In the world of investing, the trend is your friend. GSE Systems (NASDAQ: GVP), a technology company specializing in application software, is currently trading at a market value of $3.49. However, the company's valuation real value stands at a significantly higher $10.1, suggesting a potential upside. Despite this, the company's financial health
raises some concerns. GSE Systems reported a net income loss of $15.3M and an operating income loss of $6.9M. The firm's net interest income also recorded a loss of $1.3M. The company's 50-day moving average is $2.61, while the 200-day moving average is $5.19, indicating a bearish trend in the short term. The stock's beta of 1.293 suggests it is more volatile than the market. With a short ratio of 0.41 and shares short the prior month at 934K, there is a notable short interest in the stock. The analyst target price estimated value is $30, offering a substantial potential return. However, retail investors should tread carefully considering the company's financial performance
and market volatility. As more millennials are showing interest in the software sector, it's worthwhile to evaluate GSE Systems in the context of current economic trends. As anticipated, GSE Systems is beginning to demonstrate its true potential as retail investors grow increasingly confident in its future prospects. The company's stock price movements have largely mirrored overall market trends. The consistent basic indicators of the business suggest a short-term price fluctuation for GSE's retail investors. The next quarterly report is scheduled for release on November 13, 2023. Currently, the stock is witnessing above-average trading volumes.
Using predictive technical analysis
, we can analyze different prices and returns patterns and diagnose historical swings
to determine the real value of GSE Systems. In general, sophisticated investors focus on analyzing GSE Systems stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build GSE Systems's daily price indicators and compare them against related drivers such as momentum indicators
and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis
and fundamental analysis
, we attempt to find the most accurate representation of GSE Systems's intrinsic value. In addition to deriving basic predictive indicators for GSE Systems, many experienced traders also check how macroeconomic factors affect GSE Systems price patterns. Please read more on our technical analysis
page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs
, frequently view the market will even out over time. This tendency of GSE Systems' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of GSE Systems in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as GSE Systems. Your research has to be compared to or analyzed against GSE Systems' peers to derive any actionable benefits. When done correctly, GSE Systems' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in GSE Systems.
How important is GSE Systems's Liquidity
GSE Systems financial leverage
refers to using borrowed capital as a funding source to finance GSE Systems ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. GSE Systems financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to GSE Systems' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of GSE Systems' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown
between GSE Systems's total debt and its cash.
GSE Systems Gross Profit
GSE Systems Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing GSE Systems previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show GSE Systems Gross Profit growth over the last 10 years. Please check GSE Systems' gross profit
and other fundamental indicators
for more details.
Another angle On GSE Systems
The entity has a beta of 3.3376. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, GSE Systems will likely underperform. The beta indicator helps investors understand whether GSE Systems moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if GSE deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The firm reported the last year's revenue of 47.73 M
. Reported Net Loss for the year was (15.34 M
) with profit before taxes, overhead, and interest of 11.86 M
"In investing, the rearview mirror is always clearer than the windshield." This saying aptly applies to GSE Systems (USA Stocks: GVP), a player in the Application Software industry. Currently, the company's shares are trading below Wall Street's target price of $3, with a 52-week high and low of $11.3 and $1.3 respectively. GSE Systems' current ratio stands at 1.18X, indicating the company has more assets than liabilities, a positive sign for investors. However, a deeper dive into the company's financials reveals a net income loss of $15.3M and a probability of bankruptcy at a worrying 76.43%
. With a beta of 1.29, the stock is slightly more volatile than the market, which coupled with a high variance of 83.18, suggests potential for significant price swings. Although the company's price to sales ratio is a relatively low 0.30X, its current market capitalization stands at a mere $8.66M
. Therefore, while GSE Systems may seem like a bargain, retail investors should tread carefully given the company's high risk profile. .
Can GSE Systems build up on the latest spike?
The most recent statistical data indicates a decrease in kurtosis for GSE Systems to 16.31, suggesting a potential decline in volatility. This could imply that the recent surge in the company's stock price may not be as erratic as it appears. If this trend of lower volatility continues, it could provide a more stable environment for the stock to maintain its current upward trajectory. Therefore, investors should closely monitor GSE Systems, as it may be able to capitalize on its recent spike under these conditions. GSE Systems is exhibiting above-average volatility over the chosen time horizon. Investors should examine GSE Systems independently to ensure that their intended market timing
strategies align with their expectations about GSE Systems' volatility. Understanding different market volatility
trends can often assist investors in timing the market. The correct use of volatility indicators allows traders to gauge GSE Systems' stock risk against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly affect GSE Systems' stock price
, adding stress to investors as they watch the value of their shares plummet. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In light of the prevailing market conditions, GSE Systems
presents an intriguing investment opportunity. With a single analyst providing a strong buy recommendation and a target price of $30
, the potential for significant returns is evident. The company's valuation hype value stands at 3.9, significantly higher than its current market value of $3.49
. This suggests that the market may be underestimating the company's true worth, which is estimated to be around $10.1
. Given that the fiscal year ends in December, investors should consider taking a position in GSE Systems now to potentially capitalize on the anticipated market correction. .
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