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Guardforce AI Co (GFAI)
NASDAQ:GFAI
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Guardforce AI Co
(NASDAQ:GFAI)
Rating:50Neutral
Price Target:
$1.00
▼(-8.26% Downside)
Guardforce AI Co (GFAI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$22.28M
Dividend YieldN/A
Average Volume (3M)498.49K
Price to Earnings (P/E)―
Beta (1Y)1.67
Revenue Growth0.18%
EPS Growth91.18%
CountryUS
Employees1,698
SectorIndustrials
Sector Strength74
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)-0.08
Shares Outstanding21,023,527
10 Day Avg. Volume699,144
30 Day Avg. Volume498,489
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap-0.11
Enterprise Value/Revenue-0.07
Enterprise Value/Gross Profit-0.41
Enterprise Value/Ebitda0.81
Forecast
1Y Price Target
$1.00Price Target Upside-8.26% Downside
Rating ConsensusHold
Number of Analyst Covering0
Guardforce AI Co Business Overview & Revenue Model
Company DescriptionGuardforce AI Co., Limited offers cash solutions and cash handling services in Thailand. The company's services include cash-in-transit, vehicles to banks, ATM management, cash center operations, cash processing, coin processing, and cheque center services, as well as cash deposit machine solutions, such as cash deposit management and express cash services. Its customers include local commercial banks, chain retailers, coin manufacturing mints, and government authorities. The company was incorporated in 2018 and is based in Singapore.
How the Company Makes MoneyGuardforce AI Co makes money through a diverse revenue model that includes sales and leasing of its AI-driven security products, subscription services for security management, and maintenance contracts. Key revenue streams include the deployment of robotic solutions for security, which are offered on a subscription or lease basis, providing continuous revenue. The company also earns from integrating AI technology into existing security systems, offering clients improved threat detection and response capabilities. Additionally, partnerships with tech innovators and security firms enhance its market reach and product offerings, contributing significantly to its earnings.
Guardforce AI Co Earnings Call Summary
Earnings Call Date:Apr 28, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Sep 25, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with several significant achievements, including the first operating profit since IPO, strong cash reserves, and substantial growth in key segments like retail. While there are challenges related to ongoing net losses and initial low margins for new AI products, the company's strategic advancements and improvements in financial metrics strongly outweigh these concerns.Q4-2024 Updates
Positive Updates
First Operating Profit Since IPO
The company recorded its first operating profit since its IPO, which is a significant milestone following the challenges of the pandemic.
Strong Cash Position
The company has approximately $23.4 million in cash, cash equivalents, and restricted cash, positioning it well to accelerate AI solution strategies.
Robust Revenue Growth in Retail Segment
Revenue from the Secure Logistics business increased by $544,000 or 1.7%, with the Guardforce Digital Machine experiencing a remarkable year-over-year growth of $1.1 million or 39.5%.
Significant Gross Profit Increase
Gross profits increased by $866,000 or 16.1% year-over-year, reaching $6.3 million.
Reduction in Net Loss
Net loss from continuing operations narrowed down to negative $5.9 million, representing a year-over-year reduction of 80.1%.
AI Innovation and Product Launch
Launched DVGO, an AI-powered travel planning agent, marking a significant step in AI innovation and consumer-facing applications.
Negative Updates
Ongoing Net Loss and Capital Expenditures
Despite improvements, the company still faces challenges with ongoing net losses and recurring capital expenditures.
Initial Low Margins for DVGO
The DVGO platform is expected to initially contribute lower margins due to upfront AI development and customer acquisition costs.
Company Guidance
During the Guardforce AI 2024 Year-End Conference Call, the company provided guidance on its strategic focus and financial performance. The company reported a revenue of $32.4 million for 2024, marking a 1.7% increase from the previous year, primarily driven by demand from retail-focused service lines in Thailand. Notably, the company achieved a historical gross profit margin of 17%, and a significant reduction in net loss by 80.1% to $5.9 million. The company's AI-centric business transition was highlighted, with a notable investment of $591,000 in research and development, a 2.5-fold increase from the prior year. The launch of DVGO, an AI-powered travel planning agent, was emphasized as a key strategic initiative expected to diversify revenue and enhance profit margins over time. The company's balance sheet remained strong, with total assets at $44.7 million, including $23.4 million in cash and cash equivalents. The leadership reiterated a focus on scaling AI solutions, improving operational efficiency, and expanding into new verticals such as travel, retail, and education.Guardforce AI Co Financial Statement Overview
Summary
Guardforce AI Co shows improved operational efficiency and capital structure, but persistent net losses and negative cash flows highlight ongoing profitability and liquidity challenges. The company needs to focus on sustainable revenue growth and improving cash generation.Income Statement
Guardforce AI Co has shown a significant improvement in gross profit margin from 4.2% in 2023 to 17.2% in 2024, showcasing enhanced operational efficiency. However, the company is struggling with negative net income and EBIT margins, indicating ongoing challenges in achieving profitability. The slight revenue growth of 0.2% from 2023 to 2024 is a positive sign but indicates limited expansion in market reach.45
Neutral
Balance Sheet
The debt-to-equity ratio has improved significantly from 0.26 in 2023 to 0.08 in 2024, reflecting reduced leverage and enhanced financial stability. The equity ratio improved to 71.7%, indicating a stronger capital structure. However, the return on equity remains negative due to continuous net losses, suggesting underperformance in generating shareholder value.50
Neutral
Cash Flow
Operating cash flow is negative, indicating challenges in generating cash from core operations. The free cash flow has decreased, showing strain on financial flexibility. The company's reliance on financing activities to cover operational deficits might pose long-term risks if not managed properly.40
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 36.35M | 36.28M | 34.48M | 35.15M | 37.65M |
| Gross Profit | 6.26M | 1.53M | 1.23M | 2.81M | 6.11M |
| EBITDA | -3.14M | -23.29M | -11.35M | -207.04K | 3.03M |
| Net Income | -5.86M | -29.57M | -18.56M | -5.48M | -3.13M |
Balance Sheet | |||||
| Total Assets | 44.69M | 45.81M | 61.34M | 42.06M | 36.36M |
| Cash, Cash Equivalents and Short-Term Investments | 21.94M | 20.24M | 6.93M | 14.33M | 8.41M |
| Total Debt | 2.61M | 6.64M | 28.41M | 24.28M | 26.55M |
| Total Liabilities | 12.70M | 20.66M | 42.16M | 35.48M | 38.47M |
| Stockholders Equity | 32.05M | 25.23M | 19.24M | 6.54M | -2.16M |
Cash Flow | |||||
| Free Cash Flow | -3.63M | -3.32M | -26.84M | -5.20M | 3.23M |
| Operating Cash Flow | -3.33M | -1.19M | -19.19M | 52.96K | 4.66M |
| Investing Cash Flow | 200.39K | -2.13M | -9.41M | -5.22M | -1.43M |
| Financing Cash Flow | 4.71M | 17.12M | 20.94M | 11.58M | -884.92K |
Guardforce AI Co Technical Analysis
Negative
1.09
Price Trends
1.19
Negative
1.14
Negative
1.25
Negative
Market Momentum
-0.02
Positive
44.15
Neutral
20.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GFAI, the sentiment is Negative. The current price of 1.09 is below the 20-day moving average (MA) of 1.13, below the 50-day MA of 1.19, and below the 200-day MA of 1.25, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.15 is Neutral, neither overbought nor oversold. The STOCH value of 20.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GFAI.
Guardforce AI Co Risk Analysis
Guardforce AI Co disclosed 59 risk factors in its most recent earnings report. Guardforce AI Co reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Guardforce AI Co Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $99.60M | 65.29 | -3.47% | ― | ― | ― | |
64 Neutral | $10.73B | 15.74 | 7.56% | 2.01% | 2.76% | -15.10% | |
59 Neutral | $40.50M | 27.73 | 9.92% | ― | ― | ― | |
54 Neutral | $16.86M | 6.74 | 47.90% | ― | 28.01% | ― | |
50 Neutral | $22.28M | ― | -20.57% | ― | 0.18% | 91.18% | |
47 Neutral | $5.18M | ― | -145.28% | ― | 13.96% | 85.22% | |
41 Neutral | $56.11M | ― | -236.56% | ― | -6.61% | 40.20% |
* Industrials Sector Average
Performance Comparison
GFAI
Guardforce AI Co
1.09
0.00
0.00%
SNT
Senstar Technologies
4.41
2.80
173.91%
UUU
Universal Security Instruments
8.02
6.85
585.47%
SPCB
SuperCom
9.70
6.87
242.76%
BKYI
BIO-key International
0.75
-0.27
-26.47%
KSCP
Knightscope Inc Class A
5.48
-6.40
-53.87%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.