Genetic Signatures (ASX:GSS) - Share price, News & Analysis

GSS fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	0/6

GSS Stock Overview

Genetic Signatures Limited operates as a molecular diagnostic (MDx) company in Australia, Asia Pacific, North America, Europe, the Middle East, and Africa.

Risk Analysis

Earnings are forecast to decline by an average of 86.6% per year for the next 3 years

Profit margins (6.2%) are lower than last year (16.4%)

Genetic Signatures Competitors

Cryosite

ASX:CTE

AU$32.2m

EZZ Life Science Holdings

ASX:EZZ

AU$14.1m

Probiotec

ASX:PBP

AU$189.5m

Vita Life Sciences

ASX:VLS

AU$121.3m

Price History & Performance

Summary of all time highs, changes and price drops for Genetic Signatures
Historical stock prices
Current Share Price	AU$1.04
52 Week High	AU$1.86
52 Week Low	AU$0.94
Beta	-0.092
1 Month Change	-8.37%
3 Month Change	-20.00%
1 Year Change	-19.07%
3 Year Change	0.97%
5 Year Change	166.67%
Change since IPO	114.43%

Shareholder Returns

	GSS	AU Life Sciences	AU Market
7D	-3.7%	-0.5%	1.0%
1Y	-19.1%	-39.1%	-7.9%

Return vs Industry: GSS exceeded the Australian Life Sciences industry which returned -39.1% over the past year.

Return vs Market: GSS underperformed the Australian Market which returned -7.9% over the past year.

Price Volatility

Is GSS's price volatile compared to industry and market?
GSS volatility
GSS Average Weekly Movement	9.8%
Life Sciences Industry Average Movement	12.1%
Market Average Movement	10.6%
10% most volatile stocks in AU Market	17.5%
10% least volatile stocks in AU Market	4.7%

Stable Share Price: GSS is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: GSS's weekly volatility (10%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2001	n/a	John Melki	https://www.geneticsignatures.com

Genetic Signatures Limited operates as a molecular diagnostic (MDx) company in Australia, Asia Pacific, North America, Europe, the Middle East, and Africa. It designs and manufactures a suite of real-time polymerase chain reaction-based products for detection of infectious diseases under EasyScreen brand name. The company also provides MDx 3Base platform technology that enables hospital and pathology laboratories to screen for a range of infectious pathogens.

Genetic Signatures Fundamentals Summary

How do Genetic Signatures's earnings and revenue compare to its market cap?
GSS fundamental statistics
Market Cap	AU$149.13m
Earnings (TTM)	AU$1.96m
Revenue (TTM)	AU$31.37m

76.1x

P/E Ratio

4.8x

P/S Ratio

Is GSS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GSS income statement (TTM)
Revenue	AU$31.37m
Cost of Revenue	AU$12.40m
Gross Profit	AU$18.96m
Other Expenses	AU$17.00m
Earnings	AU$1.96m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.014
Gross Margin	60.45%
Net Profit Margin	6.25%
Debt/Equity Ratio	0%

How did GSS perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is GSS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GSS?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for GSS. This is calculated by dividing GSS's market cap by their current preferred multiple.
What is GSS's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	AU$149.13m

GSS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.6x
Enterprise Value/EBITDA	37.8x
PEG Ratio	-0.9x

Price to Earnings Ratio vs Peers

How does GSS's PE Ratio compare to its peers?

GSS PE Ratio vs Peers

The above table shows the PE ratio for GSS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	20.3x
CTE Cryosite	28x	n/a	AU$32.2m
EZZ EZZ Life Science Holdings	15.6x	n/a	AU$14.1m
PBP Probiotec	22.9x	25.2%	AU$189.5m
VLS Vita Life Sciences	14.6x	n/a	AU$121.3m
GSS Genetic Signatures	76.1x	-86.6%	AU$149.1m

Price-To-Earnings vs Peers: GSS is expensive based on its Price-To-Earnings Ratio (76.1x) compared to the peer average (20.3x).

Price to Earnings Ratio vs Industry

How does GSS's PE Ratio compare vs other companies in the Global Life Sciences Industry?

Price-To-Earnings vs Industry: GSS is expensive based on its Price-To-Earnings Ratio (76.1x) compared to the Global Life Sciences industry average (35.7x)

Price to Earnings Ratio vs Fair Ratio

What is GSS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GSS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	76.1x
Fair PE Ratio	7.7x

Price-To-Earnings vs Fair Ratio: GSS is expensive based on its Price-To-Earnings Ratio (76.1x) compared to the estimated Fair Price-To-Earnings Ratio (7.7x).

Share Price vs Fair Value

What is the Fair Price of GSS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate GSS's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate GSS's fair value for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-86.6%

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 (-86.6% per year).

Earnings vs Market: GSS's earnings are forecast to decline over the next 3 years (-86.6% 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 (-10.6% per year).

High Growth Revenue: GSS's revenue is forecast to decline over the next 3 years (-10.6% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: GSS is forecast to be unprofitable in 3 years.

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Past Performance

How has Genetic Signatures performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

42.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GSS has high quality earnings.

Growing Profit Margin: GSS's current net profit margins (6.2%) are lower than last year (16.4%).

Past Earnings Growth Analysis

Earnings Trend: GSS has become profitable over the past 5 years, growing earnings by 42.1% per year.

Accelerating Growth: GSS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GSS had negative earnings growth (-58.8%) over the past year, making it difficult to compare to the Life Sciences industry average (33.6%).

Return on Equity

High ROE: GSS's Return on Equity (3.6%) is considered low.

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Financial Health

How is Genetic Signatures's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: GSS's short term assets (A$52.4M) exceed its short term liabilities (A$3.9M).

Long Term Liabilities: GSS's short term assets (A$52.4M) exceed its long term liabilities (A$33.0K).

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

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as GSS has not reported any payouts.

Discover strong dividend paying companies

Management

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

8.6yrs

Average management tenure

CEO

John Melki

11.58yrs

Tenure

AU$624,750

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 ($USD430.68K) is above average for companies of similar size in the Australian market ($USD279.73K).

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 (8.6 years average tenure).

Board Members

Experienced Board: GSS's board of directors are considered experienced (7.6 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/08/07 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30