Gamma Communications
Market Cap
UK£1.2b
Last Updated
2020/06/06 00:09 UTC
Data Sources
Company Financials +
Executive Summary
Gamma Communications plc provides communications and software services for business in the United Kingdom and internationally.
Rewards
Risk Analysis
No risks detected for GAMA from our risk checks.
Snowflake Analysis
Flawless balance sheet with solid track record.
Similar Companies
Share Price & News
How has Gamma Communications's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GAMA has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.6%
GAMA
5.4%
GB Telecom
5.5%
GB Market
1 Year Return
16.3%
GAMA
-37.1%
GB Telecom
-9.2%
GB Market
Return vs Industry: GAMA exceeded the UK Telecom industry which returned -37.3% over the past year.
Return vs Market: GAMA exceeded the UK Market which returned -10% over the past year.
Shareholder returns
| GAMA | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.6% | 5.4% | 5.5% |
| 30 Day | 0% | 8.8% | 10.8% |
| 90 Day | 3.7% | -2.7% | -0.4% |
| 1 Year | 17.3%16.3% | -32.3%-37.1% | -4.8%-9.2% |
| 3 Year | 135.7%128.7% | -45.6%-54.9% | -0.8%-12.9% |
| 5 Year | 372.5%344.8% | -62.3%-70.9% | 18.1%-8.2% |
Price Volatility Vs. Market
How volatile is Gamma Communications's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
Will Weakness in Gamma Communications plc's (LON:GAMA) Stock Prove Temporary Given Strong Fundamentals?2 weeks ago | Simply Wall St
Gamma Communications (LON:GAMA) Has Rewarded Shareholders With An Exceptional 381% Total Return On Their Investment1 month ago | Simply Wall St
Calculating The Fair Value Of Gamma Communications plc (LON:GAMA)Valuation
Is Gamma Communications undervalued compared to its fair value and its price relative to the market?
34.19x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: GAMA (£12.5) is trading above our estimate of fair value (£11.47)
Significantly Below Fair Value: GAMA is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: GAMA is poor value based on its PE Ratio (34.2x) compared to the Telecom industry average (32.6x).
PE vs Market: GAMA is poor value based on its PE Ratio (34.2x) compared to the UK market (15x).
Price to Earnings Growth Ratio
PEG Ratio: GAMA is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: GAMA is overvalued based on its PB Ratio (7.8x) compared to the GB Telecom industry average (2.7x).
Next Steps
Future Growth
How is Gamma Communications forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
13.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GAMA's forecast earnings growth (13.5% per year) is above the savings rate (1.2%).
Earnings vs Market: GAMA's earnings (13.5% per year) are forecast to grow slower than the UK market (21.2% per year).
High Growth Earnings: GAMA's earnings are forecast to grow, but not significantly.
Revenue vs Market: GAMA's revenue (7.1% per year) is forecast to grow faster than the UK market (3.6% per year).
High Growth Revenue: GAMA's revenue (7.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: GAMA's Return on Equity is forecast to be high in 3 years time (22.4%)
Next Steps
Past Performance
How has Gamma Communications performed over the past 5 years?
22.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GAMA has high quality earnings.
Growing Profit Margin: GAMA's current net profit margins (10.5%) are higher than last year (10%).
Past Earnings Growth Analysis
Earnings Trend: GAMA's earnings have grown significantly by 22.1% per year over the past 5 years.
Accelerating Growth: GAMA's earnings growth over the past year (21.5%) is below its 5-year average (22.1% per year).
Earnings vs Industry: GAMA earnings growth over the past year (21.5%) exceeded the Telecom industry 9.8%.
Return on Equity
High ROE: GAMA's Return on Equity (22.6%) is considered high.
Next Steps
Financial Health
How is Gamma Communications's financial position?
Financial Position Analysis
Short Term Liabilities: GAMA's short term assets (£139.5M) exceed its short term liabilities (£59.5M).
Long Term Liabilities: GAMA's short term assets (£139.5M) exceed its long term liabilities (£26.4M).
Debt to Equity History and Analysis
Debt Level: GAMA is debt free.
Reducing Debt: GAMA has not had any debt for past 5 years.
Debt Coverage: GAMA has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: GAMA has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Gamma Communications's current dividend yield, its reliability and sustainability?
0.84%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: GAMA's dividend (0.84%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.98%).
High Dividend: GAMA's dividend (0.84%) is low compared to the top 25% of dividend payers in the UK market (5.5%).
Stability and Growth of Payments
Stable Dividend: GAMA is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.
Growing Dividend: GAMA 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: GAMA is not paying a notable dividend for the UK market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of GAMA'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?
2.1yrs
Average management tenure
CEO
Andrew Taylor (50yo)
2.08yrs
Tenure
UK£884,000
Compensation
Mr. Andrew George Taylor has been Chief Executive officer and an Executive Director of Gamma Communications plc since May 23, 2018 and April 4, 2018. Mr. Taylor is the Chief Executive Officer and Director ...
CEO Compensation Analysis
Compensation vs Market: Andrew's total compensation ($USD1.12M) is below average for companies of similar size in the UK market ($USD1.68M).
Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 2.08yrs | UK£884.00k | no data | |
| CFO & Executive Director | 5.67yrs | UK£981.00k | 0.19% £2.2m | |
| Chief Strategy & Operating Officer | no data | no data | no data | |
| Chief Technology Officer | 1.75yrs | no data | no data | |
| Chief Marketing & Products Officer | no data | no data | no data | |
| Chief People Officer | no data | no data | no data | |
| Head of Product Management | no data | no data | no data | |
| Managing Director – UK Direct | no data | no data | no data | |
| Managing Director of UK Indirect | no data | no data | no data | |
| Head of Channel Support | no data | no data | no data |
2.1yrs
Average Tenure
50yo
Average Age
Experienced Management: GAMA's management team is considered experienced (2.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 2.08yrs | UK£884.00k | no data | |
| CFO & Executive Director | 5.67yrs | UK£981.00k | 0.19% £2.2m | |
| Independent Non-Executive Director | 1.17yrs | UK£34.00k | 0.0010% £12.5k | |
| Non-Independent Non-Executive Director | 6yrs | UK£45.00k | no data | |
| Independent Non-Executive Chairman | no data | UK£100.00k | 0.056% £668.4k | |
| Independent Non-Executive Director | 6yrs | UK£60.00k | 0.014% £167.1k | |
| Independent Non-Executive Director | 6yrs | UK£53.00k | 0.014% £167.1k | |
| Non-Independent Non-Executive Director | 6yrs | UK£45.00k | 0.23% £2.7m |
6.0yrs
Average Tenure
60yo
Average Age
Experienced Board: GAMA's board of directors are considered experienced (6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GAMA insiders have only sold shares 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
Gamma Communications plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Gamma Communications plc
- Ticker: GAMA
- Exchange: AIM
- Founded: 2001
- Industry: Alternative Carriers
- Sector: Telecom
- Market Cap: UK£1.187b
- Shares outstanding: 94.93m
- Website: https://www.gamma.co.uk
Number of Employees
Location
- Gamma Communications plc
- Kings House
- Kings Road West
- Newbury
- Berkshire
- RG14 5BY
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GAMA | AIM (London Stock Exchange AIM Market) | Yes | New Ordinary Shares | GB | GBP | Oct 2014 |
| 6GC | DB (Deutsche Boerse AG) | Yes | New Ordinary Shares | DE | EUR | Oct 2014 |
| GAMC.F | OTCPK (Pink Sheets LLC) | Yes | New Ordinary Shares | US | USD | Oct 2014 |
Biography
Gamma Communications plc provides communications and software services for business in the United Kingdom and internationally. It offers strategic services, such as collaboration, cloud PBX, SIP trunking, inbound call control, and network services; enabling services, including ethernet, broadband, and mobile; and traditional call and line services. The company offers its services through a network of channel partners, as well as directly to end users. It serves small, medium, and large sized business customers. Gamma Communications plc was founded in 2001 and is headquartered in Newbury, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/06 00:09 |
| End of Day Share Price | 2020/06/05 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.