Gattaca (GATC) AI Stock Analysis

• Market Cap: £28.52M
• Dividend Yield: 3.87%
• Average Volume (3M): 15.89K
• Price to Earnings (P/E): 47.6
• Beta (1Y): 0.52
• Revenue Growth: 4.14%
• EPS Growth: -45.24%
• Country: UK
• Employees: 386
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.02
• Shares Outstanding: 31,516,870
• 10 Day Avg. Volume: 13,141
• 30 Day Avg. Volume: 15,890
• 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: £104.00
• Price Target Upside: 14.92% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: 104.00p ▲(14.92% 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 plc, a human capital resources company, provides contract and permanent recruitment services in the private and public sectors. The company operates through three segments: UK Engineering, UK Technology, and International. It offers flexible, permanent, and total workforce solutions; professional, engineering, and technology support solutions; and statement of work solutions, as well as talent mapping and insights, rate/salary benchmarking, diversity consultancy, talent attraction and employer branding, recruitment process analysis, recruitment technology, workforce compliance, workforce planning, and assessment and selection solutions. The company provides its services for the infrastructure, defense, technology, public sector technology, media and telecoms, energy, retail, manufacturing and life sciences, finance, banking and insurance, and mobility markets under the Matchtech, Networkers, Barclay Meade, Alderwood, Cappo, and Resourcing Solutions brands. It has operations in the United Kingdom, rest of Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company was formerly known as Matchtech Group plc and changed its name to Gattaca plc in September 2016. The company was founded in 1984 and is headquartered in Fareham, the United Kingdom.

How the Company Makes Money

Gattaca generates revenue primarily through its recruitment services, which include fees charged to clients for successfully placing candidates in permanent positions and ongoing contract placements. The company also earns income from its talent consultancy services, providing expertise and strategic advice to organizations on workforce management and development. Additionally, Gattaca benefits from partnerships with various industry players and organizations, which can enhance its service offerings and lead to increased business opportunities. The company’s ability to adapt to market demands and technological advancements further contributes to its revenue streams.

Gattaca Financial Statement Overview

Summary

Gattaca shows modest revenue growth but struggles with profitability and operational efficiency. The balance sheet is stable with low leverage, but significant declines in cash flow raise liquidity concerns.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	394.56M	389.53M	385.17M	403.87M	415.73M	534.71M
Gross Profit	39.34M	40.08M	43.40M	44.20M	42.08M	51.87M
EBITDA	3.72M	3.37M	6.03M	-2.26M	3.46M	6.60M
Net Income	598.00K	186.00K	1.23M	-4.62M	-437.00K	-1.78M
Balance Sheet
Total Assets	72.34M	81.22M	81.38M	84.37M	109.10M	105.41M
Cash, Cash Equivalents and Short-Term Investments	18.57M	22.82M	23.38M	17.77M	29.24M	34.80M
Total Debt	1.79M	2.07M	1.82M	5.43M	15.11M	15.19M
Total Liabilities	44.29M	52.91M	50.56M	53.91M	74.00M	65.64M
Stockholders Equity	28.05M	28.30M	30.82M	30.45M	35.11M	39.77M
Cash Flow
Free Cash Flow	-2.78M	3.24M	9.36M	-1.60M	-4.62M	54.88M
Operating Cash Flow	-2.68M	3.40M	9.54M	-1.20M	-4.20M	57.41M
Investing Cash Flow	-25.00K	-31.00K	-48.00K	-399.00K	-415.00K	-2.25M
Financing Cash Flow	-2.17M	-3.49M	-3.69M	-10.06M	-598.00K	-38.52M

Gattaca Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 90.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GATC, the sentiment is Neutral. The current price of 90.5 is below the 20-day moving average (MA) of 94.78, below the 50-day MA of 94.21, and above the 200-day MA of 83.32, indicating a neutral trend. The MACD of -1.15 indicates Positive momentum. The RSI at 33.52 is Neutral, neither overbought nor oversold. The STOCH value of 12.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:GATC.

Gattaca Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RTC	64 Neutral	£11.61M	6.57	23.39%	6.71%	-6.12%	4.30%
GATC	64 Neutral	£28.52M	47.63	3.66%	3.87%	4.14%	-45.24%
STAF	64 Neutral	£49.36M	12.69	-20.05%	―	1.44%	―
STEM	62 Neutral	£201.19M	7.26	19.99%	6.62%	-13.93%	-48.74%
RWA	46 Neutral	£88.33M	-5.73	-4.33%	13.43%	-14.31%	-361.93%
EMR	46 Neutral	£15.51M	-2.01	―	―	-1.70%	-29.90%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.