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Gear4music (Holdings) PLC (GB:G4M)
LSE:G4M
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Gear4music (Holdings) (G4M) AI Stock Analysis

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GB:G4M

Gear4music (Holdings)

(LSE:G4M)

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Neutral 63 (OpenAI - 4o)
Rating:63Neutral
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) (G4M) vs. iShares MSCI United Kingdom ETF (EWC)

Gear4music (Holdings) Business Overview & Revenue Model

Company DescriptionGear4music (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 MoneyGear4music 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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue146.72M146.72M144.38M152.04M147.63M157.45M
Gross Profit37.55M39.66M39.44M39.04M41.13M46.35M
EBITDA7.10M9.98M9.26M7.18M11.05M19.61M
Net Income832.00K832.00K651.00K-644.00K3.72M12.64M
Balance Sheet
Total Assets81.37M81.37M75.20M84.61M94.27M67.74M
Cash, Cash Equivalents and Short-Term Investments5.58M5.58M4.70M4.46M3.90M6.20M
Total Debt19.81M19.81M21.39M27.60M37.68M12.89M
Total Liabilities42.07M42.07M36.83M47.38M56.23M33.42M
Stockholders Equity39.30M39.30M38.37M37.23M38.04M34.31M
Cash Flow
Free Cash Flow6.92M4.23M10.72M13.39M-16.82M10.54M
Operating Cash Flow7.26M8.26M14.62M19.71M-7.59M14.89M
Investing Cash Flow-4.03M-3.92M-3.86M-6.70M-16.50M-4.54M
Financing Cash Flow-1.69M-3.47M-10.51M-12.41M21.81M-11.98M

Gear4music (Holdings) Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price286.00
Price Trends
50DMA
282.10
Positive
100DMA
248.59
Positive
200DMA
195.88
Positive
Market Momentum
MACD
2.59
Positive
RSI
46.98
Neutral
STOCH
44.96
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
£38.70M21.124.56%17.79%18.96%
63
Neutral
£61.46M73.802.14%1.62%28.06%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
60
Neutral
£36.72M36.6311.06%11.04%64.29%
55
Neutral
£26.69M3.0563.08%-1.96%28.69%
51
Neutral
£14.89M72.73-3.01%-19.76%4.35%
43
Neutral
£53.36M-32.04%-10.23%-380.84%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:G4M
Gear4music (Holdings)
286.00
118.50
70.75%
GB:IGR
IG Design
56.00
-71.00
-55.91%
GB:SOS
Sosandar PLC
6.75
-3.50
-34.15%
GB:ANG
Angling Direct Plc
53.50
17.50
48.61%
GB:WRKS
TheWorks.co.uk plc
42.00
18.75
80.65%
GB:PROC
ProCook Group PLC
34.30
1.30
3.94%

Gear4music (Holdings) Corporate Events

Business Operations and StrategyFinancial Disclosures
Gear4music Reports Strong Revenue Growth and Upgrades Market Expectations
Positive
Oct 14, 2025

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.

Business Operations and StrategyShareholder Meetings
Gear4music Secures Shareholder Approval at AGM
Positive
Sep 5, 2025

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.

Business Operations and StrategyFinancial Disclosures
Gear4music Reports Strong Revenue Growth and Raises Financial Expectations
Positive
Sep 5, 2025

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.

Financial DisclosuresShareholder Meetings
Gear4music Releases Annual Report and Schedules AGM
Neutral
Aug 13, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025