Great Elm Capital Corp. Common Stock (GECC)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham investor, I ask whether this is a durable business at a fair price. Great Elm Capital is a business development company that lends to middle-market firms and takes equity in some. In fiscal 2025, the year ended 2025-12-31, filed results show net income of -$31.8M and diluted EPS of -$2.57. That followed fiscal 2024, the year ended 2024-12-31, with net income of $3.6M and diluted EPS of $0.36, and fiscal 2023, the year ended 2023-12-31, with net income of $25.3M and diluted EPS of $3.33. So the recent record is volatile and deteriorating. The latest quarter, fiscal Q2 2026, the quarter ended 2026-06-30, showed net income of $6.4M and diluted EPS of $0.46, but one good quarter does not erase the annual loss. FairStock's calculations at the 2026-10-13 close of $4.98 show a negative P/E of -1.55, a P/B of 0.63, an ROE of -30.59%, and an Altman Z-Score of -0.97, which points to financial distress. The D/E of 1.47 means borrowed money magnifies results. The 18.42% dividend yield is alluring but dangerous if earnings do not cover it. Yet the Piotroski F-Score is 7/9, and FairStock's data show trailing twelve-month free cash flow of $30.0M and a 43.4% FCF yield, so cash generation may be improving. FairStock classifies it as a TURNAROUND: a loss in the latest year after earlier profits. A true Graham bargain needs a margin of safety; here, price below book value at 0.63x is a start, but without stable earnings and with a negative Altman Z-Score, the moat is narrow and the risk is high. I would need evidence that the fiscal Q2 2026 profit is recurring, not a one-off.

In plain English: Great Elm Capital lends money to and invests in middle-sized companies. The business looks weak right now: it lost money in fiscal 2025 after making money in the two years before, although the latest quarter was profitable. The stock price is below the value of its net assets and it pays a very high dividend, but the losses and heavy borrowing make the price look more like a risky turnaround than a safe bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer