Gatekeeper Systems (GSI) AI Stock Analysis

• Market Cap: C$40.30M
• Dividend Yield: N/A
• Average Volume (3M): 71.82K
• Price to Earnings (P/E): 144.8
• Beta (1Y): 1.50
• Revenue Growth: -4.94%
• EPS Growth: -145.86%
• Country: CA
• Employees: N/A
• Sector: Technology
• Sector Strength: 65
• Industry: Security & Protection Services
• EPS (TTM): -0.01
• Shares Outstanding: 93,717,390
• 10 Day Avg. Volume: 94,164
• 30 Day Avg. Volume: 71,820
• PEG Ratio: 0.03
• Price to Book (P/B): 2.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.21
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Gatekeeper Systems exhibits strong financial stability with low leverage and robust cash flow management, which are significant strengths. However, declining revenue and profitability present key challenges. The stock's technical indicators reflect a bearish trend, and its current valuation is unattractive due to negative earnings. Positive corporate events provide a boost, showcasing the company's growth opportunities and market penetration. Overall, while there are promising aspects, the challenges in financial performance and valuation lead to a moderate overall score.

Gatekeeper Systems Business Overview & Revenue Model

Company Description

Gatekeeper Systems Inc. designs, manufactures, markets, and sells video security solutions for mobile and extreme environments in Canada and the United States. Its mobile video solutions integrate high-definition digital video with the global positioning system (GPS) for real-time vehicle location, time, date, and telematics data; and provide a 360-degree view inside and outside vehicles. The company's wireless devices provide real-time connectivity, streaming video, and vehicle tracking; video management software is used as a desktop application for managing basic incidents; and enterprise software to stream live video from any vehicle. It also offers platform-as-a-service to enable intelligent transportation systems for smart city initiatives. The company's products include interior and exterior cameras, DVR recorders, and dashboard cameras; G4 Vision that enables finding video, clipping and saving incidents, and sharing of data; G4 Viewer Plus Incident Management Software that synchronizes GPS, video, vehicle sensors, voice, and other metadata allowing end users to share incidents with management or law enforcement; and wireless systems, such as health check, access point, mobile wireless, mobile WIFI, and video capture and storage modules. In addition, it provides traffic infraction management software, a web based portal that provides functionality for the public who have received a stop arm violation citation/ticket and for internal staff, to document, review, and track the status of alleged stop arm infraction; and intelligent temperature sensing system, a health monitoring panel that measures the body temperature of individuals entering a transportation vehicle or building. The company serves the transit, rail, school bus, police, ambulance, taxi, and transport markets. Gatekeeper Systems Inc. was founded in 1997 and is headquartered in Abbotsford, Canada.

How the Company Makes Money

Gatekeeper Systems generates revenue through the sale and installation of its retail loss prevention products. Its key revenue streams include upfront sales of physical equipment such as shopping cart containment systems and anti-theft pushout systems, as well as ongoing service and maintenance contracts. The company also earns revenue from software licensing fees for its loss prevention software solutions. Significant partnerships with major retail chains enhance its market reach and contribute to consistent earnings by providing a steady customer base and opportunities for long-term service agreements.

Gatekeeper Systems Financial Statement Overview

Summary

Gatekeeper Systems shows financial resilience with a strong balance sheet and effective cash flow management. The company's debt levels are low, and it maintains a robust asset base. However, challenges in revenue growth and profitability are significant, as evidenced by declining income statement metrics, which impact the overall financial performance score.

Income Statement

Gatekeeper Systems experienced a decline in revenue and profitability in the TTM period compared to the previous year. The gross profit margin improved slightly but remains moderate at 40.5%. The net profit margin is negative at -7.4%, reflecting losses. Revenue growth has slowed with a significant decline of 17.1% from the previous year. EBIT and EBITDA margins have also decreased, indicating challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet shows a strong equity position with an equity ratio of 88.3%, indicating financial stability. The debt-to-equity ratio is low at 0.05, suggesting low leverage and risk. Return on equity has turned negative due to current losses, but the company maintains a solid asset base, which provides a buffer against financial fluctuations.

Cash Flow

Cash flow statements indicate robust cash management with free cash flow growth of 42.3% in the TTM period. The operating cash flow to net income ratio is strong, suggesting efficient cash generation from operations. The free cash flow to net income ratio is favorable, highlighting good cash retention despite net losses.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
31.33M	37.81M	27.85M	20.03M	17.23M	20.32M
	Gross Profit
12.83M	17.24M	12.54M	9.31M	7.52M	8.35M
	EBIT
-939.55K	4.19M	2.69M	1.06M	713.63K	2.05M
	EBITDA
756.23K	4.99M	3.47M	2.03M	-186.36K	2.63M
	Net Income Common Stockholders
-2.33M	1.99M	2.81M	1.88M	120.77K	3.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.48M	6.72M	4.11M	2.60M	3.60M	1.03M
	Total Assets
20.22M	22.37M	19.61M	23.02M	14.40M	15.60M
	Total Debt
933.75K	983.01K	749.62K	4.46M	813.79K	2.36M
	Net Debt
-7.54M	-5.74M	-3.36M	1.86M	-2.79M	1.33M
	Total Liabilities
2.37M	4.21M	3.87M	10.47M	3.30M	4.76M
	Stockholders Equity
17.85M	18.16M	15.74M	12.55M	11.10M	10.84M
Cash Flow		Free Cash Flow
4.91M	3.45M	6.31M	-4.63M	4.04M	-2.11M
	Operating Cash Flow
4.83M	4.22M	6.54M	-4.60M	4.14M	-1.89M
	Investing Cash Flow
82.63K	-774.59K	-232.35K	-30.22K	-106.56K	-104.44K
	Financing Cash Flow
-967.98K	-831.22K	-4.81M	3.62M	-1.45M	917.95K

Gatekeeper Systems Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GSI, the sentiment is Neutral. The current price of 0.43 is above the 20-day moving average (MA) of 0.43, below the 50-day MA of 0.46, and below the 200-day MA of 0.55, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 47.01 is Neutral, neither overbought nor oversold. The STOCH value of 64.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:GSI.

Gatekeeper Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOW	65 Neutral	C$59.26M	24.61	-130.86%	―	-7.88%	―
GSI	62 Neutral	C$40.30M	144.83	-12.44%	―	-4.94%	-145.86%
Sector *	60 Neutral	$10.96B	10.27	-6.73%	2.97%	7.73%	-11.60%
XX	50 Neutral	C$26.38M	―	-26.97%	―	37.38%	-41.34%
PLUR	43 Neutral	C$18.06M	―	-1525.80%	―	-7.43%	30.13%
OTC	23 Underperform	C$13.16M	―	171.44%	―	―	18.30%

Gatekeeper Systems Corporate Events

Gatekeeper Systems CEO Updates Shareholdings Amid Marital Settlement

Gatekeeper Systems Inc. announced that its CEO, Doug Dyment, has restructured his shareholdings as part of a marital separation settlement, with 1,672,792 shares now registered as separate property. Despite this change, Mr. Dyment retains sole voting authority over these shares, maintaining beneficial ownership of 8,158,000 shares and 2,000,000 stock options, representing approximately 10.6% of the company’s shares on a partially diluted basis.

Spark’s Take on TSE:GSI Stock

According to Spark, TipRanks’ AI Analyst, TSE:GSI is a Neutral.

Gatekeeper Systems exhibits strong financial stability with low leverage and robust cash flow management, which are significant strengths. However, declining revenue and profitability present key challenges. The stock’s technical indicators reflect a bearish trend, and its current valuation is unattractive due to negative earnings. Positive corporate events provide a boost, showcasing the company’s growth opportunities and market penetration. Overall, while there are promising aspects, the challenges in financial performance and valuation lead to a moderate overall score.

To see Spark’s full report on TSE:GSI stock, click here.

Gatekeeper Systems Reports Q2 2025 Revenue and Expands Transit Contracts

Gatekeeper Systems reported a revenue of $5.9 million for fiscal Q2 2025, reflecting a decrease from the previous year due to the absence of a large transit contract. However, the company’s regular business revenue grew by 22% for the quarter, driven by the school segment. Despite an operating loss, Gatekeeper secured significant new contracts and is expanding its customer base, particularly in the transit sector. The company is also increasing its Letter of Credit Facility to support potential large projects.

Spark’s Take on TSE:GSI Stock

According to Spark, TipRanks’ AI Analyst, TSE:GSI is a Neutral.

Gatekeeper Systems shows financial stability and market growth potential, driven by recent contract wins. However, the stock’s current technical indicators and high valuation present challenges. Improving profitability metrics and addressing the bearish technical signals could enhance the stock’s attractiveness.

To see Spark’s full report on TSE:GSI stock, click here.

Gatekeeper Systems Secures New Contract with Ontario Transit Agency

Gatekeeper Systems Inc. has secured a contract with a provincial transportation agency in Ontario to supply Mobile Data Collectors, on-board video systems, and G4 Vision hosted video analytics software for transit buses. This contract, valued at approximately $620,000 with additional annually recurring services, expands Gatekeeper’s customer base to over 60 transit agencies, reinforcing its position in the public transportation sector.

Gatekeeper Systems Expands School Bus Video Solutions in Nova Scotia

Gatekeeper Systems Inc. has secured two contracts to provide Mobile Data Collectors and on-board video systems for school buses in Halifax, Nova Scotia. This expansion highlights Gatekeeper’s strong market penetration in the region, as approximately 500 buses now utilize their technology, reinforcing their recurring-customer business model and solidifying their position in the intelligent video solutions market for public transportation.

Gatekeeper Systems Secures $1M Contract for Paratransit Vehicle Solutions

Gatekeeper Systems Inc. has secured a contract valued at approximately US $666,000 to supply video and data solutions for new Paratransit vehicles through its subsidiary, Gatekeeper Systems USA Inc. The contract involves providing Mobile Data Collectors, Rear Vision Systems, Video Display Mirrors, and other video devices, which will be factory-installed on these vehicles. This development underscores Gatekeeper’s commitment to enhancing safety in public transportation, particularly for individuals with disabilities who rely on Paratransit services. The contract is expected to strengthen Gatekeeper’s position in the intelligent video and data solutions market for public transportation.

Gatekeeper Systems Secures $3.5M Contract Extension with SEPTA

Gatekeeper Systems Inc. has announced a contract extension worth approximately C$3.5 million with the Southeastern Pennsylvania Transportation Authority (SEPTA) for continued maintenance and repair of on-board vehicle video systems. This extension, retroactive to November 7, 2024, underscores Gatekeeper’s ongoing relationship with SEPTA, one of the largest transit systems in the United States, and highlights the company’s strong positioning in the public transportation sector.

Gatekeeper Systems Supports New School Bus Safety Regulations by Transport Canada

Gatekeeper Systems Inc. has expressed support for Transport Canada’s new regulation mandating perimeter visibility systems on all new school buses to enhance safety, effective from December 18, 2024. The company, which participated as a pilot project supplier, will play a key role in implementing these safety features, including its 360 Surround Vision and Student Protector systems, across Canadian school districts, potentially impacting over 65,000 buses by 2036.