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SPAR Group, Inc. (SGRP) Fundamental Analysis & AI Grade 2026

SGRP Nasdaq Services-Business Services, NEC DE CIK: 0001004989
Updated This Month • Analysis: May 14, 2026 • SEC Data: 2026-03-31
Combined AI Grade
D
95% Confidence
N/A
D
95% Conf
Pending
Analysis scheduled

📊 SGRP Key Takeaways

Revenue: $30.5M
Net Margin: -1.8%
Free Cash Flow: $-4.4M
Current Ratio: 0.88x
Debt/Equity: 54.63x
EPS: $-0.02
AI Grade: D with 95% confidence
SPAR Group, Inc. (SGRP) receives a D fundamental grade with 95% confidence from our AI analysis based on SEC 10-K filings. With revenue of $30.5M, net profit margin of -1.8%, and return on equity (ROE) of -937.3%, SPAR Group, Inc. demonstrates mixed fundamentals in the Services sector. Below is our complete SGRP stock analysis for 2026.

Is SPAR Group, Inc. (SGRP) a Good Investment?

Claude

SPAR Group is in financial distress with unprofitable operations, negative free cash flow of -$4.4M, and a critically weak balance sheet featuring a debt/equity ratio of 54.63x with only $59K in stockholders' equity. The company's 16.8% revenue decline combined with operating cash burn and liquidity concerns (current ratio 0.88x) create significant bankruptcy risk.

SPAR Group, Inc. Key Strengths (SGRP)

Claude
  • + Maintains positive gross margin of 22.3% suggesting underlying service value
  • + Retains $4.3M in cash providing near-term operational runway
  • + Operates established business generating $30.5M in annual revenue

SGRP Stock Risks: SPAR Group, Inc. Investment Risks

Claude
  • ! Negative free cash flow of -$4.4M is unsustainable without capital infusion or restructuring
  • ! Critically overleveraged balance sheet with debt/equity of 54.63x and $59K equity cushion creates imminent solvency risk
  • ! Revenue declining 16.8% YoY with negative operating income and net loss indicating fundamental business deterioration
  • ! Current ratio of 0.88x signals potential near-term liquidity constraints and inability to meet obligations
  • ! Negative interest coverage (-0.1x) means company cannot service debt from operations

Key Metrics to Watch

Claude
  • * Operating cash flow inflection point and return to positive territory
  • * Revenue stabilization and growth trajectory
  • * Balance sheet restructuring and debt refinancing activities
  • * Cash burn rate and liquidity runway before crisis

SPAR Group, Inc. (SGRP) Financial Metrics & Key Ratios

Revenue
$30.5M
Net Income
$-553.0K
EPS (Diluted)
$-0.02
Free Cash Flow
$-4.4M
Total Assets
$51.0M
Cash Position
$4.3M

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

SGRP Profit Margin, ROE & Profitability Analysis

Gross Margin 22.3%
Operating Margin -0.1%
Net Margin -1.8%
ROE -937.3%
ROA -1.1%
FCF Margin -14.5%

SGRP vs Services Sector: How SPAR Group, Inc. Compares

How SPAR Group, Inc. compares to Services sector averages

Net Margin
SGRP -1.8%
vs
Sector Avg 10.0%
SGRP Sector
ROE
SGRP -937.3%
vs
Sector Avg 16.0%
SGRP Sector
Current Ratio
SGRP 0.9x
vs
Sector Avg 1.5x
SGRP Sector
Debt/Equity
SGRP 54.6x
vs
Sector Avg 0.7x
SGRP Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is SPAR Group, Inc. Stock Overvalued? SGRP Valuation Analysis 2026

Based on fundamental analysis, SPAR Group, Inc. shows some fundamental concerns relative to the Services sector in 2026.

Return on Equity
-937.3%
Sector avg: 16%
Net Profit Margin
-1.8%
Sector avg: 10%
Revenue Growth
N/A
Year-over-year
Debt/Equity
54.63x
Sector avg: 0.7x

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.

SPAR Group, Inc. Balance Sheet: SGRP Debt, Cash & Liquidity

Current Ratio
0.88x
Quick Ratio
0.88x
Debt/Equity
54.63x
Debt/Assets
99.9%
Interest Coverage
-0.12x
Long-term Debt
$3.2M

SGRP Revenue & Earnings Growth: 5-Year Financial Trend

SGRP 5-year financial data: Year 2021: Revenue $255.7M, Net Income $3.4M, EPS $0.16. Year 2022: Revenue $261.3M, Net Income -$1.8M, EPS $-0.08. Year 2023: Revenue $262.7M, Net Income -$732.0K, EPS $-0.03. Year 2024: Revenue $262.7M, Net Income $3.9M, EPS $0.16. Year 2025: Revenue $163.6M, Net Income -$3.2M, EPS $-0.13.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: SPAR Group, Inc.'s revenue has declined by 36% over the 5-year period, indicating business contraction. The most recent EPS of $-0.13 indicates the company is currently unprofitable.

SGRP Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-14.5%
Free cash flow / Revenue

SGRP Quarterly Earnings & Performance

Quarterly financial performance data for SPAR Group, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $30.5M $462.0K $0.02
Q3 2025 $37.8M -$182.0K $-0.01
Q2 2025 $38.6M -$1.0K $0.00
Q1 2025 $34.0M $462.0K $0.02
Q3 2024 $37.8M -$144.0K $0.01
Q2 2024 $57.3M $639.0K $0.03
Q1 2024 $64.4M $866.0K $0.04
Q3 2023 $67.3M -$32.0K $0.00

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

SPAR Group, Inc. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
-$3.9M
Cash generated from operations
Capital Expenditures
$503.0K
Investment in assets
Dividends
None
No dividend program

SGRP SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for SPAR Group, Inc. (CIK: 0001004989)

📋 Recent SEC Filings

Date Form Document Action
May 12, 2026 10-Q sgrp20260331_10q.htm View →
May 12, 2026 8-K sgrp20260430_8k.htm View →
May 5, 2026 8-K sgrp20260505_8k.htm View →
May 5, 2026 4 xslF345X06/rdgdoc.xml View →
Apr 30, 2026 DEF 14A sgrp20251218_def14a.htm View →

Frequently Asked Questions about SGRP

What is the AI rating for SGRP?

SPAR Group, Inc. (SGRP) has an AI grade of D with 95% confidence, based on fundamental analysis of SEC EDGAR filings.

What are SGRP's key strengths?

Claude: Maintains positive gross margin of 22.3% suggesting underlying service value. Retains $4.3M in cash providing near-term operational runway.

What are the risks of investing in SGRP?

Claude: Negative free cash flow of -$4.4M is unsustainable without capital infusion or restructuring. Critically overleveraged balance sheet with debt/equity of 54.63x and $59K equity cushion creates imminent solvency risk.

What is SGRP's revenue and growth?

SPAR Group, Inc. reported revenue of $30.5M.

Does SGRP pay dividends?

SPAR Group, Inc. does not currently pay dividends.

Where can I find SGRP SEC filings?

Official SEC filings for SPAR Group, Inc. (CIK: 0001004989) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is SGRP's EPS?

SPAR Group, Inc. has a diluted EPS of $-0.02.

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 grade reflects both perspectives for balanced insights.

What is SGRP's fundamental grade?

Based on our AI fundamental analysis in May 2026, SPAR Group, Inc. has a D grade with 95% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is SGRP stock overvalued or undervalued?

Valuation metrics for SGRP: ROE of -937.3% (sector avg: 16%), net margin of -1.8% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.

What is SGRP's AI grade for 2026?

Our dual AI analysis gives SPAR Group, Inc. a combined D grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.

What is SGRP's free cash flow?

SPAR Group, Inc.'s operating cash flow is $-3.9M, with capital expenditures of $503.0K. FCF margin is -14.5%.

How does SGRP compare to other Services stocks?

Vs Services sector averages: Net margin -1.8% (avg: 10%), ROE -937.3% (avg: 16%), current ratio 0.88 (avg: 1.5).

Is SPAR Group, Inc. carrying too much debt?

SGRP has a debt-to-equity ratio of 54.63x, which is above the Services sector average of 0.7x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 14, 2026 | Data as of: 2026-03-31 | Powered by Claude AI