Gatekeeper Systems (GSI) AI Stock Analysis

• Market Cap: C$44.05M
• Dividend Yield: N/A
• Average Volume (3M): 107.18K
• Price to Earnings (P/E): 162.1
• Beta (1Y): 1.70
• Revenue Growth: 7.57%
• EPS Growth: -95.03%
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 39
• Industry: Security & Protection Services
• EPS (TTM): <0.01
• Shares Outstanding: 93,717,390
• 10 Day Avg. Volume: 86,512
• 30 Day Avg. Volume: 107,180
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.46
• Price to Cash Flow (P/CF): 8.30
• P/FCF Ratio: 8.50
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Gatekeeper Systems demonstrates financial stability and strong market positioning through recent contract wins. However, high valuation and limited technical momentum offset these strengths. Improvement in profitability and return on equity could significantly enhance the stock's appeal.

Gatekeeper Systems Business Overview & Revenue Model

Company Description

Gatekeeper Systems (GSI) is a leading provider of intelligent cart solutions for retailers worldwide. The company specializes in offering innovative products designed to minimize shopping cart theft, streamline store operations, and enhance the shopping experience. Key offerings include cart retention systems, loss prevention solutions, and fleet management software, catering primarily to the retail sector.

How the Company Makes Money

Gatekeeper Systems generates revenue through the sale and leasing of its intelligent cart solutions, including physical systems and software products. The company earns from direct sales of its hardware products, such as cart containment and anti-theft systems, as well as from subscription fees for cloud-based fleet management and analytics software. Additionally, Gatekeeper Systems may engage in partnerships with major retail chains, enhancing its market reach and providing recurring revenue through long-term service and maintenance contracts.

Gatekeeper Systems Financial Statement Overview

Summary

Gatekeeper Systems is financially stable with strong cash flow management and low debt levels. The company shows solid revenue growth and efficient cost management. However, improving profitability and return on equity could enhance shareholder value.

Income Statement

Gatekeeper Systems demonstrates a solid gross profit margin of 44.3% and a moderate EBIT margin of 6.1% for TTM, indicating efficient cost management. However, the net profit margin is relatively low at 0.7%, highlighting challenges in translating revenue into profit. The revenue growth rate is strong over the years, showing a positive trajectory.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.05 and a high equity ratio of 85.9%, suggesting financial stability and a low reliance on debt financing. The return on equity is modest at 1.3%, indicating potential for improvement in generating returns for shareholders.

Cash Flow

Gatekeeper Systems shows a robust free cash flow growth, supported by a healthy operating cash flow to net income ratio of 26.1, indicating efficient cash management. However, the free cash flow to net income ratio is particularly high due to low net income, suggesting room for improvement in profitability.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
35.27M	37.81M	27.85M	20.03M	17.23M	20.32M
	Gross Profit
15.62M	17.24M	12.54M	9.31M	7.52M	8.35M
	EBIT
2.15M	4.19M	2.69M	1.06M	713.63K	2.05M
	EBITDA
3.31M	4.99M	3.47M	2.03M	-186.36K	2.63M
	Net Income Common Stockholders
252.31K	1.99M	2.81M	1.88M	120.77K	3.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.26M	6.72M	4.11M	2.60M	3.60M	1.03M
	Total Assets
21.83M	22.37M	19.61M	23.02M	14.40M	15.60M
	Total Debt
932.47K	983.01K	749.62K	4.46M	813.79K	2.36M
	Net Debt
-7.33M	-5.74M	-3.36M	1.86M	-2.79M	1.33M
	Total Liabilities
3.08M	4.21M	3.87M	10.47M	3.30M	4.76M
	Stockholders Equity
18.75M	18.16M	15.74M	12.55M	11.10M	10.84M
Cash Flow		Free Cash Flow
6.72M	3.45M	6.31M	-4.63M	4.04M	-2.11M
	Operating Cash Flow
6.59M	4.22M	6.54M	-4.60M	4.14M	-1.89M
	Investing Cash Flow
123.32K	-774.59K	-232.35K	-30.22K	-106.56K	-104.44K
	Financing Cash Flow
-893.26K	-831.22K	-4.81M	3.62M	-1.45M	917.95K

Gatekeeper Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.47
• 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 TSE:GSI, the sentiment is Negative. The current price of 0.47 is below the 20-day moving average (MA) of 0.50, below the 50-day MA of 0.51, and below the 200-day MA of 0.57, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.55 is Neutral, neither overbought nor oversold. The STOCH value of 13.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GSI.

Gatekeeper Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QIS	71 Outperform	C$69.92M	23.93	10.46%	―	-0.81%	―
GSI	69 Neutral	C$44.05M	162.07	1.37%	―	7.57%	-95.03%
Sector *	57 Neutral	$20.94B	10.43	-13.41%	2.52%	4.53%	-23.34%
PTK	44 Neutral	$407.34M	―	-442.59%	―	-78.34%	-9.55%
DYA	28 Underperform	C$83.10M	―	2492.91%	―	19.47%	-9.09%
UAV	27 Underperform	C$1.29M	―		―	―	15.84%

Gatekeeper Systems Corporate Events

Gatekeeper Systems Secures New Contract with Ontario Transit Agency

Gatekeeper Systems Inc. has secured a contract with a provincial transportation agency in Ontario to supply Mobile Data Collectors, on-board video systems, and G4 Vision hosted video analytics software for transit buses. This contract, valued at approximately $620,000 with additional annually recurring services, expands Gatekeeper’s customer base to over 60 transit agencies, reinforcing its position in the public transportation sector.

Gatekeeper Systems Expands School Bus Video Solutions in Nova Scotia

Gatekeeper Systems Inc. has secured two contracts to provide Mobile Data Collectors and on-board video systems for school buses in Halifax, Nova Scotia. This expansion highlights Gatekeeper’s strong market penetration in the region, as approximately 500 buses now utilize their technology, reinforcing their recurring-customer business model and solidifying their position in the intelligent video solutions market for public transportation.

Gatekeeper Systems Secures $1M Contract for Paratransit Vehicle Solutions

Gatekeeper Systems Inc. has secured a contract valued at approximately US $666,000 to supply video and data solutions for new Paratransit vehicles through its subsidiary, Gatekeeper Systems USA Inc. The contract involves providing Mobile Data Collectors, Rear Vision Systems, Video Display Mirrors, and other video devices, which will be factory-installed on these vehicles. This development underscores Gatekeeper’s commitment to enhancing safety in public transportation, particularly for individuals with disabilities who rely on Paratransit services. The contract is expected to strengthen Gatekeeper’s position in the intelligent video and data solutions market for public transportation.

Gatekeeper Systems Secures $3.5M Contract Extension with SEPTA

Gatekeeper Systems Inc. has announced a contract extension worth approximately C$3.5 million with the Southeastern Pennsylvania Transportation Authority (SEPTA) for continued maintenance and repair of on-board vehicle video systems. This extension, retroactive to November 7, 2024, underscores Gatekeeper’s ongoing relationship with SEPTA, one of the largest transit systems in the United States, and highlights the company’s strong positioning in the public transportation sector.

Gatekeeper Systems Supports New School Bus Safety Regulations by Transport Canada

Gatekeeper Systems Inc. has expressed support for Transport Canada’s new regulation mandating perimeter visibility systems on all new school buses to enhance safety, effective from December 18, 2024. The company, which participated as a pilot project supplier, will play a key role in implementing these safety features, including its 360 Surround Vision and Student Protector systems, across Canadian school districts, potentially impacting over 65,000 buses by 2036.

Gatekeeper Secures TTC Contract for Automated Streetcar Safety System

Gatekeeper Systems has been awarded a pilot contract by the Toronto Transit Commission (TTC) for its Automated Streetcar Enforcement System (ASES), valued at approximately $460,000. This AI-assisted system will deploy video analytics to capture incidents, license plates, and process tickets automatically for motorists who fail to stop for streetcars. The initiative aims to enhance passenger safety on Toronto’s streetcar routes, which operate in mixed-traffic conditions. This collaboration positions Gatekeeper as a significant player in the public transit safety sector while supporting the TTC in addressing safety concerns effectively.

Gatekeeper Systems Sees Revenue Decline, Focuses on Innovation and Expansion

Gatekeeper Systems Inc. reported a revenue of $7.3 million for the fiscal first quarter of 2025, a decrease from the previous year’s $9.8 million. Despite the revenue drop, the company invested in infrastructure, developed new technology, and expanded its customer base. Notable advancements include contracts to upgrade school bus video technology and the launch of a Cell Phone Detection camera to enhance safety. Gatekeeper is also increasing awareness of its transit solutions to comply with new regulatory requirements.