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GREAT ELM CAPITAL CORP (GECC) Stock Fundamental Analysis

NASDAQ:GECC - Nasdaq - US3903207039 - Common Stock - Currency: USD

11.12  +0.02 (+0.18%)

After market: 10.82 -0.3 (-2.7%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to GECC. GECC was compared to 225 industry peers in the Capital Markets industry. GECC has a bad profitability rating. Also its financial health evaluation is rather negative. GECC has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year GECC was profitable.
GECC had a negative operating cash flow in the past year.
In the past 5 years GECC reported 4 times negative net income.
In multiple years GECC reported negative operating cash flow during the last 5 years.
GECC Yearly Net Income VS EBIT VS OCF VS FCFGECC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 20M -20M -40M

1.2 Ratios

GECC's Return On Assets of 1.38% is on the low side compared to the rest of the industry. GECC is outperformed by 61.64% of its industry peers.
The Return On Equity of GECC (4.69%) is worse than 64.84% of its industry peers.
With a Return On Invested Capital value of 3.09%, GECC is not doing good in the industry: 60.27% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for GECC is below the industry average of 6.76%.
Industry RankSector Rank
ROA 1.38%
ROE 4.69%
ROIC 3.09%
ROA(3y)0.94%
ROA(5y)-2.21%
ROE(3y)-2.17%
ROE(5y)-11.07%
ROIC(3y)4.1%
ROIC(5y)3.89%
GECC Yearly ROA, ROE, ROICGECC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 -40

1.3 Margins

GECC has a Profit Margin of 15.00%. This is comparable to the rest of the industry: GECC outperforms 49.77% of its industry peers.
GECC's Operating Margin of 35.34% is fine compared to the rest of the industry. GECC outperforms 61.19% of its industry peers.
In the last couple of years the Operating Margin of GECC has declined.
GECC has a Gross Margin (46.83%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of GECC has declined.
Industry RankSector Rank
OM 35.34%
PM (TTM) 15%
GM 46.83%
OM growth 3Y4.58%
OM growth 5Y-8.52%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.83%
GM growth 5Y-6.64%
GECC Yearly Profit, Operating, Gross MarginsGECC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 -100 -200 -300

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0

2. Health

2.1 Basic Checks

Compared to 1 year ago, GECC has about the same amount of shares outstanding.
GECC has more shares outstanding than it did 5 years ago.
GECC has a worse debt/assets ratio than last year.
GECC Yearly Shares OutstandingGECC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2M 4M 6M
GECC Yearly Total Debt VS Total AssetsGECC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M

2.2 Solvency

GECC has an Altman-Z score of -0.36. This is a bad value and indicates that GECC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.36, GECC is doing worse than 84.02% of the companies in the same industry.
GECC has a Debt/Equity ratio of 1.83. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.83, GECC is doing worse than 74.89% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.83
Debt/FCF N/A
Altman-Z -0.36
ROIC/WACCN/A
WACCN/A
GECC Yearly LT Debt VS Equity VS FCFGECC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 50M -50M 100M 150M

2.3 Liquidity

A Current Ratio of 0.11 indicates that GECC may have some problems paying its short term obligations.
GECC has a worse Current ratio (0.11) than 91.32% of its industry peers.
A Quick Ratio of 0.11 indicates that GECC may have some problems paying its short term obligations.
GECC's Quick ratio of 0.11 is on the low side compared to the rest of the industry. GECC is outperformed by 91.32% of its industry peers.
Industry RankSector Rank
Current Ratio 0.11
Quick Ratio 0.11
GECC Yearly Current Assets VS Current LiabilitesGECC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M

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4

3. Growth

3.1 Past

The earnings per share for GECC have decreased by 0.00% in the last year.
GECC shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -26.93% yearly.
Looking at the last year, GECC shows a quite strong growth in Revenue. The Revenue has grown by 15.72% in the last year.
Measured over the past years, GECC shows a small growth in Revenue. The Revenue has been growing by 5.24% on average per year.
EPS 1Y (TTM)0%
EPS 3Y-22.02%
EPS 5Y-26.93%
EPS Q2Q%-2.5%
Revenue 1Y (TTM)15.72%
Revenue growth 3Y16.09%
Revenue growth 5Y5.24%
Sales Q2Q%26.42%

3.2 Future

The Earnings Per Share is expected to decrease by -5.94% on average over the next years.
GECC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.09% yearly.
EPS Next Y-10.91%
EPS Next 2Y-5.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year15.46%
Revenue Next 2Y10.09%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
GECC Yearly Revenue VS EstimatesGECC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
GECC Yearly EPS VS EstimatesGECC Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8

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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 7.36 indicates a rather cheap valuation of GECC.
Compared to the rest of the industry, the Price/Earnings ratio of GECC indicates a rather cheap valuation: GECC is cheaper than 86.30% of the companies listed in the same industry.
GECC is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
GECC is valuated cheaply with a Price/Forward Earnings ratio of 7.66.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GECC indicates a rather cheap valuation: GECC is cheaper than 88.58% of the companies listed in the same industry.
GECC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
Industry RankSector Rank
PE 7.36
Fwd PE 7.66
GECC Price Earnings VS Forward Price EarningsGECC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
GECC Per share dataGECC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10

4.3 Compensation for Growth

GECC's earnings are expected to decrease with -5.94% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.94%
EPS Next 3YN/A

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 13.33%, GECC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 9.98, GECC pays a better dividend. On top of this GECC pays more dividend than 84.93% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, GECC pays a better dividend.
Industry RankSector Rank
Dividend Yield 13.33%

5.2 History

The dividend of GECC decreases each year by -32.68%.
GECC has been paying a dividend for over 5 years, so it has already some track record.
GECC has decreased its dividend recently.
Dividend Growth(5Y)-32.68%
Div Incr Years0
Div Non Decr Years1
GECC Yearly Dividends per shareGECC Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

5.3 Sustainability

232.11% of the earnings are spent on dividend by GECC. This is not a sustainable payout ratio.
The Dividend Rate of GECC has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP232.11%
EPS Next 2Y-5.94%
EPS Next 3YN/A
GECC Yearly Income VS Free CF VS DividendGECC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 20M -20M -40M
GECC Dividend Payout.GECC Dividend Payout, showing the Payout Ratio.GECC Dividend Payout.PayoutRetained Earnings

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GREAT ELM CAPITAL CORP

NASDAQ:GECC (2/21/2025, 8:23:17 PM)

After market: 10.82 -0.3 (-2.7%)

11.12

+0.02 (+0.18%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)10-31 2024-10-31/bmo
Earnings (Next)02-27 2025-02-27/bmo
Inst Owners13.29%
Inst Owner Change-97.93%
Ins Owners2.02%
Ins Owner Change-0.8%
Market Cap128.32M
Analysts76
Price Target10.97 (-1.35%)
Short Float %0.7%
Short Ratio1.77
Dividend
Industry RankSector Rank
Dividend Yield 13.33%
Yearly Dividend1.4
Dividend Growth(5Y)-32.68%
DP232.11%
Div Incr Years0
Div Non Decr Years1
Ex-Date03-17 2025-03-17 (0.37)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.58%
Min EPS beat(2)-10.36%
Max EPS beat(2)7.2%
EPS beat(4)1
Avg EPS beat(4)-5.26%
Min EPS beat(4)-12.38%
Max EPS beat(4)7.2%
EPS beat(8)4
Avg EPS beat(8)0.83%
EPS beat(12)7
Avg EPS beat(12)25.71%
EPS beat(16)8
Avg EPS beat(16)16.14%
Revenue beat(2)1
Avg Revenue beat(2)1.02%
Min Revenue beat(2)-3.34%
Max Revenue beat(2)5.37%
Revenue beat(4)1
Avg Revenue beat(4)-1.01%
Min Revenue beat(4)-4.4%
Max Revenue beat(4)5.37%
Revenue beat(8)5
Avg Revenue beat(8)3.31%
Revenue beat(12)5
Avg Revenue beat(12)-2.73%
Revenue beat(16)7
Avg Revenue beat(16)-2.34%
PT rev (1m)0%
PT rev (3m)2.38%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)-3.86%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)-2.74%
Revenue NQ rev (3m)-2.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.62%
Valuation
Industry RankSector Rank
PE 7.36
Fwd PE 7.66
P/S 3.26
P/FCF N/A
P/OCF N/A
P/B 1.02
P/tB 1.02
EV/EBITDA N/A
EPS(TTM)1.51
EY13.58%
EPS(NY)1.45
Fwd EY13.05%
FCF(TTM)-9.71
FCFYN/A
OCF(TTM)-9.71
OCFYN/A
SpS3.41
BVpS10.9
TBVpS10.9
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.38%
ROE 4.69%
ROCE 3.91%
ROIC 3.09%
ROICexc 3.09%
ROICexgc 3.09%
OM 35.34%
PM (TTM) 15%
GM 46.83%
FCFM N/A
ROA(3y)0.94%
ROA(5y)-2.21%
ROE(3y)-2.17%
ROE(5y)-11.07%
ROIC(3y)4.1%
ROIC(5y)3.89%
ROICexc(3y)4.17%
ROICexc(5y)4.17%
ROICexgc(3y)4.19%
ROICexgc(5y)4.18%
ROCE(3y)5.19%
ROCE(5y)4.93%
ROICexcg growth 3Y2.32%
ROICexcg growth 5Y-8.75%
ROICexc growth 3Y2.35%
ROICexc growth 5Y-8.72%
OM growth 3Y4.58%
OM growth 5Y-8.52%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.83%
GM growth 5Y-6.64%
F-Score3
Asset Turnover0.09
Health
Industry RankSector Rank
Debt/Equity 1.83
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 1.16
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.11
Quick Ratio 0.11
Altman-Z -0.36
F-Score3
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y-22.02%
EPS 5Y-26.93%
EPS Q2Q%-2.5%
EPS Next Y-10.91%
EPS Next 2Y-5.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)15.72%
Revenue growth 3Y16.09%
Revenue growth 5Y5.24%
Sales Q2Q%26.42%
Revenue Next Year15.46%
Revenue Next 2Y10.09%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y18.65%
EBIT growth 3Y21.4%
EBIT growth 5Y-3.72%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-468.82%
FCF growth 3Y-2.12%
FCF growth 5YN/A
OCF growth 1Y-468.82%
OCF growth 3Y-2.12%
OCF growth 5YN/A