Gear4music (Holdings) (G4M) AI Stock Analysis

• Market Cap: £61.46M
• Dividend Yield: N/A
• Average Volume (3M): 53.94K
• Price to Earnings (P/E): 73.8
• Beta (1Y): 1.24
• Revenue Growth: 1.62%
• EPS Growth: 28.06%
• Country: UK
• Employees: 484
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.10
• Shares Outstanding: 20,976,938
• 10 Day Avg. Volume: 97,106
• 30 Day Avg. Volume: 53,943
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £274.00
• Price Target Upside: -4.20% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: 274.00p ▼(-4.20% Downside)

The overall stock score reflects mixed financial performance with improved revenue and operational efficiency but low profitability and weak cash flow. Technical analysis shows a positive trend, while a high P/E ratio suggests potential overvaluation.

Gear4music (Holdings) Business Overview & Revenue Model

Company Description

Gear4music (Holdings) plc engages in the retail of musical instruments and equipment in the United Kingdom, rest of Europe, and internationally. The company provides electric, acoustic, and bass guitars, and related accessories, such as guitar amplifiers and effects pedals; drums and percussion products consisting electronic drums, acoustic drum kits, drum pads, hybrid drumming products, cymbals, snare drums, individual drums, and drum hardware and accessories, such as noise controllers, parts and spares, and drumsticks; and pianos and keyboards, such as digital, stage, hybrid, and grand pianos, as well as MIDI keyboards, synth key products, and accessories. It also provides orchestral instruments, such as woodwind, string, electric strings, brass and world instruments, and percussion products, as well as related accessories. In addition, the company offers live sound and lighting products comprising PA systems and speakers, microphones, wireless systems, monitoring systems and related products, mixers, recorders, accessories, lights, head lights, and lighting controllers and effects, and haze, fog and smoke, and bubble effects machines; and studio and production recording equipment, such as audio interfaces, monitors, microphones, mixers, controllers, synthesizers, headphones, outboards, audio computers, drum machines, furniture, and synth accessories, as well as studio software, sequencers, samplers, and drum machines. Further, it provides DJ equipment, such as controllers, decks, mixers, headphones, effects units, controllers, and furniture, as well as scratch and mobile DJ products, and vinyl accessories; and home audio products comprising headphones, portable audio, podcasting, turntables, Hi-Fi, home cinema, and installation products. It serves private individuals and professional musicians through 20 Gear4music branded websites and showrooms in 15 languages in York, Sweden, and Germany. The company was founded in 1995 and is headquartered in York, the United Kingdom.

How the Company Makes Money

Gear4music generates revenue primarily through the sale of musical instruments and equipment via its e-commerce platform. The company operates a direct-to-consumer model, which allows it to sell products at competitive prices while maintaining healthy profit margins. Key revenue streams include direct sales of musical instruments, accessories, and pro audio equipment, as well as sales from its private label products. Additionally, Gear4music benefits from partnerships with various manufacturers and suppliers that enable it to offer exclusive products and competitive pricing. The company's membership in the music retail community and its focus on customer service, including fast delivery and flexible return policies, also contribute to its earnings by enhancing customer loyalty and repeat business.

Gear4music (Holdings) Financial Statement Overview

Summary

Gear4music shows mixed financial performance. Revenue growth and operational efficiency have improved, but profitability is low with a net profit margin of 0.57%. The balance sheet is strengthening with a better debt-to-equity ratio, but weak cash flow generation poses potential liquidity risks.

Income Statement

Gear4music has shown modest revenue growth of 2.26% in the latest year, recovering from a decline in the previous period. The gross profit margin remains stable at around 27%, indicating consistent cost management. However, the net profit margin is low at 0.57%, reflecting limited profitability. The EBIT and EBITDA margins have improved slightly, suggesting better operational efficiency.

Balance Sheet

The company has improved its debt-to-equity ratio to 0.50, indicating a more balanced capital structure compared to previous years. Return on equity has increased to 2.12%, showing better utilization of shareholder funds. The equity ratio stands at approximately 48.3%, suggesting a solid equity base relative to total assets.

Cash Flow

Free cash flow has decreased significantly by 58.17%, raising concerns about cash generation. The operating cash flow to net income ratio is 0.38, indicating that cash flow from operations is not fully covering net income. The free cash flow to net income ratio is 0.51, suggesting some challenges in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	146.72M	146.72M	144.38M	152.04M	147.63M	157.45M
Gross Profit	37.55M	39.66M	39.44M	39.04M	41.13M	46.35M
EBITDA	7.10M	9.98M	9.26M	7.18M	11.05M	19.61M
Net Income	832.00K	832.00K	651.00K	-644.00K	3.72M	12.64M
Balance Sheet
Total Assets	81.37M	81.37M	75.20M	84.61M	94.27M	67.74M
Cash, Cash Equivalents and Short-Term Investments	5.58M	5.58M	4.70M	4.46M	3.90M	6.20M
Total Debt	19.81M	19.81M	21.39M	27.60M	37.68M	12.89M
Total Liabilities	42.07M	42.07M	36.83M	47.38M	56.23M	33.42M
Stockholders Equity	39.30M	39.30M	38.37M	37.23M	38.04M	34.31M
Cash Flow
Free Cash Flow	6.92M	4.23M	10.72M	13.39M	-16.82M	10.54M
Operating Cash Flow	7.26M	8.26M	14.62M	19.71M	-7.59M	14.89M
Investing Cash Flow	-4.03M	-3.92M	-3.86M	-6.70M	-16.50M	-4.54M
Financing Cash Flow	-1.69M	-3.47M	-10.51M	-12.41M	21.81M	-11.98M

Gear4music (Holdings) Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 286.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:G4M, the sentiment is Neutral. The current price of 286 is below the 20-day moving average (MA) of 293.10, above the 50-day MA of 282.10, and above the 200-day MA of 195.88, indicating a neutral trend. The MACD of 2.59 indicates Positive momentum. The RSI at 46.98 is Neutral, neither overbought nor oversold. The STOCH value of 44.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:G4M.

Gear4music (Holdings) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANG	66 Neutral	£38.70M	21.12	4.56%	―	17.79%	18.96%
G4M	63 Neutral	£61.46M	73.80	2.14%	―	1.62%	28.06%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PROC	60 Neutral	£36.72M	36.63	11.06%	―	11.04%	64.29%
WRKS	55 Neutral	£26.69M	3.05	63.08%	―	-1.96%	28.69%
SOS	51 Neutral	£14.89M	72.73	-3.01%	―	-19.76%	4.35%
IGR	43 Neutral	£53.36M	―	-32.04%	―	-10.23%	-380.84%

Gear4music (Holdings) Corporate Events

Gear4music Reports Strong Revenue Growth and Upgrades Market Expectations

Gear4music (Holdings) plc reported a 31% year-on-year revenue growth for the six months ending 30 September 2025, driven by a refreshed growth strategy that improved marketing and inventory availability. The company’s strong performance has led to an upgrade in market expectations for the fiscal year ending 31 March 2026, with EBITDA expected to exceed £13.7 million. This growth reflects a favorable competitive environment in the UK and European markets, bolstering the company’s confidence in its financial outlook despite the upcoming peak trading period.

The most recent analyst rating on (GB:G4M) stock is a Hold with a £274.00 price target. To see the full list of analyst forecasts on Gear4music (Holdings) stock, see the GB:G4M Stock Forecast page.

Gear4music Secures Shareholder Approval at AGM

Gear4music (Holdings) plc announced that all resolutions proposed at their recent Annual General Meeting were approved by shareholders. This outcome reflects shareholder confidence in the company’s strategic direction and operational management, potentially strengthening its position in the competitive musical instrument retail market.

The most recent analyst rating on (GB:G4M) stock is a Hold with a £274.00 price target. To see the full list of analyst forecasts on Gear4music (Holdings) stock, see the GB:G4M Stock Forecast page.

Gear4music Reports Strong Revenue Growth and Raises Financial Expectations

Gear4music (Holdings) plc reported a 27% increase in group revenues for Q1 FY26 compared to Q1 FY25, driven by a refreshed growth strategy and favorable market conditions in the UK and Europe. The company is optimistic about its financial performance for the year ending March 2026, with expectations of increased revenues and profits, and plans to release further trading updates in October and November 2025.

The most recent analyst rating on (GB:G4M) stock is a Hold with a £274.00 price target. To see the full list of analyst forecasts on Gear4music (Holdings) stock, see the GB:G4M Stock Forecast page.

Gear4music Releases Annual Report and Schedules AGM

Gear4music (Holdings) plc has announced the posting of its Annual Report and Accounts for the year ending 31 March 2025, along with the notice of its Annual General Meeting (AGM). The AGM is scheduled for 5 September 2025 at the company’s offices in York, indicating a routine yet significant event for stakeholders to review the company’s performance and future plans.