| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 2/6 |
| Past Performance | 3/6 |
| Financial Health | 5/6 |
| Dividends | 2/6 |
GAMA Stock Overview
Gamma Communications plc provides communications and software services for small, medium, and large sized business.
Rewards
Risk Analysis
GAMA passed our risk checks.
Gamma Communications Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£11.34 |
| 52 Week High | UK£23.50 |
| 52 Week Low | UK£10.70 |
| Beta | 0.91 |
| 1 Month Change | -13.44% |
| 3 Month Change | -26.46% |
| 1 Year Change | -40.13% |
| 3 Year Change | 0.35% |
| 5 Year Change | 97.73% |
| Change since IPO | 453.17% |
Recent News & Updates
Gamma Communications (LON:GAMA) Has Announced That It Will Be Increasing Its Dividend To UK£0.088
Gamma Communications plc ( LON:GAMA ) will increase its dividend on the 23rd of June to UK£0.088. Even though the...
Should You Think About Buying Gamma Communications plc (LON:GAMA) Now?
Gamma Communications plc ( LON:GAMA ), might not be a large cap stock, but it saw significant share price movement...
Gamma Communications (LON:GAMA) Has Announced That It Will Be Increasing Its Dividend To UK£0.088
Gamma Communications plc ( LON:GAMA ) will increase its dividend on the 23rd of June to UK£0.088. This takes the annual...
Shareholder Returns
| GAMA | GB Telecom | GB Market | |
|---|---|---|---|
| 7D | 2.0% | 4.2% | 3.1% |
| 1Y | -40.1% | 1.1% | -3.2% |
Return vs Industry: GAMA underperformed the UK Telecom industry which returned 1.1% over the past year.
Return vs Market: GAMA underperformed the UK Market which returned -3.2% over the past year.
Price Volatility
| GAMA volatility | |
|---|---|
| GAMA Average Weekly Movement | 6.1% |
| Telecom Industry Average Movement | 6.1% |
| Market Average Movement | 6.2% |
| 10% most volatile stocks in GB Market | 11.8% |
| 10% least volatile stocks in GB Market | 3.2% |
Stable Share Price: GAMA is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: GAMA's weekly volatility (6%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2001 | 1,745 | Andrew Taylor | https://www.gammacommunicationsplc.com |
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, and inbound call control services; enabling services, including ethernet, broadband, network, 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.
Gamma Communications Fundamentals Summary
| GAMA fundamental statistics | |
|---|---|
| Market Cap | UK£1.08b |
| Earnings (TTM) | UK£53.60m |
| Revenue (TTM) | UK£447.70m |
20.4x
P/E Ratio2.4x
P/S RatioIs GAMA overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| GAMA income statement (TTM) | |
|---|---|
| Revenue | UK£447.70m |
| Cost of Revenue | UK£219.20m |
| Gross Profit | UK£228.50m |
| Other Expenses | UK£174.90m |
| Earnings | UK£53.60m |
Last Reported Earnings
Dec 31, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.56 |
| Gross Margin | 51.04% |
| Net Profit Margin | 11.97% |
| Debt/Equity Ratio | 1.3% |
How did GAMA perform over the long term?
See historical performance and comparisonDividends
1.2%
Current Dividend Yield24%
Payout RatioDoes GAMA pay a reliable dividends?
See GAMA dividend history and benchmarks| Gamma Communications dividend dates | |
|---|---|
| Ex Dividend Date | Jun 01 2022 |
| Dividend Pay Date | Jun 23 2022 |
| Days until Ex dividend | 14 days |
| Days until Dividend pay date | 36 days |
Does GAMA pay a reliable dividends?
See GAMA dividend history and benchmarksValuation
Is Gamma Communications undervalued compared to its fair value and its price relative to the market?
Valuation Score
2/6Valuation Score 2/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
44.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GAMA (£11.34) is trading below our estimate of fair value (£20.51)
Significantly Below Fair Value: GAMA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GAMA is poor value based on its PE Ratio (20.4x) compared to the European Telecom industry average (15x).
PE vs Market: GAMA is poor value based on its PE Ratio (20.4x) compared to the UK market (15.3x).
Price to Earnings Growth Ratio
PEG Ratio: GAMA is poor value based on its PEG Ratio (3x)
Price to Book Ratio
PB vs Industry: GAMA is overvalued based on its PB Ratio (4.2x) compared to the GB Telecom industry average (2.7x).
Future Growth
How is Gamma Communications forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Future Growth Score
2/6Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
6.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GAMA's forecast earnings growth (6.7% per year) is above the savings rate (0.9%).
Earnings vs Market: GAMA's earnings (6.7% per year) are forecast to grow slower than the UK market (11.1% per year).
High Growth Earnings: GAMA's earnings are forecast to grow, but not significantly.
Revenue vs Market: GAMA's revenue (5.9% per year) is forecast to grow faster than the UK market (4% per year).
High Growth Revenue: GAMA's revenue (5.9% 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 low in 3 years time (19.8%).
Past Performance
How has Gamma Communications performed over the past 5 years?
Past Performance Score
3/6Past Performance Score 3/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
27.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GAMA has high quality earnings.
Growing Profit Margin: GAMA's current net profit margins (12%) are lower than last year (16.3%).
Past Earnings Growth Analysis
Earnings Trend: GAMA's earnings have grown significantly by 27.2% per year over the past 5 years.
Accelerating Growth: GAMA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GAMA had negative earnings growth (-16.5%) over the past year, making it difficult to compare to the Telecom industry average (17%).
Return on Equity
High ROE: GAMA's Return on Equity (21.2%) is considered high.
Financial Health
How is Gamma Communications's financial position?
Financial Health Score
5/6Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: GAMA's short term assets (£164.2M) exceed its short term liabilities (£66.2M).
Long Term Liabilities: GAMA's short term assets (£164.2M) exceed its long term liabilities (£41.4M).
Debt to Equity History and Analysis
Debt Level: GAMA has more cash than its total debt.
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 (2318.2%).
Interest Coverage: GAMA's interest payments on its debt are well covered by EBIT (113.8x coverage).
Balance Sheet
Dividend
What is Gamma Communications's current dividend yield, its reliability and sustainability?
Dividend Score
2/6Dividend Score 2/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
1.16%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: GAMA's dividend (1.16%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.8%).
High Dividend: GAMA's dividend (1.16%) is low compared to the top 25% of dividend payers in the UK market (4.84%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, GAMA has been paying a dividend for less than 10 years.
Growing Dividend: GAMA's dividend payments have increased, but the company has only paid a dividend for 7 years.
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (23.6%), GAMA's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its low cash payout ratio (21.3%), GAMA's dividend payments are well covered by cash flows.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.5yrs
Average management tenure
CEO
Andrew Taylor (52 yo)
4yrs
Tenure
UK£2,882,000
Compensation
Mr. Andrew George Taylor has been an Independent Non-Executive Director at iomart Group plc since August 1, 2021. He has been a Chief Executive Officer of Gamma Communications plc since May 23, 2018 and ha...
CEO Compensation Analysis
Compensation vs Market: Andrew's total compensation ($USD3.59M) is above average for companies of similar size in the UK market ($USD1.85M).
Compensation vs Earnings: Andrew's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: GAMA's management team is considered experienced (2.5 years average tenure).
Board Members
Experienced Board: GAMA's board of directors are considered experienced (5.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: GAMA insiders have 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
Gamma Communications plc's employee growth, exchange listings and data sources
Key Information
- Name: Gamma Communications plc
- Ticker: GAMA
- Exchange: AIM
- Founded: 2001
- Industry: Alternative Carriers
- Sector: Telecom
- Implied Market Cap: UK£1.083b
- Shares outstanding: 96.35m
- Website: https://www.gammacommunicationsplc.com
Number of Employees
Location
- Gamma Communications plc
- Kings House
- Kings Road West
- Newbury
- Berkshire
- RG14 5BY
- United Kingdom
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/17 00:00 |
| End of Day Share Price | 2022/05/17 00:00 |
| Earnings | 2021/12/31 |
| Annual Earnings | 2021/12/31 |
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.