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Gamma Communications Plc

  • Market Cap: Small Cap
  • Industry: Telecom - Services
  • ISIN: GB00BQS10J50
  • LON: GAMA
GBP
11.19
-0.08 (-0.71%)

Sep 22

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
Toople Plc

Why is Gamma Communications Plc ?

1
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)
2
Flat results in Jun 26
  • DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
  • CASH AND EQV(HY) Lowest at GBP 21.8 MM
  • DIVIDEND PER SHARE(HY) Lowest at GBP 5.12
3
With ROE of 18.95%, it has a fair valuation with a 1.95 Price to Book Value
  • Over the past year, while the stock has generated a return of 16.08%, its profits have risen by 4.7% ; the PEG ratio of the company is 1.2
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?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
Gamma Communications Plc
16.08%
-0.61
35.98%
FTSE 100
16.06%
1.36
11.82%
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)
10.40%
EBIT Growth (5y)
1.35%
EBIT to Interest (avg)
45.81
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.41
Sales to Capital Employed (avg)
1.57
Tax Ratio
26.41%
Dividend Payout Ratio
31.53%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
30.75%
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
10
Industry P/E
Price to Book Value
1.95
EV to EBIT
7.53
EV to EBITDA
5.41
EV to Capital Employed
1.92
EV to Sales
1.19
PEG Ratio
1.17
Dividend Yield
0.01%
ROCE (Latest)
25.46%
ROE (Latest)
18.95%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
Bearish
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
Bullish
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

5What is working for the Company
NET SALES(Q)

Highest at GBP 330 MM

RAW MATERIAL COST(Y)

Fallen by -3.96% (YoY

OPERATING PROFIT(Q)

Highest at GBP 72.5 MM

EPS(Q)

Highest at GBP 0.41

-3What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

CASH AND EQV(HY)

Lowest at GBP 21.8 MM

DIVIDEND PER SHARE(HY)

Lowest at GBP 5.12

Here's what is working for Gamma Communications Plc

Net Sales
Highest at GBP 330 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 72.5 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (GBP MM)

EPS
Highest at GBP 0.41
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Raw Material Cost
Fallen by -3.96% (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 20.5 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

Cash and Eqv
Lowest at GBP 21.8 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend per share
Lowest at GBP 5.12
in the last five years
MOJO Watch
Company is distributing lower dividend than previous years

DPS (GBP)

Dividend Payout Ratio
Lowest at 0%
in the last five years
MOJO Watch
Company is distributing lower proportion of profits generated as dividend

DPR (%)

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