GEE Group (JOB) AI Stock Analysis

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GEE Group

(NYSE MKT:JOB)

48Neutral

GEE Group is facing substantial financial and operational challenges, as seen in its declining revenues and negative earnings. The technical indicators suggest bearish momentum, and the company's negative P/E ratio further highlights its current unprofitability. However, the earnings call revealed strong liquidity and strategic initiatives that could potentially enhance future performance, albeit with significant risks remaining. These factors combine to result in a below-average overall stock score.

GEE Group (JOB) vs. S&P 500 (SPY)

Market Cap

$20.12M

Dividend YieldN/A

Average Volume (3M)164.40K

Price to Earnings (P/E)―

Beta (1Y)0.34

Revenue Growth-17.38%

EPS Growth-1165.13%

CountryUS

Employees210

SectorIndustrials

Sector Strength91

IndustryStaffing & Employment Services

Share Statistics

EPS (TTM)-0.10

Shares Outstanding109,413,246

10 Day Avg. Volume160,380

30 Day Avg. Volume164,403

Financial Highlights & Ratios

PEG Ratio>-0.01

Price to Book (P/B)0.40

Price to Sales (P/S)0.00

P/FCF Ratio-15.47

Enterprise Value/Market Cap0.26

Enterprise Value/Revenue0.01

Enterprise Value/Gross Profit0.15

Enterprise Value/Ebitda-0.05

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

GEE Group Business Overview & Revenue Model

Company DescriptionGEE Group, Inc. provides permanent and temporary professional and industrial staffing and placement services in the United States. The company operates through two segments, Industrial Staffing Services and Professional Staffing Services. It offers placement of information technology, accounting, finance, office, engineering, and medical professionals for direct hire and contract staffing services; and temporary staffing services for light industrial clients. The company also provides medical scribes, who offer electronic medical record services for emergency departments, specialty physician practices, and clinics. It offers professional and commercial staffing services under the names of Access Data Consulting, Agile Resources, Ashley Ellis, GEE Group, Omni One, Paladin Consulting, and Triad; medical staffing services under the Scribe Solutions brand; and contract and direct hire professional staffing services under the Accounting Now, Staffing Now, SNI Banking, SNI Certes, SNI Energy, SNI Financial, and SNI Technology brands. The company was formerly known as General Employment Enterprises, Inc. and changed its name to GEE Group, Inc. in July 2016. GEE Group, Inc. was founded in 1893 and is based in Jacksonville, Florida.

How the Company Makes MoneyGEE Group Inc. generates revenue primarily through the provision of staffing and workforce solutions. The company's key revenue streams include fees from temporary staffing services, where businesses are charged for the placement of skilled professionals on a temporary basis, and permanent placement services, where fees are earned upon successfully filling full-time positions. GEE Group also benefits from strategic partnerships and alliances that enhance its service offerings and expand its market reach. The company leverages its expertise in specialized staffing to cater to industries with high demand for skilled professionals, thus maintaining a steady flow of revenue.

GEE Group Financial Statement Overview

Summary

GEE Group is facing significant challenges in sustaining revenue and profitability, as evidenced by declining margins and revenue figures. While the company maintains a strong equity position, the negative return on equity and declining cash flows raise concerns about its future financial performance and ability to generate shareholder value. The company needs to address its operational inefficiencies and improve its cash flow generation to enhance its financial health.

Income Statement

Neutral

The company has experienced significant revenue decline from previous years, with total revenue dropping from $165.1 million in 2022 to $111.9 million in TTM 2024. Profitability has also been poor, with negative EBIT and EBITDA margins for the TTM period and annual 2023 report, indicating challenges in managing operational costs effectively. The gross profit margin has decreased over the years, reflecting declining efficiency in cost management.

Balance Sheet

Neutral

The balance sheet shows a relatively strong equity position with a high equity ratio, illustrating financial stability. However, the company's return on equity has turned negative in recent periods, indicating inefficiencies in generating profits from shareholders' equity. Despite low total debt, the declining net income poses a risk to overall financial health.

Cash Flow

Neutral

The company's cash flow situation is concerning, with operating cash flow dropping significantly. Free cash flow remains positive, but its growth is limited. The operating cash flow to net income ratio is low, suggesting potential cash management issues. The free cash flow to net income ratio has been positive but decreasing over time.

TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
Income Statement		Total Revenue
108.32M	116.48M	152.44M	165.11M	148.88M	129.84M
	Gross Profit
35.80M	37.65M	52.87M	61.68M	52.54M	44.70M
	EBIT
-47.35M	-27.06M	2.87M	5.94M	6.49M	-4.98M
	EBITDA
-45.58M	-27.06M	5.77M	25.79M	11.69M	5.39M
	Net Income Common Stockholders
-35.62M	-24.10M	9.42M	19.60M	6.00K	-14.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.91M	20.83M	22.47M	18.85M	9.95M	14.07M
	Total Assets
117.63M	95.90M	123.49M	119.55M	117.59M	120.01M
	Total Debt
3.56M	3.48M	3.94M	3.22M	21.43M	75.14M
	Net Debt
-16.35M	-17.35M	-18.53M	-15.63M	11.48M	61.07M
	Total Liabilities
11.30M	11.69M	14.19M	18.55M	36.82M	92.64M
	Stockholders Equity
106.32M	84.21M	109.30M	101.00M	80.77M	27.38M
Cash Flow		Free Cash Flow
-1.30M	144.00K	5.80M	8.90M	244.00K	-2.37M
	Operating Cash Flow
-1.34M	202.00K	5.89M	9.23M	370.00K	-2.25M
	Investing Cash Flow
-21.00K	-58.00K	-89.00K	-328.00K	-126.00K	-119.00K
	Financing Cash Flow
-147.00K	-1.79M	-2.18M	-167.00K	-4.37M	12.38M

GEE Group Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.18

Price Trends

50DMA

0.20

Negative

100DMA

0.21

Negative

200DMA

0.24

Negative

Market Momentum

MACD

>-0.01

Negative

RSI

44.59

Neutral

STOCH

18.56

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JOB, the sentiment is Negative. The current price of 0.18 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.20, and below the 200-day MA of 0.24, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.59 is Neutral, neither overbought nor oversold. The STOCH value of 18.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JOB.

GEE Group Risk Analysis

GEE Group disclosed 40 risk factors in its most recent earnings report. GEE Group reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

GEE Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MHH	67 Neutral	$95.29M	46.37	2.52%	―	3.93%	―
Sector *	64 Neutral	$4.43B	12.01	5.16%	249.23%	4.03%	-11.73%
BGSF	62 Neutral	$46.55M	―	-3.95%	4.69%	-12.93%	-159.19%
DHX	62 Neutral	$94.09M	268.89	-7.21%	―	-7.42%	-567.61%
HSON	49 Neutral	$27.51M	―	-8.66%	―	-9.28%	-244.22%
JOB	48 Neutral	$20.12M	―	-70.70%	―	-17.38%	-1165.13%
IPDN	35 Underperform	$3.19M	―	-67.31%	―	-12.88%	53.73%

* Industrials Sector Average

Performance Comparison

JOB

GEE Group

0.18

-0.16

-47.06%

DHX

DHI Group

1.93

-0.50

-20.58%

HSON

Hudson Global

10.00

-6.01

-37.54%

MHH

Mastech Holdings

8.10

-0.30

-3.57%

IPDN

Professional Diversity

1.53

-6.00

-79.68%

BGSF

4.19

-2.59

-38.20%

GEE Group Earnings Call Summary

Earnings Call Date:May 14, 2025

(Q2-2025)

% Change Since: 0.00%|

Next Earnings Date:Aug 18, 2025

Earnings Call Sentiment Negative

The earnings call reflects significant challenges for GEE Group, with declining revenues and large net losses indicating a difficult operating environment. However, the company's strong liquidity position and strategic M&A activities provide some positive outlook for future growth and profitability restoration.

Q2-2025 Updates

Positive Updates

Direct Hire Placement Revenue Growth

Direct hire placement revenues for the quarter were up 22% compared to the prior year period, showing resilience in a challenging market.

Strong Liquidity Position

GEE Group maintained a strong liquidity position with $18.7 million in cash, an undrawn ABL facility of $7.4 million, and no outstanding debt.

M&A Activity and Strategic Initiatives

The company completed its first M&A transaction of the year with the acquisition of Hornet Staffing and is evaluating several other opportunities, indicating a focus on growth through strategic acquisitions.

Negative Updates

Decline in Overall Revenue

Consolidated revenues were $24.5 million for the quarter, down 4% from the comparable prior period, and $48.5 million year-to-date, down 10%. This decline reflects the challenging economic environment.

Negative EBITDA and Net Loss

The company reported negative EBITDA of $600,000 for the quarter and a net loss from continuing operations of $33 million, primarily due to a $22 million noncash goodwill impairment charge and a $9.9 million noncash charge related to deferred tax assets.

Headwinds in Staffing Industry

The company faced significant challenges in the staffing industry, including macroeconomic uncertainties, interest rate volatility, and a shift in client behavior towards layoffs and hiring freezes.

Company Guidance

During the GEE Group's 2025 second quarter earnings call, several key metrics were discussed. The company reported consolidated revenues of $24.5 million for the quarter and $48.5 million year-to-date. Gross profits and margins were $8.4 million and 34.1% for the quarter, respectively, and $16.3 million and 33.6% year-to-date. The non-GAAP adjusted EBITDA was negative $600,000 for the quarter and negative $900,000 year-to-date. GEE Group also reported a net loss from continuing operations of $33 million, or $0.30 per diluted share, for the quarter, primarily due to a $22 million noncash goodwill impairment charge and a $9.9 million noncash charge related to a valuation allowance on deferred tax assets. The company is actively pursuing M&A activities to improve financial performance and expects to achieve profitability in late 2025 or early 2026. They also reported having $18.7 million in cash, an undrawn ABL facility of $7.4 million, and no outstanding debt, with a focus on leveraging AI and offshore recruiting to enhance efficiency.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.