Gattaca (GATC) AI Stock Analysis

• Market Cap: £30.73M
• Dividend Yield: 3.5%
• Average Volume (3M): 30.93K
• Price to Earnings (P/E): 51.3
• Beta (1Y): 0.37
• Revenue Growth: 4.14%
• EPS Growth: -45.24%
• Country: UK
• Employees: 386
• Sector: Industrials
• Sector Strength: 84
• Industry: Staffing & Employment Services
• EPS (TTM): 0.02
• Shares Outstanding: 31,516,870
• 10 Day Avg. Volume: 45,169
• 30 Day Avg. Volume: 30,932
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• 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: £96.00
• Price Target Upside: -1.54% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: 104.00p ▲(6.67% Upside)

Gattaca's overall score is driven by strong technical momentum and strategic corporate actions, such as the acquisition of Infosec. However, financial performance and valuation concerns, particularly high P/E ratio and cash flow issues, weigh on the score.

Gattaca Business Overview & Revenue Model

Company Description

Gattaca (GATC) is a global recruitment company specializing in engineering and technology sectors. The company focuses on providing high-quality recruitment services, placing skilled professionals in roles across various industries, including infrastructure, energy, automotive, and information technology. Gattaca is known for its expertise in matching client requirements with talented candidates, thereby ensuring optimal workforce solutions.

How the Company Makes Money

Gattaca makes money primarily through recruitment services by charging fees for successfully placing candidates in temporary and permanent roles. The company earns revenue from both clients who need to fill positions and candidates seeking employment opportunities. A significant portion of Gattaca's income comes from contract placements, where they provide temporary staff to clients, charging a markup on the employee's salary. Permanent placements also contribute to revenue through one-time fees based on a percentage of the candidate's first-year salary. Additionally, Gattaca has developed strategic partnerships with companies and organizations across its sectors, enhancing its ability to secure long-term contracts and preferred supplier agreements, further stabilizing its revenue stream.

Gattaca Financial Statement Overview

Summary

Gattaca exhibits modest revenue growth but faces challenges in profitability and operational efficiency. The balance sheet remains stable with low leverage, but cash flow management poses concerns with significant declines, impacting liquidity. The company may need to focus on improving margins and cash flow generation to enhance financial performance.

Income Statement

Gattaca's income statement reveals modest revenue growth of 1.13% in the most recent annual period. The gross profit margin stands at 10.29%, indicating some pressure on cost management. The net profit margin is low at 0.05%, reflecting challenges in translating revenue to net income. EBIT and EBITDA margins are also low at 0.28% and 0.86%, respectively, suggesting limited operational efficiency and profitability.

Balance Sheet

The balance sheet shows a solid equity base with a debt-to-equity ratio of 0.07, highlighting low leverage and financial stability. The return on equity (ROE) is weak at 0.66%, indicating limited earnings relative to shareholder investment. The equity ratio is 34.83%, reflecting a balanced approach to financing between equity and liabilities.

Cash Flow

Gattaca's cash flow statement reveals a significant decline in operating cash flow, with a 64.41% drop from the previous year. The free cash flow has also decreased by 65.45%, suggesting potential challenges in liquidity management. The operating cash flow to net income ratio is 18.26, indicating reliance on cash flow for profitability. The free cash flow to net income ratio is 17.40, further emphasizing this dependency.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	389.53M	385.17M	403.87M	415.73M	534.71M
Gross Profit	40.08M	43.40M	44.20M	42.08M	51.87M
EBITDA	3.37M	6.03M	-2.26M	3.46M	6.60M
Net Income	186.00K	1.23M	-4.62M	-437.00K	-1.78M
Balance Sheet
Total Assets	81.22M	81.38M	84.37M	109.10M	105.41M
Cash, Cash Equivalents and Short-Term Investments	22.82M	23.38M	17.77M	29.24M	34.80M
Total Debt	2.07M	1.82M	5.43M	15.11M	15.19M
Total Liabilities	52.91M	50.56M	53.91M	74.00M	65.64M
Stockholders Equity	28.30M	30.82M	30.45M	35.11M	39.77M
Cash Flow
Free Cash Flow	3.24M	9.36M	-1.60M	-4.62M	54.88M
Operating Cash Flow	3.40M	9.54M	-1.20M	-4.20M	57.41M
Investing Cash Flow	-31.00K	-48.00K	-399.00K	-415.00K	-2.25M
Financing Cash Flow	-3.49M	-3.69M	-10.06M	-598.00K	-38.52M

Gattaca Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 97.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GATC, the sentiment is Positive. The current price of 97.5 is above the 20-day moving average (MA) of 87.35, above the 50-day MA of 82.05, and above the 200-day MA of 81.17, indicating a bullish trend. The MACD of 4.36 indicates Negative momentum. The RSI at 79.83 is Negative, neither overbought nor oversold. The STOCH value of 87.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:GATC.

Gattaca Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RTC	72 Outperform	£12.87M	7.29	23.32%	6.26%	-6.12%	4.30%
STAF	68 Neutral	£54.38M	13.90	44.68%	―	1.44%	―
GATC	64 Neutral	£30.73M	51.32	3.66%	3.50%	4.14%	-45.24%
Sector *	64 Neutral	$10.64B	16.01	5.48%	2.12%	2.72%	-24.90%
STEM	62 Neutral	£262.92M	9.49	12.99%	4.98%	-13.93%	-48.74%
RWA	46 Neutral	£89.01M	29.69	-11.22%	13.38%	-14.31%	-361.93%
EMR	46 Neutral	£22.29M	―	-34.21%	3.51%	-1.64%	-255.16%

Gattaca Corporate Events

Gattaca Reports Solid FY25 Performance and Acquires Infosec

Gattaca plc reported a solid financial performance for the fiscal year ending July 31, 2025, with net fee income slightly declining but profitability improving due to cost management and productivity enhancements. The company announced the acquisition of Infosec People Limited, a cyber security recruitment consultancy, to strengthen its position in the growing cyber security sector, which is expected to enhance its service offerings and market impact.

Gattaca Initiates EBT Share Purchase Programme

Gattaca has announced an Employee Benefit Trust (EBT) Share Purchase Programme, authorizing the acquisition of up to 480,000 additional shares between August 2025 and July 2026. This move is aimed at managing the company’s share requirements in alignment with the vesting schedule of existing options and anticipated new grants, potentially impacting its market positioning and stakeholder interests.

Gattaca CFO Exercises Long Term Incentive Plan Options

Gattaca announced that its Chief Financial Officer, Oliver Whittaker, has exercised 20,610 Long Term Incentive Plan Options, resulting in an increase in his beneficial holdings to 28,475 Ordinary Shares, which constitutes approximately 0.10% of the company’s issued share capital. This transaction highlights the company’s commitment to incentivizing its leadership, potentially impacting its market perception and stakeholder confidence.