Should I buy The Spar Group stock in 2025?

What is The Spar Group?

How much is the Spar Group stock?

The price of The Spar Group stock is declining this week. As of 30 May 2025, the current share price stands at $1.02, reflecting a 1.45% decrease over the past 24 hours and a 5.56% drop for the week.

The company’s market capitalisation is $24.27 million, with an average daily trading volume of 63,300 shares over the last three months. There is no applicable P/E ratio due to a net loss, and the stock does not offer a dividend yield.

With a beta of just 0.36, The Spar Group stock shows relatively low volatility, but the ongoing downward trend suggests investors should carefully consider the risk factors in the current market environment.

Our full analysis on the Spar Group stock

Having reviewed The Spar Group's latest financial results alongside its share performance over the past three years, we have integrated an array of analytical sources—including core financial indicators, technical signals, market benchmarks, and peer comparisons—utilising proprietary screening models designed for the technology-enabled branded retailing sector. As shifting sector dynamics and evolving business fundamentals converge, a new assessment emerges: Why might The Spar Group stock once again become a strategic entry point into the specialty business services segment as we look ahead to 2025?

Recent Performance and Market Context

The Spar Group Inc. (NASDAQ: SGRP), operating at the nexus of merchandising and branded retail services since 1967, has faced notable volatility in its share price trajectory. As of 30 May 2025, the stock trades at $1.02—a point just above its 52-week low of $0.9975, having retreated 54.26% over the last six months and 61.22% year-over-year. However, such pronounced downside has reset market expectations, and with a market capitalisation of $24.27 million, the current valuation stands markedly below its historical averages.

Within the past calendar quarter, the company surpassed quarterly consensus revenue and earnings-per-share (EPS) projections—Q2 2024 revenues reaching $57.3 million and an EPS of $0.15, both exceeding Street estimates. Management guidance continues to stress benefits from a strategic restructuring and a focus on growth verticals in North America, specifically where Q1 saw an impressive 22% revenue surge in the US and Canada businesses.

With interest rates stabilising in North America and consumer-driven retail spend rebounding modestly, the broader macroeconomic backdrop shows distinct underlying momentum for multinational commercial service providers. Within this context, The Spar Group’s global footprint and embedded relationships with leading retail chains stand as pivotal assets.

Technical Analysis

Technical readings reveal a landscape ripe for reassessment. The stock’s relative strength index (RSI) is at 11.56, undeniably deep in oversold territory—a reading that has historically acted as a reversal trigger for mean-reversion traders. The proximity to its 52-week low at $0.9975 creates a formidable technical floor, underlining strong buying interest should the price pierce this support level only to rapidly reclaim ground.

Short- and medium-term moving averages continue to exhibit negative slopes, in line with the recent drawdown, but the negative momentum may be reaching exhaustion. Primary resistance levels stand at $1.10 and $1.13; a decisive break could provide confirmation of a bullish short squeeze, particularly given the magnitude of prior downside and the prevailing low-beta environment (five-year beta at 0.36).

Momentum indicators, though currently subdued, may be at the early stages of a reversal cycle. The technical structure thus signals a potential transition from persistent weakness to an attractive entry setup—particularly for investors skilled at anticipating inflection points.

Fundamental Analysis

Despite headline revenue for FY 2024 retreating 25.1% to $196.81 million, fundamentals underscore resilience and value not reflected in recent performance alone. The Q2 EPS of $0.15—well clear of expectations—demonstrates SPAR Group’s capacity to deliver positive operational leverage through targeted cost management and strategic reorientation.

Valuation metrics are compelling. The price/sales ratio rests at a low 0.12, while price/book sits equitably at 1.00—each indicating market underappreciation of The Spar Group’s genuine asset base and revenue production, especially relative to industry norms. Though trailing twelve-month profitability remains elusive (EPS of -$0.13 for TTM and an operating margin of -1.60%), it is important to situate this within the context of the Group’s transformation pivots and cyclical sector pressures.

SPAR Group’s long-established position within global merchandising, diversified international presence (North America, EMEA, APAC), and entrenched partnerships with major retailers provide a formidable foundation for regrowth. Its services—including shelf audits, inventory management, and point-of-sale operations—fulfill critical functions for global brands seeking to optimise in-store execution under dynamic market conditions.

Volume and Liquidity

Daily average volume over the prior 90-days stands at 63,300 shares, evidencing consistent market participation and the willingness of buyers to absorb supply at current levels. The modest float—23.45 million shares—augments the potential for dynamic re-ratings in periods of heightened interest, amplifying both liquidity and upside as sentiment reverses.

Such sustained liquidity reflects underlying market confidence and offers institutional and private investors alike the ability to enter or exit positions efficiently—often a key consideration in the small-cap segment.

Catalysts and Positive Outlook

• Continued outperformance in North American operations: Q1 2024’s 22% year-on-year revenue growth in the US and Canada provides tangible proof of strategic traction.
• CEO-driven growth initiatives in Canada: Ongoing expansion in one of the world’s most stable and affluent consumer markets is expected to contribute outsized marginal profits.
• Transformation and restructuring: The management’s active efforts to streamline global operations target a swift return to sustainable profitability, positioning the company to benefit fully from any macro flow-through in retail spending.
• Sector tailwinds: The steady digital transformation of retail and rising emphasis on in-store optimisation play directly to SPAR Group’s strengths in field merchandising and store-level analytics.

Additionally, the next quarterly report, scheduled for August 2025, is anticipated as a pivotal event. Notably, price targets indicate ample re-rating potential: A computed fair value of $1.33 (+30% from current levels) and a bullish analyst target as high as $7.00 underscores deep disconnects between current valuation and embedded future potential.

Investment Strategies

From a technical standpoint, initiating positions near the $1.00 psychological level—anchored by historical support—appears tactically prudent for those with short- or medium-term horizons. The present phase of deep oversold conditions, combined with impending corporate catalysts, positions The Spar Group as a candidate for mean-reversion trades and longer-term value re-rating.

• Short-term traders might target rebounds towards the $1.10–$1.13 resistance zone, setting disciplined risk parameters at last week’s low.
• Medium-term investors may look to accumulate ahead of the August earnings, anticipating improved sentiment as restructuring gains traction.
• Longer-term holders could see this as an opportunity to secure exposure at historically compressed valuation multiples, with a multi-quarter time horizon capturing both operational turnaround and potential sector re-rating.

Across all horizons, the prevailing risk/reward calculus seems skewed favourably toward opportunistic entry, particularly at current levels near technical and historical lows which have previously attracted significant buying power.

Is it the Right Time to Buy The Spar Group?

In summary, The Spar Group presents a confluence of resilient fundamentals, high-reward technical conditions, and powerful potential catalysts. The stock’s undervaluation is underscored by compelling price/book and price/sales multiples, while recent operational improvement in North America and forthcoming results provide a clear path for sentiment reversal. While the group has experienced recent pressure, these phases have historically offered attractive entry points for investors willing to look beyond short-term headwinds.

The imminent corporate milestones, the company’s repositioning in a revitalising sector, and the evident technical support around current levels—all suggest The Spar Group may be entering a new bullish phase. In this context, the fundamentals justify renewed interest.

For investors seeking exposure to a specialty business service provider in the midst of strategic transformation, The Spar Group seems to represent an excellent opportunity at the very point where risk-adjusted upside is maximised. As global retail dynamics evolve and the company’s operational initiatives begin to bear fruit, serious consideration of The Spar Group stock appears both timely and potentially rewarding.

Ultimately, the convergence of technical overselling, fundamental value, and an improving sector outlook signal that The Spar Group could be on the verge of a meaningful turnaround—an ideal set-up for those ready to anticipate the next phase of growth and re-rating in this dynamic segment.

How to buy The Spar Group stock in ZA?

Buying The Spar Group stock (SGRP) online is now both straightforward and secure for South African investors—thanks to regulated brokers that offer access to the NASDAQ market. You can choose between two primary methods: classic spot buying, where you own real shares, or CFD trading, which allows you to speculate on the share price without direct ownership. Each approach offers unique features and risks. To help you find the platform that suits your needs, a broker comparison is provided further down the page.

Spot Buying

A cash (spot) purchase means you buy actual The Spar Group shares, becoming a direct shareholder with ownership rights. South African brokers typically charge a fixed commission per trade plus a possible small percentage of the total order, usually quoted in US dollars (USD).

Example

With The Spar Group share price at $1.02 (NASDAQ: SGRP), a $1,000 investment would let you buy around 975 shares (after deducting about $5 for commission).
- Scenario – Gain: If the share price rises by 10%, your holdings would be worth approximately $1,100.
- Result: That’s a $100 gross gain, or +10% on your initial stake, excluding potential taxes and minor fees.

Trading via CFD

CFD (Contract for Difference) trading allows you to speculate on The Spar Group’s price movements without owning the stock itself. CFDs are popular for flexibility: you can go both long and short, and use leverage. The main costs here are the spread (difference between buy and sell prices) and potential overnight financing fees when holding leveraged positions.

Example

Suppose you open a $1,000 CFD position with 5x leverage on The Spar Group shares. This gives you exposure to $5,000 worth of stock.
- Scenario – Gain: If the share price rises by 8%, your position sees an 8% × 5 = 40% uptick.
- Result: That’s a $400 gain on a $1,000 margin (excluding spreads and overnight costs).

Final Advice

Before investing, it’s essential to compare different brokers’ fees, platform features, and trading conditions—which can significantly impact your returns. The right method and platform depend on your goals: spot buying suits long-term investors, while CFDs may better fit active traders aiming for short-term gains. To make the best choice for your strategy and budget, be sure to explore the broker comparison available further down the page.

Our 7 tips for buying The Spar Group stock

The latest news about The Spar Group

The Spar Group delivered a notably positive Q2 2024 earnings surprise, beating consensus on both revenue and EPS. For the most recent quarter reported, Spar Group posted revenues of $57.3 million and an EPS of $0.15, coming in above analyst expectations. This is the second consecutive quarter with results outperforming consensus, suggesting improved operational execution and some early signs of the company’s restructuring efforts bearing fruit. The earnings surprise offers a constructive signal to stakeholders monitoring core operational recovery after the previous year's significant revenue decline.

The company’s share price has reached a technical support level near its 52-week low, signaling potential stabilization. Currently trading at $1.02, with the RSI at an extremely oversold 11.56, the stock sits just above its key technical support at $0.9975. While recent performance has been negative, these technical signals may indicate that downside overreaction is slowing, providing a critical potential setup for recovery if fundamentals begin to stabilize. For South African analysts and investors monitoring volatility and point-of-entry opportunities, this moment offers a favorable context for re-evaluation.

Spar Group continues its strategic restructuring, focusing on margin improvements and return to profitability. Official statements confirm a focus on operational cost control and targeted growth geographies, signaling ongoing management discipline. While full-year revenue fell 25.1% and margins remain pressured, management highlights ongoing restructuring and the pursuit of high-potential contracts—actions that have begun to reflect in sequential earnings momentum. For local analysts considering turnaround stories, these steps echo best practices for restoring sustainable shareholder value in global retail service environments.

Positive sales momentum in North American operations suggests the efficacy of targeted regional strategies. A 22% revenue jump in the United States and Canada in recent quarters demonstrates that the group’s market-specific strategies can yield real growth, despite persistent challenges elsewhere. This traction in large, developed markets could eventually support reinvestment in EMEA, including sub-Saharan Africa, providing valuable context for South African observers interested in cross-regional best practices and potential spillover benefits.

Analyst consensus projects material upside, with one analyst setting a $7.00 price target and models suggesting a 30% rise as a base case. Despite short-term challenges, there is credible external endorsement of upside potential, corroborated by a fact-based short-term price objective of $1.33 and an outlier bullish analyst target of $7.00. This positive skew in forward-looking projections provides a constructive backdrop for decision-making and is particularly relevant for local portfolio managers seeking contrarian value opportunities in global retail-linked equities.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.