# Gamma Communications plc (GAMA.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Communication Services / Diversified Telecommunication Services. Price 1171p, market value 1.0 billionp.

## Valuation
- **P/E (trailing): 17.0×** (5-yr avg 2121.7×, 3-yr avg 1830.1×). Gamma Communications plc trades at 17.0× trailing earnings, well below its own five-year average of 2121.7×: cheap by its own standards. The Communication Services median in the September 2026 study was 21.1×. Forward P/E is 11.7×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.9×**. Each dollar of revenue is priced at 0.9×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.8×**. The shares trade at 2.8× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 4.1×**. Enterprise value is 4.1× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 14.8%** (5-yr avg 0.1%). Free cash flow equals 14.8% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 5.9%**. The inverse of the P/E: 5.9% of the price is earned each year.

## Profitability
- **Gross margin: 48.2%**. Gamma Communications plc keeps 48.2% of revenue after the direct cost of what it sells.
- **Operating margin: 15.7%**. 15.7% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 10.0%**. 10.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 16.8%**. 16.8% on shareholders' equity is solid.
- **Return on invested capital: 34.2%**. Return on all capital, debt included, is 34.2%: comfortably above what that capital costs.
- **Return on assets: 19.1%**. Each dollar of assets produces 19.1% of profit.

## Growth
- **Revenue growth (1 yr): 11.5%** (3-yr 10.0%/yr, 5-yr 10.4%/yr). Revenue grew 11.5% over the last year, against 10.4% a year compounded over five years.
- **EPS growth (1 yr): -2.8%** (3-yr 11.1%/yr, 5-yr 0.9%/yr). Earnings per share fell 2.8%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 8.6%/yr**. Free cash flow has compounded at 8.6% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.13**. Debt is 0.13 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.1×**. It would take 0.1 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 24.3×**. Operating profit covers interest 24.3× over, a safe margin.
- **Current ratio: 1.40** (quick 1.34). Current assets cover the next year's liabilities 1.40 times.
- **Altman Z-score: 5.21**. A Z-score of 5.21 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.92%** (0p per share, trailing). Gamma Communications plc yields 1.92%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 29%** (19% of free cash flow). 29% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 11**. 11 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 13.4%/yr** (1-yr 14.0%). The dividend has compounded at 13.4% a year over five years, doubling roughly every 5 years at that pace.
- **Shareholder yield: 6.9%**. Dividends plus net buybacks return 6.9% of the market value a year.

## Price and momentum
- **Total return (1 yr): 12.3%** (YTD 27.4%, 3-mo 24.5%). The shares are up 12.3% over twelve months including dividends.
- **From 52-week high: -3.0%** (70.5% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 80**. An RSI of 80 is in overbought territory; short-term pullbacks are common from here.
- **Beta (1 yr): 0.46** (volatility 36%). Beta of 0.46 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=GAMA.L · Page: https://foliofundamentals.com/stocks/gama.l

Not investment advice.