Gear4music (Holdings)
Market Cap
UK£55.0m
Last Updated
2020/02/18 22:55 UTC
Data Sources
Company Financials +
Executive Summary
Gear4music (Holdings) plc engages in the retail of musical instruments and equipment in Europe and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with mediocre balance sheet.
Share Price & News
How has Gear4music (Holdings)'s share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: G4M has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
12.9%
G4M
0.6%
GB Specialty Retail
-0.9%
GB Market
1 Year Return
52.2%
G4M
22.9%
GB Specialty Retail
6.2%
GB Market
Return vs Industry: G4M exceeded the UK Specialty Retail industry which returned 22.9% over the past year.
Return vs Market: G4M exceeded the UK Market which returned 6.2% over the past year.
Shareholder returns
| G4M | Industry | Market | |
|---|---|---|---|
| 7 Day | 12.9% | 0.6% | -0.9% |
| 30 Day | 8.2% | -0.8% | -3.1% |
| 90 Day | 28.0% | 14.3% | 3.9% |
| 1 Year | 52.2%52.2% | 27.1%22.9% | 11.9%6.2% |
| 3 Year | -59.0%-59.0% | 18.6%6.9% | 17.3%2.4% |
| 5 Year | n/a | 16.6%-1.8% | 34.1%3.2% |
Price Volatility Vs. Market
How volatile is Gear4music (Holdings)'s share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall St
Is Gear4music (Holdings) plc's (LON:G4M) CEO Paid At A Competitive Rate?2 months ago | Simply Wall St
Gear4music (Holdings) (LON:G4M) Seems To Be Using An Awful Lot Of Debt3 months ago | Simply Wall St
What Did Gear4music (Holdings) plc's (LON:G4M) CEO Take Home Last Year?Valuation
Is Gear4music (Holdings) undervalued compared to its fair value and its price relative to the market?
2.94x
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: G4M (£2.63) is trading above our estimate of fair value (£2.02)
Significantly Below Fair Value: G4M is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: G4M is unprofitable, so we can't compare its PE Ratio to the Specialty Retail industry average.
PE vs Market: G4M is unprofitable, so we can't compare its PE Ratio to the UK market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate G4M's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: G4M is overvalued based on its PB Ratio (2.9x) compared to the GB Specialty Retail industry average (1.1x).
Next Steps
Future Growth
How is Gear4music (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
74.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: G4M is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).
Earnings vs Market: G4M is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: G4M's is expected to become profitable in the next 3 years.
Revenue vs Market: G4M's revenue (13.7% per year) is forecast to grow faster than the UK market (3.5% per year).
High Growth Revenue: G4M's revenue (13.7% 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 G4M's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Gear4music (Holdings) performed over the past 5 years?
39.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: G4M is currently unprofitable.
Growing Profit Margin: G4M is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: G4M is unprofitable, but has reduced losses over the past 5 years at a rate of 39.5% per year.
Accelerating Growth: Unable to compare G4M's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: G4M is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (2.5%).
Return on Equity
High ROE: G4M has a negative Return on Equity (-0.8%), as it is currently unprofitable.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Gear4music (Holdings)'s financial position?
Financial Position Analysis
Short Term Liabilities: G4M's short term assets (£25.6M) exceed its short term liabilities (£20.1M).
Long Term Liabilities: G4M's short term assets (£25.6M) exceed its long term liabilities (£5.4M).
Debt to Equity History and Analysis
Debt Level: G4M's debt to equity ratio (66.1%) is considered high.
Reducing Debt: G4M's debt to equity ratio has reduced from 1536% to 66.1% over the past 5 years.
Balance Sheet
Inventory Level: G4M has a high level of physical assets or inventory.
Debt Coverage by Assets: G4M's debt is covered by short term assets (assets are 2.1x debt).
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: G4M has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: Insufficient data to determine if G4M has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
Next Steps
Dividend
What is Gear4music (Holdings)'s current dividend yield, its reliability and sustainability?
0.054%
Forecast Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate G4M's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate G4M's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if G4M's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if G4M's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of G4M's dividend in 3 years as they are not forecast to pay a notable one for the UK market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
UK£239k
CEO Compensation
CEO
Andrew Wass (48yo)
UK£238,525
Compensation
Mr. Andrew Paul Wass Founded Gear4music Limited (also known as Soundpro Limited) in 1995. Mr. Wass serves as the Chief Executive Officer and Executive Director of Gear4Music (Holdings) Plc. Mr. Wass has ov ...
CEO Compensation Analysis
Compensation vs Market: Andrew's total compensation ($USD310.70K) is about average for companies of similar size in the UK market ($USD325.33K).
Compensation vs Earnings: Andrew's compensation has increased whilst the company is unprofitable.
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.
Top Shareholders
Company Information
Gear4music (Holdings) plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Gear4music (Holdings) plc
- Ticker: G4M
- Exchange: AIM
- Founded: 1995
- Industry: Specialty Stores
- Sector: Retail
- Market Cap: UK£54.981m
- Shares outstanding: 20.95m
- Website: https://www.gear4music.com
Number of Employees
Location
- Gear4music (Holdings) plc
- Holgate Park Drive
- York
- North Yorkshire
- YO26 4GN
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| G4M | AIM (London Stock Exchange AIM Market) | Yes | Ordinary Shares | GB | GBP | Jun 2015 |
Biography
Gear4music (Holdings) plc engages in the retail of musical instruments and equipment in Europe and internationally. It offers electric, acoustic, and bass guitars; guitar amplifiers and effects pedals; drums and percussion products, including electronic drums; drum pads, hybrid drumming products, acoustic drum kits, individual drums, cymbals, snare drums, drum hardware products, drum accessories, and various percussion products; and pianos and keyboards, such as digital, stage, and grand pianos, as well as MIDI keyboards, synth key products, and accessories. It also provides orchestral products, such as woodwind and string instruments, electric strings, brass instruments, and percussion products, as well as woodwind, string, and brass accessories. In addition, it offers live sound and lighting products comprising PA systems and speakers, signal processors, microphones, wireless systems, in-ear monitors, PA mixers, headphones, DI boxes, audio recorders, live sound accessories, staging and trussing products, stage lightings and accessories, lighting controllers and effects, and effects machines; and studio and production recording equipment, such as audio interfaces and mixers, studio outboards and monitors, audio computers, studio headphones, controllers, music software, microphones, synthesizers, modular synths, sequencers, samplers, drum machines, and studio and synth accessories. Further, it provides DJ decks, mixers, effects units, controllers, headphones, and furniture, as well as scratch and mobile DJ products, and vinyl accessories; and home audio products comprising headphones, portable audio and hi-fi products, and cinema products. It serves private individuals and professional musicians under various brand names through 20 Gear4music branded Websites; and showrooms in York, Sweden, and Germany. The company was founded in 1995 and is headquartered in York, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/18 22:55 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/03/31 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.