Company Overview
Genius Group Limited operates within the Consumer Defensive sector, specifically serving the Education & Training Services industry by providing entrepreneur education system business development tools and management consultancy services to entrepreneurs. The company executes its operations through distinct segments including Central, Academy, School, and Resorts, where it develops entrepreneurial education curriculum with various tools for student learning. In terms of scale, the entity maintains a market capitalization of $51.15M and employs a workforce of 445 individuals to support its business model. The market cap figure of $51.15M combined with the annual revenue of $8.39M indicates that the company functions as a small-cap enterprise, reflecting a limited public market valuation relative to its operational footprint and revenue generation capabilities.
Financial Health
The company reported revenue of $8.39M over the trailing twelve months, yet the net income stands at a significant loss of $-55,799,288, while EBITDA is recorded at $-24,619,852. The substantial gap between the positive revenue of $8.39M and the negative net income of $-55,799,288 reveals a highly aggressive cost structure where expenses, likely driven by the educational consultancy model or operational segments, far exceed gross earnings. Despite the negative net income and EBITDA, the company generated positive free cash flow of $12.47M, which provides a degree of financial flexibility by allowing the entity to meet obligations and potentially fund operations without immediate reliance on external equity financing. The gross margin is calculated at 32.7%, indicating that the company retains over a third of revenue before accounting for operating expenses, whereas the operating margin is -320.1% and the profit margin is 0.0%, signaling that operating expenses are disproportionately high relative to revenue and that the company is currently unprofitable on a bottom-line basis. Regarding liquidity and leverage, the company holds $2.47M in cash against total debt of $27.63M, resulting in a debt-to-equity ratio of 28.60, which characterizes a highly leveraged balance sheet rather than a conservative one. The current ratio stands at 0.86, indicating that the company's current assets are insufficient to cover its current liabilities, suggesting potential short-term liquidity challenges. Furthermore, the return on equity is -63.6% and the return on assets is -14.1%, metrics that reveal that management effectiveness is currently negative, as the company is destroying shareholder value and failing to generate returns on its asset base.
Valuation Assessment
The trailing twelve-month P/E ratio is listed as N/A due to the negative earnings, while the forward P/E is reported at -8.00; the difference between these metrics implies that the market is pricing in a path to profitability or continued losses that are not yet reflected in current earnings. The price-to-book ratio is 0.57, which indicates that the stock is trading at a discount relative to its book value, suggesting the market values the company's equity at less than what it would cost to replace its assets. Alternative valuation metrics include a price-to-sales ratio of 6.10 and an EV/EBITDA of -3.40, which suggest the market is valuing the company based on revenue multiples and enterprise value relative to earnings before interest, taxes, depreciation, and amortization, despite the negative EBITDA. The 52-week high is $1.92 and the 52-week low is $0.21, meaning the current price sits significantly below the high and near the bottom of the trading range, reflecting high volatility and investor caution. The beta value is 10.87, which signifies that the stock price is extremely volatile relative to the broader market, moving with far greater intensity than the average stock and exposing investors to substantial short-term price swings.
Growth & Income
The revenue growth year-over-year and earnings growth year-over-year are both listed as N/A, preventing a direct comparison of earnings growth rates versus revenue growth; however, the negative earnings trajectory implies that the company has not yet achieved profitability to support earnings growth. As a non-dividend payer, the company does not distribute a dividend yield or a payout ratio, which means the company reinvests its limited earnings and cash flows back into the business rather than paying dividends to shareholders. The overall growth and income profile is characterized by a lack of current profitability and dividend income, with the company relying on positive free cash flow to sustain operations in the absence of earnings growth.