NasdaqGS:GEC

Stock Analysis Report

Executive Summary

Great Elm Capital Group, Inc., through its subsidiaries, engages in investment management and real estate property rental businesses.

Snowflake

Fundamentals

Overvalued with worrying balance sheet.


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


Market Performance


7 Day Return

-2.5%

GEC

2.6%

US Capital Markets

1.3%

US Market


1 Year Return

6.7%

GEC

1.2%

US Capital Markets

5.9%

US Market

Return vs Industry: GEC exceeded the US Capital Markets industry which returned 1.2% over the past year.

Return vs Market: GEC exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

GECIndustryMarket
7 Day-2.5%2.6%1.3%
30 Day2.0%-4.7%-1.9%
90 Day-11.8%-3.3%-1.8%
1 Year6.7%6.7%3.4%1.2%8.3%5.9%
3 Yearn/a51.2%42.7%45.6%36.2%
5 Yearn/a78.0%61.6%66.1%47.9%

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?

1.46x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

Significantly Undervalued: 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 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

Low 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 (1.5x) compared to the US Capital Markets industry average (6.5x).


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?

6.1%

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?

-14.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GEC is unprofitable, and losses have increased over the past 5 years at a rate of -14% 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 (36.2%).


Return on Equity

High ROE: GEC has a negative Return on Equity (-9.95%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: GEC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: GEC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Great Elm Capital Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: GEC has a high level of physical assets or inventory.

Debt Coverage by Assets: GEC's debt is not covered by short term assets (assets are 0.4x debt).


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: GEC has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: GEC has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 90.9% each year


Financial Institutions Analysis

Asset Level: GEC's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if GEC has a sufficient allowance for bad loans.

Low Risk Liabilities: GEC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if GEC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: GEC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if GEC has an appropriate level of bad loans.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of Great Elm Capital Group's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Peter Reed (39yo)

2.1yrs

Tenure

US$1,593,285

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: Insufficient data to establish whether Peter's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.8yrs

Average Tenure

41.5yo

Average Age

Experienced Management: GEC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

2.7yrs

Average Tenure

53yo

Average Age

Experienced Board: GEC's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUS$1,901,10620 May 19
MAST Capital Management, LLC
EntityCompany
Shares422,468
Max PriceUS$4.50
BuyUS$5,351,07206 May 19
Imperial Asset Management
EntityCompany
Shares1,160,426
Max PriceUS$4.61
BuyUS$15,00014 Mar 19
James Parmelee
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,000
Max PriceUS$3.75
BuyUS$1,22105 Mar 19
Peter Reed
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares359
Max PriceUS$3.40
BuyUS$24,50228 Feb 19
Peter Reed
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares7,102
Max PriceUS$3.45
BuyUS$25,95026 Feb 19
Peter Reed
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares7,468
Max PriceUS$3.50
BuyUS$4,16521 Feb 19
Peter Reed
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares1,223
Max PriceUS$3.43
BuyUS$13,37215 Feb 19
Peter Reed
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares3,997
Max PriceUS$3.35
BuyUS$8,60015 Feb 19
Brent Pearson
EntityIndividual
Role
Chief Financial Officer
CFO & Chief Accounting Officer
Shares2,500
Max PriceUS$3.44
BuyUS$26,56311 Dec 18
Peter Reed
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares7,317
Max PriceUS$3.65
BuyUS$5,71607 Dec 18
Peter Reed
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares1,566
Max PriceUS$3.65
BuyUS$10,57404 Dec 18
Peter Reed
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares2,897
Max PriceUS$3.65
BuyUS$7,09520 Nov 18
Peter Reed
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares2,118
Max PriceUS$3.35
BuyUS$90,53315 Nov 18
Peter Reed
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares26,032
Max PriceUS$3.49

Ownership Breakdown


Management Team

  • Phil Vachon (62yo)

    Consultant

    • Tenure: 3.3yrs
    • Compensation: US$712.55k
  • Peter Reed (39yo)

    CEO & Director

    • Tenure: 2.1yrs
    • Compensation: US$1.59m
  • Adam Kleinman (44yo)

    President

    • Tenure: 1.6yrs
    • Compensation: US$1.09m
  • Meaghan Mahoney

    Senior Vice President

    • Tenure: 0yrs
  • Brent Pearson (38yo)

    CFO & Chief Accounting Officer

    • Tenure: 0.7yrs

Board Members

  • Mike Mulica (56yo)

    Chairman Emeritus

    • Tenure: 5.6yrs
    • Compensation: US$66.63k
  • Tom Harbin (45yo)

    Director

    • Tenure: 2yrs
    • Compensation: US$118.56k
  • Mark Snell (62yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$100.00k
  • Hugh Wilson (71yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$85.00k
  • Peter Reed (39yo)

    CEO & Director

    • Tenure: 2.1yrs
    • Compensation: US$1.59m
  • Jeff Serota (53yo)

    Chairman of the Board

    • Tenure: 2.1yrs
    • Compensation: US$140.00k
  • Jim Parmelee (53yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$78.65k
  • Matt Drapkin (46yo)

    Director

    • Tenure: 2.5yrs
    • Compensation: US$86.51k

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$89.346m
  • Shares outstanding: 25.38m
  • 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 StockUSUSDNov 2016
PNC1DB (Deutsche Boerse AG)YesNew Common StockDEEURNov 2016

Biography

Great Elm Capital Group, Inc., through its subsidiaries, engages in investment management and real estate property rental businesses. It provides investment advisory services. The company was formerly know ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 00:33
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.