GUARDFORCE AI CO LTD (GFAI)
KYG4236L1389 - Common Stock
We assign a fundamental rating of 2 out of 10 to GFAI. GFAI was compared to 82 industry peers in the Commercial Services & Supplies industry. While GFAI seems to be doing ok healthwise, there are quite some concerns on its profitability. GFAI has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
GFAI had negative earnings in the past year.
GFAI had a negative operating cash flow in the past year.
In the past 5 years GFAI reported 4 times negative net income.
In multiple years GFAI reported negative operating cash flow during the last 5 years.
1.2 Ratios
GFAI has a Return On Assets of -48.64%. This is amonst the worse of the industry: GFAI underperforms 92.59% of its industry peers.
GFAI has a worse Return On Equity (-74.31%) than 82.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -48.64% | ||
| ROE | -74.31% | ||
| ROIC | N/A |
ROA(3y)-36%
ROA(5y)-23.32%
ROE(3y)-99.45%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
GFAI's Gross Margin of 17.38% is on the low side compared to the rest of the industry. GFAI is outperformed by 79.01% of its industry peers.
GFAI's Gross Margin has been stable in the last couple of years.
GFAI does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 17.38% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.73%
GM growth 5Y-1.02%
2. Health
2.1 Basic Checks
GFAI does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, GFAI has more shares outstanding
The number of shares outstanding for GFAI has been increased compared to 5 years ago.
GFAI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -0.74, we must say that GFAI is in the distress zone and has some risk of bankruptcy.
GFAI has a worse Altman-Z score (-0.74) than 86.42% of its industry peers.
GFAI has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
GFAI has a Debt to Equity ratio of 0.06. This is amongst the best in the industry. GFAI outperforms 82.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.74 |
ROIC/WACCN/A
WACC8.43%
2.3 Liquidity
A Current Ratio of 3.42 indicates that GFAI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.42, GFAI belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
GFAI has a Quick Ratio of 3.36. This indicates that GFAI is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.36, GFAI belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.42 | ||
| Quick Ratio | 3.36 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 90.76% over the past year.
GFAI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -31.82%.
The Revenue has been decreasing by -0.57% on average over the past years.
EPS 1Y (TTM)90.76%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%95.67%
Revenue 1Y (TTM)-31.82%
Revenue growth 3Y-1.23%
Revenue growth 5Y-0.57%
Sales Q2Q%-2.44%
3.2 Future
Based on estimates for the next years, GFAI will show a very strong growth in Earnings Per Share. The EPS will grow by 26.31% on average per year.
GFAI is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.60% yearly.
EPS Next Y97.69%
EPS Next 2Y41.63%
EPS Next 3Y26.31%
EPS Next 5YN/A
Revenue Next Year-18.86%
Revenue Next 2Y-7.44%
Revenue Next 3Y-3.6%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GFAI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
GFAI is valuated quite expensively with a Price/Forward Earnings ratio of 69.61.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GFAI is on the same level as its industry peers.
GFAI is valuated expensively when we compare the Price/Forward Earnings ratio to 23.61, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 69.61 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GFAI's earnings are expected to grow with 26.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y41.63%
EPS Next 3Y26.31%
5. Dividend
5.1 Amount
GFAI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GUARDFORCE AI CO LTD
NASDAQ:GFAI (1/8/2025, 8:05:05 PM)
After market: 2.03 -0.1 (-4.69%)2.13
-0.76 (-26.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners1.31%
Inst Owner Change0%
Ins Owners3.06%
Ins Owner ChangeN/A
Market Cap25.28M
Analysts82.86
Price Target4.59 (115.49%)
Short Float %1.21%
Short Ratio0.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-50%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 69.61 | ||
| P/S | 0.71 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.07 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | N/A |
EPS(TTM)-1.79
EYN/A
EPS(NY)0.03
Fwd EY1.44%
FCF(TTM)-0.27
FCFYN/A
OCF(TTM)-0.16
OCFYN/A
SpS2.99
BVpS2
TBVpS1.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -48.64% | ||
| ROE | -74.31% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 17.38% | ||
| FCFM | N/A |
ROA(3y)-36%
ROA(5y)-23.32%
ROE(3y)-99.45%
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.73%
GM growth 5Y-1.02%
F-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 23.73% | ||
| Cap/Sales | 3.47% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.42 | ||
| Quick Ratio | 3.36 | ||
| Altman-Z | -0.74 |
F-Score6
WACC8.43%
ROIC/WACCN/A
Cap/Depr(3y)90.82%
Cap/Depr(5y)61.99%
Cap/Sales(3y)14.32%
Cap/Sales(5y)9.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)90.76%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%95.67%
EPS Next Y97.69%
EPS Next 2Y41.63%
EPS Next 3Y26.31%
EPS Next 5YN/A
Revenue 1Y (TTM)-31.82%
Revenue growth 3Y-1.23%
Revenue growth 5Y-0.57%
Sales Q2Q%-2.44%
Revenue Next Year-18.86%
Revenue Next 2Y-7.44%
Revenue Next 3Y-3.6%
Revenue Next 5YN/A
EBIT growth 1Y41.02%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-118.8%
EBIT Next 3Y-45.43%
EBIT Next 5YN/A
FCF growth 1Y87.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y93.79%
OCF growth 3YN/A
OCF growth 5YN/A