ASX:GSS

Stock Analysis Report

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Executive Summary

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

Rewards

Earnings are forecast to grow 33.53% per year

Risk Analysis

No risks detected for GSS from our risk checks.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.

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 +/- 8% a week.

Volatility Over Time: GSS's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-0.3%

GSS

0.04%

AU Life Sciences

-0.3%

AU Market


1 Year Return

84.1%

GSS

31.9%

AU Life Sciences

-1.6%

AU Market

Return vs Industry: GSS exceeded the Australian Life Sciences industry which returned 31.9% over the past year.

Return vs Market: GSS exceeded the Australian Market which returned -1.6% over the past year.


Shareholder returns

GSSIndustryMarket
7 Day-0.3%0.04%-0.3%
30 Day18.9%8.5%1.5%
90 Day-0.8%4.5%9.2%
1 Year84.1%84.1%32.7%31.9%1.7%-1.6%
3 Year489.2%489.2%23.1%16.5%26.2%10.7%
5 Year155.3%155.3%-23.3%-31.9%68.7%35.5%

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?

5.95x

Price to Book (PB) 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 unprofitable, so we can't compare its PE Ratio to the XX Life Sciences industry average.

PE vs Market: GSS is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GSS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GSS is overvalued based on its PB Ratio (5.9x) compared to the AU Life Sciences industry average (5.3x).


Next Steps

Future Growth

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

33.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GSS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: GSS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GSS's is expected to become profitable in the next 3 years.

Revenue vs Market: GSS's revenue (16.7% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: GSS's revenue (16.7% per year) is forecast to grow slower than 20% 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 (0.2%).


Next Steps

  • Explore growth companies in the Pharmaceuticals & Biotech industry.

Past Performance

How has Genetic Signatures performed over the past 5 years?

-3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GSS is currently unprofitable.

Growing Profit Margin: GSS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GSS is unprofitable, and losses have increased over the past 5 years at a rate of 3.9% per year.

Accelerating Growth: Unable to compare GSS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GSS is unprofitable, making it difficult to compare its past year earnings growth to the Life Sciences industry (31.5%).


Return on Equity

High ROE: GSS has a negative Return on Equity (-4.54%), as it is currently unprofitable.


Next Steps

Financial Health

How is Genetic Signatures's financial position?


Financial Position Analysis

Short Term Liabilities: GSS's short term assets (A$46.2M) exceed its short term liabilities (A$3.3M).

Long Term Liabilities: GSS's short term assets (A$46.2M) exceed its long term liabilities (A$448.0K).


Debt to Equity History and Analysis

Debt Level: GSS is debt free.

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


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GSS has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if GSS has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

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?

5.8yrs

Average management tenure


CEO

John Melki

10yrs

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 ($USD435.19K) is about average for companies of similar size in the Australian market ($USD503.63K).

Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
John Melki
MD, CEO & Executive Director10yrsAU$563.83k0.77%
A$ 2.2m
Peter Manley
CFO & Company Secretary2.25yrsAU$402.45k0.014%
A$ 40.2k
Michael Aicher
Executive Director of US Operations & Executive Director6.67yrsAU$178.10k0.45%
A$ 1.3m
Christopher Abbott
Founder & Chairman Emeritusno datano data0.059%
A$ 166.5k
Douglas Millar
Chief Scientific Officer20yrsAU$308.55k0%
A$ 0
Jackson Jones
Director of Global Sales & Marketing1yrno datano data
Patrick Noland
US Market Consultant4.5yrsAU$4.30kno data

5.8yrs

Average Tenure

Experienced Management: GSS's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Melki
MD, CEO & Executive Director10yrsAU$563.83k0.77%
A$ 2.2m
Michael Aicher
Executive Director of US Operations & Executive Director6.67yrsAU$178.10k0.45%
A$ 1.3m
Christopher Abbott
Founder & Chairman Emeritusno datano data0.059%
A$ 166.5k
Anthony Radford
Non-Independent Non-Executive Director5.33yrsAU$50.83k0.17%
A$ 472.8k
Nickolaos Samaras
Independent Non-Executive Chairman13yrsAU$65.70k1.42%
A$ 4.0m

6.7yrs

Average Tenure

Experienced Board: GSS's board of directors are considered experienced (6.7 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$281.471m
  • Shares outstanding: 142.88m
  • Website: https://www.geneticsignatures.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GSSASX (Australian Securities Exchange)YesOrdinary SharesAUAUDMar 2015
GSSCHIA (Chi-X Australia)YesOrdinary SharesAUAUDMar 2015

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 Analysis2021/01/18 07:07
End of Day Share Price2021/01/18 00:00
Earnings2020/06/30
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.