Gamma Communications
Market Cap
UK£1.7b
Last Updated
2021/04/11 17:51 UTC
Data Sources
Company Financials +
Executive Summary
Gamma Communications plc provides communications and software services for small, medium, and large sized business. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent 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 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
4.7%
GAMA
-0.8%
GB Telecom
2.4%
GB Market
1 Year Return
42.4%
GAMA
24.5%
GB Telecom
23.6%
GB Market
Return vs Industry: GAMA exceeded the UK Telecom industry which returned 24.5% over the past year.
Return vs Market: GAMA exceeded the UK Market which returned 24% over the past year.
Shareholder returns
| GAMA | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.7% | -0.8% | 2.4% |
| 30 Day | 14.1% | 11.5% | 3.0% |
| 90 Day | 10.2% | 6.9% | 4.0% |
| 1 Year | 43.6%42.4% | 24.7%24.5% | 29.4%23.6% |
| 3 Year | 166.0%158.7% | -19.6%-30.0% | 14.8%1.3% |
| 5 Year | 332.0%308.5% | -52.2%-62.1% | 40.4%14.0% |
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
6 hours ago | Simply Wall St
Non-Independent Non-Executive Director Andrew Stone Just Sold A Bunch Of Shares In Gamma Communications plc (LON:GAMA)1 week ago | Simply Wall St
Robust Earnings May Not Tell The Whole Story For Gamma Communications (LON:GAMA)3 weeks ago | Simply Wall St
Estimating 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?
26.36x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: GAMA (£17.8) 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 (26.4x) compared to the GB Telecom industry average (23.1x).
PE vs Market: GAMA is poor value based on its PE Ratio (26.4x) compared to the UK market (25.7x).
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 (8x) compared to the GB Telecom industry average (3.5x).
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 (20.8% 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 (6.5% 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
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 (1.39%).
High Dividend: GAMA's dividend (0.66%) is low compared to the top 25% of dividend payers in the UK market (4.19%).
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 ($USD1.25M) is about average for companies of similar size in the UK market ($USD1.50M).
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£1.698b
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/11 17:51 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.