GSTechnologies Ltd. (GST) AI Stock Analysis

• Market Cap: £30.31M
• Dividend Yield: N/A
• Average Volume (3M): 20.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: UK
• Employees: 36
• Sector: Technology
• Sector Strength: 43
• Industry: Information Technology Services
• EPS (TTM): 0.00
• Shares Outstanding: 2,164,693,600
• 10 Day Avg. Volume: 37,030,897
• 30 Day Avg. Volume: 20,351,545
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 19.44
• Price to Cash Flow (P/CF): -72.90
• P/FCF Ratio: 0.00
• 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

GSTechnologies Ltd. shows significant financial struggles with negative profitability and cash flows, which heavily impact its overall score. Technical indicators are weak, reflecting bearish momentum. The stock is overvalued based on its negative earnings. However, recent corporate events, including strategic acquisitions and successful fundraising, suggest potential long-term growth opportunities. Improving operational efficiency and achieving profitability are critical for enhancing the stock's appeal.

GSTechnologies Ltd. Business Overview & Revenue Model

Company Description

GSTechnologies Ltd. (GST) is a technology company specializing in cybersecurity and information technology solutions. It offers a range of services including secure data communications, network security, and IT infrastructure management. The company serves various sectors, providing tailored solutions to enhance data protection and operational efficiency.

How the Company Makes Money

GSTechnologies Ltd. generates revenue through a combination of service contracts, product sales, and consulting fees. Its primary revenue streams include providing cybersecurity services, such as managed security operations and threat intelligence, as well as selling software licenses for its proprietary security platforms. Additionally, the company earns by offering IT infrastructure management services, which may include cloud management and network architecture design. GST also collaborates with other technology firms and industry partners to expand its service offerings and reach, thus contributing to its overall earnings.

GSTechnologies Ltd. Financial Statement Overview

Summary

GSTechnologies Ltd. faces significant operational and profitability challenges, as seen in negative margins and cash flows. Despite a strong equity position, the company relies heavily on external financing, which poses risks. Improvement in operational efficiency and profitability is necessary for sustainable growth.

Income Statement

GSTechnologies Ltd. has shown an inconsistent revenue trajectory with a recent revenue decline from 2022 to 2023 but a recovery in 2024. The gross profit margin remains low, and the company has negative EBIT and net profit margins, indicating struggles in managing operational costs. Despite revenue growth in 2024, profitability remains a significant issue.

Balance Sheet

The balance sheet reflects a strong equity position with a high equity ratio, indicating financial stability. However, the debt-to-equity ratio has increased, suggesting a rising reliance on debt. The return on equity is negative due to sustained net losses, highlighting profitability challenges.

Cash Flow

Cash flow analysis indicates negative operating cash flow in the latest period, reflecting ongoing operational challenges. The free cash flow is also negative, raising concerns about liquidity. However, there was a positive financing cash flow, indicating external funding support.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
1.47M	442.00K	4.24M	2.83M	4.53M
	Gross Profit
271.00K	-133.00K	-312.00K	-239.00K	462.00K
	EBIT
-1.22M	-1.21M	-1.43M	-495.00K	-241.00K
	EBITDA
-1.15M	-1.09M	-762.00K	-306.00K	-141.00K
	Net Income Common Stockholders
-1.22M	-1.63M	-1.09M	-490.00K	-275.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.61M	4.25M	5.10M	1.69M	561.00K
	Total Assets
7.50M	6.70M	8.21M	4.61M	2.62M
	Total Debt
212.00K	381.00K	1.31M	1.78M	117.00K
	Net Debt
-2.40M	-3.87M	-3.79M	94.85K	-444.00K
	Total Liabilities
1.25M	2.83M	2.20M	2.79M	736.00K
	Stockholders Equity
6.30M	3.87M	6.01M	1.82M	1.89M
Cash Flow		Free Cash Flow
-5.13M	157.00K	-1.92M	-1.07M	-327.00K
	Operating Cash Flow
-3.05M	2.11M	-1.76M	-915.00K	-95.00K
	Investing Cash Flow
-2.08M	-1.52M	-159.00K	-106.00K	73.00K
	Financing Cash Flow
3.48M	-1.44M	5.28M	2.20M	-136.00K

GSTechnologies Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 1.4 is below the 20-day moving average (MA) of 1.60, below the 50-day MA of 1.68, and above the 200-day MA of 1.25, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.10 is Neutral, neither overbought nor oversold. The STOCH value of 8.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GST.

GSTechnologies Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	57 Neutral	$20.94B	10.43	-13.41%	2.52%	4.53%	-23.34%
GST	45 Neutral	£30.31M	―	-9.27%	―	―	―
TRD	42 Neutral	£53.65M	67.25	20.93%	1.95%	26.44%	―
SYN	38 Underperform	£3.19M	0.48	56.96%	―	-55.66%	―

GSTechnologies Ltd. Corporate Events

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.

GSTechnologies Ltd Successfully Raises £500,000 Amid Strong Demand

GSTechnologies Ltd announced it has successfully raised £500,000 through a retail offer, issuing over 26 million new ordinary shares due to significant oversubscription, doubling its initial target. This development, alongside an additional £2 million raised through a separate placing, strengthens GST’s financial position and reflects strong shareholder support, potentially enhancing its market operations and growth prospects.

GSTechnologies Ltd Shareholding Restructuring: Major Holdings Notification

GSTechnologies Ltd, a non-UK issuer, has recently undergone changes in its shareholding structure. This notification highlights that Ong Siew Phek and Jack Bai, individuals based in Singapore, have adjusted their voting rights in the company. Ong Siew Phek now holds 6.87% of voting rights, translating to 139,600,000 shares, while Jack Bai holds 4.16%, equivalent to 84,600,000 shares. Collectively, Ong Siew Phek and her husband, Jack Bai, now control 11.02% of the company’s voting rights. This change indicates a significant consolidation of influence by these stakeholders within GSTechnologies Ltd, potentially impacting its governance and decision-making processes.

GSTechnologies Announces Key Share Transfer within Executive Leadership

GSTechnologies Ltd announced a significant transfer of shares, with Wise Mpay Pte Ltd, controlled by CEO Jack Bai, transferring 100,000,000 ordinary shares to Ong Siew Phek, his wife. This transfer does not alter the combined shareholding of Jack Bai and his wife, maintaining their influence in the company. This transaction highlights internal share management and suggests a strategic positioning within the company’s upper management, ensuring stability in their leadership influence.

GSTechnologies Announces Retail Offer to Boost Capital

GSTechnologies Ltd has announced a Retail Offer to its existing retail shareholders in the UK, aiming to raise up to £250,000 through the issuance of 13,157,894 new ordinary shares. This move is part of a broader fundraising initiative, which includes a separate placing of new ordinary shares to raise £2,000,000. The Retail Offer is conditional on the successful admission of the fundraising shares to the London Stock Exchange, anticipated on 23 January 2025, and underscores the company’s commitment to engaging its retail shareholder base.

GSTechnologies Acquires CAKE to Strengthen Digital Asset Strategy

GSTechnologies Ltd has completed the acquisition of CAKE, including its Bake Cryptocurrency Platform, marking a significant milestone in its digital asset strategy. This acquisition enhances GST’s position in the digital asset market by integrating CAKE’s platform into GS Fintech, promising a compliant and scalable ecosystem for digital assets, and aiming to deliver long-term value to stakeholders.