AIM:GHH

Stock Analysis Report

Executive Summary

Gooch & Housego PLC researches, designs, engineers, manufactures, and sells photonic systems, components, and instrumentation in the United States, continental Europe, the United Kingdom, the Asia Pacific, and internationally.

Snowflake

Fundamentals

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Gooch & Housego's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-6.2%

GHH

-2.4%

GB Electronic

-0.4%

GB Market


1 Year Return

-41.1%

GHH

8.4%

GB Electronic

2.9%

GB Market

Return vs Industry: GHH underperformed the UK Electronic industry which returned 8.4% over the past year.

Return vs Market: GHH underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

GHHIndustryMarket
7 Day-6.2%-2.4%-0.4%
30 Day-12.7%-5.0%-1.4%
90 Day-7.4%-6.0%-2.1%
1 Year-40.6%-41.1%10.2%8.4%8.0%2.9%
3 Year14.5%11.7%47.4%40.7%18.0%3.6%
5 Year81.7%73.8%122.7%103.4%35.8%6.4%

Price Volatility Vs. Market

How volatile is Gooch & Housego's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gooch & Housego undervalued compared to its fair value and its price relative to the market?

34.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GHH (£10.95) is trading below our estimate of fair value (£16.75)

Significantly Below Fair Value: GHH is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GHH is poor value based on its PE Ratio (93.1x) compared to the Electronic industry average (19.6x).

PE vs Market: GHH is poor value based on its PE Ratio (93.1x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: GHH is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: GHH is overvalued based on its PB Ratio (2.6x) compared to the GB Electronic industry average (2.1x).


Next Steps

Future Growth

How is Gooch & Housego forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

42.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GHH's forecast earnings growth (42.2% per year) is above the savings rate (1.2%).

Earnings vs Market: GHH's earnings (42.2% per year) are forecast to grow faster than the UK market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GHH's revenue (3.3% per year) is forecast to grow slower than the UK market (3.9% per year).

High Growth Revenue: GHH's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GHH's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has Gooch & Housego performed over the past 5 years?

2.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GHH's earnings have grown by 2.9% per year over the past 5 years.

Accelerating Growth: GHH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GHH had negative earnings growth (-71%) over the past year, making it difficult to compare to the Electronic industry average (-7.7%).


Return on Equity

High ROE: GHH's Return on Equity (2.7%) is considered low.


Return on Assets

ROA vs Industry: GHH's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: GHH's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Gooch & Housego's financial position?


Financial Position Analysis

Short Term Liabilities: GHH's short term assets (£72.3M) exceeds its short term liabilities (£27.8M)

Long Term Liabilities: GHH's short term assets (72.3M) exceeds its long term liabilities (39.4M)


Debt to Equity History and Analysis

Debt Level: GHH's debt to equity ratio (28.1%) is considered satisfactory

Reducing Debt: GHH's debt to equity ratio has increased from 14.3% to 28.1% over the past 5 years.

Debt Coverage: GHH's debt is well covered by operating cash flow (46.8%).

Interest Coverage: GHH's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet

Inventory Level: GHH has a high level of physical assets or inventory.

Debt Coverage by Assets: GHH's debt is covered by short term assets (assets are 2.406710x debt).


Next Steps

Dividend

What is Gooch & Housego's current dividend yield, its reliability and sustainability?

1.03%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%2.0%markettop25%5.4%industryaverage1.7%forecastin3Years1.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GHH's dividend (1.03%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: GHH's dividend (1.03%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

Stable Dividend: GHH is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.

Growing Dividend: GHH is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: GHH is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GHH's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

What is the CEO of Gooch & Housego's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Mark John Webster (57yo)

4.8yrs

Tenure

UK£1,801,000

Compensation

Mr. Mark John Alexander Webster, B.Sc served as the Chief Executive Officer of Bio Products Laboratory Ltd. Mr. Webster served as Vice President of Global Strategic Marketing and Head of North America Oper ...


CEO Compensation Analysis

Compensation vs. Market: Mark John's total compensation ($USD2.34M) is about average for companies of similar size in the UK market ($USD875.35K).

Compensation vs Earnings: Mark John's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.8yrs

Average Tenure

Experienced Management: GHH's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

57yo

Average Age

Experienced Board: GHH's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUK£11,25001 Jul 19
Gary Bullard
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares1,000
Max PriceUK£11.25
BuyUK£20,70606 Jun 19
Gary Bullard
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares2,100
Max PriceUK£9.86
BuyUK£9,99804 Jun 19
Brian Phillipson
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares954
Max PriceUK£10.48
BuyUK£10,33004 Jun 19
Gary Bullard
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares1,000
Max PriceUK£10.33
BuyUK£15,57004 Jun 19
David Bauernfeind
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares1,500
Max PriceUK£10.38
SellUK£23,21728 Mar 19
Andrew Boteler
EntityIndividual
Shares1,850
Max PriceUK£12.55
BuyUK£14,72021 Feb 19
Gary Bullard
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares1,150
Max PriceUK£12.80
BuyUK£21,07505 Dec 18
David Bauernfeind
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares1,500
Max PriceUK£14.05
BuyUK£14,28005 Dec 18
Brian Phillipson
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares1,000
Max PriceUK£14.28
BuyUK£9,38627 Nov 18
Gary Bullard
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares702
Max PriceUK£13.37

Ownership Breakdown


Management Team

  • Mark John Webster (57yo)

    CEO & Executive Director

    • Tenure: 4.8yrs
    • Compensation: UK£1.80m
  • Jon Fowler

    Executive Vice President of Commercial Development

    • Tenure: 6.3yrs
  • Alex Warnock

    COO & Executive Director

    • Tenure: 4.9yrs
    • Compensation: UK£1.37m
  • Gareth Crowe

    Group Financial Controller & Company Secretary

    • Tenure: 0yrs
  • Chris Jewell (54yo)

    CFO & Director

    • Tenure: 0.08yrs

Board Members

  • Brian Phillipson

    Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: UK£40.00k
  • Mark John Webster (57yo)

    CEO & Executive Director

    • Tenure: 4.8yrs
    • Compensation: UK£1.80m
  • Peter Bordui (58yo)

    Senior Independent Director

    • Tenure: 0yrs
    • Compensation: UK£40.00k
  • Gary Bullard (62yo)

    Non-Executive Chairman

    • Tenure: 1.7yrs
    • Compensation: UK£45.00k
  • Alex Warnock

    COO & Executive Director

    • Tenure: 4.9yrs
    • Compensation: UK£1.37m
  • David Bauernfeind (51yo)

    Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: UK£40.00k
  • Chris Jewell (54yo)

    CFO & Director

    • Tenure: 0.08yrs

Company Information

Gooch & Housego PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gooch & Housego PLC
  • Ticker: GHH
  • Exchange: AIM
  • Founded: 1948
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: UK£273.311m
  • Shares outstanding: 24.96m
  • Website: https://www.goochandhousego.com

Number of Employees


Location

  • Gooch & Housego PLC
  • Dowlish Ford
  • Ilminster
  • Somerset
  • TA19 0PF
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GHHAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPDec 1997

Biography

Gooch & Housego PLC researches, designs, engineers, manufactures, and sells photonic systems, components, and instrumentation in the United States, continental Europe, the United Kingdom, the Asia Pacific, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 20:32
End of Day Share Price2019/10/21 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


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.