Great Elm Group Inc. Common Stock (GEG)

FairStock Score: 33/100 — RISKY

Key Financials

AI Analysis

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

I look first for durable earning power and a margin of safety. Great Elm is a tiny $66.9M market-cap asset manager, so scale is limited. The filed record is erratic: in fiscal 2025, the year ended 2025-06-30, revenue was $16.3M and net income $12.9M, or $0.38 per diluted share. In fiscal 2026, the year ended 2026-06-30, revenue rose to $27.8M, but net income swung to a loss of $36.9M, or $1.17 per diluted share. Quarterly filings show the pain: in fiscal Q2 2026, the quarter ended 2025-12-31, net loss was $16.5M on $3.0M revenue; in fiscal Q3 2026, the quarter ended 2026-03-31, the loss was $13.5M on $3.4M revenue. Those are not the marks of a stable compounder. The FairStock calculations at the 2026-10-13 close of $2.15 show a negative P/E of -1.84, P/B of 1.57, ROE of -60.77%, ROCE of -6.54%, and D/E of 1.58. The Altman Z-score of -38.78 signals financial distress, yet the Piotroski F-score is 8/9 and trailing free cash flow is $15.7M, a 23.4% FCF yield. A 48.78% dividend yield is a red flag to me, not income. The Lynch category is TURNAROUND - loss in latest year after earlier profits. Perhaps the recent quarter line shows improvement, but I need evidence that earnings are real and repeatable. At 1.57 times book with negative returns, I see speculation, not a clear Graham bargain.

In plain English: Great Elm Group is a small asset manager focused on credit and real estate. Its latest full-year filed results show a large loss, and the business looks weak right now. At $2.15, the price does not look clearly cheap against its accounting value and losses, even though cash flow and turnaround signs deserve watching.

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

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

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