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Gamma Communications

AIM:GAMA
Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GAMA
AIM
£985M
Market Cap
  1. Home
  2. GB
  3. Telecom
Company description

Gamma Communications plc provides voice, data, and mobile services for the business market in the United Kingdom. The last earnings update was 124 days ago. More info.


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GAMA Share Price and Events
7 Day Returns
-4.6%
AIM:GAMA
-2.5%
GB Telecom
-0.6%
GB Market
1 Year Returns
31.9%
AIM:GAMA
-9.6%
GB Telecom
-2.2%
GB Market
GAMA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Gamma Communications (GAMA) -4.6% -9.9% -4.6% 31.9% 173.6% -
GB Telecom -2.5% -5.4% -11.8% -9.6% -47.7% -48.1%
GB Market -0.6% 1.4% 0.4% -2.2% 11.5% 6.7%
1 Year Return vs Industry and Market
  • GAMA outperformed the Telecom industry which returned -9.6% over the past year.
  • GAMA outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2.2% over the past year.
Price Volatility
GAMA
Industry
5yr Volatility vs Market

Value

 Is Gamma Communications undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Gamma Communications to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Gamma Communications.

AIM:GAMA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for AIM:GAMA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.35
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.352 (1 + (1- 19%) (0.45%))
0.566
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.8 * 6.65%)
6.55%

Discounted Cash Flow Calculation for AIM:GAMA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Gamma Communications is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

AIM:GAMA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 6.55%)
2020 31.92 Analyst x5 29.96
2021 33.86 Analyst x5 29.83
2022 48.40 Analyst x1 40.01
2023 54.70 Analyst x1 42.44
2024 59.58 Est @ 8.93% 43.39
2025 63.53 Est @ 6.62% 43.42
2026 66.70 Est @ 5% 42.79
2027 69.28 Est @ 3.87% 41.72
2028 71.42 Est @ 3.08% 40.36
2029 73.22 Est @ 2.52% 38.83
Present value of next 10 years cash flows £392.76
AIM:GAMA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £73.22 × (1 + 1.23%) ÷ (6.55% – 1.23%)
£1,393.14
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £1,393.14 ÷ (1 + 6.55%)10
£738.89
AIM:GAMA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £392.76 + £738.89
£1,131.65
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £1,131.65 / 94.24
£12.01
AIM:GAMA Discount to Share Price
Calculation Result
Value per share (GBP) From above. £12.01
Current discount Discount to share price of £10.45
= -1 x (£10.45 - £12.01) / £12.01
13%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Gamma Communications is available for.
Intrinsic value
13%
Share price is £10.45 vs Future cash flow value of £12.01
Current Discount Checks
For Gamma Communications to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Gamma Communications's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Gamma Communications's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Gamma Communications's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Gamma Communications's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:GAMA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.30
AIM:GAMA Share Price ** AIM (2019-07-15) in GBP £10.45
United Kingdom of Great Britain and Northern Ireland Telecom Industry PE Ratio Median Figure of 6 Publicly-Listed Telecom Companies 27.62x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 790 Publicly-Listed Companies 16.48x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Gamma Communications.

AIM:GAMA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:GAMA Share Price ÷ EPS (both in GBP)

= 10.45 ÷ 0.30

34.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gamma Communications is overvalued based on earnings compared to the GB Telecom industry average.
  • Gamma Communications is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Gamma Communications's expected growth come at a high price?
Raw Data
AIM:GAMA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 34.46x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
12.5%per year
United Kingdom of Great Britain and Northern Ireland Telecom Industry PEG Ratio Median Figure of 5 Publicly-Listed Telecom Companies 1.93x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 572 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

AIM:GAMA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 34.46x ÷ 12.5%

2.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gamma Communications is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Gamma Communications's assets?
Raw Data
AIM:GAMA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £1.30
AIM:GAMA Share Price * AIM (2019-07-15) in GBP £10.45
United Kingdom of Great Britain and Northern Ireland Telecom Industry PB Ratio Median Figure of 13 Publicly-Listed Telecom Companies 4.29x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,377 Publicly-Listed Companies 1.5x
AIM:GAMA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:GAMA Share Price ÷ Book Value per Share (both in GBP)

= 10.45 ÷ 1.30

8.06x

* Primary Listing of Gamma Communications.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gamma Communications is overvalued based on assets compared to the GB Telecom industry average.
X
Value checks
We assess Gamma Communications's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. Gamma Communications has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Gamma Communications expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Gamma Communications expected to grow at an attractive rate?
  • Gamma Communications's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Gamma Communications's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Gamma Communications's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:GAMA Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:GAMA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 12.5%
AIM:GAMA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 8.6%
United Kingdom of Great Britain and Northern Ireland Telecom Industry Earnings Growth Rate Market Cap Weighted Average 15.3%
United Kingdom of Great Britain and Northern Ireland Telecom Industry Revenue Growth Rate Market Cap Weighted Average 0.9%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AIM:GAMA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:GAMA Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 445 74 57 1
2022-12-31 418 67 51 1
2021-12-31 383 55 42 5
2020-12-31 355 49 37 6
2019-12-31 326 44 33 6
AIM:GAMA Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 285 36 28
2018-09-30 274 35 27
2018-06-30 260 42 25
2018-03-31 249 39 24
2017-12-31 242 26 23
2017-09-30 234 25 21
2017-06-30 225 25 20
2017-03-31 219 26 19
2016-12-31 214 27 18
2016-09-30 209 28 19
2016-06-30 204 30 21
2016-03-31 198 29 20

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Gamma Communications's earnings are expected to grow by 12.5% yearly, however this is not considered high growth (20% yearly).
  • Gamma Communications's revenue is expected to grow by 8.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AIM:GAMA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Gamma Communications Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:GAMA Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.60 0.60 0.60 1.00
2022-12-31 0.53 0.53 0.53 1.00
2021-12-31 0.43 0.51 0.35 5.00
2020-12-31 0.39 0.44 0.34 6.00
2019-12-31 0.35 0.37 0.32 5.00
AIM:GAMA Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.30
2018-09-30 0.28
2018-06-30 0.26
2018-03-31 0.25
2017-12-31 0.24
2017-09-30 0.23
2017-06-30 0.22
2017-03-31 0.20
2016-12-31 0.19
2016-09-30 0.21
2016-06-30 0.23
2016-03-31 0.22

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Gamma Communications is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Gamma Communications's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Gamma Communications has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Gamma Communications performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Gamma Communications's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Gamma Communications has delivered over 20% year on year earnings growth in the past 5 years.
  • Gamma Communications's 1-year earnings growth exceeds its 5-year average (25.1% vs 22.1%)
  • Gamma Communications's earnings growth has exceeded the Europe Telecom industry average in the past year (25.1% vs 10.1%).
Earnings and Revenue History
Gamma Communications's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Gamma Communications Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:GAMA Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 284.90 28.40 83.90
2018-09-30 274.10 26.55 81.90
2018-06-30 259.70 24.60 80.40
2018-03-31 249.05 23.60 76.80
2017-12-31 242.00 22.70 72.70
2017-09-30 233.55 21.25 71.10
2017-06-30 225.10 19.80 69.50
2017-03-31 219.30 18.75 68.30
2016-12-31 213.50 17.70 67.10
2016-09-30 208.80 19.20 65.35
2016-06-30 204.10 20.70 63.60
2016-03-31 197.95 19.50 60.80
2015-12-31 191.80 18.30 58.00
2015-09-30 186.90 14.05 52.55 2.55
2015-06-30 182.00 9.80 47.10 5.10
2015-03-31 177.60 9.60 43.50 5.10
2014-12-31 173.20 9.40 39.90 5.10
2014-09-30 166.86 10.04 40.98 2.55
2014-06-30 160.52 10.68 42.05
2014-03-31 154.61 9.99 39.83
2013-12-31 148.70 9.30 37.60
2012-12-31 137.22 7.31 30.73

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Gamma Communications has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Gamma Communications used its assets more efficiently than the GB Telecom industry average last year based on Return on Assets.
  • Gamma Communications's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Gamma Communications's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Gamma Communications has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Gamma Communications's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Gamma Communications's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Gamma Communications is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Gamma Communications's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Gamma Communications's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Gamma Communications has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Gamma Communications Company Filings, last reported 6 months ago.

AIM:GAMA Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 121.70 0.00 35.50
2018-09-30 121.70 0.00 35.50
2018-06-30 104.20 0.00 36.90
2018-03-31 104.20 0.00 36.90
2017-12-31 95.30 0.00 31.60
2017-09-30 95.30 0.00 31.60
2017-06-30 87.50 0.00 28.70
2017-03-31 87.50 0.00 28.70
2016-12-31 80.20 0.00 28.20
2016-09-30 80.20 0.00 28.20
2016-06-30 72.40 0.00 27.80
2016-03-31 72.40 0.00 27.80
2015-12-31 66.70 0.00 24.80
2015-09-30 66.70 0.00 24.80
2015-06-30 54.50 0.00 16.10
2015-03-31 54.50 0.00 16.10
2014-12-31 51.20 0.00 13.40
2014-09-30 51.20 0.00 13.40
2014-06-30 43.18 0.00 17.49
2014-03-31 43.18 0.00 17.49
2013-12-31 36.90 0.00 14.60
2012-12-31 26.94 0.00 7.18
  • Gamma Communications has no debt.
  • Gamma Communications has not taken on any debt in the past 5 years.
  • Gamma Communications has no debt, it does not need to be covered by operating cash flow.
  • Gamma Communications has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Gamma Communications's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Gamma Communications has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Gamma Communications's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.89%
Current annual income from Gamma Communications dividends. Estimated to be 1.12% next year.
If you bought £2,000 of Gamma Communications shares you are expected to receive £18 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Gamma Communications's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).
  • Gamma Communications's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.39%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AIM:GAMA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Telecom Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 6.8%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

AIM:GAMA Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.14 1.00
2022-12-31 0.13 1.00
2021-12-31 0.13 6.00
2020-12-31 0.12 7.00
2019-12-31 0.10 7.00
AIM:GAMA Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-13 0.093 0.864
2019-03-12 0.093 1.014
2018-03-22 0.084 1.066
2017-03-21 0.075 1.236
2016-03-22 0.088 1.936
2015-09-08 0.044 1.106
2015-07-15 0.044 1.569
2015-03-20 0.040 1.440

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gamma Communications is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are stable.
  • Gamma Communications is not paying a notable dividend for United Kingdom of Great Britain and Northern Ireland, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Gamma Communications's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Gamma Communications's dividends as it is not paying a notable one for United Kingdom of Great Britain and Northern Ireland.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).
X
Income/ dividend checks
We assess Gamma Communications's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Gamma Communications afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Gamma Communications has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Gamma Communications's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Andrew Taylor
COMPENSATION £846,373
AGE 50
TENURE AS CEO 1.2 years
CEO Bio

Mr. Andrew George Taylor has been Chief Executive officer and Director of Gamma Communications plc since May 23, 2018 and April 4, 2018. Mr. Taylor is the Chief Executive Officer and Director of Gamma Telecom Ltd. Mr. Taylor 's current Directorships or Partnerships: MDS CEM Holdings Ltd, Nomad Digital GmbH, Nomad Digital Pty Ltd, Nomad Digital India Private Ltd, New Lavastorm (2017) Ltd and W12 Consulting Ltd. Mr. Taylor 's previous Directorships or Partnerships: Nomad Digital Ltd, Nomad Solutions UK Ltd, Nomad Spectrum Ltd, Nomad Digital Networks UK Ltd, Nomad West Coast Ltd and Nomad Digital (India) Ltd. In this role (2013-2017), he was responsible for establishing Nomad as a leader in the sector, and when acquired by Alstom in 2017, was serving over 50 global customers from 20 offices. Before joining Nomad, he was Digicel’s Regional Chief Executive Officer (2012-2013), with responsibility for all fixed and mobile operations across the Northern Caribbean. In this role, he had responsibility for all fixed network services and business / ICT solutions across 26 international markets, and was responsible for driving significant growth in both revenues and profitability. He has over 22 years’ experience in the telecommunications industry, and has a demonstrable track record of achievement in previous roles, both in the UK and internationally. From 2008 to 2010, he was Chief Executive of Intec Telecom PLC, a provider of software solutions, with over 400 customers located in 120 countries, and served by over 1,700 employees. After a period of significant growth and business improvement, Intec was acquired by CSG in 2010.

CEO Compensation
  • Insufficient data for Andrew to compare compensation growth.
  • Andrew's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Gamma Communications management team in years:

1.2
Average Tenure
49
Average Age
  • The average tenure for the Gamma Communications management team is less than 2 years, this suggests a new team.
Management Team

Andrew Taylor

TITLE
CEO & Director
COMPENSATION
£846K
AGE
50
TENURE
1.2 yrs

Andrew Scott Belshaw

TITLE
CFO & Executive Director
COMPENSATION
£733K
AGE
45
TENURE
4.1 yrs

Andy Morris

TITLE
Chief Strategy & Operating Officer
AGE
48

Phil Stubbs

TITLE
Chief Technology Officer
TENURE
0.8 yrs

Justin Coombes

TITLE
Head of Marketing

Pam Williams

TITLE
Human Resource Director

James Bushell

TITLE
Head of Product Management

Dave Macfarlane

TITLE
Managing Director – UK Direct
AGE
51

Daryl Pile

TITLE
Managing Director – UK Indirect

Danny Jacobs

TITLE
Head of Channel Support
Board of Directors Tenure

Average tenure and age of the Gamma Communications board of directors in years:

5.1
Average Tenure
60
Average Age
  • The tenure for the Gamma Communications board of directors is about average.
Board of Directors

Richard Last

TITLE
Independent Non-Executive Chairman
COMPENSATION
£78K
AGE
62

Andrew Taylor

TITLE
CEO & Director
COMPENSATION
£846K
AGE
50
TENURE
1.3 yrs

Andrew Scott Belshaw

TITLE
CFO & Executive Director
COMPENSATION
£733K
AGE
45
TENURE
4.8 yrs

Alan Gibbins

TITLE
Independent Non-Executive Director
COMPENSATION
£42K
AGE
69
TENURE
5.1 yrs

Martin Robert Lea

TITLE
Independent Non-Executive Director
COMPENSATION
£48K
AGE
61
TENURE
5.1 yrs

Andrew Stone

TITLE
Non-Independent Non-Executive Director
COMPENSATION
£36K
AGE
48
TENURE
8.5 yrs

Long Wu

TITLE
Non-Independent Non-Executive Director
COMPENSATION
£36K
AGE
66
TENURE
8.5 yrs

Het Marsh

TITLE
Non-Executive Director
AGE
59
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • Gamma Communications individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
30. Apr 19 Buy Henrietta Marsh Individual 29. Apr 19 29. Apr 19 1,000 £11.00 £11,000
17. Apr 19 Sell Andrew Stone Individual 16. Apr 19 16. Apr 19 -200,000 £10.95 £-2,190,000
X
Management checks
We assess Gamma Communications's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Gamma Communications has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Have Insiders Been Selling Gamma Communications plc (LON:GAMA) Shares?

So before you buy or sell Gamma Communications plc (LON:GAMA), you may well want to know whether insiders have been buying or selling. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for Gamma Communications Gamma Communications Insider Transactions Over The Last Year Over the last year, we can see that the biggest insider sale was by the Non-Independent Non-Executive Director, Andrew Stone, for UK£2.2m worth of shares, at about UK£10.95 per share. … AIM:GAMA Recent Insider Trading, July 5th 2019 Insiders at Gamma Communications Have Sold Stock Recently We've seen more insider selling than insider buying at Gamma Communications recently.

Simply Wall St -

What Should Investors Know About Gamma Communications plc's (LON:GAMA) Growth?

After Gamma Communications plc's (LON:GAMA) earnings announcement in December 2018, the consensus outlook from analysts appear somewhat bearish, with profits predicted to rise by 16% next year against the higher past 5-year average growth rate of 22%. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … AIM:GAMA Past and Future Earnings, June 26th 2019 By 2022, GAMA's earnings should reach UK£42m, from current levels of UK£28m, resulting in an annual growth rate of 13%.

Simply Wall St -

Should You Consider Gamma Communications plc (LON:GAMA)?

In the case of Gamma Communications plc (LON:GAMA), there's is a financially-healthy company with a great track record and an optimistic future outlook. … Excellent balance sheet with solid track record Over the past year, GAMA has grown its earnings by 25%, with its most recent figure exceeding its annual average over the past five years. … AIM:GAMA Historical Debt, May 11th 2019 Next Steps: For Gamma Communications, I've compiled three essential aspects you should further research: Valuation: What is GAMA worth today?

Simply Wall St -

A Close Look At Gamma Communications plc’s (LON:GAMA) 23% ROCE

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Here's Why I Think Gamma Communications (LON:GAMA) Is An Interesting Stock

In contrast to all that, I prefer to spend time on companies like Gamma Communications (LON:GAMA), which has not only revenues, but also profits. … One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. … Gamma Communications maintained stable EBIT margins over the last year, all while growing revenue 18% to UK£285m.

Simply Wall St -

Boasting A 23% Return On Equity, Is Gamma Communications plc (LON:GAMA) A Top Quality Stock?

Gamma Communications has a ROE of 23%, based on the last twelve months. … That means that for every £1 worth of shareholders' equity, it generated £0.23 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Do Analysts Think About The Future Of Gamma Communications plc's (LON:GAMA)?

As Gamma Communications plc (LON:GAMA) released its earnings announcement on 31 December 2018, … as a 13% rise in profits is expected in the upcoming year, … the higher past 5-year average growth rate of 22%.

Simply Wall St -

The Gamma Communications (LON:GAMA) Share Price Is Up 122% And Shareholders Are Boasting About It

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. … To wit, the Gamma Communications plc (LON:GAMA) share price has flown 122% in the last three years. … We note that the 30% yearly (average) share price gain isn't too far from the EPS growth rate.

Simply Wall St -

Why You Should Care About Gamma Communications plc’s (LON:GAMA) Cash Levels

Two important questions to ask before you buy Gamma Communications plc (LON:GAMA) is, how it makes money and how it spends its cash. … I’ve analysed below, the health and outlook of Gamma Communications’s cash flow, which will help you understand the stock from a cash standpoint. … Free cash flow (FCF) is the amount of cash Gamma Communications has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations.

Simply Wall St -

Here's What Gamma Communications plc's (LON:GAMA) P/E Is Telling Us

To keep it practical, we'll show how Gamma Communications plc's (LON:GAMA) P/E ratio could help you assess the value on offer. … Based on the last twelve months, Gamma Communications's P/E ratio is 31.71. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

Gamma Communications plc provides voice, data, and mobile services for the business market in the United Kingdom. Its voice services include hosted phone system, horizon call center, connect, PBX v hosted, SIP trunk, inbound, call and line, and SIP trunk call manager; and data services comprise broadband, fiber broadband, assured and converged broadband, fiber Ethernet, Ethernet in the first mile, fiber to the cabinet (FTTC) Ethernet, converged FTTC broadband, converged Ethernet, and converged private network services. The company’s mobile services include fixed/mobile convergence services, pay-as-you-use, single and shared users and unlimited, as well as a bolt-ons including text, business mobile data, international roaming, and multinet services; and cloud services, which consists of cloud compute and back up. It serves SMEs, mid-size businesses, and enterprises, as well as education, healthcare, and housing industries, as well as governments. The company offers its services through a network of channel partners, as well as directly to end users. Gamma Communications plc was founded in 2001 and is headquartered in Newbury, the United Kingdom.

Details
Name: Gamma Communications plc
GAMA
Exchange: AIM
Founded: 2001
£984,839,266
94,242,992
Website: http://www.gamma.co.uk
Address: Gamma Communications plc
Kings House,
Kings Road West,
Newbury,
Berkshire, RG14 5BY,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM GAMA New Ordinary Shares London Stock Exchange AIM Market GB GBP 10. Oct 2014
DB 6GC New Ordinary Shares Deutsche Boerse AG DE EUR 10. Oct 2014
Number of employees
Current staff
Staff numbers
1,044
Gamma Communications employees.
Industry
Alternative Carriers
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 21:55
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/07/11
Last earnings filing: 2019/03/13
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.