Gamma Communications Plc (GAMA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Gamma Communications Plc

BT Group Plc

Mobile Streams Plc

Maintel Holdings Plc

Zegona Communications Plc

Bigblu Broadband Plc

Why is Gamma Communications Plc ?

Strong Long Term Fundamental Strength with a 1.35% CAGR growth in Operating Profits

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 65.32
The company has been able to generate a Return on Capital Employed (avg) of 38.54% signifying high profitability per unit of total capital (equity and debt)

Flat results in Dec 25

INTEREST(HY) At GBP 3.2 MM has Grown at 220%
INTEREST COVERAGE RATIO(Q) Lowest at 2,196.87
CASH AND EQV(HY) Lowest at GBP 23.7 MM

With ROE of 18.95%, it has a fair valuation with a 2.13 Price to Book Value

Over the past year, while the stock has generated a return of -20.80%, its profits have risen by 4.7% ; the PEG ratio of the company is 1.3

Underperformed the market in the last 1 year

Even though the market (FTSE 100) has generated returns of 17.87% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -20.80% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Gamma Communications Plc should be less than 10%
Overall Portfolio exposure to Telecom - Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Gamma Communications Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gamma Communications Plc

-100.0%

-1.13

33.34%

FTSE 100

17.87%

1.52

11.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.40%

EBIT Growth (5y)

1.35%

EBIT to Interest (avg)

65.32

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

1.58

Tax Ratio

26.99%

Dividend Payout Ratio

31.53%

Pledged Shares

Institutional Holding

ROCE (avg)

38.54%

ROE (avg)

20.39%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.13

EV to EBIT

8.19

EV to EBITDA

5.88

EV to Capital Employed

2.09

EV to Sales

1.29

PEG Ratio

1.28

Dividend Yield

0.01%

ROCE (Latest)

25.46%

ROE (Latest)

18.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at GBP 5.37

NET SALES(Q)

Highest at GBP 329.2 MM

RAW MATERIAL COST(Y)

Fallen by -5.86% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 38.58 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.37 times

-8What is not working for the Company

INTEREST(HY)

At GBP 3.2 MM has Grown at 220%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,196.87

CASH AND EQV(HY)

Lowest at GBP 23.7 MM

Here's what is working for Gamma Communications Plc

Net Sales

Highest at GBP 329.2 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (GBP MM)

Dividend per share

Highest at GBP 5.37 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Inventory Turnover Ratio

Highest at 38.58 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.37 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -5.86% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at GBP 20.2 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for Gamma Communications Plc

Interest

At GBP 3.2 MM has Grown at 220%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Interest Coverage Ratio

Lowest at 2,196.87 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Cash and Eqv

Lowest at GBP 23.7 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents