AIM:G4M

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Gear4music (Holdings)

Market Cap

UK£199.0m

Last Updated

2021/07/27 21:56 UTC

Data Sources

Company Financials +

Executive Summary

Gear4music (Holdings) plc engages in the retail of musical instruments and equipment in the United Kingdom, rest of Europe, and internationally. More Details


Snowflake Analysis

Outstanding track record with excellent 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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: G4M's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.1%

G4M

3.5%

GB Specialty Retail

2.0%

GB Market


1 Year Return

86.3%

G4M

61.9%

GB Specialty Retail

18.4%

GB Market

Return vs Industry: G4M exceeded the UK Specialty Retail industry which returned 66.4% over the past year.

Return vs Market: G4M exceeded the UK Market which returned 19.1% over the past year.


Shareholder returns

G4MIndustryMarket
7 Day0.1%3.5%2.0%
30 Day-5.9%1.5%-1.1%
90 Day0.6%2.5%1.1%
1 Year86.3%86.3%63.5%61.9%23.7%18.4%
3 Year42.2%42.2%36.3%28.4%11.1%-1.6%
5 Year596.0%596.0%47.9%28.5%41.7%14.4%

Long-Term 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

Valuation

Is Gear4music (Holdings) undervalued compared to its fair value and its price relative to the market?

15.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: G4M (£9.5) is trading above our estimate of fair value (£6.36)

Significantly Below Fair Value: G4M is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: G4M is good value based on its PE Ratio (15.7x) compared to the UK Specialty Retail industry average (20.9x).

PE vs Market: G4M is good value based on its PE Ratio (15.7x) compared to the UK market (23.8x).


Price to Earnings Growth Ratio

PEG Ratio: G4M's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: G4M is overvalued based on its PB Ratio (5.8x) compared to the GB Specialty Retail industry average (2.4x).


Future Growth

How is Gear4music (Holdings) forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: G4M's earnings are forecast to decline over the next 3 years (-8.2% per year).

Earnings vs Market: G4M's earnings are forecast to decline over the next 3 years (-8.2% per year).

High Growth Earnings: G4M's earnings are forecast to decline over the next 3 years.

Revenue vs Market: G4M's revenue (8.3% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: G4M's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: G4M's Return on Equity is forecast to be high in 3 years time (22.9%)


Past Performance

How has Gear4music (Holdings) performed over the past 5 years?

49.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: G4M has high quality earnings.

Growing Profit Margin: G4M's current net profit margins (8%) are higher than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: G4M's earnings have grown significantly by 49.7% per year over the past 5 years.

Accelerating Growth: G4M's earnings growth over the past year (388.1%) exceeds its 5-year average (49.7% per year).

Earnings vs Industry: G4M earnings growth over the past year (388.1%) exceeded the Specialty Retail industry 19.2%.


Return on Equity

High ROE: G4M's Return on Equity (36.8%) is considered high.


Financial Health

How is Gear4music (Holdings)'s financial position?


Financial Position Analysis

Short Term Liabilities: G4M's short term assets (£38.3M) exceed its short term liabilities (£20.6M).

Long Term Liabilities: G4M's short term assets (£38.3M) exceed its long term liabilities (£12.8M).


Debt to Equity History and Analysis

Debt Level: G4M's debt to equity ratio (10.1%) is considered satisfactory.

Reducing Debt: G4M's debt to equity ratio has increased from 6.7% to 10.1% over the past 5 years.

Debt Coverage: G4M's debt is well covered by operating cash flow (428.5%).

Interest Coverage: G4M's interest payments on its debt are well covered by EBIT (25.7x coverage).


Balance Sheet


Dividend

What is Gear4music (Holdings) current dividend yield, its reliability and sustainability?

0.035%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate G4M's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate G4M's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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£119k

CEO Compensation


CEO

Andrew Wass (50 yo)

no data

Tenure

UK£119,000

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 ma...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD165.18K) is below average for companies of similar size in the UK market ($USD561.14K).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


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.


Recent Insider Transactions

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£199.027m
  • 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


Biography

Gear4music (Holdings) plc engages in the retail of musical instruments and equipment in the United Kingdom, rest of Europe, and internationally. It offers electric, acoustic, and bass guitars; guitar ampli...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/27 21:56
End of Day Share Price2021/07/27 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.