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Gamma Communications Plc

  • Market Cap: Small Cap
  • Industry: Telecom - Services
  • ISIN: GB00BQS10J50
GBP
8.59
-3.33 (-27.94%)

Mar 20

LON

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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 ?

1
Strong Long Term Fundamental Strength with a 13.51% 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)
2
The company has declared Positive results for the last 4 consecutive quarters
  • OPERATING CASH FLOW(Y) Highest at GBP 199.5 MM
  • NET SALES(Q) Highest at GBP 316.6 MM
  • DIVIDEND PAYOUT RATIO(Y) Highest at 21.23%
3
With ROE of 20.14%, it has a fair valuation with a 2.30 Price to Book Value
  • Over the past year, while the stock has generated a return of -32.46%, its profits have risen by 27.4% ; the PEG ratio of the company is 0.4
4
Below par performance in long term as well as near term
  • Along with generating -32.46% returns in the last 1 year, the stock has also underperformed FTSE 100 in the last 3 years, 1 year and 3 months
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Gamma Communications Plc should be less than 10%
  2. 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?

Medium Risk, Low Return

Absolute
Risk Adjusted
Volatility
Gamma Communications Plc
-100.0%
-1.52
26.66%
FTSE 100
13.98%
1.15
13.60%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
12.01%
EBIT Growth (5y)
13.51%
EBIT to Interest (avg)
65.32
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.41
Sales to Capital Employed (avg)
1.61
Tax Ratio
26.99%
Dividend Payout Ratio
26.50%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
38.54%
ROE (avg)
20.39%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
11
Industry P/E
Price to Book Value
2.30
EV to EBIT
8.77
EV to EBITDA
6.30
EV to Capital Employed
2.22
EV to Sales
1.38
PEG Ratio
0.39
Dividend Yield
0.01%
ROCE (Latest)
25.29%
ROE (Latest)
20.14%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bearish
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

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

13What is working for the Company
OPERATING CASH FLOW(Y)

Highest at GBP 199.5 MM

NET SALES(Q)

Highest at GBP 316.6 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 21.23%

RAW MATERIAL COST(Y)

Fallen by -5.47% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 31.52 times

DIVIDEND PER SHARE(HY)

Highest at GBP 4.88

OPERATING PROFIT(Q)

Highest at GBP 71.5 MM

OPERATING PROFIT MARGIN(Q)

Highest at 22.58 %

PRE-TAX PROFIT(Q)

Highest at GBP 50.8 MM

NET PROFIT(Q)

Highest at GBP 37.84 MM

-10What is not working for the Company
INTEREST COVERAGE RATIO(Q)

Lowest at 2,465.52

CASH AND EQV(HY)

Lowest at GBP 25.2 MM

DEBT-EQUITY RATIO (HY)

Highest at 10.65 %

INTEREST(Q)

Highest at GBP 2.9 MM

Here's what is working for Gamma Communications Plc

Operating Cash Flow
Highest at GBP 199.5 MM and Grown
In each year in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Net Sales
Highest at GBP 316.6 MM and Grown
In each period in the last five periods
MOJO Watch
Near term sales trend is very positive

Net Sales (GBP MM)

Operating Profit
Highest at GBP 71.5 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Operating Profit Margin
Highest at 22.58 %
in the last five periods
MOJO Watch
Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit
Highest at GBP 50.8 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Net Profit
Highest at GBP 37.84 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (GBP MM)

Inventory Turnover Ratio
Highest at 31.52 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share
Highest at GBP 4.88
in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (GBP)

Dividend Payout Ratio
Highest at 21.23%
in the last five years
MOJO Watch
Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost
Fallen by -5.47% (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 19.8 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 Coverage Ratio
Lowest at 2,465.52 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

Interest
Highest at GBP 2.9 MM
in the last five periods and Increased by 190% (QoQ)
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Cash and Eqv
Lowest at GBP 25.2 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio
Highest at 10.65 %
in the last five Semi-Annual periods
MOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

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