SPAR GROUP INC (SGRP) Stock Fundamental Analysis
NASDAQ:SGRP - Nasdaq - US7849331035 - Common Stock - Currency: USD
Overall SGRP gets a fundamental rating of 5 out of 10. We evaluated SGRP against 93 industry peers in the Media industry. SGRP has only an average score on both its financial health and profitability. SGRP has a bad growth rate and is valued cheaply. This makes SGRP very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year SGRP was profitable.
SGRP had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SGRP reported negative net income in multiple years.
Of the past 5 years SGRP 4 years had a positive operating cash flow.
1.2 Ratios
SGRP's Return On Assets of 18.17% is amongst the best of the industry. SGRP outperforms 95.40% of its industry peers.
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.
SGRP's Return On Invested Capital of 9.21% is amongst the best of the industry. SGRP outperforms 83.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SGRP is above the industry average of 7.01%.
| Industry Rank | Sector 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%
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.
Looking at the Operating Margin, with a value of 2.59%, SGRP is doing worse than 67.82% of the companies in the same industry.
SGRP's Operating Margin has improved in the last couple of years.
SGRP's Gross Margin of 20.47% is on the low side compared to the rest of the industry. SGRP is outperformed by 80.46% of its industry peers.
SGRP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
SGRP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for SGRP has been increased compared to 1 year ago.
Compared to 5 years ago, SGRP has more shares outstanding
Compared to 1 year ago, SGRP has an improved debt to assets ratio.
2.2 Solvency
SGRP has an Altman-Z score of 5.26. This indicates that SGRP is financially healthy and has little risk of bankruptcy at the moment.
SGRP has a Altman-Z score of 5.26. This is amongst the best in the industry. SGRP outperforms 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 has a better Debt to FCF ratio (5.99) than 73.56% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that SGRP is somewhat dependend on debt financing.
SGRP's Debt to Equity ratio of 0.67 is in line compared to the rest of the industry. SGRP outperforms 52.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.99 | ||
| Altman-Z | 5.26 |
ROIC/WACC0.96
WACC9.61%
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.
SGRP has a Current ratio (1.77) which is comparable to the rest of the industry.
SGRP has a Quick 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.
SGRP's Quick ratio of 1.77 is in line compared to the rest of the industry. SGRP outperforms 57.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 |
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.
SGRP shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.09% yearly.
SGRP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.74%.
Measured over the past years, SGRP shows a small growth in Revenue. The Revenue has been growing by 2.77% on average per year.
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.
SGRP is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -19.07% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
SGRP is valuated cheaply with a Price/Earnings ratio of 7.91.
Compared to the rest of the industry, the Price/Earnings ratio of SGRP indicates a rather cheap valuation: SGRP is cheaper than 86.21% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. SGRP is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 14.87, which 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 68.97% of the companies in the same industry.
SGRP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.91 | ||
| Fwd PE | 14.87 |
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.
SGRP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SGRP is cheaper than 65.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.62 | ||
| EV/EBITDA | 3.38 |
4.3 Compensation for Growth
SGRP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SGRP has a very decent profitability rating, which 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)0.04
PEG (5Y)N/A
EPS Next 2Y-15.15%
EPS Next 3Y14.47%
5. Dividend
5.1 Amount
SGRP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.82
-0.04 (-2.15%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners12.75%
Inst Owner Change-23.01%
Ins Owners1.19%
Ins Owner Change-5.15%
Market Cap42.68M
Analysts82.86
Price Target7.14 (292.31%)
Short Float %1.85%
Short Ratio1.13
Dividend
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.91 | ||
| Fwd PE | 14.87 | ||
| P/S | 0.19 | ||
| P/FCF | 12.62 | ||
| P/OCF | 9.59 | ||
| P/B | 1.46 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | 3.38 |
EPS(TTM)0.23
EY12.64%
EPS(NY)0.12
Fwd EY6.73%
FCF(TTM)0.14
FCFY7.92%
OCF(TTM)0.19
OCFY10.43%
SpS9.76
BVpS1.25
TBVpS1.17
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 5.26 |
F-Score5
WACC9.61%
ROIC/WACC0.96
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%