SPAR Group (NasdaqCM:SGRP) - Share price, News & Analysis

SGRP fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

SGRP Stock Overview

SPAR Group, Inc., together with its subsidiaries, provides merchandising and brand marketing services worldwide.

Risk Analysis

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($24M)

SPAR Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SPAR Group
Historical stock prices
Current Share Price	US$1.07
52 Week High	US$3.86
52 Week Low	US$1.00
Beta	1.24
1 Month Change	-17.69%
3 Month Change	-17.69%
1 Year Change	-37.43%
3 Year Change	42.67%
5 Year Change	17.58%
Change since IPO	-78.60%

Recent News & Updates

Feb 01

If You Like EPS Growth Then Check Out SPAR Group (NASDAQ:SGRP) Before It's Too Late

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Shareholder Returns

	SGRP	US Media	US Market
7D	3.9%	2.7%	0.7%
1Y	-37.4%	-26.5%	-10.8%

Return vs Industry: SGRP underperformed the US Media industry which returned -29.2% over the past year.

Return vs Market: SGRP underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is SGRP's price volatile compared to industry and market?
SGRP volatility
SGRP Average Weekly Movement	8.0%
Media Industry Average Movement	8.1%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: SGRP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: SGRP's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1967	1,863	Mike Matacunas	https://www.sparinc.com

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.

SPAR Group Fundamentals Summary

How do SPAR Group's earnings and revenue compare to its market cap?
SGRP fundamental statistics
Market Cap	US$24.47m
Earnings (TTM)	-US$1.78m
Revenue (TTM)	US$255.72m

0.1x

P/S Ratio

-13.1x

P/E Ratio

Is SGRP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SGRP income statement (TTM)
Revenue	US$255.72m
Cost of Revenue	US$208.20m
Gross Profit	US$47.52m
Other Expenses	US$49.30m
Earnings	-US$1.78m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

May 16, 2022

Earnings per share (EPS)	-0.081
Gross Margin	18.58%
Net Profit Margin	-0.69%
Debt/Equity Ratio	40.2%

How did SGRP perform over the long term?

See historical performance and comparison

Valuation

Is SPAR Group undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

1.18x

Price to Book (PB) ratio

Share Price vs. Fair Value

Below Fair Value: SGRP ($1.07) is trading above our estimate of fair value ($0.38)

Significantly Below Fair Value: SGRP is trading above our estimate of fair value.

Price To Earnings Ratio

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

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

Price to Book Ratio

PB vs Industry: SGRP is good value based on its PB Ratio (1.2x) compared to the US Media industry average (1.6x).

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.8%

Forecasted Media 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 SPAR 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.

Past Performance

How has SPAR Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

42.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SGRP is currently unprofitable.

Growing Profit Margin: SGRP is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: SGRP is unprofitable, but has reduced losses over the past 5 years at a rate of 42.8% per year.

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

Earnings vs Industry: SGRP is unprofitable, making it difficult to compare its past year earnings growth to the Media industry (22.7%).

Return on Equity

High ROE: SGRP has a negative Return on Equity (5.36%), as it is currently unprofitable.

Financial Health

How is SPAR Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SGRP's short term assets ($72.0M) exceed its short term liabilities ($50.2M).

Long Term Liabilities: SGRP's short term assets ($72.0M) exceed its long term liabilities ($1.5M).

Debt to Equity History and Analysis

Debt Level: SGRP's net debt to equity ratio (4.1%) is considered satisfactory.

Reducing Debt: SGRP's debt to equity ratio has reduced from 48.8% to 40.2% over the past 5 years.

Debt Coverage: SGRP's debt is not well covered by operating cash flow (17.5%).

Interest Coverage: SGRP's interest payments on its debt are well covered by EBIT (14.8x coverage).

Balance Sheet

Dividend

What is SPAR Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate SGRP'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 SGRP's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SGRP has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Media industry.

Management

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

1.8yrs

Average management tenure

CEO

Mike Matacunas (53 yo)

1.25yrs

Tenure

US$348,086

Compensation

Mr. Michael R. Matacunas is also known as Mike is Chief Executive Officer, President and a Director at SPAR Group, Inc. since February 16, 2021. He is a Fortune 500 veteran with relevant leadership experi...

CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD348.09K) is below average for companies of similar size in the US market ($USD770.21K).

Compensation vs Earnings: Insufficient data to compare Mike's compensation with company performance.

Leadership Team

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

Board Members

Experienced Board: SGRP's board of directors are not considered experienced ( 1.3 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 been diluted in the past year, with total shares outstanding growing by 2.8%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31