AIM:GMAA

Stock Analysis Report

Executive Summary

Gama Aviation Plc provides business aviation services.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

8.9%

GMAA

3.4%

GB Airlines

-0.4%

GB Market


1 Year Return

-58.5%

GMAA

4.3%

GB Airlines

2.9%

GB Market

Return vs Industry: GMAA underperformed the UK Airlines industry which returned 4.3% over the past year.

Return vs Market: GMAA underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

GMAAIndustryMarket
7 Day8.9%3.4%-0.4%
30 Day-10.7%11.7%-1.4%
90 Day-21.2%14.4%-2.1%
1 Year-57.5%-58.5%12.4%4.3%8.0%2.9%
3 Year-46.9%-49.4%66.8%45.1%18.0%3.6%
5 Yearn/a50.2%23.5%35.8%6.4%

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 (£0.67) is trading below our estimate of fair value (£1.45)

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 (6.9x) compared to the Airlines industry average (10.4x).

PE vs Market: GMAA is good value based on its PE Ratio (6.9x) compared to the UK market (16.8x).


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 (0.7x) compared to the GB Airlines industry average (1.9x).


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 (3.9% 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


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 (-3%).


Return on Equity

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


Return on Assets

ROA vs Industry: GMAA's Return on Assets is below or equal to the Airlines industry average last year.


Return on Capital Employed

ROCE Improving: GMAA's Return on Capital Employed has declined over the past 3 years.


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) exceeds 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 3.205290x debt).


Next Steps

Dividend

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

2.80%

Current Dividend Yield


Dividend Yield vs Market

company2.8%marketbottom25%2.0%markettop25%5.4%industryaverage4.9%forecastin3Years3.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GMAA's dividend (2.8%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: GMAA's dividend (2.8%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

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 3 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

What is the CEO of Gama Aviation's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Marwan Abdel-Khalek (58yo)

36.8yrs

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 ($USD626.87K) is above average for companies of similar size in the UK market ($USD320.52K).

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


Management Age and Tenure

3.1yrs

Average Tenure

58yo

Average Age

Experienced Management: GMAA's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

1.1yrs

Average Tenure

64.5yo

Average Age

Experienced Board: GMAA's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$1,104,62102 May 19
Hutchison Capital Holdings Limited
EntityCompany
Shares1,162,759
Max PriceUS$0.95
BuyUS$950,15726 Apr 19
Hutchison Capital Holdings Limited
EntityCompany
Shares1,021,733
Max PriceUS$0.93
BuyUS$1,546,24525 Apr 19
Hutchison Capital Holdings Limited
EntityCompany
Shares1,704,960
Max PriceUS$0.91

Ownership Breakdown


Management Team

  • Marwan Abdel-Khalek (58yo)

    Co-Founder

    • Tenure: 36.8yrs
    • Compensation: US$487.00k
  • Steve Wright (61yo)

    Co-Founder

    • Tenure: 4.8yrs
    • Compensation: US$397.00k
  • Duncan Daines

    Chief Marketing Officer

    • Tenure: 0yrs
  • Neil Medley (43yo)

    COO & Director

    • Tenure: 1.8yrs
    • Compensation: US$402.84k
  • Richard Kearsey

    Director of Corporate Development

    • Tenure: 1.6yrs
  • Mine Taylor

    Company Secretary

    • Tenure: 0yrs
  • Patrick Wan

    Head of Finance

    • Tenure: 0.4yrs

Board Members

  • Simon To (67yo)

    Chairman

    • Tenure: 0.5yrs
    • Compensation: US$35.00k
  • Michael Howell (72yo)

    Independent Non-Executive Director

    • Tenure: 0.5yrs
  • Christopher John Clarke (69yo)

    Independent Non-Executive Director

    • Tenure: 0.5yrs
  • Marwan Abdel-Khalek (58yo)

    Co-Founder

    • Tenure: 36.8yrs
    • Compensation: US$487.00k
  • Steve Wright (61yo)

    Co-Founder

    • Tenure: 4.8yrs
    • Compensation: US$397.00k
  • Neil Medley (43yo)

    COO & Director

    • Tenure: 1.8yrs
    • Compensation: US$402.84k
  • Peter Brown (66yo)

    Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: US$78.00k
  • Stephen Mount (63yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs

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£42.636m
  • 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 pe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 21:26
End of Day Share Price2019/10/18 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.