Great Elm Capital Stock Z Score
| GECCO Stock | USD 24.81 0.04 0.16% |
Great | Z Score |
Great Elm Capital Company Z Score Analysis
Great Elm's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
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To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
| Competition |
According to the company's disclosures, Great Elm Capital has a Z Score of 0.0. This is 100.0% lower than that of the Financial Services sector and 100.0% lower than that of the Asset Management industry. The z score for all United States stocks is 100.0% higher than that of the company.
Great Z Score Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Great Elm's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Great Elm could also be used in its relative valuation, which is a method of valuing Great Elm by comparing valuation metrics of similar companies.Great Elm is currently under evaluation in z score category among its peers.
Great Elm Current Valuation Drivers
We derive many important indicators used in calculating different scores of Great Elm from analyzing Great Elm's financial statements. These drivers represent accounts that assess Great Elm's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Great Elm's important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 42.3M | 55.0M | 104.0M | 148.2M | 187.7M | 197.1M | |
| Enterprise Value | 157.6M | 117.5M | 236.9M | 300.7M | 327.0M | 343.3M |
Great Elm ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Great Elm's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Great Elm's managers, analysts, and investors.Environmental | Governance | Social |
Great Fundamentals
About Great Elm Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Great Elm Capital's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Great Elm using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Great Elm Capital based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Great Elm
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Great Elm position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Great Elm will appreciate offsetting losses from the drop in the long position's value.Moving together with Great Stock
| 0.68 | AB | AllianceBernstein | PairCorr |
| 0.7 | AC | Associated Capital | PairCorr |
| 0.72 | BK | Bank of New York Fiscal Year End 10th of January 2025 | PairCorr |
| 0.67 | BN | Brookfield Corp | PairCorr |
Moving against Great Stock
The ability to find closely correlated positions to Great Elm could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Great Elm when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Great Elm - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Great Elm Capital to buy it.
The correlation of Great Elm is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Great Elm moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Great Elm Capital moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Great Elm can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Great Elm Piotroski F Score and Great Elm Valuation analysis. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Is Business Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Great Elm. If investors know Great will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Great Elm listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Great Elm Capital is measured differently than its book value, which is the value of Great that is recorded on the company's balance sheet. Investors also form their own opinion of Great Elm's value that differs from its market value or its book value, called intrinsic value, which is Great Elm's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Great Elm's market value can be influenced by many factors that don't directly affect Great Elm's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Great Elm's value and its price as these two are different measures arrived at by different means. Investors typically determine if Great Elm is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Great Elm's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.