MeritValue

SPAR Group, Inc.

SGRPdata completeness 100%16 fiscal years on file
The thesis, from the filings

SPAR Group, Inc. earns about -28% on invested capital, but has diluted owners by 11% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$255.7M1$261.3M2$187.9M3$163.6M4$136.1M4
Net income$2M5−$732,0006$3.9M7−$3.15M8−$24.6M8
Operating cash flow$2.63M9−$5.04M10$6.82M11−$665,00012−$18.4M12
Capital expenditure$1.72M13$1.8M14$1.19M15$1.13M16$2.98M16
Free cash flow (derived)$907,0009−$6.84M10$5.63M11−$1.79M12−$21.4M12
Total debt$22.8M17$37.3M18$35.4M19$18.3M20$22.2M20
Cash & equivalents$13.5M21$9.35M22$4.49M23$18.2M24$3.26M24
Diluted shares21.3M22.1M24.5M23.6M23.6M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$0.26
your share of equity
Profit it earned you last year
−$10.43
Free cash flow it threw off
−$9.07
Debt you’d be carrying
$9.41

10 shares is a claim on $0.26 of net worth that earned you −$10.43 and generated −$9.07 of cash last year, against $9.41 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-28% avg · 5y
FY21 —FY22 —FY23 4%FY24 -5%FY25 -83%

It earned an average -28% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+11% shares · 5y

Share count is up 11% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001437749-23-010432 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001437749-24-010386 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K/A · period ending 2023-12-31 · accession 0001437749-25-022876 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001437749-26-010508 (RevenueFromContractWithCustomerIncludingAssessedTax)
  5. 10-K/A · period ending 2021-12-31 · accession 0001437749-23-011876 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001437749-24-010386 (NetIncomeLoss)
  7. 10-K/A · period ending 2023-12-31 · accession 0001437749-25-022876 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001437749-26-010508 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001437749-23-010432 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001437749-24-010386 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K/A · period ending 2023-12-31 · accession 0001437749-25-022876 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001437749-26-010508 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001437749-23-010432 (PaymentsToAcquireProductiveAssets)
  14. 10-K · period ending 2022-12-31 · accession 0001437749-24-010386 (PaymentsToAcquireProductiveAssets)
  15. 10-K/A · period ending 2023-12-31 · accession 0001437749-25-022876 (PaymentsToAcquireProductiveAssets)
  16. 10-K · period ending 2024-12-31 · accession 0001437749-26-010508 (PaymentsToAcquireProductiveAssets)
  17. 10-K · period ending 2021-12-31 · accession 0001437749-23-010432 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2022-12-31 · accession 0001437749-24-010386 (LongTermDebtNoncurrent)
  19. 10-K/A · period ending 2023-12-31 · accession 0001437749-25-022876 (LongTermDebtNoncurrent)
  20. 10-K · period ending 2024-12-31 · accession 0001437749-26-010508 (LongTermDebtNoncurrent)
  21. 10-K · period ending 2021-12-31 · accession 0001437749-23-010432 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2022-12-31 · accession 0001437749-24-010386 (CashAndCashEquivalentsAtCarryingValue)
  23. 10-K/A · period ending 2023-12-31 · accession 0001437749-25-022876 (CashAndCashEquivalentsAtCarryingValue)
  24. 10-K · period ending 2024-12-31 · accession 0001437749-26-010508 (CashAndCashEquivalentsAtCarryingValue)