Genasys Inc.
$2.05
-2.8%Genasys Inc. a global provider of critical communications hardware and software solutions worldwide. The company operates through two segments, Hardware and Software. It provides long range acoustic devices, such as acoustic hailing devices which are used to project sirens and audible voice messages; and Genasys Emergency Management, a software-based product line. The company also offers National Emergency Warning Systems, a software application that works with mobile carriers to send emergency communications to the public; Integrated Mass Notification Systems, an emergency response solution, uniting GEM Software and Genasys speaker system hardware; and GEM software to emails, voice calls, text messages, panic buttons, desktop alerts, television, social media, and others. It sells its products directly to governments, militaries, end-users, and commercial companies. The company was formerly known as LRAD Corporation. Genasys Inc. is based in San Diego, California.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -5.1).
Valuation inputs: P/E -5.1, earnings yield N/A, momentum -2.8%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -8.4%, ROIC -58.8%).
Profitability stack: net margin -44.4%, ROE -8.4%, ROIC -58.8%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +96.6%, momentum -2.8%, net margin -44.4%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Genasys Inc. Market vs Earnings Trajectory
Performance Analysis
EPS Growth
Declining earnings warrant investigation into business challenges and competitive position.
Price-EPS Relationship
Price is rising despite declining earnings—caution advised as valuation may be stretched.
Stock Price Change
Over the 1Y period, stock price has increased by 21.3%.
P/E Ratio (TTM)
Relatively low P/E may indicate undervaluation or lower growth expectations.
Key Insight
Despite declining earnings (-289.8%), the stock price has risen (+21.3%). This disconnect suggests investors may be optimistic about future turnaround, but earnings recovery is critical to sustain the valuation.
Genasys Inc. Fair Value Envelope
Genasys Inc. Profit Bridge
Profitability Analysis
Gross Margin
Strong gross margins indicate healthy pricing and efficient production or service delivery.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Genasys Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Weak cash conversion. Significant portion of earnings not converting to cash—review working capital trends and capital intensity.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Genasys Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Financial Health Insight
Financial stress indicators: Both liquidity and leverage metrics raise concerns. The company may face challenges meeting obligations and should focus on strengthening its balance sheet.
Genasys Inc. Street Expectations Map
Wall Street analysts project that GNSS stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 5.50, with estimates ranging from a low of 5.50 to a high of 5.50.
The consensus 1-year price target stands at 5.50, with estimates ranging from a low of 5.50 to a high of 5.50.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
Genasys Inc. Insider Positioning
During the last 12 months, insiders have purchased $50K and sold $52K worth of GNSS shares, resulting in $1K of net selling activity.
3 Months
0
0.00
0
0.00
+0
+$0
3-6 Months
25.5K
50.40K
0
0.00
+50K
+$50K
6-9 Months
0
0.00
0
0.00
+0
+$0
9-12 Months
0
0.00
20.0K
51.80K
-52K
-$52K
Top Buyers
Dodd William H
Director
$50K
Top Sellers
Hernandez-Monteon Cassandra L
Officer: Interim Cfo/Secretary
$52K
Insider Activity Analysis
Net Insider Sentiment
Slightly bearish with $1K net selling. Selling modestly exceeds buying, which could be routine diversification rather than concern.
Buy/Sell Ratio
Moderately negative ratio. Selling is roughly double the buying, which may be routine or signal caution.
Insider Participation
1 insider buyers and 1 sellers. Equal participation suggests mixed or neutral insider views.
Insider Activity Insight
Balanced insider activity: Roughly equal buying and selling suggests normal portfolio management rather than strong directional signals. Look to other metrics for clearer investment insights.
gnss Dividend History
Learning Layer
Related Guides
Build conviction on GNSS by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.