Great Elm Group Inc. (GEG) exhibits 93.4% gross margins and -35.0% return on invested capital within Technology (Computer Software: Prepackaged Software), balanced against a 5.2x enterprise multiple and 4.8% implied options volatility.
Sustained 93.4% gross profitability converts into -49.1% operating margin and -35.0% ROIC, outpacing sector cost of capital.
ROIC: -35.0% // GM: 93.4%YoY revenue trajectory of -8.5% paired with -13.48% free cash flow yield supports self-funded R&D and capital return.
REV YOY: -8.5% // FCF YLD: -13.48%Altman Z-Score of 3.80 and Piotroski F-Score of 4/9 indicate low near-term refinancing stress.
ALTMAN Z: 3.80 // F-SCORE: 4/9Trading at 5.2x trailing P/E (4.8x Fwd P/E) leaves valuation vulnerable if real 10Y TIPS yields spike.
P/E: 5.2x // EV/EBITDA: —Options market prices a ±5.2% implied move with a 0.85 put/call ratio around $2.16 max pain.
IMPL MOVE: ±5.2% // P/C: 0.85Elevated industry capital intensity and customer concentration in Computer Software: Prepackaged Software require continuous execution to defend 68.0% net margins.
NET MARGIN: 68.0% // D/E: 0.45x| FILER | SIDE | $ VALUE |
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| INSPECT FULL OWNERSHIP LEDGER IN OWN <GO> | ||
| STRIKE / EXP | TYPE | PREMIUM |
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| INSPECT GEX & CHAIN IN OPT <GO> | ||
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