Why is Gear4music (Holdings) Plc ?
1
Positive results in Mar 25
- NET PROFIT(HY) Higher at GBP 2.06 MM
- INTEREST COVERAGE RATIO(Q) Highest at 798.07
- RAW MATERIAL COST(Y) Fallen by -6.54% (YoY)
2
With ROE of 2.12%, it has a very expensive valuation with a 1.59 Price to Book Value
- Over the past year, while the stock has generated a return of 83.88%, its profits have fallen by -27.2%
3
Consistent Returns over the last 3 years
- Along with generating 83.88% returns in the last 1 year, the stock has outperformed FTSE 100 in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to Gear4music (Holdings) Plc should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Gear4music (Holdings) Plc for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Gear4music (Holdings) Plc
83.88%
2.71
50.60%
FTSE 100
16.09%
1.24
12.94%
Quality key factors
Factor
Value
Sales Growth (5y)
3.26%
EBIT Growth (5y)
-9.95%
EBIT to Interest (avg)
8.89
Debt to EBITDA (avg)
1.17
Net Debt to Equity (avg)
0.21
Sales to Capital Employed (avg)
2.69
Tax Ratio
46.73%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
27.19%
ROE (avg)
22.76%
Valuation Key Factors 
Factor
Value
P/E Ratio
62
Industry P/E
Price to Book Value
1.59
EV to EBIT
30.32
EV to EBITDA
7.73
EV to Capital Employed
1.48
EV to Sales
0.48
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
4.89%
ROE (Latest)
2.12%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
Bullish
Technical Movement
9What is working for the Company
NET PROFIT(HY)
Higher at GBP 2.06 MM
INTEREST COVERAGE RATIO(Q)
Highest at 798.07
RAW MATERIAL COST(Y)
Fallen by -6.54% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 36.21 %
INVENTORY TURNOVER RATIO(HY)
Highest at 3.72%
OPERATING PROFIT(Q)
Highest at GBP 6.63 MM
PRE-TAX PROFIT(Q)
Highest at GBP 2.77 MM
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Gear4music (Holdings) Plc
Interest Coverage Ratio
Highest at 798.07
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Profit
Higher at GBP 2.06 MM
than preceding 12 month period ended Mar 2025MOJO Watch
In the half year the company has already crossed Net Profit of the previous twelve months
Net Profit (GBP MM)
Operating Profit
Highest at GBP 6.63 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (GBP MM)
Pre-Tax Profit
Highest at GBP 2.77 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (GBP MM)
Debt-Equity Ratio
Lowest at 36.21 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 3.72%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -6.54% (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 3.44 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (GBP MM)






