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Spar Group (PMH) AI Stock Analysis

DE:PMH

Spar Group

(Frankfurt:PMH)

Rating:―N/A
Action:N/A
Date:―

No summary available

Positive Factors
Margin and Cost ImprovementManagement’s FY2026 targets imply a substantial margin reset and cost-base reduction. If achieved, higher gross profit and lower SG&A could make service economics more resilient despite modest revenue contraction.
Negative Factors
Negative Cash GenerationSustained operating and free-cash-flow deficits reduce funding flexibility and increase reliance on working-capital management or external financing. Cash generation must stabilize for the business to fund operations and technology investments independently.

Spar Group (PMH) vs. iShares MSCI Germany ETF (EWG)

-80%-60%-40%-20%0%20%DE:PMH-38.71%EWG+5.90%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
EUR 8.16M
Dividend Yield
―
Average Volume (3M)
20
Price to Earnings (P/E)
-0.3
Beta (1Y)
0.60
Revenue Growth
-14.88%
EPS Growth
-75.96%
Country
Germany
Employees
4,522
Sector
Industrials
Sector Strength
63
Industry
Specialty Business Services

Spar Group Business Overview & Revenue Model

Company Description

SPAR Group, Inc. operates as a global service provider, specializing in comprehensive brand marketing and retail merchandising solutions. The company's extensive range of offerings supports retailers, manufacturers, and distributors worldwide. Its co...

Spar Group Earnings Call Summary

Earnings Call Date:Aug 12, 2026(Q2-2026)|% Change Since:10.68%|Next Earnings Date:May 14, 2019
Earnings Call SentimentPositive

The call communicated clear progress on SPAR's multi-quarter transformation: return to profitability, strong adjusted EBITDA and adjusted net income growth, improving gross margin guidance, and meaningful SG&A reductions. These operational improvements and strategic technology initiatives are balanced against modest revenue decline driven by deliberate exits from low-margin remodel work, near-term operating cash usage ($8.7M in Q2) and a low cash balance ($2.9M), plus the reputational and market-access impact of NASDAQ delisting to the OTCQB and an unresolved legal matter. Overall, the positives in profitability, margin improvement, and cost reduction materially outweigh the short-term liquidity and revenue mix challenges.

Positive Updates

Return to Profitability
GAAP net income of $0.4M ($0.02/share) in Q2 2026 compared to break-even in the prior year quarter; operating income rose to $1.2M from $0.715M (+68%).

Negative Updates

Revenue Decline
Q2 net revenues of $36.9M, down 4.5% year-over-year, driven primarily by a decline in the remodel business as management prioritizes higher-margin merchandising work.

Company Guidance

SPAR revised its FY2026 guidance to net revenues of $130–$138 million (vs $136M in 2025), gross margins of 21.5%–23.5% (vs 15.9% in 2025), and SG&A excluding unusual items of $21–$24 million (vs $32.2M in 2025), while noting an underlying SG&A run‑rate trending toward approximately $20 million annually and a longer‑term gross‑margin goal of ~25%; this follows Q2 results of $36.9M revenue (down 4.5% y/y), $8.4M gross profit (22.8%), $6.8M SG&A (including $543k one‑time), $2.1M adjusted EBITDA (up 63% y/y), GAAP net income $409k ($0.02/diluted) and adjusted net income $838k ($0.04/diluted), plus positive working capital of $25.8M (ex‑debt), $2.9M cash and $8.7M net cash used in operations, as the company shifts mix toward higher‑margin recurring merchandising, invests in ReposiTrak (~$151.5k/month IT fee) and transitions to the OTCQB ticker SGRP.

Spar Group Risk Analysis

Spar Group disclosed 16 risk factors in its most recent earnings report. Spar Group reported the most risks in the "Finance & Corporate" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

1 New Risk
1.We are subject to a shareholder derivative lawsuit that could result in substantial costs and a diversion of management's attention and resources.Q2, 2026

Spar Group Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

DE:PMH against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
CASSCASS78Outperform$675.40M17.7015.98%2.43%2.08%24.97%
ACTGACTG68Neutral$422.55M-16.47-2.81%―12.33%-160.91%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
TISITISI44Neutral$109.68M-2.54-468.47%―2.62%19.50%
SSTSST41Neutral$17.83M-0.15-1180.76%―-42.93%-17.25%
PMECPMEC24Underperform$12.99M-5.33-17.43%―4.92%-22.39%

* Industrials Sector Average

Performance Comparison

-50%0%50%DE:PMHACTGCASSTISISSTPMECDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
DE:PMH and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
DE:PMHSpar Group0.57-0.33-36.31%
ACTGAcacia Research Corp.4.331.0532.01%
CASSCass Information52.7414.6438.42%
TISITeam Inc.23.937.5145.74%
SSTSystem1 Inc.1.70-3.99-70.12%
PMECPrimech Holdings Ltd.0.34-0.95-73.80%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.