Great Elm Capital Corp (NASDAQ:GECC) is a prominent player in the financial sector, specializing in investment management services. Competing within the bustling financial industry, GECC aims to enhance financial performance and maximize shareholder value.
On August 5, 2025, GECC announced an earnings per share (EPS) of $0.51, outperforming the projected $0.44. This marks a significant increase from the $0.32 per share reported in the same quarter of the previous year. The earnings surprise for this quarter was a notable +15.91%, as reported by Zacks. In the preceding quarter, GECC also surpassed expectations with an EPS of $0.40 against the forecasted $0.39, achieving a +2.56% surprise.
The company also reported revenues of $14.28 million for the quarter ending June 2025, beating the Zacks Consensus Estimate by 8.28%. This represents a significant improvement from the $9.55 million in revenues recorded a year earlier. Over the last four quarters, GECC has consistently exceeded consensus EPS estimates three times and revenue estimates three times.
GECC's financial metrics offer deeper insights into its robust performance. The company's price-to-earnings (P/E) ratio is approximately 28.29, showcasing the premium investors are willing to pay for its earnings. The price-to-sales ratio is about 4.10, indicating the company's market valuation in relation to its sales. The enterprise value to sales ratio stands at around 10.63, reflecting the total value of the company compared to its sales.
However, concerns arise with the company's cash flow generation, as evidenced by a negative enterprise value to operating cash flow ratio of -11.81. The earnings yield is approximately 3.53%, offering insights into the return on investment. The debt-to-equity ratio is 1.53, highlighting the level of debt used to finance the company's assets relative to equity. Lastly, the current ratio of 0.79 suggests potential liquidity challenges in covering short-term liabilities with current assets.
