Spar Group (SGRP) AI Stock Analysis

• Market Cap: $26.40M
• Dividend Yield: N/A
• Average Volume (3M): 42.18K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.34
• Revenue Growth: -44.47%
• EPS Growth: -203.41%
• Country: US
• Employees: 1,384
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.00
• Shares Outstanding: 23,684,752
• 10 Day Avg. Volume: 35,550
• 30 Day Avg. Volume: 42,177
• PEG Ratio: 0.08
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 0.23
• P/FCF Ratio: -25.33
• Enterprise Value/Market Cap: 2.26
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 1.91
• Enterprise Value/Ebitda: -5.24
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $1.00 ▼(-4.76% Downside)

The overall stock score of 47 reflects significant financial challenges, including declining revenues and negative profitability metrics. Technical analysis suggests a bearish trend, with the stock trading below its 200-day moving average. Valuation metrics are weak, with a negative P/E ratio and no dividend yield, further impacting the stock's attractiveness.

Spar Group Business Overview & Revenue Model

Company Description

SPAR Group, Inc., together with its subsidiaries, provides merchandising and brand marketing services worldwide. The company offers syndicated and dedicated merchandising services at the retail store level for retailers, manufacturers, and distributors; and project services, such as new product launches, special seasonal or promotional merchandising, product support, product recalls, and in-store product demonstrations and in-store product sampling, as well as kiosk product replenishment, inventory control, new and existing store resets, re-merchandising, remodels and category implementations, and under annual or stand-alone project contracts or agreements. It also provides retailer specific services consisting of in-store services, including new store openings, new store sets and existing store resets and remodels, and under annual or stand-alone project contracts or agreements. In addition, the company assembles furniture, grills, and other products in stores, homes, and offices; performs ongoing routed coverage at retail locations; and offers in-home and in-office assembly to customers who purchase their product from retailers. Further, it provides staff and distribution center experienced resources to retailers and consumer goods manufacturers; offers retail compliance and price audit services initiated by retailers and manufacturers and focuses on validating store promotions, auditing compliance with branding and signage, verifying product placement and displays, collecting inventory levels, and out-of-stock status; and competitive price intelligence gathering for retailers, as well as ensuring price accuracy and consistency within the retail itself. The company serves grocery and drug, discount, dollar, convenience, cash and carry, home improvement, consumer electronics, automotive, and office supply stores; pharmacies; and mass merchandisers. SPAR Group, Inc. was founded in 1967 and is headquartered in Auburn Hills, Michigan.

How the Company Makes Money

Spar Group generates revenue through multiple key streams, primarily by offering comprehensive merchandising and marketing services to consumer goods manufacturers and retailers. The company earns fees for its services, which include in-store product placement, promotional displays, and brand representation. Additionally, SGRP benefits from performance-based incentives tied to sales growth and product turnover. Strategic partnerships with major retail chains enhance its market presence, while its extensive network of field representatives enables efficient execution of marketing campaigns, driving both client satisfaction and repeat business.

Spar Group Financial Statement Overview

Summary

Spar Group faces significant financial challenges, with declining revenues and negative profitability metrics. While the balance sheet shows manageable leverage, the negative return on equity and cash flow issues highlight operational inefficiencies and cash management concerns. The company needs to focus on improving operational efficiency and profitability to enhance financial stability.

Income Statement

The income statement shows declining revenue with a negative growth rate of -11.51% in TTM, indicating a challenging business environment. Gross profit margin is relatively stable at 20.47%, but net profit margin is negative at -5.74%, reflecting ongoing profitability issues. EBIT and EBITDA margins are also negative, suggesting operational inefficiencies.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.94, indicating manageable leverage. However, the return on equity is negative at -34.60%, highlighting poor profitability for shareholders. The equity ratio stands at 34.79%, suggesting a balanced capital structure but with room for improvement.

Cash Flow

Cash flow analysis shows a significant improvement in free cash flow growth at 114.34%, but operating cash flow remains negative, indicating cash management challenges. The free cash flow to net income ratio is positive at 1.23, suggesting some efficiency in converting income to cash, but overall cash flow health is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	143.50M	196.81M	262.75M	261.27M	255.72M	230.52M
Gross Profit	31.27M	38.46M	55.48M	51.01M	47.52M	45.19M
EBITDA	-11.40M	2.91M	7.93M	8.55M	7.90M	14.14M
Net Income	-12.94M	-3.15M	3.90M	-732.00K	-1.78M	3.37M
Balance Sheet
Total Assets	71.56M	56.43M	90.28M	94.60M	89.02M	84.03M
Cash, Cash Equivalents and Short-Term Investments	13.93M	18.22M	10.72M	9.35M	13.47M	15.97M
Total Debt	27.43M	18.93M	23.37M	20.32M	13.52M	13.23M
Total Liabilities	46.67M	32.13M	50.03M	56.54M	51.67M	45.41M
Stockholders Equity	24.89M	24.31M	28.23M	22.43M	19.75M	22.16M
Cash Flow
Free Cash Flow	-14.05M	-1.80M	5.58M	-6.84M	907.00K	7.20M
Operating Cash Flow	-12.73M	-665.00K	6.82M	-5.04M	2.63M	8.80M
Investing Cash Flow	-2.04M	9.88M	-2.27M	-1.80M	-1.72M	-1.60M
Financing Cash Flow	7.00M	-1.66M	-3.02M	3.49M	1.33M	131.00K

Spar Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGRP, the sentiment is Negative. The current price of 1.05 is below the 20-day moving average (MA) of 1.07, below the 50-day MA of 1.09, and below the 200-day MA of 1.22, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.88 is Neutral, neither overbought nor oversold. The STOCH value of 25.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGRP.

Spar Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ACTG	63 Neutral	$316.34M	―	0.90%	―	71.28%	-89.20%
CASS	60 Neutral	$517.48M	17.00	11.44%	3.26%	-4.96%	39.42%
SGRP	47 Neutral	$26.40M	-2.02	-47.70%	―	-44.47%	-203.41%
TISI	45 Neutral	$73.87M	-1.40	-9999.00%	―	2.55%	6.88%
PMEC	41 Neutral	$49.56M	-24.90	-13.00%	―	2.52%	45.76%
SST	38 Underperform	$56.41M	-0.59	-99.29%	―	-20.49%	25.95%

Spar Group Corporate Events

Spar Group Extends and Modifies Credit Facility

Spar Group, through its subsidiaries SPAR Marketing Force, Inc. and SPAR Canada Company ULC, has been managing a secured revolving credit facility in the US and Canada with North Mill Capital, LLC since April 2019. The company has undergone several modifications to its credit facility, with the latest being the Eighth Modification Agreement on October 9, 2025, which extended the credit facility’s term to October 10, 2027, increased the US Revolving Credit Facility to $30 million, and the Canadian Revolving Credit Facility to $6 million. This agreement also included waivers for certain financial statement delivery defaults and reaffirmed existing covenants, impacting the company’s financial operations and credit management.

The most recent analyst rating on (SGRP) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Spar Group stock, see the SGRP Stock Forecast page.

Spar Group CEO Michael Matacunas Resigns, Interim Appointed

On October 3, 2025, Michael R. Matacunas resigned as the Chief Executive Officer and board member of Spar Group, a decision not stemming from any disagreements with the company. Subsequently, William Linnane was appointed as the interim CEO while continuing his role as President, with no special arrangements influencing his selection.

The most recent analyst rating on (SGRP) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Spar Group stock, see the SGRP Stock Forecast page.

Spar Group Announces Executive Changes and Appointments

On August 25, 2025, Spar Group announced several executive changes. Michael R. Matacunas, the President and CEO, resigned as President and will retire as CEO on October 3, 2025. He entered into a transition agreement that includes a $2 million retention bonus and stock option benefits. William Linnane was appointed as the new President, transitioning from his role as Global Strategy & Growth Officer. Ron Lutz, Global Chief Commercial Officer, and Kori Belzer, Global Chief Operating Officer, both announced their retirements due to position eliminations, with agreements for severance and consulting roles.

The most recent analyst rating on (SGRP) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Spar Group stock, see the SGRP Stock Forecast page.

SPAR Group Prepares for Midwest Ideas Conference

SPAR Group is preparing to present to potential investors and advisers on August 27, 2025, as part of the SPAR Midwest Ideas Conference. The presentation will include selected adjusted historical data and forward-looking statements. The company has outlined various risks and uncertainties, including potential non-compliance with Nasdaq rules and the impact of selling certain subsidiaries. These factors could significantly affect the company’s operations and financial condition.

The most recent analyst rating on (SGRP) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Spar Group stock, see the SGRP Stock Forecast page.

Spar Group Attracts Major Investment with Share Acquisition

On August XX, 2025, SPAR Group announced that a group of high-net-worth investors acquired 220,000 shares of SPAR at a 75% premium over the previous closing price, investing $440,000 in cash. This strategic investment highlights the perceived potential and future value of SPAR’s stock. Additionally, SPAR has issued a demand letter to Highwire Capital for a termination fee of $1,758,728 due to a failed merger agreement, indicating ongoing financial maneuvers to secure the company’s interests.

The most recent analyst rating on (SGRP) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on Spar Group stock, see the SGRP Stock Forecast page.

SPAR Group Reports Mixed Financial Results for Q2 2025

SPAR Group, Inc., a global merchandising and brand marketing services company, operates within the retail and consumer goods sectors, offering a wide range of services to retailers, manufacturers, and distributors worldwide.

Spar Group Board Restructuring with Tim Cook Appointment

On August 12, 2025, William H. Bartels resigned from the SPAR Group’s Board, nominating Tim Cook as his replacement. Cook, with extensive experience in the manufacturing industry, was appointed as Chairman of the Governance Committee and a member of the Audit and Compensation Committees. Additionally, John Bode and Linda Houston joined the Board, taking on significant roles in various committees. SPAR Group reported a 13.5% increase in second-quarter sales compared to the first quarter of 2025, with revenues reaching $38.6 million. The company achieved a gross margin of 23.5%, reflecting improved financial performance after divesting international joint ventures in 2024. The company is well-positioned for future growth with a solid balance sheet and available liquidity of over $15 million.

Spar Group’s 2024 Risk Profile: Stability Amid Unchanged Challenges

The Spar Group continues to face existing risk factors as outlined in their 2024 Annual Report on Form 10-K/A, with no material changes reported in the subsequent Quarterly Report on Form 10-Q for the periods ending June 30, 2025. These risks, which remain consistent, are crucial for stakeholders to consider as they evaluate the company’s ongoing business environment and strategic positioning. The unchanged nature of these risk factors suggests stability in the company’s risk profile, yet also highlights areas that require continuous monitoring. Investors and analysts should remain vigilant in assessing how these risks might impact future performance and strategic decisions.