Impressive results These are impressive results, to say the least.
I think that we can safely assume, considering the new contract awards, that sales in 2020 will surpass 20 000 000 (which corresponds to the current run rate). If nothing changes in the profit margin, we should be looking at earnings of 2-4 cts per share. If GSI maintains such 50% y/y growth, the company should eventually be rewarded with a 25+ P.E. That leads, at a minimum, to a share price of 50cts to 1$. However, it must be noted that the profit margins have suffered "artificially" from the tariffs imposed on Chinese goods by the U.S. Any easing of the trade war with China could lead to a return to 50%+ profit margins (instead of the 40-45% where they are now).
Growth in sales in the U.S. market has been spectacular! From <800 000 in 2018 to >4 000000 in 2019, mostly due to the Pennsylvania transit work.
This company is "playing" in the fastest growing part of a 1.7 billion market forecasted to grow 8% CAGR over the next 5 years. Considering CGI's size, the opportunities appear infinite. I particularly like that CGI is investing in AI to streamline the process of screening their surveillance videos for infractions and "events", thereby providing tremendous future value to transit authorities, beyond what the currently offer which already helps to significantly decrease liabilities due to false claims.
We won't have to wait too long for another quarterly report, which should only serve to reinforce the strong trend established in revenue and profit growth over the last two quarters,
Today's GSI is a completely different animal than it was 4 years ago when I briefly invested in the company. Anyone owning shares now is potentially sitting on a 10-bagger if willing to be patient (and disregard misinformation such as sometimes posted here by people with ulterior motives).
Cheers