📊 FGCO Key Takeaways
Is FGCO a Good Investment? Thesis Analysis
Financial Gravity Companies demonstrates severe operational distress with negative operating and net margins despite high gross margins, suggesting fundamental business model problems. The company faces critical liquidity constraints with a current ratio of 0.29x and negative free cash flow, indicating inability to meet short-term obligations without asset sales or capital infusion.
Why Buy FGCO? Key Strengths
- High gross margin of 94.7% indicates strong pricing power or low cost of goods sold
- Modest debt-to-equity ratio of 0.24x suggests reasonable leverage relative to equity base
- Minimal capital expenditure requirements demonstrate low capital intensity of operations
FGCO Investment Risks to Consider
- Severe liquidity crisis with current ratio of 0.29x, well below the 1.0x minimum threshold for operational viability
- Negative operating margin of -16.9% and negative ROE/ROA indicate fundamental business model failure to generate profits
- Negative free cash flow of -92.0K with deteriorating cash position ($208K) suggests imminent solvency concerns within 2-3 quarters at current burn rate
- Persistent operating losses despite high gross margins indicate structural cost or overhead problems that cannot be resolved through pricing
- Data stale as of June 2022 with no recent insider activity, limiting ability to assess current trajectory
Key Metrics to Watch
- Operating cash flow trend and cash runway at current burn rate
- Resolution of structural cost issues causing negative operating margins
- Current ratio and working capital position to assess liquidity crisis severity
FGCO Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
FGCO Profitability Ratios
FGCO vs Finance Sector
How Financial Gravity Companies, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FGCO Overvalued or Undervalued?
Based on fundamental analysis, Financial Gravity Companies, Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
FGCO Balance Sheet & Liquidity
FGCO 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Financial Gravity Companies, Inc.'s revenue has grown significantly by 142% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.01 indicates the company is currently unprofitable.
FGCO Growth Metrics (YoY)
FGCO Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2022 | $1.3M | $47.0K | $0.00 |
| Q2 2022 | $1.6M | -$74.7K | $0.00 |
| Q1 2022 | $1.6M | -$74.7K | $0.00 |
| Q3 2021 | $947.5K | -$271.2K | $-0.01 |
| Q2 2021 | $616.7K | -$103.8K | N/A |
| Q1 2021 | $691.2K | -$12.0K | N/A |
| Q3 2020 | $920.4K | -$16.9K | N/A |
| Q2 2020 | $616.7K | -$162.1K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FGCO Capital Allocation
FGCO SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Financial Gravity Companies, Inc. (CIK: 0001377167)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FGCO
What is the AI rating for FGCO?
Financial Gravity Companies, Inc. (FGCO) has an AI rating of STRONG SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are FGCO's key strengths?
Claude: High gross margin of 94.7% indicates strong pricing power or low cost of goods sold. Modest debt-to-equity ratio of 0.24x suggests reasonable leverage relative to equity base.
What are the risks of investing in FGCO?
Claude: Severe liquidity crisis with current ratio of 0.29x, well below the 1.0x minimum threshold for operational viability. Negative operating margin of -16.9% and negative ROE/ROA indicate fundamental business model failure to generate profits.
What is FGCO's revenue and growth?
Financial Gravity Companies, Inc. reported revenue of $4.5M.
Does FGCO pay dividends?
Financial Gravity Companies, Inc. does not currently pay dividends.
Where can I find FGCO SEC filings?
Official SEC filings for Financial Gravity Companies, Inc. (CIK: 0001377167) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FGCO's EPS?
Financial Gravity Companies, Inc. has a diluted EPS of $-0.08.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FGCO a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, Financial Gravity Companies, Inc. has a STRONG SELL rating with 85% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FGCO stock overvalued or undervalued?
Valuation metrics for FGCO: ROE of -23.0% (sector avg: 12%), net margin of -9.4% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy FGCO stock in 2026?
Our dual AI analysis gives Financial Gravity Companies, Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FGCO's free cash flow?
Financial Gravity Companies, Inc.'s operating cash flow is $-90.0K, with capital expenditures of $1.9K. FCF margin is -2.0%.
How does FGCO compare to other Finance stocks?
Vs Finance sector averages: Net margin -9.4% (avg: 25%), ROE -23.0% (avg: 12%), current ratio 0.29 (avg: 1.2).