Genetic Signatures Ltd. (GSS) AI Stock Analysis

• Market Cap: AU$126.06M
• Dividend Yield: N/A
• Average Volume (3M): 66.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: 44.61%
• EPS Growth: 16.40%
• Country: AU
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.07
• Shares Outstanding: 227,138,820
• 10 Day Avg. Volume: 81,388
• 30 Day Avg. Volume: 66,076
• PEG Ratio: -0.52
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.86
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.75
• Price Target Upside: 33.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: ―

Genetic Signatures Ltd. is facing significant financial performance challenges, with declining revenues and negative profit margins weighing heavily on its score. The technical indicators show a bearish trend, further adding to the company's struggles. The valuation metrics do not provide any compensating strengths, as the negative P/E ratio and absence of dividend yield limit its attractiveness. Overall, the stock score reflects the company's need for strategic improvements to enhance its financial stability and market competitiveness.

Genetic Signatures Ltd. Business Overview & Revenue Model

Company Description

Genetic Signatures Limited operates as a molecular diagnostic (MDx) company in Australia, the Asia Pacific, the Americas, Europe, the Middle East, Israel, and Africa. It designs and manufactures a suite of real-time polymerase chain reaction-based products for detection of infectious diseases under the EasyScreen brand name. The company also provides MDx 3Base platform technology that enables hospital and pathology laboratories to screen for a range of infectious pathogens. In addition, it offers detection kits for gastrointestinal infections, respiratory, sexual health, anti-microbial resistance, meningitis, and tropical disease. The company was incorporated in 2001 and is headquartered in Newtown, Australia.

How the Company Makes Money

Genetic Signatures Ltd. generates revenue primarily through the sale of its EasyScreen™ diagnostic kits to clinical laboratories and healthcare facilities. The company benefits from the growing demand for rapid and reliable diagnostic testing, driven by the need for timely detection and response to infectious diseases. Key revenue streams include direct sales of diagnostic kits and reagents, as well as potential licensing agreements for its proprietary 3base™ technology. Partnerships with healthcare institutions and research organizations contribute to the company's market presence and distribution capabilities, enhancing its ability to reach broader markets and drive sales growth.

Genetic Signatures Ltd. Financial Statement Overview

Summary

Genetic Signatures Ltd. faces significant challenges in maintaining revenue and profitability, with declining revenues and negative profit margins. While the balance sheet is relatively stable with low debt levels, the negative cash flows highlight underlying liquidity issues. The company may need to explore operational efficiencies and revenue growth strategies to improve its financial health.

Income Statement

The company has shown a significant decline in revenue from 2023 to 2024, with a negative revenue growth rate. Profitability metrics like gross profit margin and net profit margin are negative, indicating operational challenges. The negative EBIT and EBITDA margins further highlight the company's struggles in maintaining operational efficiency.

Balance Sheet

The company maintains a healthy equity position with a high equity ratio and low debt-to-equity ratio, indicating financial stability. However, the decline in equity from 2023 to 2024 suggests potential risks in sustaining this stability in the long term. The return on equity is negative, reflecting the company's unprofitability.

Cash Flow

Operating cash flow and free cash flow are negative, posing liquidity concerns. The company witnessed a significant cash outflow in recent years. However, the financing cash flow has been positive, indicating reliance on external funding sources to manage operations.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
14.66M	9.77M	16.94M	35.42M	28.28M	11.26M
	Gross Profit
-3.20M	4.31M	-12.74M	7.21M	4.27M	-2.37M
	EBIT
-16.88M	-22.33M	-18.89M	2.97M	1.56M	-4.83M
	EBITDA
-16.98M	-19.82M	-13.14M	4.70M	3.22M	-1.70M
	Net Income Common Stockholders
-22.59M	-17.86M	-14.05M	3.06M	1.76M	-2.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
40.79M	36.25M	16.35M	36.90M	30.12M	31.18M
	Total Assets
59.01M	67.29M	49.08M	59.65M	54.05M	49.72M
	Total Debt
1.01M	1.22M	0.00	34.00K	399.00K	741.00K
	Net Debt
-39.78M	-35.03M	-16.35M	-36.86M	-29.72M	-30.43M
	Total Liabilities
4.42M	6.18M	6.16M	4.85M	4.71M	3.79M
	Stockholders Equity
54.59M	61.10M	42.91M	54.80M	49.34M	45.93M
Cash Flow		Free Cash Flow
-12.43M	-14.91M	-20.54M	6.82M	-784.00K	-11.84M
	Operating Cash Flow
-10.70M	-10.12M	-12.45M	9.81M	4.20M	-9.49M
	Investing Cash Flow
-1.98M	-4.79M	-8.09M	-2.99M	-4.98M	-2.35M
	Financing Cash Flow
35.34M	34.81M	-23.00K	-101.00K	-190.00K	36.69M

Genetic Signatures Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:GSS, the sentiment is Neutral. The current price of 0.56 is above the 20-day moving average (MA) of 0.56, above the 50-day MA of 0.50, and below the 200-day MA of 0.61, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 53.10 is Neutral, neither overbought nor oversold. The STOCH value of 43.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:GSS.

Genetic Signatures Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	53 Neutral	$5.14B	3.23	-45.01%	2.85%	17.55%	-0.69%
GSS	45 Neutral	AU$126.06M	―	-47.52%	―	44.61%	16.40%
IUGNF		$81.61M	―	-99.05%	―	―	―
TLPPF		$5.70B	166.07	14.52%	―	―	―
RAC	54 Neutral	AU$246.70M	―	-37.20%	―	―	32.02%
PIQ	44 Neutral	AU$58.14M	―	-131.55%	―	12.53%	-11.04%
BDX	42 Neutral	AU$27.81M	―	-104.23%	―	―	-17.26%

Genetic Signatures Ltd. Corporate Events

Genetic Signatures Reports 71% Sales Increase and Secures First US Contract

Genetic Signatures Ltd reported a significant 71% increase in quarterly sales, reaching $2.9 million, driven by high respiratory testing rates in Australia. The company signed its first US commercial contract for its EasyScreen™ Gastrointestinal Parasite Detection Kit and is implementing a new strategy for automated, high throughput solutions through the customization of commercially available instruments. With a strong cash balance of $37.4 million, Genetic Signatures is well-positioned to expand its market presence, particularly in the US, following FDA clearance. The company continues to focus on innovation in assay development, workflow enhancements, and software improvements to support its growth strategy.

Genetic Signatures Ltd. Announces Cessation of Securities

Genetic Signatures Ltd. announced the cessation of 380,000 securities due to the lapse of conditional rights, as the conditions for these securities were not met or became unfeasible. This cessation may impact the company’s capital structure and could influence investor perceptions regarding the company’s future financial strategies.

Genetic Signatures Reports Strong Sales Growth and Strategic Shift in FY25

Genetic Signatures Ltd. reported a significant 136% increase in sales for the first half of FY25, reaching $8.5 million, driven by strong respiratory sales in Australia. The company improved its gross margin to 59% and reduced its underlying loss by 20% compared to the previous year. Despite a statutory loss of $15.2 million due to a $6.8 million impairment expense, Genetic Signatures secured its first US commercial contract, marking a strategic expansion into the US market. The company has shifted its strategic direction towards developing a more cost-effective and faster-to-market automated solution, ceasing the development of its Next Generation instrument. This new approach is expected to enhance its syndromic infectious disease testing capabilities, leveraging its 3base technology.

Genetic Signatures Reports Revenue Surge Amid Rising Losses

Genetic Signatures Limited reported a 136% increase in revenues to $8,499,000 for the half-year ending December 31, 2024, despite a 45% rise in losses to $15,200,000 compared to the previous year. The significant revenue growth highlights the company’s expanding market presence, although the increased losses suggest ongoing financial challenges, impacting stakeholder confidence and future strategic decisions.