SPAR GROUP INC (SGRP)
US7849331035 - Common Stock
We assign a fundamental rating of 5 out of 10 to SGRP. SGRP was compared to 92 industry peers in the Media industry. SGRP has an average financial health and profitability rating. SGRP is valued quite cheap, but it does not seem to be growing. These ratings would make SGRP suitable for value investing!
1. Profitability
1.1 Basic Checks
SGRP had positive earnings in the past year.
SGRP had a positive operating cash flow in the past year.
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.
1.2 Ratios
SGRP's Return On Assets of 18.17% is amongst the best of the industry. SGRP outperforms 94.51% of its industry peers.
SGRP has a better Return On Equity (41.81%) than 97.80% of its industry peers.
With an excellent Return On Invested Capital value of 9.21%, SGRP belongs to the best of the industry, outperforming 81.32% of the companies in the same industry.
SGRP had an Average Return On Invested Capital over the past 3 years of 10.32%. This is above the industry average of 6.97%.
| 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
SGRP's Profit Margin of 5.35% is fine compared to the rest of the industry. SGRP outperforms 71.43% of its industry peers.
SGRP's Profit Margin has been stable in the last couple of years.
SGRP's Operating Margin of 2.59% is on the low side compared to the rest of the industry. SGRP is outperformed by 64.84% 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 76.92% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SGRP is still 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
SGRP has a better debt/assets ratio than last year.
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.
With an excellent Altman-Z score value of 5.26, SGRP belongs to the best of the industry, outperforming 87.91% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 5.99, SGRP is doing good in the industry, outperforming 73.63% of the companies in the same industry.
A Debt/Equity ratio of 0.67 indicates that SGRP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.67, SGRP perfoms like the industry average, outperforming 51.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 5.99 | ||
| Altman-Z | 5.26 |
ROIC/WACC0.99
WACC9.29%
2.3 Liquidity
A Current Ratio of 1.77 indicates that SGRP should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.77, SGRP is in line with its industry, outperforming 58.24% 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.
Looking at the Quick ratio, with a value of 1.77, SGRP is in line with its industry, outperforming 58.24% of the companies in the same industry.
| 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.
Measured over the past years, SGRP shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.09% on average per year.
Looking at the last year, SGRP shows a very negative growth in Revenue. The Revenue has decreased by -12.74% in the last year.
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
The Earnings Per Share is expected to grow by 14.47% on average over the next years. This is quite good.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.30 indicates a reasonable valuation of SGRP.
86.81% of the companies in the same industry are more expensive than SGRP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.77. SGRP is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 15.60, which indicates a correct valuation of SGRP.
Based on the Price/Forward Earnings ratio, SGRP is valued a bit cheaper than 64.84% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SGRP to the average of the S&P500 Index (23.38), we can say SGRP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 15.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SGRP is valued cheaply inside the industry as 94.51% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SGRP is valued a bit cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.12 | ||
| EV/EBITDA | 3.42 |
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.
A more expensive valuation may be justified as SGRP's earnings are expected to grow with 14.47% in the coming years.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y-15.15%
EPS Next 3Y14.47%
5. Dividend
5.1 Amount
No dividends for SGRP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SPAR GROUP INC
NASDAQ:SGRP (12/18/2024, 3:54:45 PM)
1.91
+0.02 (+1.06%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap44.37M
Analysts
Price Target
Short Float %
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.3 | ||
| Fwd PE | 15.6 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
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OCF(TTM)
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SpS
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PEG (NY)0.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.17% | ||
| ROE | 41.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 2.59% | ||
| PM (TTM) | 5.35% | ||
| GM | 20.47% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover3.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)34.71%
EPS 3Y-0.09%
EPS 5Y
EPS Q2Q%
EPS Next Y176%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.74%
Revenue growth 3Y4.46%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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EBIT Next 5Y
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