📊 FGCO Key Takeaways
Is Financial Gravity Companies, Inc. (FGCO) a Good Investment?
Financial Gravity Companies demonstrates severe operational distress with negative operating and net margins despite high gross margins, suggesting fundamental business model problems. The company faces critical liquidity constraints with a current ratio of 0.29x and negative free cash flow, indicating inability to meet short-term obligations without asset sales or capital infusion.
Financial Gravity shows a high gross margin business, but that advantage is not translating into sustainable profitability or cash generation. The company is operating at a loss, burning cash, and has severe near-term liquidity pressure with a 0.29x current ratio, while the financial data is also stale as of June 30, 2022, which further reduces confidence in the business quality.
Why Buy Financial Gravity Companies, Inc. Stock? FGCO Key Strengths
- High gross margin of 94.7% indicates strong pricing power or low cost of goods sold
- Modest debt-to-equity ratio of 0.24x suggests reasonable leverage relative to equity base
- Minimal capital expenditure requirements demonstrate low capital intensity of operations
- Very high gross margin of 94.7%, indicating a low direct cost structure
- Modest debt load relative to equity with debt-to-equity of 0.24x
- Positive equity base of $1.85M provides some balance sheet support
FGCO Stock Risks: Financial Gravity Companies, Inc. Investment Risks
- Severe liquidity crisis with current ratio of 0.29x, well below the 1.0x minimum threshold for operational viability
- Negative operating margin of -16.9% and negative ROE/ROA indicate fundamental business model failure to generate profits
- Negative free cash flow of -92.0K with deteriorating cash position ($208K) suggests imminent solvency concerns within 2-3 quarters at current burn rate
- Persistent operating losses despite high gross margins indicate structural cost or overhead problems that cannot be resolved through pricing
- Data stale as of June 2022 with no recent insider activity, limiting ability to assess current trajectory
- Weak liquidity with current and quick ratios of 0.29x signals meaningful short-term solvency risk
- Negative operating income, net income, and free cash flow indicate an unproven earnings model
- Extremely poor interest coverage and stale financial data increase uncertainty around current financial health
Key Metrics to Watch
- Operating cash flow trend and cash runway at current burn rate
- Resolution of structural cost issues causing negative operating margins
- Current ratio and working capital position to assess liquidity crisis severity
- Current ratio and cash balance trend
- Operating cash flow and operating margin improvement
Financial Gravity Companies, Inc. (FGCO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
FGCO Profit Margin, ROE & Profitability Analysis
FGCO vs Finance Sector: How Financial Gravity Companies, Inc. Compares
How Financial Gravity Companies, Inc. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Financial Gravity Companies, Inc. Stock Overvalued? FGCO Valuation Analysis 2026
Based on fundamental analysis, Financial Gravity Companies, Inc. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Financial Gravity Companies, Inc. Balance Sheet: FGCO Debt, Cash & Liquidity
FGCO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Financial Gravity Companies, Inc.'s revenue has grown significantly by 142% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.01 indicates the company is currently unprofitable.
FGCO Revenue Growth, EPS Growth & YoY Performance
FGCO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2022 | $1.3M | $47.0K | $0.00 |
| Q2 2022 | $1.6M | -$74.7K | $0.00 |
| Q1 2022 | $1.6M | -$74.7K | $0.00 |
| Q3 2021 | $947.5K | -$271.2K | $-0.01 |
| Q2 2021 | $616.7K | -$103.8K | N/A |
| Q1 2021 | $691.2K | -$12.0K | N/A |
| Q3 2020 | $920.4K | -$16.9K | N/A |
| Q2 2020 | $616.7K | -$162.1K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Financial Gravity Companies, Inc. Dividends, Buybacks & Capital Allocation
FGCO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Financial Gravity Companies, Inc. (CIK: 0001377167)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FGCO
What is the AI rating for FGCO?
Financial Gravity Companies, Inc. (FGCO) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 86% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FGCO's key strengths?
Claude: High gross margin of 94.7% indicates strong pricing power or low cost of goods sold. Modest debt-to-equity ratio of 0.24x suggests reasonable leverage relative to equity base. ChatGPT: Very high gross margin of 94.7%, indicating a low direct cost structure. Modest debt load relative to equity with debt-to-equity of 0.24x.
What are the risks of investing in FGCO?
Claude: Severe liquidity crisis with current ratio of 0.29x, well below the 1.0x minimum threshold for operational viability. Negative operating margin of -16.9% and negative ROE/ROA indicate fundamental business model failure to generate profits. ChatGPT: Weak liquidity with current and quick ratios of 0.29x signals meaningful short-term solvency risk. Negative operating income, net income, and free cash flow indicate an unproven earnings model.
What is FGCO's revenue and growth?
Financial Gravity Companies, Inc. reported revenue of $4.5M.
Does FGCO pay dividends?
Financial Gravity Companies, Inc. does not currently pay dividends.
Where can I find FGCO SEC filings?
Official SEC filings for Financial Gravity Companies, Inc. (CIK: 0001377167) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FGCO's EPS?
Financial Gravity Companies, Inc. has a diluted EPS of $-0.08.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FGCO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Financial Gravity Companies, Inc. has a STRONG SELL rating with 86% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FGCO stock overvalued or undervalued?
Valuation metrics for FGCO: ROE of -23.0% (sector avg: 12%), net margin of -9.4% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy FGCO stock in 2026?
Our dual AI analysis gives Financial Gravity Companies, Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FGCO's free cash flow?
Financial Gravity Companies, Inc.'s operating cash flow is $-90.0K, with capital expenditures of $1.9K. FCF margin is -2.0%.
How does FGCO compare to other Finance stocks?
Vs Finance sector averages: Net margin -9.4% (avg: 25%), ROE -23.0% (avg: 12%), current ratio 0.29 (avg: 1.2).