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SPAR GROUP INC (SGRP) Stock Fundamental Analysis

NASDAQ:SGRP - Nasdaq - US7849331035 - Common Stock

1.87  +0.03 (+1.63%)

Fundamental Rating

5

Overall SGRP gets a fundamental rating of 5 out of 10. We evaluated SGRP against 92 industry peers in the Media industry. Both the profitability and the financial health of SGRP get a neutral evaluation. Nothing too spectacular is happening here. SGRP is cheap, but on the other hand it scores bad on growth. With these ratings, SGRP could be worth investigating further for value investing!.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

SGRP had positive earnings in the past year.
In the past year SGRP had a positive cash flow from operations.
In multiple years SGRP reported negative net income over the last 5 years.
SGRP had a positive operating cash flow in 4 of the past 5 years.
SGRP Yearly Net Income VS EBIT VS OCF VS FCFSGRP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5M -5M 10M

1.2 Ratios

Looking at the Return On Assets, with a value of 18.17%, SGRP belongs to the top of the industry, outperforming 95.40% of the companies in the same industry.
Looking at the Return On Equity, with a value of 41.81%, SGRP belongs to the top of the industry, outperforming 97.70% of the companies in the same industry.
The Return On Invested Capital of SGRP (9.21%) is better than 82.76% of its industry peers.
SGRP had an Average Return On Invested Capital over the past 3 years of 10.32%. This is above the industry average of 6.90%.
Industry RankSector Rank
ROA 18.17%
ROE 41.81%
ROIC 9.21%
ROA(3y)0.52%
ROA(5y)1.72%
ROE(3y)0.53%
ROE(5y)5.92%
ROIC(3y)10.32%
ROIC(5y)12.96%
SGRP Yearly ROA, ROE, ROICSGRP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10 15

1.3 Margins

With a decent Profit Margin value of 5.35%, SGRP is doing good in the industry, outperforming 71.26% of the companies in the same industry.
SGRP's Profit Margin has been stable in the last couple of years.
SGRP has a worse Operating Margin (2.59%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of SGRP has grown nicely.
The Gross Margin of SGRP (20.47%) is worse than 79.31% of its industry peers.
SGRP's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 2.59%
PM (TTM) 5.35%
GM 20.47%
OM growth 3Y-3.92%
OM growth 5Y18.25%
PM growth 3Y0.23%
PM growth 5YN/A
GM growth 3Y2.5%
GM growth 5Y1.78%
SGRP Yearly Profit, Operating, Gross MarginsSGRP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15 20

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SGRP is creating some value.
Compared to 1 year ago, SGRP has more shares outstanding
SGRP has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SGRP has been reduced compared to a year ago.
SGRP Yearly Shares OutstandingSGRP Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M
SGRP Yearly Total Debt VS Total AssetsSGRP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M

2.2 Solvency

SGRP has an Altman-Z score of 5.24. This indicates that SGRP is financially healthy and has little risk of bankruptcy at the moment.
SGRP has a better Altman-Z score (5.24) than 88.51% of its industry peers.
The Debt to FCF ratio of SGRP is 5.99, which is a neutral value as it means it would take SGRP, 5.99 years of fcf income to pay off all of its debts.
SGRP's Debt to FCF ratio of 5.99 is fine compared to the rest of the industry. SGRP outperforms 73.56% of its industry peers.
SGRP has a Debt/Equity ratio of 0.67. This is a neutral value indicating SGRP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.67, SGRP perfoms like the industry average, outperforming 52.87% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF 5.99
Altman-Z 5.24
ROIC/WACC0.98
WACC9.45%
SGRP Yearly LT Debt VS Equity VS FCFSGRP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10M 20M

2.3 Liquidity

SGRP has a Current Ratio of 1.77. This is a normal value and indicates that SGRP is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.77, SGRP perfoms like the industry average, outperforming 58.62% of the companies in the same industry.
A Quick Ratio of 1.77 indicates that SGRP should not have too much problems paying its short term obligations.
SGRP has a Quick ratio (1.77) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.77
Quick Ratio 1.77
SGRP Yearly Current Assets VS Current LiabilitesSGRP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M

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3

3. Growth

3.1 Past

SGRP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.71%, which is quite impressive.
The Earnings Per Share has been decreasing by -0.09% on average over the past years.
The Revenue for SGRP has decreased by -12.74% in the past year. This is quite bad
SGRP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.77% yearly.
EPS 1Y (TTM)34.71%
EPS 3Y-0.09%
EPS 5YN/A
EPS Q2Q%-200%
Revenue 1Y (TTM)-12.74%
Revenue growth 3Y4.46%
Revenue growth 5Y2.77%
Sales Q2Q%-43.88%

3.2 Future

Based on estimates for the next years, SGRP will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.47% on average per year.
Based on estimates for the next years, SGRP will show a very negative growth in Revenue. The Revenue will decrease by -19.07% on average per year.
EPS Next Y176%
EPS Next 2Y-15.15%
EPS Next 3Y14.47%
EPS Next 5YN/A
Revenue Next Year-21.17%
Revenue Next 2Y-19.07%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
SGRP Yearly Revenue VS EstimatesSGRP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M 200M 250M
SGRP Yearly EPS VS EstimatesSGRP Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3 0.4

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7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 8.13, which indicates a very decent valuation of SGRP.
86.21% of the companies in the same industry are more expensive than SGRP, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.29, SGRP is valued rather cheaply.
A Price/Forward Earnings ratio of 15.28 indicates a correct valuation of SGRP.
SGRP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SGRP is cheaper than 62.07% of the companies in the same industry.
SGRP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 8.13
Fwd PE 15.28
SGRP Price Earnings VS Forward Price EarningsSGRP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SGRP is valued cheaper than 94.25% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SGRP indicates a somewhat cheap valuation: SGRP is cheaper than 65.52% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 12.85
EV/EBITDA 3.27
SGRP Per share dataSGRP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of SGRP may justify a higher PE ratio.
SGRP's earnings are expected to grow with 14.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y-15.15%
EPS Next 3Y14.47%

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0

5. Dividend

5.1 Amount

SGRP does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SPAR GROUP INC

NASDAQ:SGRP (1/22/2025, 10:31:05 AM)

1.87

+0.03 (+1.63%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)11-14 2024-11-14/amc
Earnings (Next)N/A N/A
Inst Owners11.34%
Inst Owner Change0%
Ins Owners1.19%
Ins Owner Change-5.21%
Market Cap43.45M
Analysts82.86
Price Target7.14 (281.82%)
Short Float %1.06%
Short Ratio0.86
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)7.93%
Min Revenue beat(2)-11.79%
Max Revenue beat(2)27.65%
Revenue beat(4)2
Avg Revenue beat(4)13.59%
Min Revenue beat(4)-11.79%
Max Revenue beat(4)40.3%
Revenue beat(8)3
Avg Revenue beat(8)4.51%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 8.13
Fwd PE 15.28
P/S 0.19
P/FCF 12.85
P/OCF 9.76
P/B 1.48
P/tB 1.59
EV/EBITDA 3.27
EPS(TTM)0.23
EY12.3%
EPS(NY)0.12
Fwd EY6.55%
FCF(TTM)0.15
FCFY7.78%
OCF(TTM)0.19
OCFY10.25%
SpS9.85
BVpS1.26
TBVpS1.18
PEG (NY)0.05
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 18.17%
ROE 41.81%
ROCE 17.93%
ROIC 9.21%
ROICexc 15.01%
ROICexgc 16%
OM 2.59%
PM (TTM) 5.35%
GM 20.47%
FCFM 1.48%
ROA(3y)0.52%
ROA(5y)1.72%
ROE(3y)0.53%
ROE(5y)5.92%
ROIC(3y)10.32%
ROIC(5y)12.96%
ROICexc(3y)12.88%
ROICexc(5y)17.1%
ROICexgc(3y)14.23%
ROICexgc(5y)20.1%
ROCE(3y)18.02%
ROCE(5y)21.39%
ROICexcg growth 3Y-14.06%
ROICexcg growth 5Y-6.1%
ROICexc growth 3Y-10.01%
ROICexc growth 5Y1.71%
OM growth 3Y-3.92%
OM growth 5Y18.25%
PM growth 3Y0.23%
PM growth 5YN/A
GM growth 3Y2.5%
GM growth 5Y1.78%
F-Score5
Asset Turnover3.4
Health
Industry RankSector Rank
Debt/Equity 0.67
Debt/FCF 5.99
Debt/EBITDA 2.5
Cap/Depr 57.1%
Cap/Sales 0.47%
Interest Coverage 2.22
Cash Conversion 56.98%
Profit Quality 27.6%
Current Ratio 1.77
Quick Ratio 1.77
Altman-Z 5.24
F-Score5
WACC9.45%
ROIC/WACC0.98
Cap/Depr(3y)77.81%
Cap/Depr(5y)74.31%
Cap/Sales(3y)0.61%
Cap/Sales(5y)0.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)34.71%
EPS 3Y-0.09%
EPS 5YN/A
EPS Q2Q%-200%
EPS Next Y176%
EPS Next 2Y-15.15%
EPS Next 3Y14.47%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.74%
Revenue growth 3Y4.46%
Revenue growth 5Y2.77%
Sales Q2Q%-43.88%
Revenue Next Year-21.17%
Revenue Next 2Y-19.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-29.24%
EBIT growth 3Y0.36%
EBIT growth 5Y21.52%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y180.89%
FCF growth 3Y-8.15%
FCF growth 5Y66.96%
OCF growth 1Y267.96%
OCF growth 3Y-8.14%
OCF growth 5Y27.18%