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GEG

BEARISH
$2.0 Live
Great Elm Group, Inc. · NASDAQ
$1.8 52W Range $3.51

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AI Analysis

AI-powered fundamental assessment

Confidence
90%
Great Elm Group (GEG) exhibits severe fundamental weakness, highlighted by a Piotroski F-Score of 2/9, indicating poor financial health and operational decay. The company is struggling with deep negative profitability, including an operating margin of -140.59% and a negative ROE of -20.39%. Revenue is in a clear decline both YoY and Q/Q, while technical trends are entirely bearish. Despite a strong current ratio suggesting high liquidity, the lack of earnings and shrinking top line make the current valuation unsustainable.

Key Strengths

Very high current ratio (10.32) indicating strong short-term liquidity
Price-to-Book ratio (1.12) suggests the stock is trading near its accounting value
Strong quick ratio (9.33) showing minimal reliance on inventory for liquidity
Low forward P/E (1.35) if projected earnings materialize
Micro-cap size allows for high volatility spikes on positive news

Key Risks

Severe negative profit margins (-60.61%) and operating losses
Consistent revenue contraction (-14.10% YoY)
Weak Piotroski F-Score (2/9) signaling fundamental deterioration
Bearish technical trend (0/100) with significant 6-month price decline
Lack of analyst coverage and institutional visibility
AI Fair Value Estimate
Based on comprehensive analysis
$1.75
-12.5% below current price

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