (-19.14%), as it is currently unprofitable.


Next Steps

Financial Health

How is Great Elm Capital Group's financial position?


Financial Position Analysis

Short Term Liabilities: GEC's short term assets ($61.3M) exceed its short term liabilities ($25.5M).

Long Term Liabilities: GEC's short term assets ($61.3M) do not cover its long term liabilities ($101.4M).


Debt to Equity History and Analysis

Debt Level: GEC's debt to equity ratio (155.4%) is considered high.

Reducing Debt: GEC's debt to equity ratio has increased from 128.4% to 155.4% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable GEC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GEC is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 8.5% per year.


Next Steps

Dividend

What is Great Elm Capital Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GEC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GEC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GEC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GEC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GEC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Peter Reed (40 yo)

3yrs

Tenure

US$439,735

Compensation

Mr. Peter Andrew Reed has been Chief Executive Officer of Great Elm Capital Group, Inc. since September 2017. Mr. Reed serves as the Chairman, Chief Executive Officer and President of Great Elm Capital Cor ...


CEO Compensation Analysis

Compensation vs Market: Peter's total compensation ($USD439.74K) is about average for companies of similar size in the US market ($USD593.13K).

Compensation vs Earnings: Peter's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Serota
Executive Co-Chairman0.75yrUS$236.92k0.29%
$ 136.8k
Jason Reese
Executive Co-Chairman0.58yrUS$125.28k0.30%
$ 142.5k
Peter Reed
CEO & Director3yrsUS$439.74k3.16%
$ 1.5m
Adam Kleinman
President2.58yrsUS$439.74k1.36%
$ 653.4k
Brent Pearson
CFO & Chief Accounting Officer1.58yrsUS$379.15k0.036%
$ 17.4k
Meaghan Mahoney
Senior Vice Presidentno datano datano data

1.6yrs

Average Tenure

45yo

Average Age

Experienced Management: GEC's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Serota
Executive Co-Chairman0.75yrUS$236.92k0.29%
$ 136.8k
Jason Reese
Executive Co-Chairman0.58yrUS$125.28k0.30%
$ 142.5k
Peter Reed
CEO & Director3yrsUS$439.74k3.16%
$ 1.5m
Michael Mulica
Chairman Emeritus6.58yrsUS$66.63kno data
Thomas Harbin
Independent Director3yrsUS$146.91k0.39%
$ 187.8k
Eric Scheyer
Independent Director0.58yrUS$94.28k0.22%
$ 105.5k
James Parmelee
Independent Director3.25yrsUS$146.92k0.30%
$ 143.2k
Matthew Drapkin
Independent Director3.42yrsUS$146.91k0.35%
$ 166.7k
James Hugar
Independent Director0.58yrUS$88.75k0.15%
$ 70.5k

3.0yrs

Average Tenure

54yo

Average Age

Experienced Board: GEC's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Great Elm Capital Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Great Elm Capital Group, Inc.
  • Ticker: GEC
  • Exchange: NasdaqGS
  • Founded: 1994
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$47.917m
  • Shares outstanding: 24.83m
  • Website: https://www.greatelmcap.com

Number of Employees


Location

  • Great Elm Capital Group, Inc.
  • 800 South Street
  • Suite 230
  • Waltham
  • Massachusetts
  • 2453
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GECNasdaqGS (Nasdaq Global Select)YesNew Common StockUSUSDJun 1999
PNC1DB (Deutsche Boerse AG)YesNew Common StockDEEURJun 1999

Biography

Great Elm Capital Group, Inc. operates in durable medical equipment, investment management, and real estate businesses. It distributes respiratory care equipment, including positive air pressure equipment ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 00:06
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.