GSTechnologies (GST) AI Stock Analysis

• Market Cap: £15.69M
• Dividend Yield: N/A
• Average Volume (3M): 14.99M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.70
• Revenue Growth: 88.59%
• EPS Growth: -60.00%
• Country: UK
• Employees: 36
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): >-0.01
• Shares Outstanding: 2,325,110,000
• 10 Day Avg. Volume: 6,693,095
• 30 Day Avg. Volume: 14,992,439
• PEG Ratio: -0.31
• Price to Book (P/B): 4.58
• Price to Sales (P/S): 13.80
• P/FCF Ratio: -14.13
• 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: £0.50
• Price Target Upside: -26.47% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: 0.50p ▼(-26.47% Downside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues and persistent losses. Technical analysis indicates a bearish trend, and valuation metrics are unfavorable due to negative profitability. The absence of earnings call data and corporate events means these factors do not influence the score.

GSTechnologies Business Overview & Revenue Model

Company Description

GSTechnologies (GST) is a forward-thinking technology company specializing in blockchain solutions and digital asset management. The company operates primarily within the fintech sector, providing innovative services that include cryptocurrency trading platforms, digital wallet solutions, and blockchain-based applications designed for various industries. With a focus on enhancing the efficiency and security of financial transactions, GST aims to empower businesses and consumers in the evolving digital economy.

How the Company Makes Money

GST generates revenue through multiple streams, primarily by charging transaction fees on trades executed on its cryptocurrency trading platform. Additionally, the company earns income from subscription fees for premium features offered within its digital wallet services. GST also engages in strategic partnerships with other fintech firms and blockchain developers to provide integrated solutions, allowing for shared revenue models and co-branded services. Furthermore, GST may explore revenue opportunities through consulting services for businesses seeking to implement blockchain technology, thereby diversifying its income sources.

GSTechnologies Financial Statement Overview

Summary

GSTechnologies faces significant financial challenges with declining revenues and persistent losses. Despite improvements in cash flow and low leverage, the company struggles with profitability and efficient use of equity.

Income Statement

The company has experienced declining revenue with a negative growth rate of -20.2% in the most recent year. Margins are concerning, with a negative net profit margin of -77.9% and EBIT margin of -81.9%, indicating significant losses. The gross profit margin has improved to 32.98%, but overall profitability remains a challenge.

Balance Sheet

The debt-to-equity ratio is low at 0.015, suggesting limited leverage, which is a positive aspect. However, the return on equity is negative at -25.8%, indicating inefficiencies in generating returns from equity. The equity ratio stands at 18.1%, reflecting a moderate level of equity financing.

Cash Flow

The company shows a significant increase in free cash flow growth at 206.7%, but operating cash flow remains negative, indicating cash flow challenges. The free cash flow to net income ratio is 1.46, suggesting cash flow is better than net income, but overall cash management needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.96M	2.82M	1.47M	442.00K	45.00K	2.83M
Gross Profit	1.90M	929.00K	271.00K	-133.00K	47.00K	-239.00K
EBITDA	-1.33M	-2.25M	-1.15M	-1.09M	-762.00K	-306.00K
Net Income	-2.19M	-2.19M	-1.22M	-1.63M	-1.43M	-490.00K
Balance Sheet
Total Assets	47.02M	47.02M	7.50M	6.70M	8.21M	4.61M
Cash, Cash Equivalents and Short-Term Investments	4.21M	4.21M	2.61M	4.25M	5.10M	1.74M
Total Debt	126.00K	126.00K	212.00K	381.00K	1.31M	1.78M
Total Liabilities	38.57M	38.57M	1.25M	2.83M	2.20M	2.79M
Stockholders Equity	8.50M	8.50M	6.30M	3.87M	6.01M	1.82M
Cash Flow
Free Cash Flow	-1.89M	-2.75M	-5.13M	157.00K	-1.92M	-1.07M
Operating Cash Flow	-1.88M	-1.88M	-3.05M	2.11M	-1.76M	-915.00K
Investing Cash Flow	-1.09M	-1.09M	-2.08M	-1.52M	-159.00K	-106.00K
Financing Cash Flow	4.57M	4.57M	3.48M	-1.44M	5.28M	2.20M

GSTechnologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GST, the sentiment is Negative. The current price of 0.68 is below the 20-day moving average (MA) of 0.73, below the 50-day MA of 0.76, and below the 200-day MA of 1.31, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 39.92 is Neutral, neither overbought nor oversold. The STOCH value of 19.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GST.

GSTechnologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRD	62 Neutral	£51.39M	29.71	41.96%	2.03%	52.51%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MTEC	52 Neutral	£48.52M	34.95	10.36%	―	20.40%	―
TIA	50 Neutral	£23.95M	―	-67.57%	―	-12.11%	-106.04%
TPX	41 Neutral	£14.18M	―	-21.01%	―	-8.22%	61.58%
GST	41 Neutral	£15.69M	―	-29.86%	―	88.59%	-60.00%

GSTechnologies Corporate Events

GSTechnologies Director Sells Significant Shareholding

GSTechnologies Ltd announced that Christopher Wellesley, a Non-Executive Director, sold 2,000,000 ordinary shares at 1.275 pence each, reducing his stake to 1,035,000 shares, which is about 0.05% of the company’s issued share capital. This transaction may impact investor perception and the company’s stock market performance, reflecting changes in insider holdings.

Spark’s Take on GB:GST Stock

According to Spark, TipRanks’ AI Analyst, GB:GST is a Neutral.

GSTechnologies Ltd. faces significant operational and profitability challenges, reflected in poor financial performance and technical indicators. However, recent strategic acquisitions signal potential growth opportunities, slightly offsetting the otherwise negative outlook.

To see Spark’s full report on GB:GST stock, click here.

GSTechnologies Expands European Footprint with Strategic Acquisitions

GSTechnologies Ltd has successfully integrated the Bake Cryptocurrency Platform into its digital asset arm, GS Fintech, marking a significant step in its digital asset strategy. The company has also signed a legally binding agreement to acquire Metapay SP. Z.O.O, a Polish company with a Small Payment Institution license, to expand its financial services footprint in Europe. This acquisition aligns with GST’s strategic focus on optimizing its current portfolio and enhancing shareholder value through disciplined capital allocation.