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Gear4music (Holdings)

AIM:G4M
Snowflake Description

Reasonable growth potential with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
G4M
AIM
£43M
Market Cap
  1. Home
  2. GB
  3. Retail
Company description

Gear4music (Holdings) plc engages in the retail of musical instruments and equipment in Europe and internationally. The last earnings update was 242 days ago. More info.


Add to Portfolio Compare Print
  • Gear4music (Holdings) has significant price volatility in the past 3 months.
G4M Share Price and Events
7 Day Returns
17.1%
AIM:G4M
-8.7%
GB Specialty Retail
-2.2%
GB Market
1 Year Returns
6.5%
AIM:G4M
-36.2%
GB Specialty Retail
-25.9%
GB Market
G4M Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Gear4music (Holdings) (G4M) 17.1% 5.1% -12.8% 6.5% -64.5% -
GB Specialty Retail -8.7% -37.1% -46.1% -36.2% -43.9% -50.7%
GB Market -2.2% -21.7% -29.6% -25.9% -26.6% -26.2%
1 Year Return vs Industry and Market
  • G4M outperformed the Specialty Retail industry which returned -36.2% over the past year.
  • G4M outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -25.9% over the past year.
Price Volatility
G4M
Industry
5yr Volatility vs Market

Value

 Is Gear4music (Holdings) 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 Gear4music (Holdings) 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 Gear4music (Holdings).

AIM:G4M Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.3%
Perpetual Growth Rate 10-Year GB Government Bond Rate 0.5%

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 AIM:G4M
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6.1%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.74
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.736 (1 + (1- 19%) (29.87%))
0.943
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.94
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.53% + (0.943 * 6.07%)
6.25%

Discounted Cash Flow Calculation for AIM:G4M using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Gear4music (Holdings) 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.

AIM:G4M DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 6.25%)
2020 -0.96 Analyst x1 -0.90
2021 2.58 Analyst x1 2.29
2022 2.65 Est @ 2.74% 2.21
2023 2.71 Est @ 2.08% 2.12
2024 2.75 Est @ 1.61% 2.03
2025 2.78 Est @ 1.29% 1.94
2026 2.81 Est @ 1.06% 1.84
2027 2.84 Est @ 0.9% 1.75
2028 2.86 Est @ 0.79% 1.66
2029 2.88 Est @ 0.71% 1.57
Present value of next 10 years cash flows £16.00
AIM:G4M DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £2.88 × (1 + 0.53%) ÷ (6.25% – 0.53%)
£50.64
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £50.64 ÷ (1 + 6.25%)10
£27.61
AIM:G4M Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £16.00 + £27.61
£43.61
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £43.61 / 20.95
£2.08
AIM:G4M Discount to Share Price
Calculation Result
Value per share (GBP) From above. £2.08
Current discount Discount to share price of £2.05
= -1 x (£2.05 - £2.08) / £2.08
1.5%

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

Current Discount
Amount off the current price Gear4music (Holdings) is available for.
Intrinsic value
2%
Share price is £2.05 vs Future cash flow value of £2.08
Current Discount Checks
For Gear4music (Holdings) to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Gear4music (Holdings)'s share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Gear4music (Holdings)'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 Gear4music (Holdings)'s earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Gear4music (Holdings)'s earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:G4M PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in GBP £-0.01
AIM:G4M Share Price ** AIM (2020-04-03) in GBP £2.05
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry PE Ratio Median Figure of 23 Publicly-Listed Specialty Retail Companies 7.31x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 748 Publicly-Listed Companies 12.32x

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

** Primary Listing of Gear4music (Holdings).

AIM:G4M PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:G4M Share Price ÷ EPS (both in GBP)

= 2.05 ÷ -0.01

-285.16x

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

  • Gear4music (Holdings) is loss making, we can't compare its value to the GB Specialty Retail industry average.
  • Gear4music (Holdings) is loss making, we can't compare the value of its earnings to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Gear4music (Holdings)'s expected growth come at a high price?
Raw Data
AIM:G4M PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -285.16x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
74.5%per year
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry PEG Ratio Median Figure of 15 Publicly-Listed Specialty Retail Companies 0.68x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 518 Publicly-Listed Companies 0.97x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for Gear4music (Holdings), we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Gear4music (Holdings)'s assets?
Raw Data
AIM:G4M PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in GBP £0.89
AIM:G4M Share Price * AIM (2020-04-03) in GBP £2.05
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry PB Ratio Median Figure of 36 Publicly-Listed Specialty Retail Companies 0.62x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,323 Publicly-Listed Companies 1.06x
AIM:G4M PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:G4M Share Price ÷ Book Value per Share (both in GBP)

= 2.05 ÷ 0.89

2.3x

* Primary Listing of Gear4music (Holdings).

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

  • Gear4music (Holdings) is overvalued based on assets compared to the GB Specialty Retail industry average.
X
Value checks
We assess Gear4music (Holdings)'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 Specialty Retail 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 Specialty Retail industry average (and greater than 0)? (1 check)
  5. Gear4music (Holdings) has a total score of 0/6, 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 Gear4music (Holdings) expected to perform in the next 1 to 3 years based on estimates from 3 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
74.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Gear4music (Holdings) expected to grow at an attractive rate?
  • Gear4music (Holdings)'s earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Gear4music (Holdings)'s earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Gear4music (Holdings)'s revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:G4M Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:G4M Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 74.5%
AIM:G4M Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 13.7%
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 15.7%
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 3.7%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 15.4%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 2.6%

*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
AIM:G4M Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 year ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:G4M Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 173 6 3 1
2021-03-31 147 6 2 3
2021-02-28 156 1
2020-04-05
2020-03-31 127 5 1 3
2020-02-29 130 1
AIM:G4M Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2019-03-31 109 2 0
2018-08-31 91 0 1
2018-05-31 86 0 1
2018-02-28 80 0 1
2017-11-30 73 0 1
2017-08-31 66 0 2
2017-05-31 61 0 2
2017-02-28 56 0 2
2016-11-30 50 1 2
2016-08-31 45 2 2
2016-05-31 40 1 1

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Gear4music (Holdings)'s earnings are expected to grow significantly at over 20% yearly.
  • Gear4music (Holdings)'s revenue is expected to grow by 13.7% 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
AIM:G4M Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 year ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Gear4music (Holdings) Company Filings, last reported 1 year ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:G4M Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 0.15 0.15 0.15 1.00
2021-03-31 0.10 0.10 0.10 1.00
2021-02-28
2020-04-05
2020-03-31 0.04 0.04 0.04 1.00
2020-02-29
AIM:G4M Past Financials Data
Date (Data in GBP Millions) EPS *
2019-03-31 -0.01
2018-08-31 0.05
2018-05-31 0.06
2018-02-28 0.07
2017-11-30 0.07
2017-08-31 0.08
2017-05-31 0.10
2017-02-28 0.11
2016-11-30 0.10
2016-08-31 0.08
2016-05-31 0.04

*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.
  • Unable to establish if Gear4music (Holdings) will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Gear4music (Holdings)'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 United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland 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.
Gear4music (Holdings) has a total score of 4/6, 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 Gear4music (Holdings) performed over the past 5 years?

  • Gear4music (Holdings)'s last earnings update was 242 days ago.
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 Gear4music (Holdings)'s growth in the last year to its industry (Specialty Retail).
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.
  • Gear4music (Holdings) does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.
  • Unable to compare Gear4music (Holdings)'s 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Gear4music (Holdings)'s 1-year growth to the GB Specialty Retail industry average as it is not currently profitable.
Earnings and Revenue History
Gear4music (Holdings)'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 Gear4music (Holdings) Company Filings, last reported 1 year ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:G4M Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 109.07 -0.15 22.67
2018-08-31 91.40 1.01 18.72
2018-05-31 85.75 1.20 17.77
2018-02-28 80.10 1.39 16.82
2017-11-30 72.92 1.48 15.50
2017-08-31 65.74 1.57 14.17
2017-05-31 60.93 1.94 12.83
2017-02-28 56.13 2.31 11.50
2016-11-30 50.37 2.06 10.15
2016-08-31 44.61 1.81 8.80
2016-05-31 40.05 0.88 8.14
2016-02-29 35.49 -0.04 7.47
2015-11-30 31.73 -0.47 6.93
2015-08-31 27.97 -0.89 6.40
2015-05-31 26.10 -0.79 6.15
2015-02-28 24.24 -0.69 5.91
2014-02-28 17.68 -0.31 4.17

*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.
  • It is difficult to establish if Gear4music (Holdings) has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • Gear4music (Holdings) used its assets less efficiently than the GB Specialty Retail industry average last year based on Return on Assets.
  • It is difficult to establish if Gear4music (Holdings) improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Gear4music (Holdings)'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 Specialty Retail 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.
Gear4music (Holdings) has a total score of 0/6, 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 Gear4music (Holdings)'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 Gear4music (Holdings)'s finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Gear4music (Holdings) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Gear4music (Holdings)'s cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Gear4music (Holdings)'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 covered by short term assets, assets are 2.1x 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 Gear4music (Holdings) Company Filings, last reported 1 year ago.

AIM:G4M Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 18.71 12.37 5.30
2018-08-31 18.50 10.25 2.66
2018-05-31 18.50 10.25 2.66
2018-02-28 18.89 8.51 3.54
2017-11-30 18.89 8.51 3.54
2017-08-31 15.96 7.73 4.11
2017-05-31 15.96 7.73 4.11
2017-02-28 11.72 2.52 3.00
2016-11-30 11.72 2.52 3.00
2016-08-31 10.14 0.66 1.79
2016-05-31 10.14 0.66 1.79
2016-02-29 9.36 0.64 3.55
2015-11-30 9.36 0.64 3.55
2015-08-31 8.29 0.41 1.45
2015-05-31 8.29 0.41 1.45
2015-02-28 -0.29 5.63 0.92
2014-02-28 0.40 5.13 0.71
  • Gear4music (Holdings)'s level of debt (66.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (1536% vs 66.1% today).
  • Debt is not well covered by operating cash flow (19.2%, less than 20% of total debt).
  • Gear4music (Holdings) is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Gear4music (Holdings)'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. Gear4music (Holdings) has a total score of 3/6, 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 Gear4music (Holdings)'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
0%
Current annual income from Gear4music (Holdings) dividends. Estimated to be 0.12% next year.
If you bought £2,000 of Gear4music (Holdings) shares you are expected to receive £0 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?
  • Unable to evaluate Gear4music (Holdings)'s dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Gear4music (Holdings)'s dividend against the top 25% market benchmark as the company has not reported any payouts.
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
AIM:G4M 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 3 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 4.9%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 595 Stocks 5.7%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.3%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2.7%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 7.4%

Industry and Market average data is calculated daily.

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

AIM:G4M Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 0.00 1.00
2021-03-31 0.00 2.00
2021-02-28 0.01 1.00
2020-04-05
2020-03-31 0.00 2.00
2020-02-29 0.00 1.00

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

  • Unable to perform a dividend volatility check as Gear4music (Holdings) has not reported any payouts.
  • Unable to verify if Gear4music (Holdings)'s dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Gear4music (Holdings)'s earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Gear4music (Holdings) has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Gear4music (Holdings)'s dividends in 3 years as they are not expected to pay a notable one for United Kingdom of Great Britain and Northern Ireland.
X
Income/ dividend checks
We assess Gear4music (Holdings)'s dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - 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 Gear4music (Holdings) afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Gear4music (Holdings) has a total score of 0/6, 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 Gear4music (Holdings)'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 Wass
COMPENSATION £238,525
AGE 48
CEO Bio

Mr. Andrew Paul Wass Founded Gear4music Limited (also known as Soundpro Limited) in 1995. Mr. Wass serves as the Chief Executive Officer and Executive Director of Gear4Music (Holdings) Plc. Mr. Wass has over 20 years’ business management experience. In 1998 he began selling IT systems for the audio recording market before launching “Gear4music” in 2003. From 1992 to 1998, Mr. Wass ran his own recording studio business. He studied Popular Music and Sound Recording at the University of Salford.

CEO Compensation
  • Andrew's compensation has increased whilst company is loss making.
  • Andrew's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team

Andrew Wass

TITLE
CEO & Executive Director
COMPENSATION
£239K
AGE
48

Chris Scott

TITLE
CFO, Company Secretary & Executive Director
COMPENSATION
£195K
AGE
43

Gareth Bevan

TITLE
Chief Commercial Officer & Executive Director
COMPENSATION
£186K
AGE
41

Robert Newport

TITLE
Operations Director

Tom Walder

TITLE
Chief Technical Officer
TENURE
3.3 yrs

Charlotte Mahon

TITLE
Human Resources Director
Board of Directors

Ken Ford

TITLE
Non-Executive Chairman
COMPENSATION
£38K
AGE
69

Andrew Wass

TITLE
CEO & Executive Director
COMPENSATION
£239K
AGE
48

Chris Scott

TITLE
CFO, Company Secretary & Executive Director
COMPENSATION
£195K
AGE
43

Gareth Bevan

TITLE
Chief Commercial Officer & Executive Director
COMPENSATION
£186K
AGE
41

Dean Murray

TITLE
Non-Executive Director
COMPENSATION
£35K
AGE
56
TENURE
8.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess Gear4music (Holdings)'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. Gear4music (Holdings) 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

Is Gear4music (Holdings) (LON:G4M) Using Too Much Debt?

See our latest analysis for Gear4music (Holdings) What Is Gear4music (Holdings)'s Net Debt? … AIM:G4M Historical Debt, August 16th 2019 A Look At Gear4music (Holdings)'s Liabilities We can see from the most recent balance sheet that Gear4music (Holdings) had liabilities of UK£20.1m falling due within a year, and liabilities of UK£5.42m due beyond that. … Our View To be frank both Gear4music (Holdings)'s conversion of EBIT to free cash flow and its track record of (not) growing its EBIT make us rather uncomfortable with its debt levels.

Simply Wall St -

Does Gear4music (Holdings) plc's (LON:G4M) CEO Pay Compare Well With Peers?

The CEO of Gear4music (Holdings) plc (LON:G4M) is Andrew Wass. … See our latest analysis for Gear4music (Holdings) How Does Andrew Wass's Compensation Compare With Similar Sized Companies? … Our data indicates that Gear4music (Holdings) plc is worth UK£45m, and total annual CEO compensation is UK£200k.

Simply Wall St -

How Financially Strong Is Gear4music (Holdings) plc (LON:G4M)?

While small-cap stocks, such as Gear4music (Holdings) plc (LON:G4M) with its market cap of UK£39m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

Gear4music (Holdings) plc (LON:G4M) Might Not Be A Great Investment

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Is Gear4music (Holdings) plc (LON:G4M) Overpaying Its CEO?

How Does Andrew Wass's Compensation Compare With Similar Sized Companies. … According to our data, Gear4music (Holdings) plc has a market capitalization of UK£41m, and pays its CEO total annual compensation worth UK£200k. … We examined a group of similar sized companies, with market capitalizations of below UK£153m

Simply Wall St -

Is Gear4music (Holdings) plc's (LON:G4M) 5.5% ROE Worse Than Average?

To keep the lesson grounded in practicality, we'll use ROE to better understand Gear4music (Holdings) plc (LON:G4M). … Check out our latest analysis for Gear4music (Holdings)? … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Here's What Gear4music (Holdings) plc's (LON:G4M) P/E Is Telling Us

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … To keep it practical, we'll show how Gear4music (Holdings) plc's (LON:G4M) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Gear4music (Holdings) plc (LON:G4M): Time For A Financial Health Check

Gear4music (Holdings) plc (LON:G4M) is a small-cap stock with a market capitalization of UK£109m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Will Gear4music (Holdings) plc (LON:G4M) Continue To Underperform Its Industry?

Our data shows Gear4music (Holdings) has a return on equity of 7.3% for the last year. … That means that for every £1 worth of shareholders' equity, it generated £0.073 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Do Analysts See Gear4music (Holdings) plc (LON:G4M) Performing In The Next Couple Of Years?

Gear4music (Holdings) plc's (LON:G4M) latest earnings announcement in February 2018a … signalled

Simply Wall St -

Company Info

Description

Gear4music (Holdings) plc engages in the retail of musical instruments and equipment in Europe and internationally. It offers electric, acoustic, and bass guitars; guitar amplifiers and effects pedals; drums and percussion products, including electronic drums; drum pads, hybrid drumming products, acoustic drum kits, individual drums, cymbals, snare drums, drum hardware products, drum accessories, and various percussion products; and pianos and keyboards, such as digital, stage, and grand pianos, as well as MIDI keyboards, synth key products, and accessories. It also provides orchestral products, such as woodwind and string instruments, electric strings, brass instruments, and percussion products, as well as woodwind, string, and brass accessories. In addition, it offers live sound and lighting products comprising PA systems and speakers, signal processors, microphones, wireless systems, in-ear monitors, PA mixers, headphones, DI boxes, audio recorders, live sound accessories, staging and trussing products, stage lightings and accessories, lighting controllers and effects, and effects machines; and studio and production recording equipment, such as audio interfaces and mixers, studio outboards and monitors, audio computers, studio headphones, controllers, music software, microphones, synthesizers, modular synths, sequencers, samplers, drum machines, and studio and synth accessories. Further, it provides DJ decks, mixers, effects units, controllers, headphones, and furniture, as well as scratch and mobile DJ products, and vinyl accessories; and home audio products comprising headphones, portable audio and hi-fi products, and cinema products. It serves private individuals and professional musicians under various brand names through 20 Gear4music branded Websites; and showrooms in York, Sweden, and Germany. The company was founded in 1995 and is headquartered in York, the United Kingdom.

Details
Name: Gear4music (Holdings) plc
G4M
Exchange: AIM
Founded: 1995
£42,937,922
20,945,328
Website: http://www.gear4music.com
Address: Gear4music (Holdings) plc
Holgate Park Drive,
York,
North Yorkshire, YO26 4GN,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM G4M Ordinary Shares London Stock Exchange AIM Market GB GBP 03. Jun 2015
Number of employees
Current staff
Staff numbers
431
Gear4music (Holdings) employees.
Industry
Specialty Stores
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/05 00:04
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/03/11
Last earnings filing: 2019/08/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


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.