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Market Cap

UK£1.7b

Last Updated

2021/04/20 19:05 UTC

Data Sources

Company Financials +

Executive Summary

Gamma Communications plc provides communications and software services for small, medium, and large sized business. More Details


Snowflake Analysis

Solid track record with excellent balance sheet.


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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GAMA's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0%

GAMA

1.6%

GB Telecom

-0.8%

GB Market


1 Year Return

41.6%

GAMA

31.7%

GB Telecom

26.5%

GB Market

Return vs Industry: GAMA exceeded the UK Telecom industry which returned 35.1% over the past year.

Return vs Market: GAMA exceeded the UK Market which returned 30.8% over the past year.


Shareholder returns

GAMAIndustryMarket
7 Day0%1.6%-0.8%
30 Day13.1%6.2%3.2%
90 Day7.6%11.8%3.8%
1 Year42.8%41.6%31.8%31.7%32.2%26.5%
3 Year137.6%131.1%-19.6%-30.3%13.6%0.2%
5 Year317.7%295.0%-50.5%-60.8%42.9%15.7%

Long-Term 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

Valuation

Is Gamma Communications undervalued compared to its fair value and its price relative to the market?

26.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GAMA (£17.7) is trading above our estimate of fair value (£17.02)

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 (26.2x) compared to the XE Telecom industry average (22.8x).

PE vs Market: GAMA is good value based on its PE Ratio (26.2x) compared to the UK market (26.5x).


Price to Earnings Growth Ratio

PEG Ratio: GAMA is poor value based on its PEG Ratio (8.3x)


Price to Book Ratio

PB vs Industry: GAMA is overvalued based on its PB Ratio (7.9x) compared to the GB Telecom industry average (4.2x).


Future Growth

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

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GAMA's forecast earnings growth (3.2% per year) is above the savings rate (1%).

Earnings vs Market: GAMA's earnings (3.2% per year) are forecast to grow slower than the UK market (21% per year).

High Growth Earnings: GAMA's earnings are forecast to grow, but not significantly.

Revenue vs Market: GAMA's revenue (8.9% per year) is forecast to grow faster than the UK market (6.2% per year).

High Growth Revenue: GAMA's revenue (8.9% 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 (22.1%)


Past Performance

How has Gamma Communications performed over the past 5 years?

22.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GAMA has a large one-off gain of £19.6M impacting its December 31 2020 financial results.

Growing Profit Margin: GAMA's current net profit margins (16.3%) are higher than last year (10.5%).


Past Earnings Growth Analysis

Earnings Trend: GAMA's earnings have grown significantly by 22.9% per year over the past 5 years.

Accelerating Growth: GAMA's earnings growth over the past year (86%) exceeds its 5-year average (22.9% per year).

Earnings vs Industry: GAMA earnings growth over the past year (86%) exceeded the Telecom industry 7.3%.


Return on Equity

High ROE: GAMA's Return on Equity (31.5%) is considered high.


Financial Health

How is Gamma Communications's financial position?


Financial Position Analysis

Short Term Liabilities: GAMA's short term assets (£158.3M) exceed its short term liabilities (£74.6M).

Long Term Liabilities: GAMA's short term assets (£158.3M) exceed its long term liabilities (£42.9M).


Debt to Equity History and Analysis

Debt Level: GAMA's debt to equity ratio (2.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if GAMA's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: GAMA's debt is well covered by operating cash flow (952.5%).

Interest Coverage: GAMA's interest payments on its debt are well covered by EBIT (140.3x coverage).


Balance Sheet


Dividend

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

0.66%

Current Dividend Yield


Upcoming Dividend Payment

TodayApr 22 2021Ex Dividend DateJun 03 2021Dividend Pay DateJun 24 202121 days from Ex DividendBuy in the next 41 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: GAMA's dividend (0.66%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.34%).

High Dividend: GAMA's dividend (0.66%) is low compared to the top 25% of dividend payers in the UK market (4.1%).


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?

2.8yrs

Average management tenure


CEO

Andrew Taylor (51 yo)

2.92yrs

Tenure

UK£912,000

Compensation

Mr. Andrew George Taylor has been a Chief Executive Officer of Gamma Communications plc since May 23, 2018 and has been its Executive Director since April 04, 2018. Mr. Taylor joined Gamma Communications p...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD1.27M) is about average for companies of similar size in the UK market ($USD1.51M).

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


Leadership Team

Experienced Management: GAMA's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: GAMA's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GAMA insiders have sold more shares than they have bought 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£1.689b
  • Shares outstanding: 95.42m
  • Website: https://www.gammacommunicationsplc.com

Number of Employees


Location

  • Gamma Communications plc
  • Kings House
  • Kings Road West
  • Newbury
  • Berkshire
  • RG14 5BY
  • United Kingdom

Listings


Biography

Gamma Communications plc provides communications and software services for small, medium, and large sized business. It offers strategic services, such as collaboration, cloud PBX, SIP trunking, inbound cal...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/20 19:05
End of Day Share Price2021/04/20 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.