Genasys (GNSS) AI Stock Analysis

• Market Cap: $92.56M
• Dividend Yield: N/A
• Average Volume (3M): 121.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: -34.41%
• EPS Growth: -17.56%
• Country: US
• Employees: 202
• Sector: Technology
• Sector Strength: 44
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.65
• Shares Outstanding: 44,932,970
• 10 Day Avg. Volume: 94,258
• 30 Day Avg. Volume: 121,275
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.14
• Price to Cash Flow (P/CF): 29.10
• P/FCF Ratio: 29.10
• 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: $5.50
• Price Target Upside: 175.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Genasys faces substantial financial and operational challenges, with high leverage, negative profitability, and weak cash flows. However, recent earnings call highlights provide some optimism, reflecting growth in software revenues and margins. Technical indicators remain bearish, and the valuation is unattractive due to a negative P/E ratio. Overall, the stock score reflects the need for cautious optimism, emphasizing the necessity for strategic improvements.

Positive Factors

Contract Win

Genasys announced a major contract win to provide an Early Warning System for 37 dams in Puerto Rico, worth approximately $75 million in revenue.

Market Demand

There is substantial market demand for Genasys’s products due to high government needs and public safety communications.

Revenue Growth

Q1 revenues increased by 59% year-over-year, driven by strong hardware and software growth.

Negative Factors

Valuation Concerns

The 12-month price target has been raised to $5.50, based on a forward P/E multiple of 22x the FY27 EPS estimate.

Genasys Business Overview & Revenue Model

Company Description

Genasys Inc. a global provider of critical communications hardware and software solutions worldwide. The company operates through two segments, Hardware and Software. It provides long range acoustic devices, such as acoustic hailing devices which are used to project sirens and audible voice messages; and Genasys Emergency Management, a software-based product line. The company also offers National Emergency Warning Systems, a software application that works with mobile carriers to send emergency communications to the public; Integrated Mass Notification Systems, an emergency response solution, uniting GEM Software and Genasys speaker system hardware; and GEM software to emails, voice calls, text messages, panic buttons, desktop alerts, television, social media, and others. It sells its products directly to governments, militaries, end-users, and commercial companies. The company was formerly known as LRAD Corporation. Genasys Inc. is based in San Diego, California.

How the Company Makes Money

Genasys Inc. generates revenue through the sale and implementation of its communication systems and software solutions. The company's key revenue streams include product sales, which encompass hardware and software, and recurring revenues from maintenance, updates, and support services. Genasys also earns through long-term contracts with governmental agencies and private sector clients, leveraging its expertise in delivering tailored communications solutions. Significant partnerships with technology providers and integrators enhance the company's market reach and capability to meet diverse client needs, contributing to its financial performance.

Genasys Financial Statement Overview

Summary

Genasys is facing significant financial challenges, characterized by declining revenues, substantial losses, and high leverage. The negative cash flows and deteriorating margins highlight operational inefficiencies and liquidity concerns. Urgent strategic measures are necessary to stabilize the company's financial health and improve its overall financial performance.

Income Statement

Genasys has faced significant challenges in maintaining profitability. The TTM (Trailing-Twelve-Months) gross profit margin stands at approximately 44.7%, which is decent for the industry. However, the net profit margin is deeply negative, reflecting substantial losses. Revenue has declined sharply from previous years, showing a concerning trajectory. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies and financial distress.

Balance Sheet

The balance sheet reflects a company under financial strain, with a debt-to-equity ratio of approximately 1.2 in the TTM period, suggesting high leverage. The return on equity is negative due to losses, further highlighting struggles with profitability. The equity ratio has declined to around 25%, indicating a weakened financial structure and potential risk exposure.

Cash Flow

Genasys's cash flow situation is concerning, with negative operating and free cash flows in the TTM period. The operating cash flow to net income ratio is negative, highlighting cash flow inefficiencies. The free cash flow growth rate is also negative, indicating worsening cash generation and potential liquidity issues.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
26.59M	24.01M	46.66M	54.03M	47.00M	43.01M
	Gross Profit
11.89M	10.19M	21.76M	26.34M	23.43M	22.64M
	EBIT
-25.37M	-26.72M	-10.99M	7.49M	-1.21M	4.64M
	EBITDA
-22.57M	-26.72M	-7.66M	933.00K	3.38M	7.44M
	Net Income Common Stockholders
-29.08M	-31.73M	-18.40M	-16.21M	704.00K	11.87M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.44M	12.89M	10.15M	19.13M	18.85M	27.58M
	Total Assets
11.34M	53.94M	49.91M	71.85M	90.13M	71.37M
	Total Debt
0.00	16.30M	5.29M	6.14M	6.90M	7.48M
	Net Debt
-6.44M	11.36M	-3.37M	-6.60M	-6.26M	-15.84M
	Total Liabilities
1.75M	36.37M	16.09M	21.46M	24.17M	22.23M
	Stockholders Equity
9.59M	17.56M	33.81M	50.39M	65.96M	49.14M
Cash Flow		Free Cash Flow
-12.90M	-19.64M	-9.83M	87.00K	5.94M	6.78M
	Operating Cash Flow
-12.78M	-19.45M	-9.59M	468.00K	6.15M	6.92M
	Investing Cash Flow
3.08M	-8.67M	5.54M	-89.00K	-15.55M	-3.13M
	Financing Cash Flow
13.43M	23.87M	-114.00K	-1.06M	13.00K	679.00K

Genasys Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNSS, the sentiment is Negative. The current price of 2 is below the 20-day moving average (MA) of 2.13, below the 50-day MA of 2.49, and below the 200-day MA of 2.99, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 36.22 is Neutral, neither overbought nor oversold. The STOCH value of 72.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GNSS.

Genasys Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	58 Neutral	$9.82B	10.00	-6.63%	3.09%	7.49%	-11.58%
LPTH	52 Neutral	$81.12M	―	-30.42%	―	-1.01%	-72.93%
GNSS	43 Neutral	$92.56M	―	-107.28%	―	-34.41%	-17.56%
WRAP	43 Neutral	$73.72M	―	-355.35%	―	-26.51%	78.84%
ODYS	41 Neutral	$87.24M	―	-65.28%	―	30.70%	-1.05%

Genasys Corporate Events

Genasys Approves 2025 Equity Incentive Plan

On January 27, 2025, Genasys Inc. approved its 2025 Equity Incentive Plan, which was later ratified by stockholders on March 17, 2025. This plan allows for various stock and cash-based awards to employees, consultants, and directors, with a total of 6,000,000 shares available for issuance. The plan aims to align the interests of participants with those of stockholders and includes provisions for stock options, restricted stock, and other awards. Additionally, the company held its Annual Meeting of Stockholders on March 17, 2025, where seven directors were elected, and the appointment of Baker Tilly US, LLP as the independent registered public accounting firm was ratified.