Gattaca (AIM:GATC) - Share price, News & Analysis

GATC fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	0/6
Financial Health	4/6
Dividends	1/6

GATC Stock Overview

Gattaca plc, a human capital resources company, provides contract and permanent recruitment services in the private and public sectors.

Rewards

Trading at 90.8% below our estimate of its fair value

Revenue is forecast to grow 9.15% per year

Risk Analysis

Dividend of 2.48% is not well covered by earnings or forecast to be in the next 3 years

Does not have a meaningful market cap (£20M)

Gattaca Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Gattaca
Historical stock prices
Current Share Price	UK£0.60
52 Week High	UK£2.74
52 Week Low	UK£0.60
Beta	2.7
1 Month Change	-4.72%
3 Month Change	-22.93%
1 Year Change	-75.90%
3 Year Change	-56.08%
5 Year Change	-80.64%
Change since IPO	-82.44%

Recent News & Updates

Apr 07

Gattaca (LON:GATC) Will Be Hoping To Turn Its Returns On Capital Around

Ignoring the stock price of a company, what are the underlying trends that tell us a business is past the growth phase...

Jan 26

Here's Why I Think Gattaca (LON:GATC) Is An Interesting Stock

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

	GATC	GB Professional Services	GB Market
7D	-3.2%	4.6%	2.3%
1Y	-75.9%	-5.0%	-8.6%

Return vs Industry: GATC underperformed the UK Professional Services industry which returned -8.7% over the past year.

Return vs Market: GATC underperformed the UK Market which returned -10.4% over the past year.

Price Volatility

Is GATC's price volatile compared to industry and market?
GATC volatility
GATC Average Weekly Movement	3.8%
Professional Services Industry Average Movement	4.6%
Market Average Movement	5.5%
10% most volatile stocks in GB Market	10.8%
10% least volatile stocks in GB Market	2.8%

Stable Share Price: GATC is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GATC's weekly volatility has decreased from 9% to 4% over the past year.

About the Company

Founded	Employees	CEO	Website
1984	540	Matt Wragg	https://www.gattacaplc.com

Gattaca plc, a human capital resources company, provides contract and permanent recruitment services in the private and public sectors. The company operates through three segments: UK Engineering, UK Technology, and International. It offers flexible, permanent, and total workforce solutions; professional, engineering, and technology support solutions; and statement of work solutions, as well as talent mapping and insights, rate/salary benchmarking, diversity consultancy, talent attraction and employer branding, recruitment process analysis, recruitment technology, workforce compliance, workforce planning, and assessment and selection solutions.

Gattaca Fundamentals Summary

How do Gattaca's earnings and revenue compare to its market cap?
GATC fundamental statistics
Market Cap	UK£19.54m
Earnings (TTM)	-UK£416.00k
Revenue (TTM)	UK£413.13m

0.0x

P/S Ratio

-47.0x

P/E Ratio

Is GATC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GATC income statement (TTM)
Revenue	UK£413.13m
Cost of Revenue	UK£369.96m
Gross Profit	UK£43.16m
Other Expenses	UK£43.58m
Earnings	-UK£416.00k

Last Reported Earnings

Jan 31, 2022

Next Earnings Date

Nov 03, 2022

Earnings per share (EPS)	-0.013
Gross Margin	10.45%
Net Profit Margin	-0.10%
Debt/Equity Ratio	28.4%

How did GATC perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

-116%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is GATC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GATC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for GATC. This is calculated by dividing GATC's market cap by their current preferred multiple.
What is GATC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£19.54m

GATC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.05x
Enterprise Value/EBITDA	5.2x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does GATC's PS Ratio compare to its peers?

GATC PS Ratio vs Peers

The above table shows the PS ratio for GATC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	0.2x

Forward PS

Price-To-Sales vs Peers: GATC is good value based on its Price-To-Sales Ratio (0x) compared to the peer average (0.2x).

Price to Earnings Ratio vs Industry

How does GATC's PE Ratio compare vs other companies in the U.K. Professional Services Industry?

Price-To-Sales vs Industry: GATC is good value based on its Price-To-Sales Ratio (0x) compared to the UK Professional Services industry average (1x)

Price to Sales Ratio vs Fair Ratio

What is GATC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GATC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.05x
Fair PS Ratio	0.3x

Price-To-Sales vs Fair Ratio: GATC is good value based on its Price-To-Sales Ratio (0x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).

Share Price vs Fair Value

What is the Fair Price of GATC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GATC (£0.61) is trading below our estimate of fair value (£6.58)

Significantly Below Fair Value: GATC is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GATC's PEG Ratio to determine if it is good value.

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Future Growth

How is Gattaca forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.1%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GATC's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if GATC's earnings are forecast to grow faster than the UK market

High Growth Earnings: Insufficient data to determine if GATC's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GATC's revenue (9.1% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: GATC's revenue (9.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if GATC's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Gattaca performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

11.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GATC is currently unprofitable.

Growing Profit Margin: GATC is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: GATC is unprofitable, but has reduced losses over the past 5 years at a rate of 11.9% per year.

Accelerating Growth: Unable to compare GATC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GATC is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (46.1%).

Return on Equity

High ROE: GATC has a negative Return on Equity (-1.33%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Gattaca's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: GATC's short term assets (£78.6M) exceed its short term liabilities (£53.6M).

Long Term Liabilities: GATC's short term assets (£78.6M) exceed its long term liabilities (£4.7M).

Debt to Equity History and Analysis

Debt Level: GATC has more cash than its total debt.

Reducing Debt: GATC's debt to equity ratio has reduced from 42.9% to 28.4% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if GATC has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if GATC has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

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Dividend

What is Gattaca current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.48%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: GATC's dividend (2.48%) is higher than the bottom 25% of dividend payers in the UK market (1.92%).

High Dividend: GATC's dividend (2.48%) is low compared to the top 25% of dividend payers in the UK market (5.23%).

Stability and Growth of Payments

Stable Dividend: GATC's dividend payments have been volatile in the past 10 years.

Growing Dividend: GATC's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: GATC is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: GATC is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure

CEO

Matt Wragg (42 yo)

0.17

Tenure

Mr. Matthew Howard Wragg, also known as Matt, serves as Chief Executive Officer of Gattaca plc since April 1, 2022 and has been its Director since April 2022. He is also Chief Customer Officer of Gattaca p...

Leadership Team

Experienced Management: GATC's management team is not considered experienced ( 1 years average tenure), which suggests a new team.

Board Members

Experienced Board: GATC's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/01/31
Annual Earnings	2021/07/31