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Gamma Communications

DB:6GC
Snowflake Description

Proven track record with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
6GC
DB
£949M
Market Cap
  1. Home
  2. DE
  3. Telecom
Company description

Gamma Communications plc provides communications and software services for business in the United Kingdom and internationally. The last earnings update was 5 days ago. More info.


Add to Portfolio Compare Print
  • Gamma Communications has significant price volatility in the past 3 months.
6GC Share Price and Events
7 Day Returns
-4.8%
DB:6GC
3.7%
DE Telecom
14.8%
DE Market
1 Year Returns
-4%
DB:6GC
-22.7%
DE Telecom
-14.1%
DE Market
6GC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Gamma Communications (6GC) -4.8% -26.9% -30.4% -4% 90.4% 197.3%
DE Telecom 3.7% -22.8% -18.2% -22.7% -31.2% -35.3%
DE Market 14.8% -20% -23.5% -14.1% -22.8% -26.7%
1 Year Return vs Industry and Market
  • 6GC outperformed the Telecom industry which returned -22.7% over the past year.
  • 6GC outperformed the Market in Germany which returned -14.1% over the past year.
Price Volatility
6GC
Industry
5yr Volatility vs Market

Value

 Is Gamma Communications undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Gamma Communications to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Gamma Communications.

DB:6GC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 4.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:6GC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.1%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.36
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.359 (1 + (1- 19%) (1.33%))
0.573
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.8 * 6.07%)
4.47%

Discounted Cash Flow Calculation for DB:6GC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Gamma Communications is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:6GC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 4.47%)
2020 36.25 Analyst x2 34.70
2021 38.12 Analyst x5 34.93
2022 43.88 Analyst x4 38.49
2023 56.00 Analyst x1 47.02
2024 60.70 Analyst x1 48.79
2025 63.77 Est @ 5.06% 49.07
2026 65.95 Est @ 3.42% 48.58
2027 67.46 Est @ 2.28% 47.56
2028 68.46 Est @ 1.48% 46.20
2029 69.09 Est @ 0.92% 44.63
Present value of next 10 years cash flows £439.00
DB:6GC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £69.09 × (1 + -0.39%) ÷ (4.47% – -0.39%)
£1,417.13
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £1,417.13 ÷ (1 + 4.47%)10
£915.50
DB:6GC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £439.00 + £915.50
£1,354.50
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £1,354.50 / 94.87
£14.28
DB:6GC Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:6GC represents 1.085x of AIM:GAMA
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.085x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (GBP) x Listing Adjustment Factor
= £ 14.28 x 1.085
€15.49
Value per share (EUR) From above. €15.49
Current discount Discount to share price of €10.85
= -1 x (€10.85 - €15.49) / €15.49
30%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Gamma Communications is available for.
Intrinsic value
30%
Share price is €10.85 vs Future cash flow value of €15.49
Current Discount Checks
For Gamma Communications to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Gamma Communications's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Gamma Communications's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Gamma Communications's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Gamma Communications's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:6GC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in GBP £0.37
AIM:GAMA Share Price ** AIM (2020-03-27) in GBP £10
Europe Telecom Industry PE Ratio Median Figure of 61 Publicly-Listed Telecom Companies 17.13x
Germany Market PE Ratio Median Figure of 398 Publicly-Listed Companies 16.62x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Gamma Communications.

DB:6GC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:GAMA Share Price ÷ EPS (both in GBP)

= 10 ÷ 0.37

27.35x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gamma Communications is overvalued based on earnings compared to the Europe Telecom industry average.
  • Gamma Communications is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Gamma Communications's expected growth come at a high price?
Raw Data
DB:6GC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 27.35x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
7.3%per year
Europe Telecom Industry PEG Ratio Median Figure of 33 Publicly-Listed Telecom Companies 1.35x
Germany Market PEG Ratio Median Figure of 251 Publicly-Listed Companies 1.24x

*Line of best fit is calculated by linear regression .

DB:6GC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 27.35x ÷ 7.3%

3.74x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gamma Communications is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Gamma Communications's assets?
Raw Data
DB:6GC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in GBP £1.61
AIM:GAMA Share Price * AIM (2020-03-27) in GBP £10
Germany Telecom Industry PB Ratio Median Figure of 7 Publicly-Listed Telecom Companies 1.12x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.43x
DB:6GC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:GAMA Share Price ÷ Book Value per Share (both in GBP)

= 10 ÷ 1.61

6.21x

* Primary Listing of Gamma Communications.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gamma Communications is overvalued based on assets compared to the DE Telecom industry average.
X
Value checks
We assess Gamma Communications's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. Gamma Communications has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Gamma Communications expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Gamma Communications expected to grow at an attractive rate?
  • Gamma Communications's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Gamma Communications's earnings growth is positive but not above the Germany market average.
  • Gamma Communications's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:6GC Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:6GC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 7.3%
DB:6GC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 7.3%
Germany Telecom Industry Earnings Growth Rate Market Cap Weighted Average 19.2%
Germany Telecom Industry Revenue Growth Rate Market Cap Weighted Average 1.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.7%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:6GC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:6GC Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 464 77 1
2023-12-31 439 72 1
2022-12-31 429 67 43 4
2021-12-31 394 63 42 5
2020-12-31 362 57 39 6
2020-03-27
DB:6GC Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-12-31 329 47 35
2019-09-30 317 45 34
2019-06-30 306 44 34
2019-03-31 295 40 31
2018-12-31 285 36 28
2018-09-30 274 35 27
2018-06-30 263 33 25
2018-03-31 253 30 24
2017-12-31 242 26 23
2017-09-30 234 25 21
2017-06-30 225 25 20
2017-03-31 219 26 19

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Gamma Communications's earnings are expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).
  • Gamma Communications's revenue is expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:6GC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Gamma Communications Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:6GC Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 0.64 0.64 0.64 1.00
2023-12-31 0.59 0.59 0.59 1.00
2022-12-31 0.52 0.57 0.45 3.00
2021-12-31 0.48 0.52 0.43 3.00
2020-12-31 0.44 0.47 0.41 3.00
2020-03-27
DB:6GC Past Financials Data
Date (Data in GBP Millions) EPS *
2019-12-31 0.37
2019-09-30 0.36
2019-06-30 0.36
2019-03-31 0.33
2018-12-31 0.30
2018-09-30 0.28
2018-06-30 0.26
2018-03-31 0.25
2017-12-31 0.24
2017-09-30 0.23
2017-06-30 0.22
2017-03-31 0.20

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Gamma Communications is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Gamma Communications's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Gamma Communications has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Gamma Communications performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Gamma Communications's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Gamma Communications has delivered over 20% year on year earnings growth in the past 5 years.
  • Gamma Communications's 1-year earnings growth is less than its 5-year average (21.5% vs 22.1%)
  • Gamma Communications's earnings growth has exceeded the Europe Telecom industry average in the past year (21.5% vs 10.4%).
Earnings and Revenue History
Gamma Communications's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Gamma Communications Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:6GC Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 328.90 34.50 103.00
2019-09-30 317.20 34.35 93.50
2019-06-30 305.50 34.20 84.00
2019-03-31 295.20 31.30 83.95
2018-12-31 284.90 28.40 83.90
2018-09-30 274.10 26.55 61.35
2018-06-30 263.30 24.70 38.80
2018-03-31 252.65 23.70 55.75
2017-12-31 242.00 22.70 72.70
2017-09-30 233.55 21.25 68.75
2017-06-30 225.10 19.80 64.80
2017-03-31 219.30 18.75 65.95
2016-12-31 213.50 17.70 67.10
2016-09-30 208.80 19.20 65.35
2016-06-30 204.10 20.70 63.60
2016-03-31 197.95 19.50 60.80
2015-12-31 191.80 18.30 58.00
2015-09-30 186.90 14.05 52.55 2.55
2015-06-30 182.00 9.80 47.10 5.10
2015-03-31 177.60 9.60 43.50 5.10
2014-12-31 173.20 9.40 39.90 5.10
2014-09-30 166.86 10.04 40.98 2.55
2014-06-30 160.52 10.68 42.05
2014-03-31 154.61 9.99 39.83
2013-12-31 148.70 9.30 37.60

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Gamma Communications has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Gamma Communications used its assets more efficiently than the Europe Telecom industry average last year based on Return on Assets.
  • Gamma Communications's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Gamma Communications's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Gamma Communications has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Gamma Communications's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Gamma Communications's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Gamma Communications is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Gamma Communications's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Gamma Communications's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are -7.8531518502271E+16x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Gamma Communications Company Filings, last reported 2 months ago.

DB:6GC Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 152.50 0.00 53.90
2019-09-30 152.50 0.00 53.90
2019-06-30 135.20 0.00 44.80
2019-03-31 135.20 0.00 44.80
2018-12-31 121.70 0.00 35.50
2018-09-30 121.70 0.00 35.50
2018-06-30 104.20 0.00 36.90
2018-03-31 104.20 0.00 36.90
2017-12-31 95.30 0.00 31.60
2017-09-30 95.30 0.00 31.60
2017-06-30 87.50 0.00 28.70
2017-03-31 87.50 0.00 28.70
2016-12-31 80.20 0.00 28.20
2016-09-30 80.20 0.00 28.20
2016-06-30 72.40 0.00 27.80
2016-03-31 72.40 0.00 27.80
2015-12-31 66.70 0.00 24.80
2015-09-30 66.70 0.00 24.80
2015-06-30 54.50 0.00 16.10
2015-03-31 54.50 0.00 16.10
2014-12-31 51.20 0.00 13.40
2014-09-30 51.20 0.00 13.40
2014-06-30 43.18 0.00 17.49
2014-03-31 43.18 0.00 17.49
2013-12-31 36.90 0.00 14.60
  • Gamma Communications's level of debt (0%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Gamma Communications's debt level has increased without past 5-year debt data.
  • Operating cash flow is negative therefore debt is not well covered.
  • Gamma Communications has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Gamma Communications's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Gamma Communications has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Gamma Communications's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.05%
Current annual income from Gamma Communications dividends. Estimated to be 1.3% next year.
If you bought €2,000 of Gamma Communications shares you are expected to receive €21 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Gamma Communications's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.66%).
  • Gamma Communications's dividend is below the markets top 25% of dividend payers in Germany (4.86%).
Upcoming dividend payment

Purchase Gamma Communications before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:6GC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
Germany Telecom Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 5.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 319 Stocks 3.7%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:6GC Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2024-12-31 0.16 1.00
2023-12-31 0.15 1.00
2022-12-31 0.14 4.00
2021-12-31 0.13 6.00
2020-12-31 0.11 5.00
2020-03-27
DB:6GC Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2020-03-23 0.105 1.049
2020-03-17 0.105 1.010
2019-03-13 0.093 0.811
2019-03-12 0.093 1.014
2018-03-22 0.084 1.066
2017-03-21 0.075 1.236
2016-03-22 0.088 1.936
2015-09-08 0.044 1.106
2015-07-15 0.044 1.569
2015-03-20 0.040 1.440

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Gamma Communications has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Gamma Communications only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Gamma Communications's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.2x coverage).
X
Income/ dividend checks
We assess Gamma Communications's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Gamma Communications afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Gamma Communications has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Gamma Communications's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Andrew Taylor
COMPENSATION £846,373
AGE 50
TENURE AS CEO 1.8 years
CEO Bio

Mr. Andrew George Taylor has been Chief Executive officer and an Executive Director of Gamma Communications plc since May 23, 2018 and April 4, 2018. Mr. Taylor is the Chief Executive Officer and Director of Gamma Telecom Ltd. Mr. Taylor 's current Directorships or Partnerships: MDS CEM Holdings Ltd, Nomad Digital GmbH, Nomad Digital Pty Ltd, Nomad Digital India Private Ltd, New Lavastorm (2017) Ltd and W12 Consulting Ltd. Mr. Taylor 's previous Directorships or Partnerships: Nomad Digital Ltd, Nomad Solutions UK Ltd, Nomad Spectrum Ltd, Nomad Digital Networks UK Ltd, Nomad West Coast Ltd and Nomad Digital (India) Ltd. In this role (2013-2017), he was responsible for establishing Nomad as a leader in the sector, and when acquired by Alstom in 2017, was serving over 50 global customers from 20 offices. Before joining Nomad, he was Digicel’s Regional Chief Executive Officer (2012-2013), with responsibility for all fixed and mobile operations across the Northern Caribbean. In this role, he had responsibility for all fixed network services and business / ICT solutions across 26 international markets, and was responsible for driving significant growth in both revenues and profitability. He has over 22 years’ experience in the telecommunications industry, and has a demonstrable track record of achievement in previous roles, both in the UK and internationally. From 2008 to 2010, he was Chief Executive of Intec Telecom PLC, a provider of software solutions, with over 400 customers located in 120 countries, and served by over 1,700 employees. After a period of significant growth and business improvement, Intec was acquired by CSG in 2010.

CEO Compensation
  • Insufficient data for Andrew to compare compensation growth.
  • Andrew's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Gamma Communications management team in years:

1.8
Average Tenure
50
Average Age
  • The average tenure for the Gamma Communications management team is less than 2 years, this suggests a new team.
Management Team

Andrew Taylor

TITLE
CEO & Executive Director
COMPENSATION
£846K
AGE
50
TENURE
1.8 yrs

Andrew Scott Belshaw

TITLE
CFO & Executive Director
COMPENSATION
£733K
AGE
45
TENURE
4.8 yrs

Andy Morris

TITLE
Chief Strategy & Operating Officer
AGE
48

Phil Stubbs

TITLE
Chief Technology Officer
TENURE
1.5 yrs

Alan Mackie

TITLE
Chief Marketing & Products Officer
AGE
53

Suzie Woodhams

TITLE
Chief People Officer

James Bushell

TITLE
Head of Product Management

Dave Macfarlane

TITLE
Managing Director – UK Direct
AGE
51

Daryl Pile

TITLE
Managing Director of UK Indirect

Danny Jacobs

TITLE
Head of Channel Support
Board of Directors Tenure

Average tenure and age of the Gamma Communications board of directors in years:

5.8
Average Tenure
60
Average Age
  • The tenure for the Gamma Communications board of directors is about average.
Board of Directors

Richard Last

TITLE
Independent Non-Executive Chairman
COMPENSATION
£78K
AGE
62

Andrew Taylor

TITLE
CEO & Executive Director
COMPENSATION
£846K
AGE
50
TENURE
1.9 yrs

Andrew Scott Belshaw

TITLE
CFO & Executive Director
COMPENSATION
£733K
AGE
45
TENURE
5.4 yrs

Alan Gibbins

TITLE
Independent Non-Executive Director
COMPENSATION
£42K
AGE
69
TENURE
5.8 yrs

Martin Robert Lea

TITLE
Independent Non-Executive Director
COMPENSATION
£48K
AGE
61
TENURE
5.8 yrs

Andrew Stone

TITLE
Non-Independent Non-Executive Director
COMPENSATION
£36K
AGE
48
TENURE
5.8 yrs

Long Wu

TITLE
Non-Independent Non-Executive Director
COMPENSATION
£36K
AGE
66
TENURE
5.8 yrs

Het Marsh

TITLE
Independent Non-Executive Director
AGE
59
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • Gamma Communications individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
25. Mar 20 Sell Andrew Stone Individual 20. Mar 20 20. Mar 20 -500 €12.14 €-6,072
03. Jan 20 Sell Andrew Stone Individual 31. Dec 19 02. Jan 20 -30,000 €16.17 €-482,033
24. Dec 19 Sell Andrew Stone Individual 19. Dec 19 19. Dec 19 -90,000 €15.22 €-1,363,834
19. Dec 19 Sell Andrew Stone Individual 12. Dec 19 12. Dec 19 -10,000 €13.96 €-139,564
04. Dec 19 Sell Andrew Stone Individual 02. Dec 19 03. Dec 19 -100,000 €14.71 €-1,465,038
30. Apr 19 Buy Henrietta Marsh Individual 29. Apr 19 29. Apr 19 1,000 €12.73 €12,730
17. Apr 19 Sell Andrew Stone Individual 16. Apr 19 16. Apr 19 -200,000 €12.66 €-2,531,397
X
Management checks
We assess Gamma Communications's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Gamma Communications has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Gamma Communications plc provides communications and software services for business in the United Kingdom and internationally. It offers strategic services, such as collaboration, cloud PBX, SIP trunking, inbound call control, and network services; enabling services, including ethernet, broadband, and mobile; and traditional call and line services. The company offers its services through a network of channel partners, as well as directly to end users. It serves small, medium, and large sized business customers. Gamma Communications plc was founded in 2001 and is headquartered in Newbury, the United Kingdom.

Details
Name: Gamma Communications plc
6GC
Exchange: DB
Founded: 2001
£1,062,082,977
94,872,661
Website: http://www.gamma.co.uk
Address: Gamma Communications plc
Kings House,
Kings Road West,
Newbury,
Berkshire, RG14 5BY,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM GAMA New Ordinary Shares London Stock Exchange AIM Market GB GBP 10. Oct 2014
DB 6GC New Ordinary Shares Deutsche Boerse AG DE EUR 10. Oct 2014
Number of employees
Current staff
Staff numbers
1,176
Gamma Communications employees.
Industry
Alternative Carriers
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/27 23:05
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/19
Last earnings filing: 2020/03/22
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.