7.25 USD
+0.15 (+2.11%)
Taking everything into account, GECC scores 3 out of 10 in our fundamental rating. GECC was compared to 237 industry peers in the Capital Markets industry. While GECC is still in line with the averages on profitability rating, there are concerns on its financial health. GECC has a decent growth rate and is not valued too expensively.
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 multiple years GECC reported negative net income over the last 5 years.
- In multiple years GECC reported negative operating cash flow during the last 5 years.
1.2 Ratios
- With a decent Return On Assets value of 4.28%, GECC is doing good in the industry, outperforming 64.14% of the companies in the same industry.
- GECC has a Return On Equity of 12.52%. This is in the better half of the industry: GECC outperforms 70.46% of its industry peers.
- GECC's Return On Invested Capital of 4.03% is in line compared to the rest of the industry. GECC outperforms 58.65% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for GECC is below the industry average of 7.27%.
- The 3 year average ROIC (3.63%) for GECC is below the current ROIC(4.03%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.28% | ||
| ROE | 12.52% | ||
| ROIC | 4.03% |
ROA(3y)2.09%
ROA(5y)-1.48%
ROE(3y)3.3%
ROE(5y)-8.81%
ROIC(3y)3.63%
ROIC(5y)3.66%
1.3 Margins
- GECC has a better Profit Margin (36.80%) than 82.70% of its industry peers.
- The Operating Margin of GECC (36.02%) is better than 67.51% of its industry peers.
- GECC's Operating Margin has declined in the last couple of years.
- GECC has a Gross Margin of 45.51%. This is comparable to the rest of the industry: GECC outperforms 50.21% of its industry peers.
- GECC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.02% | ||
| PM (TTM) | 36.8% | ||
| GM | 45.51% |
OM growth 3Y-12.64%
OM growth 5Y-4.62%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.36%
GM growth 5Y-2.77%
2. Health
2.1 Basic Checks
- GECC has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for GECC has been increased compared to 5 years ago.
- GECC has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of -0.38, we must say that GECC is in the distress zone and has some risk of bankruptcy.
- GECC has a Altman-Z score of -0.38. This is amonst the worse of the industry: GECC underperforms 81.86% of its industry peers.
- A Debt/Equity ratio of 1.40 is on the high side and indicates that GECC has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.40, GECC is not doing good in the industry: 67.93% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.38 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- GECC has a Current Ratio of 0.07. This is a bad value and indicates that GECC is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.07, GECC is not doing good in the industry: 91.98% of the companies in the same industry are doing better.
- A Quick Ratio of 0.07 indicates that GECC may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.07, GECC is doing worse than 91.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.07 | ||
| Quick Ratio | 0.07 |
3. Growth
3.1 Past
- The earnings per share for GECC have decreased strongly by -13.25% in the last year.
- Measured over the past years, GECC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -26.17% on average per year.
- GECC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.32%.
- GECC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.78% yearly.
EPS 1Y (TTM)-13.25%
EPS 3Y-23.86%
EPS 5Y-26.17%
EPS Q2Q%-48.72%
Revenue 1Y (TTM)18.32%
Revenue growth 3Y15.91%
Revenue growth 5Y7.78%
Sales Q2Q%-9.25%
3.2 Future
- Based on estimates for the next years, GECC will show a small growth in Earnings Per Share. The EPS will grow by 2.56% on average per year.
- GECC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.83% yearly.
EPS Next Y16.14%
EPS Next 2Y2.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year23.28%
Revenue Next 2Y12.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 5.53, which indicates a rather cheap valuation of GECC.
- Based on the Price/Earnings ratio, GECC is valued cheaply inside the industry as 90.30% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of GECC to the average of the S&P500 Index (28.60), we can say GECC is valued rather cheaply.
- GECC is valuated cheaply with a Price/Forward Earnings ratio of 5.38.
- GECC's Price/Forward Earnings ratio is rather cheap when compared to the industry. GECC is cheaper than 95.36% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. GECC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.53 | ||
| Fwd PE | 5.38 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- GECC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y2.56%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- GECC has a Yearly Dividend Yield of 8.14%, which is a nice return.
- Compared to an average industry Dividend Yield of 5.87, GECC pays a bit more dividend than its industry peers.
- GECC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.14% |
5.2 History
- The dividend of GECC decreases each year by -23.69%.
- 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)-23.69%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- 95.97% of the earnings are spent on dividend by GECC. This is not a sustainable payout ratio.
DP95.97%
EPS Next 2Y2.56%
EPS Next 3YN/A
GREAT ELM CAPITAL CORP / GECC FAQ
Can you provide the ChartMill fundamental rating for GREAT ELM CAPITAL CORP?
ChartMill assigns a fundamental rating of 3 / 10 to GECC.
What is the valuation status for GECC stock?
ChartMill assigns a valuation rating of 6 / 10 to GREAT ELM CAPITAL CORP (GECC). This can be considered as Fairly Valued.
How profitable is GREAT ELM CAPITAL CORP (GECC) stock?
GREAT ELM CAPITAL CORP (GECC) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for GECC stock?
The Price/Earnings (PE) ratio for GREAT ELM CAPITAL CORP (GECC) is 5.53 and the Price/Book (PB) ratio is 0.72.
What is the financial health of GREAT ELM CAPITAL CORP (GECC) stock?
The financial health rating of GREAT ELM CAPITAL CORP (GECC) is 0 / 10.