Great Elm Group, Inc. (GEG)
Great Elm Group, Inc. operates in the healthcare sector, focusing on durable medical equipment distribution and investment management. The company distributes respiratory care equipment and offers investment management services.
Company Overview
Great Elm Group (GEG) offers a unique investment opportunity in the fragmented durable medical equipment market, coupled with investment management services, targeting growth through strategic acquisitions and operational efficiencies, despite current profitability challenges and a small market capitalization.
Investment Thesis
Investing in Great Elm Group (GEG) presents a speculative opportunity based on potential turnaround and growth in the durable medical equipment (DME) market. While the company's current negative P/E ratio of -4.71 and a profit margin of -60.6% indicate significant challenges, the low beta of 0.44 suggests lower volatility compared to the broader market. The investment thesis hinges on GEG's ability to improve operational efficiencies, expand its DME distribution network, and effectively manage its investment portfolio. Key catalysts include strategic acquisitions within the DME sector and successful implementation of cost-reduction measures. Value drivers include increasing market share in respiratory care equipment and generating consistent returns from its investment management services. Successful execution could lead to improved profitability and increased shareholder value, although significant risks remain.
Key Highlights
- Market capitalization of $0.06 billion, indicating a small-cap company with potential for high growth but also higher risk.
- Negative P/E ratio of -4.71, reflecting current unprofitability but potential for future earnings growth.
- Gross Margin of 7.8%, highlighting the need for improved operational efficiency and cost management.
- Beta of 0.44, suggesting lower volatility compared to the overall market.
- Focus on durable medical equipment distribution, a sector with consistent demand driven by an aging population and increasing prevalence of respiratory conditions.
Competitors
Strengths
- Diversified revenue streams through medical equipment distribution and investment management.
- Established distribution network for durable medical equipment.
- Expertise in investment management.
- Low beta suggests lower volatility.
Weaknesses
- Negative profit margin indicates financial instability.
- Small market capitalization limits access to capital.
- High dependence on the durable medical equipment market.
- Limited brand recognition compared to larger competitors.
Catalysts
- Upcoming: Potential acquisitions of smaller DME providers to expand market share.
- Ongoing: Implementation of cost-reduction measures to improve profitability.
- Ongoing: Expansion of telehealth and remote monitoring solutions.
- Ongoing: Increased demand for respiratory care equipment due to rising prevalence of respiratory diseases.
Risks
- Potential: Intense competition in the durable medical equipment market.
- Potential: Changes in healthcare regulations and reimbursement policies.
- Potential: Economic downturn affecting demand for medical equipment and investment services.
- Ongoing: Negative profit margin and financial instability.
- Potential: Product liability claims related to medical equipment.
Growth Opportunities
- Expansion of Respiratory Care Equipment Distribution: Great Elm Group can capitalize on the growing market for respiratory care equipment, driven by increasing rates of asthma, COPD, and sleep apnea. The global respiratory care devices market is projected to reach $35 billion by 2028. By expanding its distribution network and product offerings, GEG can increase its market share and revenue. Timeline: Ongoing.
- Strategic Acquisitions in the DME Sector: The fragmented DME market presents opportunities for strategic acquisitions. GEG can acquire smaller DME providers to expand its geographic reach, product portfolio, and customer base. Successful integration of acquired companies can lead to cost synergies and increased profitability. Timeline: Ongoing.
- Development of Telehealth and Remote Monitoring Solutions: The increasing adoption of telehealth and remote patient monitoring creates opportunities for GEG to offer connected medical devices and remote monitoring services. This can improve patient outcomes, reduce healthcare costs, and generate recurring revenue streams. Timeline: 2-3 years.
- Enhancement of Investment Management Services: GEG can attract more clients and increase its assets under management by enhancing its investment management services. This includes offering a wider range of investment products, improving investment performance, and expanding its sales and marketing efforts. Timeline: Ongoing.
- Focus on Sleep Study Services: With a growing awareness of sleep disorders, GEG can expand its sleep study services to capture a larger share of this market. This includes investing in new sleep study facilities, training more sleep technicians, and partnering with physicians and hospitals. Timeline: 1-2 years.
Opportunities
- Strategic acquisitions to expand market reach and product portfolio.
- Development of telehealth and remote monitoring solutions.
- Expansion of sleep study services.
- Increasing demand for durable medical equipment due to aging population.
Threats
- Intense competition in the durable medical equipment market.
- Changes in healthcare regulations and reimbursement policies.
- Economic downturn affecting demand for medical equipment and investment services.
- Product liability claims.
Competitive Advantages
- Established distribution network for durable medical equipment.
- Expertise in investment management.
- Diversified revenue streams from both medical equipment and investment services.
- Long-standing relationships with medical equipment manufacturers and healthcare providers.
About
Great Elm Group, Inc., founded in 1994 and headquartered in Waltham, Massachusetts, operates within the healthcare sector, specifically focusing on the distribution of durable medical equipment (DME) and investment management. Originally known as Great Elm Capital Group, Inc., the company rebranded in December 2020 to reflect its broader business activities. Great Elm Group distributes a range of respiratory care equipment, including positive air pressure equipment and supplies, ventilators, oxygen equipment, and replacement parts. Additionally, they provide sleep study services and rent medical equipment, catering to individuals with respiratory conditions and sleep disorders. The company also provides investment management services, diversifying its revenue streams. Great Elm Group navigates a competitive landscape, striving to establish a strong market presence through reliable product distribution and effective investment strategies. Their focus on both medical equipment and investment management provides a diversified approach to revenue generation, although the company's current profit margin reflects ongoing challenges in achieving profitability. With 31 employees, Great Elm Group operates with a relatively lean structure, emphasizing efficiency and targeted growth initiatives within its chosen markets.
What They Do
- Distributes respiratory care equipment, including PAP devices and supplies.
- Provides ventilators and oxygen equipment.
- Offers replacement parts for medical equipment.
- Provides sleep study services.
- Rents medical equipment.
- Offers investment management services.
Business Model
- Generates revenue through the sale and rental of durable medical equipment.
- Earns fees from providing sleep study services.
- Manages investment portfolios for clients, earning management fees and performance-based incentives.
- Expands market reach through strategic acquisitions.
Industry Context
Great Elm Group operates in the durable medical equipment (DME) distribution industry, which is characterized by steady demand driven by an aging population and increasing prevalence of chronic respiratory diseases. The market is competitive, with players ranging from large national distributors to smaller regional providers. Key trends include the growing adoption of telehealth and remote patient monitoring, which are driving demand for connected medical devices. Competitors include companies like ACET (Acetylon Pharmaceuticals), ASRT (Assertio Holdings, Inc.), EDAP (EDAP TMS S.A.), FORA (ForaCare Suisse AG), and IMUX (Immunic, Inc.). Great Elm Group aims to differentiate itself through a combination of reliable product distribution and investment management services.
Key Customers
- Individuals with respiratory conditions such as asthma, COPD, and sleep apnea.
- Hospitals and clinics requiring medical equipment.
- Home healthcare providers.
- Individual investors seeking investment management services.
- Institutional investors.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q4 2025 | $3M | -$16M | $-0.50 |
| Q3 2025 | $11M | -$7M | $-0.24 |
| Q2 2025 | $6M | $14M | $0.36 |
| Q1 2025 | $3M | -$4M | $-0.17 |
Source: Company filings
Chart & Info
Price Chart
Great Elm Group, Inc. (GEG) stock price: $2.51 (-0.03, -1.18%)
Why Bull
- •Recent insider buying suggests confidence in the company's future; insiders believe in its potential.
- •Community sentiment has shifted positively, with discussions highlighting recent strategic partnerships that could enhance growth.
- •The company's focus on diversifying its investment portfolio is garnering interest, as stakeholders see potential for increased revenue streams.
- •Recent announcements about operational improvements have created a buzz, indicating a proactive approach to enhancing shareholder value.
Why Bear
- •Some analysts express concerns over the company's debt levels, which could impact financial flexibility in challenging market conditions.
- •Community sentiment reflects worries about the overall market environment, with some fearing a potential downturn that could affect GEG's performance.
- •There are discussions about the competitive landscape becoming more challenging, with new entrants possibly eroding market share.
- •Recent performance metrics have not met expectations, leading to skepticism among investors about the company's growth trajectory.
Latest News
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Great Elm Group Reports Fiscal 2026 Second Quarter Financial Results
GlobeNewswire · Feb 4, 2026
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Earnings Scheduled For February 4, 2026
benzinga · Feb 4, 2026
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Earnings Scheduled For May 7, 2025
benzinga · May 7, 2025
Technical Analysis
Rationale
AI-generated technical analysis for GEG including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for GEG.
Make a Prediction
Set your price target for Great Elm Group, Inc. (GEG), choose a timeframe, and track your prediction accuracy.
Current price: $2.51
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for GEG.
Price Targets
Wall Street price target analysis for GEG.
Insider Flow (30d)
MoonshotScore
Score Factors
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Revenue Growth 2/100
Revenue declined -87.6% YoY, signaling shrinking demand or market headwinds.
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Gross Margin 3/100
Gross margin of -11.7% is below average, suggesting thin margins and potential pricing pressure.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates GEG's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Frequently Asked Questions
What does Great Elm Group, Inc. do?
Great Elm Group, Inc. operates in two primary business segments: durable medical equipment (DME) distribution and investment management. In the DME sector, the company distributes respiratory care equipment, including positive air pressure (PAP) devices, ventilators, and oxygen equipment, along with providing sleep study services and equipment rentals. The investment management segment focuses on managing investment portfolios for individuals and institutions, generating revenue through management fees and performance-based incentives. This diversified approach aims to leverage growth opportunities in both the healthcare and financial sectors, although the company's current financial performance indicates ongoing challenges in achieving profitability.
Is GEG stock a good buy?
Evaluating GEG stock requires careful consideration of its current financial situation and future growth potential. The company's negative P/E ratio and profit margin raise concerns about its profitability. However, the low beta suggests lower volatility. A potential investment hinges on GEG's ability to execute its growth strategies, including strategic acquisitions and expansion of its DME distribution network. Investors should closely monitor the company's progress in improving operational efficiencies and generating consistent returns from its investment management services. Given the risks, GEG may be suitable only for investors with a high-risk tolerance and a long-term investment horizon.
What are the main risks for GEG?
Great Elm Group faces several key risks that could impact its financial performance and stock price. Intense competition in the durable medical equipment market could pressure margins and limit market share gains. Changes in healthcare regulations and reimbursement policies could negatively affect demand for DME products and services. An economic downturn could reduce demand for both medical equipment and investment services. The company's current negative profit margin and financial instability pose significant challenges. Additionally, product liability claims related to medical equipment could result in substantial financial losses. These risks highlight the need for careful risk management and strategic decision-making by GEG's management team.
Is GEG a good stock to buy?
Whether GEG is a good investment depends on your financial goals, risk tolerance, and investment horizon. Key factors to evaluate include the company's revenue growth trajectory, profit margins, debt-to-equity ratio, competitive moat, and valuation multiples (P/E, P/S, EV/EBITDA) relative to industry peers. Our AI-generated Investment Thesis and SWOT analysis on this page provide a data-driven starting point. Always do your own research and consider consulting a financial advisor before making investment decisions.
What is the GEG MoonshotScore?
The MoonshotScore for GEG is an AI-powered rating from 0 to 100 that evaluates a stock across four dimensions: growth potential (revenue and earnings trajectory), financial health (balance sheet strength, cash flow), market momentum (price trends, volume patterns, institutional flows), and risk factors (volatility, debt levels, sector headwinds). Scores above 70 indicate strong potential, 50-70 moderate, and below 50 suggests caution. The score is recalculated daily using the latest financial data and market signals.
How often is GEG data updated?
GEG stock prices are updated in real-time during U.S. market hours (9:30 AM - 4:00 PM ET, Monday through Friday). After-hours and pre-market prices are also tracked. Company fundamentals (earnings, revenue, balance sheet) are refreshed when new quarterly or annual reports are filed. Analyst ratings, price targets, and AI-generated insights are updated daily. Breaking news related to GEG is aggregated continuously from premium financial news sources throughout the day.
What are the growth catalysts for GEG?
Growth catalysts for Great Elm Group, Inc. (GEG) can include several categories: product catalysts (new launches, FDA approvals, patent grants), financial catalysts (earnings beats, margin expansion, share buybacks), strategic catalysts (acquisitions, partnerships, market expansion into new regions), and macro catalysts (favorable regulation, industry tailwinds, secular growth trends). Our AI analyzes Great Elm Group, Inc.'s specific catalysts using earnings transcripts, SEC filings, and news sentiment to identify the most impactful near-term and long-term drivers.
Who are GEG's main competitors?
Great Elm Group, Inc. (GEG) competes with companies in its industry that target similar customers, markets, or product categories. Competitor analysis involves comparing key metrics: market share, revenue growth rates, profit margins, R&D spending, and valuation multiples. Understanding competitive positioning helps investors assess whether GEG has a sustainable competitive advantage (moat) through brand strength, network effects, cost leadership, or switching costs. Our Competitors section provides a side-by-side comparison with relevant peers.
What do analysts say about GEG?
Wall Street analyst coverage for GEG includes consensus ratings (buy, hold, or sell), 12-month price targets, and earnings estimates. Analyst opinions are aggregated from major investment banks and research firms. Key metrics to watch include the consensus price target (average, high, and low estimates), the number of analysts covering the stock, any recent rating changes (upgrades or downgrades), and how actual earnings compare to analyst estimates (beat or miss history). Our platform aggregates these from multiple data providers for a comprehensive view.
What is GEG's market cap?
Market capitalization (market cap) for GEG is calculated by multiplying the current share price by the total number of outstanding shares. It represents the market's total valuation of the company. Stocks are typically categorized as mega-cap ($200B+), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), or micro-cap (under $300M). Market cap influences index inclusion, institutional ownership eligibility, and risk profile. Our Key Statistics section shows GEG's current market cap alongside enterprise value and other valuation metrics.
How has GEG stock performed recently?
GEG's recent stock performance can be evaluated across multiple timeframes: daily price changes, week-over-week momentum, monthly trends, and year-to-date returns. Important performance indicators include the stock's 52-week high and low, moving averages (50-day and 200-day SMA), relative strength index (RSI), and volume trends. Comparing GEG's performance against its sector index and the S&P 500 provides context on whether it is outperforming or underperforming the broader market.
What are the risks of investing in GEG?
Key risk categories for GEG include: market risk (overall market downturns affecting stock prices), company-specific risk (management changes, product failures, competitive threats), financial risk (high debt levels, cash burn, dilution from stock issuance), regulatory risk (government policy changes, lawsuits, compliance issues), and macroeconomic risk (interest rate changes, inflation, currency fluctuations). Beta measures GEG's volatility relative to the market - a beta above 1.0 means higher volatility than the S&P 500. Our AI-generated risk assessment identifies the most relevant risk factors for this specific stock.
Are insiders buying or selling GEG?
Insider trading activity for GEG tracks purchases and sales by company executives, directors, and major shareholders (10%+ owners) as reported in SEC Form 4 filings. Insider buying is generally considered a bullish signal because insiders have the deepest knowledge of company operations, while selling may have various motivations (diversification, tax planning, pre-planned 10b5-1 trading plans). Key metrics include the buy-to-sell ratio, total dollar value of insider transactions, and whether multiple insiders are trading in the same direction. Our Insider Flow tab shows recent transactions with dates and dollar amounts.
Is GEG a good stock for beginners?
Great Elm Group, Inc. (GEG) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is GEG for first-time investors?
Every stock carries risk, including Great Elm Group, Inc. (GEG). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like GEG.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Financial data based on publicly available information.
- Analysis based on current market conditions and may be subject to change.
- Investment decisions should be made based on individual risk tolerance and financial circumstances.