NasdaqCM:GVP

Stock Analysis Report

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Executive Summary

GSE Systems, Inc. provides simulation, training, and engineering solutions to the power and process industries in the United States, Asia, Europe, and internationally.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has GSE Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GVP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

GVP

-1.3%

US Software

0.5%

US Market


1 Year Return

-49.5%

GVP

41.0%

US Software

18.0%

US Market

Return vs Industry: GVP underperformed the US Software industry which returned 41% over the past year.

Return vs Market: GVP underperformed the US Market which returned 18% over the past year.


Shareholder returns

GVPIndustryMarket
7 Day-1.1%-1.3%0.5%
30 Day5.5%1.0%4.5%
90 Day-4.5%15.0%19.7%
1 Year-49.5%-49.5%41.8%41.0%20.5%18.0%
3 Year-68.5%-68.5%150.1%142.1%46.3%36.8%
5 Year-29.9%-29.9%267.3%246.1%87.2%66.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is GSE Systems undervalued compared to its fair value and its price relative to the market?

46.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GVP ($0.96) is trading below our estimate of fair value ($1.8)

Significantly Below Fair Value: GVP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GVP is unprofitable, so we can't compare its PE Ratio to the US Software industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GVP is good value based on its PB Ratio (1.4x) compared to the US Software industry average (7.4x).


Next Steps

Future Growth

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

101.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GVP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: GVP's revenue (11.5% per year) is forecast to grow faster than the US market (9.5% per year).

High Growth Revenue: GVP's revenue (11.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GVP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has GSE Systems performed over the past 5 years?

-7.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GVP is currently unprofitable.

Growing Profit Margin: GVP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GVP is unprofitable, and losses have increased over the past 5 years at a rate of 7.1% per year.

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

Earnings vs Industry: GVP is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (11.5%).


Return on Equity

High ROE: GVP has a negative Return on Equity (-102%), as it is currently unprofitable.


Next Steps

Financial Health

How is GSE Systems's financial position?


Financial Position Analysis

Short Term Liabilities: GVP's short term assets ($26.8M) do not cover its short term liabilities ($31.7M).

Long Term Liabilities: GVP's short term assets ($26.8M) exceed its long term liabilities ($3.7M).


Debt to Equity History and Analysis

Debt Level: GVP's debt to equity ratio (124%) is considered high.

Reducing Debt: Insufficient data to determine if GVP's debt to equity ratio has reduced over the 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: Whilst unprofitable GVP has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GVP is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 2.7% per year.


Next Steps

Dividend

What is GSE Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate GVP'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 GVP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GVP'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 GVP's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Kyle Loudermilk (52 yo)

5yrs

Tenure

US$1,133,235

Compensation

Mr. Kyle J. Loudermilk has been the Chief Executive Officer and President of GSE Systems Inc., since August 3, 2015. He is a technology executive with many years expertise has focused on growing technology ...


CEO Compensation Analysis

Compensation vs Market: Kyle's total compensation ($USD1.13M) is above average for companies of similar size in the US market ($USD589.30K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kyle Loudermilk
President5yrsUS$1.13m2.31%
$ 452.0k
Emmett Pepe
CFO & Treasurer4.08yrsUS$587.30k0.65%
$ 127.4k
Paul Abbott
President of Nuclear Industry Training & Consulting Divisionno dataUS$347.65k0.54%
$ 105.6k
Bahram Meyssami
Chief Technology Officer4.67yrsUS$231.16k0.68%
$ 132.8k
Daniel Pugh
Chief Legal & Risk Officer4.5yrsno data0.22%
$ 42.2k
Gill Grady
Senior Vice President of Corporate Business Development & Acquisition Integrationno dataUS$243.12kno data
Ravi Khanna
Senior Vice President of Professional Services2.5yrsno data0.16%
$ 30.9k
Donald Horn
President of GSE TrueNorthno datano datano data
Gregory Hietpas
President of GSE DP Engineeringno datano datano data

4.5yrs

Average Tenure

53yo

Average Age

Experienced Management: GVP's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kyle Loudermilk
President5yrsUS$1.13m2.31%
$ 452.0k
James Beasley
Independent Director2.17yrsUS$98.75k0.16%
$ 31.9k
John Fuller
Independent Chairman of the Board2.17yrsUS$103.75k0.20%
$ 39.0k
Suresh Sundaram
Independent Director3.92yrsUS$99.37k0.25%
$ 49.9k
James Stanker
Independent Director4yrsUS$99.37k0.24%
$ 46.2k
Kathryn Gardner
Independent Director0.67yrUS$38.39k0.12%
$ 22.6k

3.0yrs

Average Tenure

58yo

Average Age

Experienced Board: GVP's board of directors are considered experienced (3 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.


Top Shareholders

Company Information

GSE Systems, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GSE Systems, Inc.
  • Ticker: GVP
  • Exchange: NasdaqCM
  • Founded: 1994
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$19.608m
  • Shares outstanding: 20.43m
  • Website: https://www.gses.com

Number of Employees


Location

  • GSE Systems, Inc.
  • 1332 Londontown Boulevard
  • Suite 200
  • Sykesville
  • Maryland
  • 21784
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GVPNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJul 1995
GSEDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1995

Biography

GSE Systems, Inc. provides simulation, training, and engineering solutions to the power and process industries in the United States, Asia, Europe, and internationally. It operates through two segments, Per ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/15 06:18
End of Day Share Price2020/08/14 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.