Great Elm Capital Corp. 8.50% Notes DUE 2029
$25.32
-0.41%Great Elm Capital Corp. is a business development company which specializes in loan and mezzanine, middle market investments. It invests in the debt instruments of middle market companies. The fund prefers to invest in media, commercial services and supplies, healthcare, telecommunication services, communications equipment. It typically makes equity investments between $3 million and $10 million in companies with revenues between $3 million and $75 million.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -9.8).
Valuation inputs: P/E -9.8, earnings yield N/A, momentum -0.4%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE +1.2%, ROIC -51.3%).
Profitability stack: net margin +57.7%, ROE +1.2%, ROIC -51.3%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +84.6%, momentum -0.4%, net margin +57.7%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Great Elm Capital Corp. 8.50% Notes DUE 2029 Market vs Earnings Trajectory
Performance Analysis
EPS Growth
Slight earnings decline may be temporary. Monitor future quarters for trend reversal.
Price-EPS Relationship
Price is rising despite declining earnings—caution advised as valuation may be stretched.
Stock Price Change
Over the 1Y period, stock price has increased by 0.4%.
P/E Ratio (TTM)
Relatively low P/E may indicate undervaluation or lower growth expectations.
Key Insight
Despite declining earnings (-3.5%), the stock price has risen (+0.4%). This disconnect suggests investors may be optimistic about future turnaround, but earnings recovery is critical to sustain the valuation.
Great Elm Capital Corp. 8.50% Notes DUE 2029 Fair Value Envelope
Great Elm Capital Corp. 8.50% Notes DUE 2029 Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Outstanding operational efficiency. The company generates substantial profit from core operations.
Net Profit Margin
Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.
Effective Tax Rate
Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.
Profitability Insight
Exceptional profitability across all levels: Strong pricing power, efficient operations, and healthy bottom line indicate a high-quality business with sustainable competitive advantages.
Great Elm Capital Corp. 8.50% Notes DUE 2029 Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Neutral working capital impact. Changes in current assets and liabilities balanced out.
Cash Flow Quality Insight
Cash flow concerns: Despite profitability, the company is burning cash. Review working capital management, CapEx levels, and sustainability of current operations.
Great Elm Capital Corp. 8.50% Notes DUE 2029 Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Financial stress indicators: Both liquidity and leverage metrics raise concerns. The company may face challenges meeting obligations and should focus on strengthening its balance sheet.
Great Elm Capital Corp. 8.50% Notes DUE 2029 Street Expectations Map
No Target Data
No analyst price targets available for gecci.
Great Elm Capital Corp. 8.50% Notes DUE 2029 Insider Positioning
During the last 12 months, there has been no insider trading activity reported for GECCI.
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Top Buyers
No buying activity
Top Sellers
No selling activity
Insider Activity Analysis
Net Insider Sentiment
No insider trading activity reported. This could indicate blackout periods, lack of conviction, or regulatory restrictions.
Insider Participation
No insider trading activity reported from any insiders in the past year.
gecci Dividend History
Learning Layer
Related Guides
Build conviction on GECCI by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.