Gamma Communications (GAMA) AI Stock Analysis

• Market Cap: £820.52M
• Dividend Yield: 2.23%
• Average Volume (3M): 432.00K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.59
• Revenue Growth: 11.46%
• EPS Growth: -3.50%
• Country: UK
• Employees: 1,926
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.94
• Shares Outstanding: 90,748,110
• 10 Day Avg. Volume: 280,888
• 30 Day Avg. Volume: 431,999
• PEG Ratio: -3.19
• Price to Book (P/B): 2.24
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 10.41
• 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: £1,485.00
• Price Target Upside: 72.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.93
• Revenue Forecast (FY): £665.07M

• Rating: 67 Neutral
• Price Target: 981.00 p ▲(14.12% Upside)
• Action: Reiterated Date: 03/25/26
• Date: Action: Reiterated 03/25/26

Positive Factors

Recurring, partner-led revenue model

Gamma's partner/channel distribution and owned network/platforms create durable, recurring revenue streams and lower direct sales cost. This model supports predictable cash flows, scalable unit economics, and resilient customer retention in SMB and public sectors, sustaining revenue visibility over the medium term.

Negative Factors

Margin compression

Erosion in net and operating margins relative to 2020 suggests Gamma's growth has come with profitability trade-offs. Persistent margin pressure would reduce return on invested capital, constrain reinvestment and dividend capacity, and weaken the firm's ability to absorb cost inflation over the medium term.

Gamma Communications Business Overview & Revenue Model

Company Description

Gamma Communications plc provides communications and software services for small, medium, and large sized business. It offers strategic services, such as collaboration, cloud PBX, SIP trunking, and inbound call control services; enabling services,...

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Gamma Communications plc provides communications and software services for small, medium, and large sized business. It offers strategic services, such as collaboration, cloud PBX, SIP trunking, and inbound call control services; enabling services,...

How the Company Makes Money

Gamma makes money by selling recurring and usage-based communications services to business customers, largely via a partner/channel ecosystem (e.g., resellers, managed service providers, and systems integrators) that sources and manages end custom...

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Gamma makes money by selling recurring and usage-based communications services to business customers, largely via a partner/channel ecosystem (e.g., resellers, managed service providers, and systems integrators) that sources and manages end custom...

Gamma Communications Financial Statement Overview

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	645.80M	579.40M	521.70M	484.60M	447.70M
Gross Profit	308.20M	300.30M	235.90M	220.50M	201.40M
EBITDA	101.50M	129.70M	103.30M	106.00M	95.50M
Net Income	64.90M	69.80M	53.60M	49.30M	53.60M
Balance Sheet
Total Assets	621.30M	528.00M	474.80M	406.80M	361.80M
Cash, Cash Equivalents and Short-Term Investments	23.70M	153.70M	136.50M	94.60M	52.80M
Total Debt	50.60M	7.90M	11.70M	13.20M	15.20M
Total Liabilities	236.30M	155.30M	130.60M	107.10M	107.60M
Stockholders Equity	385.80M	372.50M	345.10M	301.10M	258.70M
Cash Flow
Free Cash Flow	82.90M	73.70M	85.20M	64.70M	59.30M
Operating Cash Flow	87.70M	92.90M	108.20M	85.40M	76.10M
Investing Cash Flow	-169.00M	-27.50M	-40.90M	-30.40M	-66.00M
Financing Cash Flow	-49.80M	-47.60M	-25.20M	-13.70M	-11.20M

Gamma Communications Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 859.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GAMA, the sentiment is Positive. The current price of 859.6 is above the 20-day moving average (MA) of 798.79, above the 50-day MA of 850.76, and below the 200-day MA of 953.74, indicating a neutral trend. The MACD of 11.11 indicates Negative momentum. The RSI at 65.27 is Neutral, neither overbought nor oversold. The STOCH value of 95.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:GAMA.

Gamma Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BT.A	69 Neutral	£21.09B	21.91	2.32%	4.42%	-2.53%	24.52%
GAMA	67 Neutral	£820.52M	13.30	13.14%	2.23%	11.46%	-3.50%
VOD	63 Neutral	£27.03B	7.41	-8.37%	3.74%	16.13%	-279.78%
AAF	63 Neutral	£12.93B	24.62	20.03%	1.50%	21.86%	761.72%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
ZEG	57 Neutral	£4.00B	-94.82	-35.13%	―	―	―
MAI	44 Neutral	£17.23M	-9.06	-2.48%	―	-2.66%	86.10%

Gamma Communications Corporate Events