Great Elm Capital Corp. (GECC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Silvercrest Asset Management Group, Inc.

OFS Capital Corp.

Great Elm Capital Corp.

Monroe Capital Corp.

Oxford Square Capital Corp.

Portman Ridge Finance Corp.

Why is Great Elm Capital Corp. ?

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(HY) At USD 8.57 MM has Grown at 36.45%

Risky - Market Cap of less than 100 cr

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -24.56%, its profits have fallen by -73.3%

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -3.63% over the previous quarter and collectively hold 13.46% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -24.56% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Great Elm Capital Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Great Elm Capital Corp.

-24.04%

-0.74

33.67%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

27.88%

EBIT Growth (5y)

25.19%

EBIT to Interest (avg)

0.86

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

8.43%

Dividend Payout Ratio

387.92%

Pledged Shares

Institutional Holding

13.46%

ROCE (avg)

14.08%

ROE (avg)

3.95%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.93

EV to EBIT

5.77

EV to EBITDA

5.77

EV to Capital Employed

0.93

EV to Sales

2.87

PEG Ratio

Dividend Yield

903.47%

ROCE (Latest)

16.18%

ROE (Latest)

3.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

34What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 15.63 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -4.64% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 10.03 times

NET SALES(Q)

Highest at USD 14.74 MM

PRE-TAX PROFIT(Q)

Highest at USD 11.81 MM

NET PROFIT(Q)

Highest at USD 11.74 MM

EPS(Q)

Highest at USD 1.02

-4What is not working for the Company

INTEREST(HY)

At USD 8.57 MM has Grown at 36.45%

Here's what is working for Great Elm Capital Corp.

Pre-Tax Profit

At USD 11.81 MM has Grown at 869.11%

over average net sales of the previous four periods of USD 1.22 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 11.74 MM has Grown at 952.24%

over average net sales of the previous four periods of USD 1.12 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Sales

At USD 14.74 MM has Grown at 38.08%

over average net sales of the previous four periods of USD 10.67 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Operating Cash Flow

Highest at USD 15.63 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 14.74 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit

Highest at USD 11.81 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 11.74 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 1.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Highest at 10.03 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -4.64% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Great Elm Capital Corp.

Interest

At USD 8.57 MM has Grown at 36.45%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)