Not trying to tell anyone what to buy or sell — just sharing something that came out of a quantitative screener I built. I’m not posting the screener itself, but the output was bad enough that I think it’s worth warning people who might be looking at GRRR right now.

Here’s the breakdown of what triggered the alerts:

🔴 Business Quality — HARD FAIL

• ROIC: 4.0% → way below sector norms
• Gross Margin: 33.4% → thin, suggests weak pricing power This alone would have kicked it out of the model. Poor capital efficiency + low margins = structurally weak business economics.

🔴 Financial Health — HARD FAIL

• Debt/Equity: 0.07 → low debt (good)
• Current Ratio: 3.33 → strong liquidity But the model still hard‑failed it because…

Major red flags:

• Deeply negative FCF yield (-9.3%)
• Negative free cash flow 2 years in a row
• Equity issuance at ~20%/yr → They’re diluting shareholders to survive
• Accruals ratio elevated (6.4%) → Earnings not converting to cash
• AR growing +86% vs revenue +36% → Potential aggressive revenue recognition or customer concentration
• Working capital deterioration → Cash conversion cycle worsening

🔴 Valuation — FAIL

• EV/EBITDA: 23.7x → not cheap for a company with this risk profile
• Stale fundamentals → Last filing was 140 days ago → Stock is -49% off 52‑week high → Valuation ratios may be using outdated earnings against a crashed price

This is a classic trap: looks “cheap” because the price fell, but the fundamentals haven’t been updated.

📉 Growth — FAIL

• Revenue growth is strong (+35.7%), but:
  • Gross margin contracting
  • 2 of last 4 quarters show deterioration

Top‑line growth doesn’t matter if the economics are getting worse.

📉 Momentum / Technicals

Not part of the rating, but:

• Below 200D MA by -11.1%
• Mixed MA structure
• Institutional selling pressure

Not a great sign.

TL;DR — 9 major warnings, 2 hard fails, persistent cash burn, dilution, deteriorating fundamentals

Again, not financial advice — just sharing what my model flagged.
If you’re in this name or thinking about it, double‑check the latest filings and make sure you understand the dilution + cash burn situation.

I do want to also post that the balance sheet, the analyst targets, and the IFRS‑vs‑adjusted earnings distinction are improving, however the above flags stay.

I would like to hear your outputs on the above.

Stay safe out there.

Gorilla Technologies' (GRRR) data center (DC) strategy takes a fundamentally different approach from the physical bottleneck of "year-long waits for power grids" that U.S. hyperscalers face, and is currently in a highly advantageous position. This is due to: ① Geographic advantages and "guaranteed power" greenfield development; ② Leveraging existing infrastructure (partnership with Yotta); and ③ The power of "operational optimization" through Astrikos.AI.

https://preview.redd.it/n5eyederti0h1.png?width=625&format=png&auto=webp&s=206fa4b86b0cd6bad64ed7c0f1ea3e093e07018b

• Closure of ATM: In February 2025, Gorilla announced the closure of its ATM program to protect shareholder value and prevent further dilution.
• Persistent Risks: Despite the announcement, analysis in May 2026 indicates shareholders have been significantly diluted over the past year.