JO

GEE Group Inc

JOB
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GEE Group Inc AI Insights

Informational only. Not investment advice.
As of 2025-12-17

Snapshot

  • Goodwill of 24.8M is 49% of equity - prior impairments risk recurring given -33.6% net margin TTM and shrinking revenue base.[Goodwill]
  • Trading at 0.19x P/S vs 1.48x industry median - 87% discount reflects -9.3% revenue decline and -36.5M net loss TTM.[P/S Ratio]
  • Cash of 18.6M covers 2.5 years of burn at current -565K quarterly cash flow rate, but no path to profitability visible.[Cash and Equivalents]

Watch Triggers

  • Total Revenue TTM: Quarterly revenue stabilizes above 27MRevenue decline is existential - stabilization is prerequisite for any turnaround thesis.
  • Cash and Equivalents: Falls below 10MWould signal <18 months runway, likely triggering dilutive capital raise.
  • Operating Margin TTM: Improves to breakevenCurrently -3.9% vs industry +5.1% - gap closure validates cost restructuring.

Bull Case

EV of 5.2M vs 24.1M working capital creates deep value if revenue stabilizes - trading below net current assets.

Enterprise ValueWorking CapitalCash and Equivalents

Debt/equity of 0.07 and minimal interest expense (342K) means no near-term solvency risk despite losses.

Debt to EquityInterest ExpenseTotal Debt

Bear Case

Revenue declining -15.8% 3Y CAGR in staffing industry growing +4.8% - structural market share loss, not cyclical.

Total Revenue 3Y GrowthTotal Revenue 1Y GrowthTotal Revenue TTM

ROE of -53% and ROIC of -51% TTM destroying capital - every dollar invested loses half its value annually.

ROE TTMROIC TTMNet Income TTM

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
25%

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Forward Thesis

Cash runway exhaustion within 24-36 months without operational turnaround or capital raise.

1-3yhigh
  • Revenue declining -9.3% YoY with -15.8% 3Y CAGR
  • Operating loss of -4.2M TTM on 108.8M revenue
  • FCF negative at -581K with no capex flexibility
Cash 18.6M vs -565K quarterly burnNet margin -33.6% vs industry +3.3%Revenue 3Y CAGR -15.8% vs industry +4.8%

Valuation Context

Caveats

Public Strategies Rankings

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Fundamental company data provided by Morningstar, updated daily.

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