ASX:GSS

Stock Analysis Report

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Market Cap

AU$179.3m

Last Updated

2021/06/14 08:18 UTC

Data Sources

Company Financials +

Executive Summary

Genetic Signatures Limited operates as a molecular diagnostic (MDx) company in North America and Australia. More Details


Snowflake Analysis

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Genetic Signatures's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GSS is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: GSS's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

3.7%

GSS

7.3%

AU Life Sciences

0.6%

AU Market


1 Year Return

-36.3%

GSS

-16.6%

AU Life Sciences

32.6%

AU Market

Return vs Industry: GSS underperformed the Australian Life Sciences industry which returned -17.7% over the past year.

Return vs Market: GSS underperformed the Australian Market which returned 30.4% over the past year.


Shareholder returns

GSSIndustryMarket
7 Day3.7%7.3%0.6%
30 Day6.8%3.5%4.5%
90 Day-23.9%-18.5%6.9%
1 Year-36.3%-36.3%-16.6%-16.6%37.0%32.6%
3 Year213.8%213.8%42.8%34.8%35.9%19.7%
5 Year161.5%161.5%-24.8%-33.5%71.3%38.1%

Long-Term Price Volatility Vs. Market

How volatile is Genetic Signatures's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Genetic Signatures undervalued compared to its fair value and its price relative to the market?

37.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate GSS's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate GSS's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: GSS is good value based on its PE Ratio (37.6x) compared to the Global Life Sciences industry average (47x).

PE vs Market: GSS is poor value based on its PE Ratio (37.6x) compared to the Australian market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: GSS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: GSS is good value based on its PB Ratio (3.5x) compared to the AU Life Sciences industry average (4.9x).


Future Growth

How is Genetic Signatures forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-54.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GSS's earnings are forecast to decline over the next 3 years (-54.7% per year).

Earnings vs Market: GSS's earnings are forecast to decline over the next 3 years (-54.7% per year).

High Growth Earnings: GSS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GSS's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: GSS's revenue is forecast to decline over the next 3 years (-0.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GSS's Return on Equity is forecast to be low in 3 years time (2.1%).


Past Performance

How has Genetic Signatures performed over the past 5 years?

17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GSS has a high level of non-cash earnings.

Growing Profit Margin: GSS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GSS has become profitable over the past 5 years, growing earnings by 17.3% per year.

Accelerating Growth: GSS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GSS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Life Sciences industry (44.2%).


Return on Equity

High ROE: GSS's Return on Equity (9.3%) is considered low.


Financial Health

How is Genetic Signatures's financial position?


Financial Position Analysis

Short Term Liabilities: GSS's short term assets (A$52.5M) exceed its short term liabilities (A$5.7M).

Long Term Liabilities: GSS's short term assets (A$52.5M) exceed its long term liabilities (A$280.0K).


Debt to Equity History and Analysis

Debt Level: GSS is debt free.

Reducing Debt: GSS has not had any debt for past 5 years.

Debt Coverage: GSS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GSS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Genetic Signatures's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GSS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GSS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GSS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GSS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GSS's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.2yrs

Average management tenure


CEO

John Melki

10.42yrs

Tenure

AU$563,827

Compensation

Dr. John R. Melki, BSc, Ph.D. has been the Chief Executive Officer of Genetic Signatures Limited since 2011 and serves as its Managing Director and also served as its Principal Advisor. Dr. Melki has been ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD433.85K) is above average for companies of similar size in the Australian market ($USD283.14K).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GSS's management team is seasoned and experienced (6.2 years average tenure).


Board Members

Experienced Board: GSS's board of directors are considered experienced (7.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Genetic Signatures Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Genetic Signatures Limited
  • Ticker: GSS
  • Exchange: ASX
  • Founded: 2001
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: AU$179.349m
  • Shares outstanding: 142.91m
  • Website: https://www.geneticsignatures.com

Number of Employees


Location

  • Genetic Signatures Limited
  • 7 Eliza Street
  • Newtown
  • Sydney
  • New South Wales
  • 2042
  • Australia

Listings


Biography

Genetic Signatures Limited operates as a molecular diagnostic (MDx) company in North America and Australia. The company designs and manufactures a suite of real-time polymerase chain reaction based product...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/14 08:18
End of Day Share Price2021/06/11 00:00
Earnings2020/12/31
Annual Earnings2020/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.