Guardforce AI Co (GFAI) AI Stock Analysis

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Guardforce AI Co

(NASDAQ:GFAI)

Rating:53Neutral

Price Target:

$1.00

▼(-13.04%Downside)

Guardforce AI's stock score reflects the mixed financial performance with ongoing net losses and negative cash flows, partially offset by a positive earnings call indicating strategic advancements and improved financial metrics. Technical indicators suggest moderate short-term momentum, while valuation concerns remain due to negative earnings.

Guardforce AI Co (GFAI) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$24.60M

Dividend YieldN/A

Average Volume (3M)340.49K

Price to Earnings (P/E)―

Beta (1Y)1.68

Revenue Growth0.18%

EPS Growth91.18%

CountryUS

Employees1,698

SectorIndustrials

Sector Strength93

IndustrySecurity & Protection Services

Share Statistics

EPS (TTM)-0.08

Shares Outstanding21,023,527

10 Day Avg. Volume418,792

30 Day Avg. Volume340,490

Financial Highlights & Ratios

PEG Ratio>-0.01

Price to Book (P/B)0.33

Price to Sales (P/S)0.00

P/FCF Ratio-7.33

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

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., Ltd. generates revenue through a diversified business model centered on its range of security services and solutions. Key revenue streams include cash management services, where the company provides secure transportation and processing of cash for banks and businesses. Additionally, the company's robotics and AI division offers advanced robotic solutions for security and patrol services, which constitute another significant revenue channel. The company also benefits from strategic partnerships with technology firms and financial institutions, enhancing its service offerings and expanding its market reach. By capitalizing on growing demand for automated and AI-driven security solutions, Guardforce AI Co. maintains a robust revenue model.

Guardforce AI Co Earnings Call Summary

Earnings Call Date:Apr 28, 2025

(Q4-2024)

% Change Since: 0.00%|

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 is showing some signs of financial improvement, particularly in operational efficiency and capital structure. However, persistent net losses and negative cash flows highlight ongoing profitability and liquidity challenges. The company needs to focus on achieving sustainable revenue growth and improving cash generation to strengthen its financial position.

Income Statement

Neutral

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.

Balance Sheet

Neutral

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.

Cash Flow

Negative

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
35.43M	36.35M	36.28M	34.48M	35.15M	37.65M
	Gross Profit
4.94M	6.26M	1.53M	1.23M	2.81M	6.11M
	EBIT
-12.69M	-6.72M	-29.30M	-12.48M	-3.70M	-2.12M
	EBITDA
-14.89M	-3.14M	-23.29M	-11.35M	-207.04K	3.03M
	Net Income Common Stockholders
-17.60M	-5.86M	-29.57M	-18.56M	-5.48M	-3.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.43M	21.94M	20.24M	6.93M	14.33M	8.41M
	Total Assets
30.50M	44.69M	45.81M	61.34M	42.06M	36.36M
	Total Debt
18.65M	2.61M	6.64M	28.41M	24.28M	26.55M
	Net Debt
14.22M	-19.33M	-13.60M	21.48M	9.95M	18.13M
	Total Liabilities
29.32M	12.70M	20.66M	42.16M	35.48M	38.47M
	Stockholders Equity
1.11M	32.05M	25.23M	19.24M	6.54M	-2.16M
Cash Flow		Free Cash Flow
-3.07M	-3.63M	-3.32M	-26.84M	-5.20M	3.23M
	Operating Cash Flow
-1.95M	-3.33M	-1.19M	-19.19M	52.96K	4.66M
	Investing Cash Flow
-944.53K	200.39K	-2.13M	-9.41M	-5.22M	-1.43M
	Financing Cash Flow
-7.19M	4.71M	17.12M	20.94M	11.58M	-884.92K

Guardforce AI Co Technical Analysis

Technical Analysis Sentiment

Positive

Last Price1.15

Price Trends

50DMA

1.05

Positive

100DMA

1.23

Negative

200DMA

1.25

Negative

Market Momentum

MACD

0.03

Positive

RSI

54.76

Neutral

STOCH

34.64

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GFAI, the sentiment is Positive. The current price of 1.15 is above the 20-day moving average (MA) of 1.14, above the 50-day MA of 1.05, and below the 200-day MA of 1.25, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 54.76 is Neutral, neither overbought nor oversold. The STOCH value of 34.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 3 New Risks

Divestiture of the previously acquired Handshake may affect certain investors' interest in our business growth. Q4, 2023

Risk relating to research and development activities on AI technology. Q4, 2023

We may encounter provisions and impairments on our assets due to our business model and the development of our AI and robotics business, particularly amidst the fast-changing technologies. Q4, 2023

Guardforce AI Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNT	74 Outperform	$90.04M	65.29	-3.47%	―	―	―
SPCB	67 Neutral	$50.98M	30.79	9.92%	―	―	―
Sector *	66 Neutral	$4.48B	12.26	5.32%	248.53%	4.10%	-12.36%
UUU	54 Neutral	$6.77M	―	-26.63%	―	5.57%	-449.87%
GFAI	53 Neutral	$24.60M	―	-20.57%	―	0.18%	91.18%
KSCP	52 Neutral	$41.82M	―	-243.06%	―	-5.64%	35.09%
BKYI	49 Neutral	$4.79M	―	-116.82%	―	-7.25%	80.12%

* Industrials Sector Average

Performance Comparison

GFAI

Guardforce AI Co

1.17

-1.21

-50.84%

SNT

Senstar Technologies

3.78

2.33

160.69%

UUU

Universal Security Instruments

2.90

1.29

80.12%

SPCB

SuperCom

11.99

8.18

214.70%

BKYI

BIO-key International

0.85

-0.91

-51.70%

KSCP

Knightscope Inc Class A

6.27

-8.73

-58.20%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.