AIM:GMAA

Stock Analysis Report

Executive Summary

Gama Aviation Plc provides business aviation services.


Snowflake Analysis

Undervalued with adequate 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

19.0%

GMAA

-0.06%

GB Airlines

-0.4%

GB Market


1 Year Return

-15.6%

GMAA

12.7%

GB Airlines

6.6%

GB Market

Return vs Industry: GMAA underperformed the UK Airlines industry which returned 13.3% over the past year.

Return vs Market: GMAA underperformed the UK Market which returned 6.2% over the past year.


Shareholder returns

GMAAIndustryMarket
7 Day19.0%-0.06%-0.4%
30 Day-1.7%1.0%-1.7%
90 Day-11.9%16.7%5.4%
1 Year-13.5%-15.6%21.5%12.7%12.4%6.6%
3 Year-69.2%-70.6%72.7%50.2%18.5%3.4%
5 Year-77.4%-78.8%51.5%24.7%35.8%4.7%

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 (£0.6) is trading below our estimate of fair value (£1.89)

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


Price To Earnings Ratio

PE vs Industry: GMAA is good value based on its PE Ratio (6.1x) compared to the Airlines industry average (10.1x).

PE vs Market: GMAA is good value based on its PE Ratio (6.1x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: GMAA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: GMAA is good value based on its PB Ratio (0.6x) compared to the GB Airlines industry average (2.2x).


Next Steps

Future Growth

How is Gama Aviation forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-20.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GMAA's earnings are forecast to decline over the next 3 years (-20% per year).

Earnings vs Market: GMAA's earnings are forecast to decline over the next 3 years (-20% per year).

High Growth Earnings: GMAA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GMAA's revenue (1.4% per year) is forecast to grow slower than the UK market (3.5% per year).

High Growth Revenue: GMAA's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GMAA's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has Gama Aviation performed over the past 5 years?

28.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GMAA has a high level of non-cash earnings.

Growing Profit Margin: GMAA's current net profit margins (3.2%) are lower than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: GMAA has become profitable over the past 5 years, growing earnings by 28.6% per year.

Accelerating Growth: GMAA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GMAA had negative earnings growth (-17%) over the past year, making it difficult to compare to the Airlines industry average (-9.8%).


Return on Equity

High ROE: GMAA's Return on Equity (10.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gama Aviation's financial position?


Financial Position Analysis

Short Term Liabilities: GMAA's short term assets ($79.0M) do not cover its short term liabilities ($93.3M).

Long Term Liabilities: GMAA's short term assets ($79.0M) exceed its long term liabilities ($47.9M).


Debt to Equity History and Analysis

Debt Level: GMAA's debt to equity ratio (31.8%) is considered satisfactory.

Reducing Debt: GMAA had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: GMAA's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: GMAA's interest payments on its debt are well covered by EBIT (5.1x coverage).


Balance Sheet

Inventory Level: GMAA has a high level of physical assets or inventory.

Debt Coverage by Assets: GMAA's debt is covered by short term assets (assets are 3.2x debt).


Next Steps

Dividend

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

3.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GMAA's dividend (3.13%) is higher than the bottom 25% of dividend payers in the UK market (1.82%).

High Dividend: GMAA's dividend (3.13%) is low compared to the top 25% of dividend payers in the UK market (5.15%).


Stability and Growth of Payments

Stable Dividend: GMAA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GMAA has only been paying a dividend for 4 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.3%), GMAA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GMAA's dividends in 3 years are forecast to be well covered by earnings (20.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Marwan Abdel-Khalek (58yo)

37.1yrs

Tenure

US$487,000

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 ($USD630.45K) is above average for companies of similar size in the UK market ($USD325.33K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Marwan Abdel-Khalek
Co-Founder37.1yrsUS$487.00k22.28% $8.4m
Stephen Wright
Co-Founder5.1yrsUS$397.00k0.41% $156.6k
Neil Medley
COO & Director2.1yrsUS$402.84k0.12% $44.6k
Daniel Ruback
CFO & Director0.2yrsno datano data
Duncan Daines
Chief Marketing Officer0yrsno datano data
Richard Kearsey
Director of Corporate Development1.9yrsno datano data
Patrick Wan
Head of Finance0.2yrsno datano data
Mine Taylor
Company Secretary0yrsno datano data

2.7yrs

Average Tenure

50.5yo

Average Age

Experienced Management: GMAA's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Marwan Abdel-Khalek
Co-Founder37.1yrsUS$487.00k22.28% $8.4m
Stephen Wright
Co-Founder5.1yrsUS$397.00k0.41% $156.6k
Neil Medley
COO & Director2.1yrsUS$402.84k0.12% $44.6k
Daniel Ruback
CFO & Director0.2yrsno datano data
Chi Keung To
Chairman0.8yrsUS$35.00kno data
Michael Howell
Independent Non-Executive Director0.8yrsno datano data
Christopher John Clarke
Independent Non-Executive Director0.8yrsno datano data
Peter Brown
Non-Executive Director5.1yrsUS$78.00kno data
Stephen Mount
Independent Non-Executive Director0.7yrsno datano data

0.8yrs

Average Tenure

63yo

Average Age

Experienced Board: GMAA's board of directors are not considered experienced ( 0.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 26.7%.


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£37.864m
  • Shares outstanding: 63.64m
  • Website: https://www.gamaaviation.com

Number of Employees


Location

  • Gama Aviation Plc
  • Business Aviation Centre
  • Farnborough Airport
  • Farnborough
  • Hampshire
  • GU14 6XA
  • 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 management services, crew personnel, fuel, airworthiness, engineering oversight, insurance management, hangar space, valeting, and various travel arrangement services; and outsourced solutions to manage aviation operations for various services, such as air ambulance provision and aerial survey, as well as acts as charter broker. The Ground Division segment provides base and line maintenance, repair and overhaul, and design and modification services; and fixed base operations (FBO) services, including parking, hangarage, line maintenance, and other related ground handling tasks. The Global Services Division segment offers continuing airworthiness management and airworthiness review certification services for business aviation and commercial airline operators; and a suite of business aviation products deployed as software as a service and mobile app solutions for business aviation operators, FBOs, and airports. The company offers its services to individuals, corporations, and government agencies. It has operations in the Middle East, the United States, Asia, and Europe. Gama Aviation Plc was founded in 1983 and is headquartered in Farnborough, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 22:00
End of Day Share Price2020/02/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.