Gear4music (Holdings) (G4M) AI Stock Analysis

• Market Cap: £24.65M
• Dividend Yield: N/A
• Average Volume (3M): 15.32K
• Price to Earnings (P/E): 25.1
• Beta (1Y): 1.00
• Revenue Growth: -3.30%
• EPS Growth: N/A
• Country: UK
• Employees: 484
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Specialty Retail
• EPS (TTM): 0.05
• Shares Outstanding: 20,976,938
• 10 Day Avg. Volume: 26,055
• 30 Day Avg. Volume: 15,318
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.20
• Price to Cash Flow (P/CF): 42.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Gear4music has a moderate overall score, reflecting a mixed outlook. The company's stable financial health is offset by the need for revenue growth and a bearish technical trend. While the stock appears overvalued, recent positive corporate events suggest potential for long-term growth if revenue enhancement strategies are successful.

Gear4music (Holdings) Business Overview & Revenue Model

Company Description

Gear4music (Holdings) (G4M) is a leading UK-based retailer of musical instruments and music equipment. The company operates in the e-commerce and retail sectors, offering a comprehensive range of music products, including guitars, drums, digital pianos, studio equipment, and accessories, to a global customer base through its online platform and showrooms.

How the Company Makes Money

Gear4music makes money primarily through the sale of musical instruments and related equipment via its e-commerce platform. The company generates revenue by offering a wide range of branded and own-brand products, catering to various price points and customer preferences. Key revenue streams include direct sales through their website, as well as partnerships with suppliers and brands that provide exclusive or specialized product offerings. Additionally, Gear4music benefits from economies of scale in logistics and distribution, enhancing its profitability. The company also engages in targeted marketing and customer service initiatives to drive sales and maintain a loyal customer base.

Gear4music (Holdings) Financial Statement Overview

Summary

Gear4music exhibits a mixed financial performance. The income statement shows a need for revenue growth amidst improving profitability metrics. The balance sheet remains stable with manageable leverage and a strong equity base. Cash flow demonstrates robust operational cash generation but highlights challenges in investment and financing activities. The company needs to focus on sustainable revenue growth and efficient capital allocation to enhance its financial standing.

Income Statement

The company demonstrates a mixed financial performance in its income statement. Gross profit margin has remained relatively stable, but revenue growth has fluctuated, with a decline in the most recent year. Net profit margin improved from a negative position to a positive, albeit low, level. EBIT and EBITDA margins show modest improvement, indicating some operational efficiency gains. However, overall revenue has decreased compared to previous years, indicating a need for growth strategies.

Balance Sheet

The balance sheet shows a stable equity position with a favorable debt-to-equity ratio, suggesting manageable leverage. Return on equity has fluctuated, reflecting inconsistent profitability. The equity ratio is stable, indicating a reasonable proportion of assets financed by equity. While the company has reduced its total assets, it maintains a strong equity base, which is a positive indicator of financial health.

Cash Flow

The cash flow statement reveals positive operating cash flow, with a consistent ability to generate cash from operations. Free cash flow growth is positive, although it has fluctuated over the years. The operating cash flow to net income ratio is strong, indicating effective cash conversion. However, cash flow from investing and financing activities shows significant outflows, suggesting investment and debt repayment challenges.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
143.49M	144.38M	152.04M	147.63M	157.45M	120.33M
	Gross Profit
38.95M	39.44M	39.04M	41.13M	46.35M	31.16M
	EBIT
3.20M	2.76M	1.29M	6.07M	15.41M	4.07M
	EBITDA
4.33M	9.26M	7.18M	11.05M	19.61M	7.60M
	Net Income Common Stockholders
982.00K	651.00K	-644.00K	3.72M	12.64M	2.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.70M	4.70M	4.46M	3.90M	6.20M	7.84M
	Total Assets
75.20M	75.20M	84.61M	94.27M	67.74M	61.62M
	Total Debt
21.39M	21.39M	27.60M	37.68M	12.89M	24.05M
	Net Debt
16.70M	16.70M	23.14M	33.78M	6.69M	16.22M
	Total Liabilities
36.83M	36.83M	47.38M	56.23M	33.42M	40.01M
	Stockholders Equity
38.37M	38.37M	37.23M	38.04M	34.31M	21.61M
Cash Flow		Free Cash Flow
10.12M	10.72M	13.39M	-16.82M	10.54M	3.91M
	Operating Cash Flow
10.39M	14.62M	19.71M	-7.59M	14.89M	7.47M
	Investing Cash Flow
-4.74M	-3.86M	-6.70M	-16.50M	-4.54M	-3.91M
	Financing Cash Flow
-6.54M	-10.51M	-12.41M	21.81M	-11.98M	-992.00K

Gear4music (Holdings) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 117.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:G4M, the sentiment is Negative. The current price of 117.5 is below the 20-day moving average (MA) of 125.60, below the 50-day MA of 139.44, and below the 200-day MA of 162.46, indicating a bearish trend. The MACD of -3.64 indicates Negative momentum. The RSI at 10.90 is Positive, neither overbought nor oversold. The STOCH value of 42.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:G4M.

Gear4music (Holdings) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JD	77 Outperform	£3.81B	11.80	14.67%	1.27%	2.85%	61.98%
SRP	67 Neutral	£1.60B	37.79	4.71%	2.29%	-0.68%	-78.93%
G4M	64 Neutral	£24.65M	25.11	2.68%	―	-3.30%	―
FOUR	64 Neutral	£863.49M	9.41	72.38%	5.70%	0.33%	7.13%
Sector *	59 Neutral	$11.38B	10.18	-0.84%	4.04%	1.25%	-16.04%
DEBS	48 Neutral	£281.26M	―	-96.36%	―	-16.32%	-202.39%

Gear4music (Holdings) Corporate Events

Gear4music CEO Increases Stake with Share Purchase

Gear4music (Holdings) plc announced that its CEO, Gareth Bevan, has purchased 12,682 ordinary shares of the company, increasing his total shareholding to 104,267 shares, which represents 0.5% of the company’s total issued share capital. This transaction, conducted on the London Stock Exchange’s AIM Market, reflects a vote of confidence in the company’s future prospects and may positively influence investor sentiment, potentially impacting the company’s market position and stakeholder interests.

Spark’s Take on GB:G4M Stock

According to Spark, TipRanks’ AI Analyst, GB:G4M is a Neutral.

Gear4music (Holdings) has a moderate overall score of 60.6, reflecting a mixed outlook. The company shows stable financial health with a need for enhanced revenue growth strategies. Technical analysis indicates a bearish trend, suggesting potential caution in the short term. While the valuation appears high, recent corporate events demonstrate resilient sales growth amid competitive pressures, offering a positive long-term outlook if growth strategies are successfully implemented.

To see Spark’s full report on GB:G4M stock, click here.

Gear4music Director Increases Shareholding, Reflecting Confidence in Market Position

On April 9, 2025, Sharon Daly, a Non-Executive Director at Gear4music (Holdings) plc, purchased 9,341 ordinary shares at 107 pence each, bringing her total shareholding to 0.04% of the company’s issued share capital. This transaction highlights the confidence of the company’s board members in its market positioning and potential growth, potentially impacting investor perceptions positively.

Spark’s Take on GB:G4M Stock

According to Spark, TipRanks’ AI Analyst, GB:G4M is a Neutral.

Gear4music (Holdings) has a moderate overall score of 60.6, reflecting a mixed outlook. The company shows stable financial health with a need for enhanced revenue growth strategies. Technical analysis indicates a bearish trend, suggesting potential caution in the short term. While the valuation appears high, recent corporate events demonstrate resilient sales growth amid competitive pressures, offering a positive long-term outlook if growth strategies are successfully implemented.

To see Spark’s full report on GB:G4M stock, click here.

Gear4music Reports Growth Amid Competitive Pressures

Gear4music reported a year-end trading update for the 12 months to 31 March 2025, showing a 2% increase in total sales to £146.7 million, driven by a 9% growth in UK sales despite an 8% decline in European and Rest of the World sales. The company achieved a stable gross margin and improved EBITDA and profit before tax, alongside a reduction in net bank debt. Despite challenges from aggressive discounting by competitors, the company experienced improved sales in late March and is optimistic about its growth strategy and market positioning for FY26.

Gear4music Announces Major Shareholder Change

On February 12, 2025, Gear4music (Holdings) PLC announced a change in major holdings as River Global Investors LLP acquired a significant 5.0623% voting rights in the company. This acquisition highlights a shift in stakeholder dynamics, potentially influencing the company’s strategic decisions and market positioning.

Gear4music Achieves Revenue Growth Amid Challenging Market Conditions

Gear4music reported a 6% increase in revenue during the peak trading period ending December 31, 2024, aligning with board expectations despite a challenging consumer market. The company achieved a strong gross margin of 28.1% and improved gross profit, reflecting the effectiveness of its growth strategy. With revenues concentrated in the three weeks before Christmas due to a late Black Friday, the company is optimistic about continued profitable growth in FY26.