NasdaqGM:GECC

Stock Analysis Report

Executive Summary

Great Elm Capital Corporation is a business development company which specializes in loan and mezzanine, middle market investments.

Rewards


Snowflake Analysis

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GECC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.3%

GECC

-8.6%

US Capital Markets

-10.6%

US Market


1 Year Return

-11.6%

GECC

4.9%

US Capital Markets

5.2%

US Market

Return vs Industry: GECC underperformed the US Capital Markets industry which returned 4.9% over the past year.

Return vs Market: GECC underperformed the US Market which returned 5.2% over the past year.


Shareholder returns

GECCIndustryMarket
7 Day-7.3%-8.6%-10.6%
30 Day-7.4%-7.9%-8.5%
90 Day-5.7%-4.4%-4.6%
1 Year0.3%-11.6%7.1%4.9%7.4%5.2%
3 Year-2.7%-33.7%25.5%18.4%31.7%23.2%
5 Yearn/a65.9%50.7%56.4%39.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

0.82x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: GECC 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 GECC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GECC is good value based on its PB Ratio (0.8x) compared to the US Capital Markets industry average (6.2x).

Future Growth

How is Great Elm Capital forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

172.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GECC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: GECC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GECC's is expected to become profitable in the next 3 years.

Revenue vs Market: GECC's revenue (2.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: GECC's revenue (2.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GECC's Return on Equity is forecast to be high in 3 years time

Past Performance

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

10.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GECC is currently unprofitable.

Growing Profit Margin: GECC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GECC is unprofitable, but has reduced losses over the past 5 years at a rate of 10.4% per year.

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

Earnings vs Industry: GECC is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (8.5%).


Return on Equity

High ROE: GECC has a negative Return on Equity (-20.14%), as it is currently unprofitable.

Financial Health

How is Great Elm Capital'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: GECC has a low level of unsold assets or inventory.

Debt Coverage by Assets: GECC's debt is not covered by short term assets (assets are 0.1x 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: GECC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: GECC has less than a year of cash runway if free cash flow continues to grow at historical rates of 0.1% each year.


Financial Institutions Analysis

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

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

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

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

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

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

Dividend

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

13.44%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 28 2020Ex Dividend DateMar 30 2020Dividend Pay DateApr 15 202016 days from Ex DividendBuy in the next 30 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: GECC's dividend (13.44%) is higher than the bottom 25% of dividend payers in the US market (1.59%).

High Dividend: GECC's dividend (13.44%) is in the top 25% of dividend payers in the US market (4.09%)


Stability and Growth of Payments

Stable Dividend: GECC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GECC has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: GECC is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Management

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

2.9yrs

Average board tenure


CEO

Peter Reed (39yo)

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 ...


Board Members

NamePositionTenureCompensationOwnership
Peter Reed
Chairman0yrsno data0.85% $631.4k
Mark Kuperschmid
Lead Independent Director3.1yrsUS$65.00k0.20% $147.8k
John Stuart
Director3.3yrsno data0.16% $122.6k
Michael Speller
Director2.3yrsUS$65.00k0.16% $118.6k
Randall Horsey
Director2.8yrsUS$65.00k0.12% $88.9k

2.9yrs

Average Tenure

53yo

Average Age

Experienced Board: GECC's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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 Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Great Elm Capital Corporation
  • Ticker: GECC
  • Exchange: NasdaqGM
  • Founded: 2016
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$74.564m
  • Shares outstanding: 10.06m
  • Website: https://www.greatelmcc.com

Location

  • Great Elm Capital Corporation
  • 200 Clarendon Street
  • 51st Floor
  • Boston
  • Massachusetts
  • 2116
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GECCNasdaqGM (Nasdaq Global Market)YesNew Common StockUSUSDNov 2016

Biography

Great Elm Capital Corporation is a business development company which specializes in loan and mezzanine, middle market investments. The fund prefers to invest in media, commercial services and supplies, healthcare, telecommunication services, communications equipment. It typically makes equity investments between $3 million and $10 million in companies with revenues between $3 million and $75 million. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 02:04
End of Day Share Price2020/02/27 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.