Gattaca (GATC) AI Stock Analysis

• Market Cap: £24.27M
• Dividend Yield: 2.6%
• Average Volume (3M): 20.03K
• Price to Earnings (P/E): 40.5
• Beta (1Y): 0.17
• Revenue Growth: 4.14%
• EPS Growth: -45.24%
• Country: UK
• Employees: 386
• Sector: Industrials
• Sector Strength: 85
• Industry: Staffing & Employment Services
• EPS (TTM): 0.02
• Shares Outstanding: 31,516,870
• 10 Day Avg. Volume: 30,425
• 30 Day Avg. Volume: 20,027
• PEG Ratio: 0.19
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.18
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: 79.00p ▲(2.60%Upside)

Gattaca's overall score is moderated by challenges in profitability and cash flow management. Technical indicators suggest weak momentum, while valuation metrics point to overvaluation concerns. However, strategic initiatives and resilience in key sectors provide some optimism for future performance.

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's income statement reveals modest revenue growth but faces challenges in profitability and operational efficiency. The balance sheet is stable with low leverage, but significant declines in cash flow management pose 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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 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
	EBIT
2.96M	1.08M	2.09M	192.00K	1.41M	5.60M
	EBITDA
3.72M	3.37M	6.03M	-2.26M	3.46M	6.60M
	Net Income Common Stockholders
598.00K	186.00K	1.23M	-4.62M	-437.00K	-1.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
27.08M	22.82M	23.38M	17.77M	29.24M	34.80M
	Total Assets
94.17M	81.22M	81.38M	84.37M	109.10M	105.41M
	Total Debt
11.30M	2.07M	1.82M	5.43M	15.11M	15.19M
	Net Debt
-15.78M	-20.75M	-21.55M	-12.34M	-14.13M	-19.61M
	Total Liabilities
54.30M	52.91M	50.56M	53.91M	74.00M	65.64M
	Stockholders Equity
39.87M	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: Negative
• Last Price: 77.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GATC, the sentiment is Negative. The current price of 77 is below the 20-day moving average (MA) of 79.70, below the 50-day MA of 78.43, and below the 200-day MA of 82.90, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 40.69 is Neutral, neither overbought nor oversold. The STOCH value of 42.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GATC.

Gattaca Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STEM	72 Outperform	£300.57M	6.37	21.08%	5.68%	-10.24%	-11.60%
STAF	71 Outperform	£56.30M	―	8.52%	―	5.83%	19.29%
RTC	69 Neutral	£12.24M	7.49	23.50%	10.26%	-2.04%	2.36%
Sector *	66 Neutral	$4.49B	12.22	5.40%	3.71%	4.17%	-11.97%
RWA	56 Neutral	£142.42M	29.69	-3.96%	16.35%	-16.16%	-145.46%
GATC	56 Neutral	£24.27M	40.53	3.66%	2.60%	4.14%	-45.24%
EMR	46 Neutral	£13.08M	―	-34.21%	3.51%	-1.64%	-255.16%

Gattaca Corporate Events

Gattaca Reports Robust Interim Results Amid Market Challenges

Gattaca plc announced its interim results for the six months ending January 31, 2025, reporting a robust performance despite challenging market conditions. The company declared an interim dividend of 1.00 pence per share, with a slight adjustment to the payment date. The results highlighted a 3% decrease in net fee income year-on-year, with notable growth in the energy and infrastructure sectors. Gattaca’s strategic focus on expanding its contractor base and improving operational efficiency has shown resilience against macroeconomic headwinds. The company remains confident in achieving its full-year profit expectations, driven by strategic investments and a focus on core markets.

Gattaca Reports Resilient Interim Results Amid Market Challenges

Gattaca plc reported its interim financial results for the six months ending January 31, 2025, highlighting a robust performance despite challenging market conditions. The company experienced a 3% decrease in Net Fee Income (NFI) year-on-year, with notable growth in the energy and infrastructure sectors. Strategic investments in headcount and digital transformation have begun to yield positive results, with improvements in operational efficiency and client feedback. Despite macroeconomic headwinds affecting recruitment timelines, Gattaca remains focused on expanding its contractor base and maintaining cost discipline, aiming to meet its full-year profit expectations.