company background image
GHH

Gooch & HousegoAIM:GHH Stock Report

Market Cap

UK£280.4m

7D

-4.3%

1Y

-1.8%

Updated

26 Nov, 2021

Data

Company Financials +
GHH fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance0/6
Financial Health5/6
Dividends3/6

GHH Stock Overview

Gooch & Housego PLC engages in the manufacture and sale of acousto-optics, electro-optics, fiber optics, and precision optics/systems in the United Kingdom, North America, Europe, the Asia Pacific, and internationally.

Gooch & Housego Competitors

Parker-Hannifin

NYSE:PH

US$40.0b

BAE Systems

LSE:BA.

UK£17.4b

IDEX

NYSE:IEX

US$17.6b

Rheinmetall

XTRA:RHM

€3.6b

Price History & Performance

Summary of all time highs, changes and price drops for Gooch & Housego
Historical stock prices
Current Share PriceUK£11.20
52 Week HighUK£15.50
52 Week LowUK£11.05
Beta1.19
1 Month Change-9.68%
3 Month Change-21.13%
1 Year Change-1.75%
3 Year Change-22.22%
5 Year Change15.46%
Change since IPO771.60%

Recent News & Updates

Aug 03
Gooch & Housego (LON:GHH) May Have Issues Allocating Its Capital

Gooch & Housego (LON:GHH) May Have Issues Allocating Its Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Typically, we'll want...

May 01
Be Wary Of Gooch & Housego (LON:GHH) And Its Returns On Capital

Be Wary Of Gooch & Housego (LON:GHH) And Its Returns On Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. In a perfect world, we'd like to see...

Apr 08
Is Now An Opportune Moment To Examine Gooch & Housego PLC (LON:GHH)?

Is Now An Opportune Moment To Examine Gooch & Housego PLC (LON:GHH)?

Gooch & Housego PLC ( LON:GHH ), is not the largest company out there, but it received a lot of attention from a...

Shareholder Returns

GHHGB ElectronicGB Market
7D-4.3%-7.0%-3.0%
1Y-1.8%19.6%11.7%

Return vs Industry: GHH underperformed the UK Electronic industry which returned 23% over the past year.

Return vs Market: GHH underperformed the UK Market which returned 17.9% over the past year.

Price Volatility

Is GHH's price volatile compared to industry and market?
GHH volatility
GHH Average Weekly Movement3.7%
Electronic Industry Average Movement5.4%
Market Average Movement4.8%
10% most volatile stocks in GB Market9.7%
10% least volatile stocks in GB Market2.5%

Stable Share Price: GHH is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

FoundedEmployeesCEOWebsite
1948902Mark John Websterhttps://gandh.com

Gooch & Housego PLC engages in the manufacture and sale of acousto-optics, electro-optics, fiber optics, and precision optics/systems in the United Kingdom, North America, Europe, the Asia Pacific, and internationally. The company operates through Aerospace & Defence, Life Sciences/Biophotonics, and Industrial segments. It offers acousto-optic products, such as acousto-optic modulators, deflectors, fiber-coupled modulators, frequency shifters, model lockers, multi-channel modulators, pulse pickers and cavity dumpers, Q-switches, tunable filters, and RF drivers; crystal optics, including crystals and nonlinear optics, lithium niobate wafers, and periodically-poled lithium niobite; electro-optics, such as pockels cells, lithium niobate Q-switches, and pockels cell drivers; and lens assemblies and sighting systems.

Gooch & Housego Fundamentals Summary

How do Gooch & Housego's earnings and revenue compare to its market cap?
GHH fundamental statistics
Market CapUK£280.44m
Earnings (TTM)UK£3.13m
Revenue (TTM)UK£123.10m

89.7x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GHH income statement (TTM)
RevenueUK£123.10m
Cost of RevenueUK£81.49m
Gross ProfitUK£41.61m
ExpensesUK£38.48m
EarningsUK£3.13m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

Nov 30, 2021

Earnings per share (EPS)0.12
Gross Margin33.80%
Net Profit Margin2.54%
Debt/Equity Ratio18.0%

How did GHH perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

36%

Payout Ratio

Valuation

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

89.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GHH (£11.2) is trading above our estimate of fair value (£4.39)

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


Price To Earnings Ratio

PE vs Industry: GHH is poor value based on its PE Ratio (89.7x) compared to the UK Electronic industry average (31x).

PE vs Market: GHH is poor value based on its PE Ratio (89.7x) compared to the UK market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: GHH is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: GHH is good value based on its PB Ratio (2.5x) compared to the GB Electronic industry average (3x).


Future Growth

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

51.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GHH's forecast earnings growth (51.8% per year) is above the savings rate (0.9%).

Earnings vs Market: GHH's earnings (51.8% per year) are forecast to grow faster than the UK market (11.5% per year).

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

Revenue vs Market: GHH's revenue (3.2% per year) is forecast to grow slower than the UK market (5.7% per year).

High Growth Revenue: GHH's revenue (3.2% 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 (9.1%).


Past Performance

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

-17.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GHH has a large one-off loss of £5.1M impacting its March 31 2021 financial results.

Growing Profit Margin: GHH's current net profit margins (2.5%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: GHH's earnings have declined by 17.8% 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 (-33.3%) over the past year, making it difficult to compare to the Electronic industry average (20.3%).


Return on Equity

High ROE: GHH's Return on Equity (2.8%) is considered low.


Financial Health

How is Gooch & Housego's financial position?


Financial Position Analysis

Short Term Liabilities: GHH's short term assets (£67.4M) exceed its short term liabilities (£19.7M).

Long Term Liabilities: GHH's short term assets (£67.4M) exceed its long term liabilities (£33.7M).


Debt to Equity History and Analysis

Debt Level: GHH's net debt to equity ratio (4.2%) is considered satisfactory.

Reducing Debt: GHH's debt to equity ratio has increased from 6.7% to 18% over the past 5 years.

Debt Coverage: GHH's debt is well covered by operating cash flow (110.9%).

Interest Coverage: GHH's interest payments on its debt are well covered by EBIT (8x coverage).


Balance Sheet


Dividend

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

0.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GHH's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.35%).

High Dividend: GHH's dividend (0.8%) is low compared to the top 25% of dividend payers in the UK market (4.03%).


Stability and Growth of Payments

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

Growing Dividend: GHH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36%), GHH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GHH's dividends in 3 years are forecast to be well covered by earnings (29.8% payout ratio).


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Mark John Webster (59 yo)

6.83yrs

Tenure

UK£364,000

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 Op...


CEO Compensation Analysis

Compensation vs Market: Mark John's total compensation ($USD484.75K) is below average for companies of similar size in the UK market ($USD777.89K).

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


Leadership Team

Experienced Management: GHH's management team is seasoned and experienced (6.8 years average tenure).


Board Members

Experienced Board: GHH's board of directors are not considered experienced ( 1.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Gooch & Housego PLC's 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£280.438m
  • Shares outstanding: 25.04m
  • Website: https://gandh.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/26 21:16
End of Day Share Price2021/11/26 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.