Gamma Communications plc

LSE:GAMA Stock Report

Market Cap: UK£859.3m

Gamma Communications Dividends and Buybacks

Dividend criteria checks 5/6

Gamma Communications is a dividend paying company with a current yield of 2.34% that is well covered by earnings. Next payment date is on 18th June, 2026 with an ex-dividend date of 28th May, 2026.

Key information

2.3%

Dividend yield

5.1%

Buyback Yield

Total Shareholder Yield7.5%
Future Dividend Yield2.4%
Dividend Growth11.5%
Next dividend pay date18 Jun 26
Ex dividend date28 May 26
Dividend per sharen/a
Payout ratio32%

Recent dividend and buyback updates

Analysis Article Sep 12

Gamma Communications (LON:GAMA) Is Due To Pay A Dividend Of £0.074

The board of Gamma Communications plc ( LON:GAMA ) has announced that it will pay a dividend of £0.074 per share on the...

Recent updates

Narrative Update Jun 02

GAMA: Potential Sale And Dividend Will Support Future Upside Potential

Analysts have trimmed their price target on Gamma Communications by £0.60, reflecting updated views on future P/E assumptions and profitability margins. What's in the News Gamma Communications confirmed it is in early stage discussions with several potential counterparties regarding a possible sale, with an offer period now open, following an initial report by Bloomberg News.
Narrative Update May 10

GAMA: Potential Sale And Dividends Will Support Future Upside Potential

Analysts have trimmed their price target on Gamma Communications to £13.99 from £13.78, reflecting updated views on discount rates, profit margins and future P/E assumptions, including a recent £0.60 cut cited in Street research. Analyst Commentary Recent Street research, including the cited £0.60 reduction in the price target to £13.99, highlights a mix of confidence in Gamma Communications' business model and caution around how future profits and valuation multiples are framed.
Narrative Update Apr 20

GAMA: Potential Sale And Capital Returns Will Support Future Upside Potential

Analysts have trimmed their fair value estimate for Gamma Communications from about £14.06 to about £13.78, citing updated price targets such as Deutsche Bank's £0.60 reduction and adjusted assumptions for future P/E multiples. Analyst Commentary Recent research indicates that the trim in fair value for Gamma Communications to about £13.78 is linked to refreshed target prices and updated assumptions around future P/E multiples.
Narrative Update Apr 06

GAMA: Rebased Earnings Assumptions Will Support Future Upside Potential

Narrative update Analysts have trimmed Gamma Communications' fair value estimate from £14.83 to £14.06, citing reduced revenue growth and profit margin assumptions, alongside recent price target cuts from £18.50 to £14.60 and additional reductions of £0.60 and £0.20 from major banks, even as near term P/E expectations edge higher. Analyst Commentary Recent research updates on Gamma Communications have focused on recalibrating price targets, with several cuts to formal valuation levels even as ratings remain supportive in some cases.
Analysis Article Mar 31

Gamma Communications' (LON:GAMA) Conservative Accounting Might Explain Soft Earnings

Gamma Communications plc's ( LON:GAMA ) earnings announcement last week didn't impress shareholders. However, our...
Narrative Update Mar 22

GAMA: Rebased Price Expectations Will Support Future Upside From Current Levels

Analysts have trimmed their price targets for Gamma Communications to £14.60, down from £18.50, reflecting updated views on the shares while leaving core assumptions such as fair value, discount rate and P/E broadly unchanged. Analyst Commentary Recent research updates show price targets for Gamma Communications converging around £14.60, with several firms reiterating their overall framework while adjusting to what they see as a more balanced risk and reward profile.
Narrative Update Mar 08

GAMA: Rebased Price Framework Will Support Future Upside Potential

Gamma Communications' analyst price targets have been cut to £14.60 from £18.50, as analysts adjust their views while broadly maintaining a supportive stance on the shares. Analyst Commentary Recent research updates show analysts adjusting their valuation frameworks for Gamma Communications while keeping a generally constructive stance on the shares.
Narrative Update Feb 20

GAMA: Rebased Price Assumptions Will Support Future Upside Potential

Narrative Update on Gamma Communications Gamma Communications has seen its consensus analyst price target cut to around £14.60, reflecting lower published Street targets from £18.50 and a slightly higher assumed future P/E multiple, as analysts reassess the stock's valuation rather than its underlying fair value inputs. Analyst Commentary Recent research updates on Gamma Communications focus on recalibrating price targets to around £14.60, rather than signalling a clear change in how analysts view the company’s fundamentals.
Narrative Update Feb 04

GAMA: Recalibrated Forecasts And CFO Transition Will Support Future Upside Potential

Gamma Communications' analyst price targets have been trimmed to around £14.60, with analysts citing slightly softer revenue growth and profit margin assumptions, alongside a modestly higher future P/E multiple. Analyst Commentary Recent research updates on Gamma Communications focus on recalibrating price targets around £14.60, with analysts fine tuning their assumptions on growth and profitability rather than changing their overall stance on the business.
New Narrative Feb 02

Cloud Migration Risks And Margin Pressure Will Eventually Reward Patient Confidence

Catalysts About Gamma Communications Gamma Communications provides cloud-based communications, calling and connectivity services to businesses across the U.K. and Europe. What are the underlying business or industry changes driving this perspective?
Narrative Update Jan 20

GAMA: Future CFO Transition Will Support Long Term Upside Potential

Narrative Update The analyst price target for Gamma Communications has been trimmed in line with reductions from Citi and Deutsche Bank. The fair value estimate has moved modestly lower from £15.38 to £14.83 as analysts factor in slightly softer margin and P/E assumptions.
Analysis Article Jan 07

Gamma Communications (LON:GAMA) Might Be Having Difficulty Using Its Capital Effectively

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Amongst other...
Narrative Update Jan 06

GAMA: Future CFO Transition Will Offer Attractive Long Term Entry Opportunity

Analysts have trimmed their fair value estimate for Gamma Communications from £16.27 to £15.38, citing updated assumptions for revenue growth, profit margins and future P/E levels that now point to a more moderate outlook. What's in the News Gamma Communications plc announced that Chief Financial Officer and Executive Director Bill Castell will remain in his role until 31 March 2026, after which he will leave to join a private equity backed business.
Analysis Article Nov 05

Gamma Communications (LON:GAMA) Could Easily Take On More Debt

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Analysis Article Sep 12

Gamma Communications (LON:GAMA) Is Due To Pay A Dividend Of £0.074

The board of Gamma Communications plc ( LON:GAMA ) has announced that it will pay a dividend of £0.074 per share on the...
New Narrative Sep 07

Cloud Transition And European Expansion Will Unlock Opportunities

Key Takeaways Gamma is poised for sustained growth by capitalizing on cloud adoption, hybrid work trends, and migration from legacy networks across underpenetrated European markets. Recent acquisitions, technology integration, and platform investments support margin improvement, recurring revenue growth, and expanded market reach.
Analysis Article Aug 30

Gamma Communications (LON:GAMA) Might Become A Compounding Machine

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'll...
Analysis Article Jun 17

Pinning Down Gamma Communications plc's (LON:GAMA) P/E Is Difficult Right Now

It's not a stretch to say that Gamma Communications plc's ( LON:GAMA ) price-to-earnings (or "P/E") ratio of 15.4x...
Analysis Article May 14

Gamma Communications' (LON:GAMA) Shareholders Will Receive A Bigger Dividend Than Last Year

Gamma Communications plc ( LON:GAMA ) has announced that it will be increasing its dividend from last year's comparable...
Analysis Article May 07

It's Unlikely That Gamma Communications plc's (LON:GAMA) CEO Will See A Huge Pay Rise This Year

Key Insights Gamma Communications will host its Annual General Meeting on 14th of May Salary of UK£474.0k is part of...
Analysis Article Apr 30

Gamma Communications' (LON:GAMA) Shareholders Will Receive A Bigger Dividend Than Last Year

The board of Gamma Communications plc ( LON:GAMA ) has announced that it will be paying its dividend of £0.13 on the...
Analysis Article Apr 16

Gamma Communications (LON:GAMA) Is Increasing Its Dividend To £0.13

Gamma Communications plc ( LON:GAMA ) has announced that it will be increasing its dividend from last year's comparable...
Analysis Article Feb 25

Is There An Opportunity With Gamma Communications plc's (LON:GAMA) 36% Undervaluation?

Key Insights Using the 2 Stage Free Cash Flow to Equity, Gamma Communications fair value estimate is UK£20.52 Current...
Analysis Article Jan 09

Investors Interested In Gamma Communications plc's (LON:GAMA) Earnings

Gamma Communications plc's ( LON:GAMA ) price-to-earnings (or "P/E") ratio of 25.2x might make it look like a strong...
Analysis Article Dec 18

Why You Should Care About Gamma Communications' (LON:GAMA) Strong Returns On Capital

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...
Analysis Article Oct 19

Is Gamma Communications (LON:GAMA) Using Too Much Debt?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...
Analysis Article Oct 02

An Intrinsic Calculation For Gamma Communications plc (LON:GAMA) Suggests It's 23% Undervalued

Key Insights Using the 2 Stage Free Cash Flow to Equity, Gamma Communications fair value estimate is UK£21.35 Gamma...
Analysis Article Sep 11

Investors Shouldn't Overlook The Favourable Returns On Capital At Gamma Communications (LON:GAMA)

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Amongst other...
Analysis Article Aug 23

At UK£15.30, Is It Time To Put Gamma Communications plc (LON:GAMA) On Your Watch List?

Gamma Communications plc ( LON:GAMA ), might not be a large cap stock, but it had a relatively subdued couple of weeks...
Analysis Article Jun 28

Gamma Communications plc's (LON:GAMA) Share Price Matching Investor Opinion

With a price-to-earnings (or "P/E") ratio of 25.8x Gamma Communications plc ( LON:GAMA ) may be sending very bearish...
Analysis Article Jun 01

Calculating The Intrinsic Value Of Gamma Communications plc (LON:GAMA)

Key Insights Gamma Communications' estimated fair value is UK£17.14 based on 2 Stage Free Cash Flow to Equity Current...
Analysis Article May 07

Gamma Communications (LON:GAMA) Is Increasing Its Dividend To £0.114

The board of Gamma Communications plc ( LON:GAMA ) has announced that it will be paying its dividend of £0.114 on the...
Analysis Article Apr 23

Gamma Communications' (LON:GAMA) Shareholders Will Receive A Bigger Dividend Than Last Year

Gamma Communications plc's ( LON:GAMA ) dividend will be increasing from last year's payment of the same period to...
Analysis Article Apr 01

Gamma Communications' (LON:GAMA) Earnings Seem To Be Promising

The market seemed underwhelmed by last week's earnings announcement from Gamma Communications plc ( LON:GAMA ) despite...
Analysis Article Mar 28

Gamma Communications plc Just Missed EPS By 16%: Here's What Analysts Think Will Happen Next

The full-year results for Gamma Communications plc ( LON:GAMA ) were released last week, making it a good time to...
Analysis Article Mar 19

Gamma Communications (LON:GAMA) Might Be Having Difficulty Using Its Capital Effectively

What are the early trends we should look for to identify a stock that could multiply in value over the long term? In a...
Analysis Article Feb 13

Calculating The Fair Value Of Gamma Communications plc (LON:GAMA)

Key Insights The projected fair value for Gamma Communications is UK£14.30 based on 2 Stage Free Cash Flow to Equity...
Analysis Article Jan 17

Why We're Not Concerned About Gamma Communications plc's (LON:GAMA) Share Price

With a price-to-earnings (or "P/E") ratio of 22.3x Gamma Communications plc ( LON:GAMA ) may be sending bearish signals...
Analysis Article Dec 20

Does Gamma Communications (LON:GAMA) Have A Healthy Balance Sheet?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Analysis Article Nov 04

A Look At The Intrinsic Value Of Gamma Communications plc (LON:GAMA)

Key Insights Using the 2 Stage Free Cash Flow to Equity, Gamma Communications fair value estimate is UK£13.19 Gamma...
Analysis Article Oct 19

Returns On Capital Signal Tricky Times Ahead For Gamma Communications (LON:GAMA)

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Typically, we'll want...
Analysis Article Sep 08

Gamma Communications' (LON:GAMA) Shareholders Will Receive A Bigger Dividend Than Last Year

The board of Gamma Communications plc ( LON:GAMA ) has announced that it will be increasing its dividend by 14% on the...
Analysis Article Aug 19

What Does Gamma Communications plc's (LON:GAMA) Share Price Indicate?

Gamma Communications plc ( LON:GAMA ), might not be a large cap stock, but it saw significant share price movement...
Analysis Article Jun 01

Gamma Communications (LON:GAMA) Has Announced That It Will Be Increasing Its Dividend To £0.10

Gamma Communications plc ( LON:GAMA ) has announced that it will be increasing its dividend from last year's comparable...
Analysis Article May 18

Gamma Communications (LON:GAMA) Is Paying Out A Larger Dividend Than Last Year

Gamma Communications plc's ( LON:GAMA ) dividend will be increasing from last year's payment of the same period to...

Stability and Growth of Payments

Fetching dividends data

Stable Dividend: GAMA's dividends per share have been stable in the past 10 years.

Growing Dividend: GAMA's dividend payments have increased over the past 10 years.


Dividend Yield vs Market

Gamma Communications Dividend Yield vs Market
How does GAMA dividend yield compare to the market?
SegmentDividend Yield
Company (GAMA)2.3%
Market Bottom 25% (GB)2.2%
Market Top 25% (GB)5.7%
Industry Average (Telecom)4.4%
Analyst forecast (GAMA) (up to 3 years)2.4%

Notable Dividend: GAMA's dividend (2.34%) is higher than the bottom 25% of dividend payers in the UK market (2.17%).

High Dividend: GAMA's dividend (2.34%) is low compared to the top 25% of dividend payers in the UK market (5.64%).


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (32%), GAMA's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (31.3%), GAMA's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/03 14:03
End of Day Share Price 2026/06/03 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Gamma Communications plc is covered by 18 analysts. 7 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Maurice PatrickBarclays
Shekhan AliBerenberg
Carl Murdock-SmithBerenberg