AIM:GMAA

Stock Analysis Report

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Executive Summary

Gama Aviation Plc provides business aviation services. More Details


Snowflake Analysis

Fair value with imperfect balance sheet.

Share Price & News

How has Gama Aviation's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GMAA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.5%

GMAA

8.1%

GB Airlines

-1.0%

GB Market


1 Year Return

-47.8%

GMAA

-67.3%

GB Airlines

-14.8%

GB Market

Return vs Industry: GMAA exceeded the UK Airlines industry which returned -67.3% over the past year.

Return vs Market: GMAA underperformed the UK Market which returned -14.8% over the past year.


Shareholder returns

GMAAIndustryMarket
7 Day4.5%8.1%-1.0%
30 Day-9.1%0.2%-1.6%
90 Day-7.9%-31.6%-3.6%
1 Year-47.8%-47.8%-46.2%-67.3%-11.6%-14.8%
3 Year-84.3%-84.9%-46.7%-72.3%-8.9%-20.2%
5 Year-87.1%-87.9%-40.0%-70.6%16.2%-10.0%

Price Volatility Vs. Market

How volatile is Gama Aviation's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gama Aviation undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GMAA (£0.35) is trading below our estimate of fair value (£0.77)

Significantly Below Fair Value: GMAA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GMAA is unprofitable, so we can't compare its PE Ratio to the XE Airlines industry average.

PE vs Market: GMAA is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GMAA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GMAA is good value based on its PB Ratio (0.5x) compared to the GB Airlines industry average (1.6x).


Next Steps

Future Growth

How is Gama Aviation forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

76.8%

Forecasted Transportation industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Gama Aviation has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Gama Aviation performed over the past 5 years?

-21.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GMAA is currently unprofitable.

Growing Profit Margin: GMAA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GMAA is unprofitable, and losses have increased over the past 5 years at a rate of 21.6% per year.

Accelerating Growth: Unable to compare GMAA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GMAA is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (-18.4%).


Return on Equity

High ROE: GMAA has a negative Return on Equity (-10%), as it is currently unprofitable.


Next Steps

Financial Health

How is Gama Aviation's financial position?


Financial Position Analysis

Short Term Liabilities: GMAA's short term assets ($78.0M) do not cover its short term liabilities ($118.5M).

Long Term Liabilities: GMAA's short term assets ($78.0M) exceed its long term liabilities ($52.7M).


Debt to Equity History and Analysis

Debt Level: GMAA's debt to equity ratio (76.7%) is considered high.

Reducing Debt: GMAA's debt to equity ratio has increased from 4.8% to 76.7% over the past 5 years.

Debt Coverage: GMAA's debt is well covered by operating cash flow (45.6%).

Interest Coverage: Insufficient data to determine if GMAA's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Gama Aviation current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GMAA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GMAA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GMAA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GMAA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GMAA is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GMAA'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?

3.3yrs

Average management tenure


CEO

Marwan Abdel-Khalek (59 yo)

37.75yrs

Tenure

US$461,000

Compensation

Mr. Marwan Abdel-Khalek is the Founder of Gama Group Limited and serves as its and Chief Executive Officer. Mr. Abdel-Khalek founded Gama Aviation Plc in 1983 and has been its Chief Executive Officer since ...


CEO Compensation Analysis

Compensation vs Market: Marwan's total compensation ($USD802.37K) is above average for companies of similar size in the UK market ($USD356.15K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Marwan Abdel-Khalek
Co-Founder37.75yrsUS$461.00kno data
Stephen Wright
Co-Founder5.75yrsUS$245.00kno data
Daniel Ruback
CFO & Executive Director0.83yrUS$280.07kno data
Neil Medley
COO & Executive Director2.75yrsUS$380.00kno data
Duncan Daines
Chief Marketing Officerno datano datano data
Richard Kearsey
Director of Corporate Development2.58yrsno datano data
Patrick Wan
Head of Finance0.83yrno datano data
Mine Taylor
Company Secretaryno datano datano data

3.3yrs

Average Tenure

51.5yo

Average Age

Experienced Management: GMAA's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Marwan Abdel-Khalek
Co-Founder37.75yrsUS$461.00kno data
Stephen Wright
Co-Founder5.75yrsUS$245.00kno data
Daniel Ruback
CFO & Executive Director0.83yrUS$280.07kno data
Neil Medley
COO & Executive Director2.75yrsUS$380.00kno data
Chi Keung To
Non-Executive Chairman1.5yrsUS$52.00kno data
Michael Howell
Independent Non-Executive Director1.5yrsUS$32.00kno data
Christopher John Clarke
Independent Non-Executive Director1.5yrsUS$32.00kno data
Peter Brown
Non-Executive Director5.75yrsUS$73.00kno data
Stephen Mount
Independent Non-Executive Director1.33yrsUS$24.00kno data

1.5yrs

Average Tenure

64yo

Average Age

Experienced Board: GMAA's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Gama Aviation Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gama Aviation Plc
  • Ticker: GMAA
  • Exchange: AIM
  • Founded: 1983
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: UK£22.448m
  • Shares outstanding: 63.64m
  • Website: https://www.gamaaviation.com

Number of Employees


Location

  • Gama Aviation Plc
  • 25 Templer Avenue
  • 1st Floor
  • Farnborough
  • Hampshire
  • GU14 6FE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GMAAAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 2015

Biography

Gama Aviation Plc provides business aviation services. It operates through Air Division, Ground Division, and Global Services Division segments. The Air Division segment offers aircraft management, crewing ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 21:12
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.