Gooch & Housego (GHH) AI Stock Analysis

• Market Cap: £113.46M
• Dividend Yield: 3%
• Average Volume (3M): 42.93K
• Price to Earnings (P/E): 39.7
• Beta (1Y): 0.30
• Revenue Growth: -8.41%
• EPS Growth: -31.29%
• Country: UK
• Employees: 911
• Sector: Technology
• Sector Strength: 44
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.11
• Shares Outstanding: 25,786,398
• 10 Day Avg. Volume: 39,956
• 30 Day Avg. Volume: 42,934
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.80
• Price to Cash Flow (P/CF): 5.60
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Gooch & Housego's overall score reflects its current profitability challenges and slightly negative technical outlook. However, strong order growth and positive corporate events provide a boost to the stock's potential. While valuation remains a concern, the company's strategic initiatives and order book strength suggest a potential for future performance improvement.

Gooch & Housego Business Overview & Revenue Model

Company Description

Gooch & Housego PLC engages in the manufacture and sale of acousto-optics, electro-optics, fiber optics, and precision optics and systems in the United Kingdom, North America, Europe, the Asia Pacific, and internationally. It operates through Aerospace & Defence, Life Sciences/Bio-photonics, and Industrial segments. It offers acousto-optic products, such as acousto-optic modulators, deflectors, frequency shifters, model lockers, multi-channel modulators, pulse pickers, Q-switches, tunable filters, and RF drivers; crystal optics, including crystals and nonlinear optics, lithium niobate wafers, and periodically-poled lithium niobite; and electro-optics, such as pockels cells, lithium niobate Q-switches, and pockels cell drivers. It also provides fiber optics, such as DFB lasers and modules, fiber coupled pump lasers, high speed detectors and power combiners, benchtop laser controllers, polarization-maintaining and single-mode fused fiber couplers, polarization diverse receivers, ruggedized and wideband couplers, planar lightwave circuits, and fiber coupled modulators; precision optics, including beamsplitters, corner cubes, optical domes, optical windows and flats, precision lenses, precision mirrors, precision prisms, ring laser gyroscope components, synchrotron mirrors, waveplates, Hy-Per bond, magnetoheological finishing, optical coatings, single point diamond turning, and superpolishing; lens systems, such as broadband, LWIR, MWIR, and Vis-SWIR lens systems; and vision systems for armored fighting vehicles, including embedded image periscope and sighting systems, enhanced drivers vision system, sabre commander/gunner sights, spares and repairs, spectre camera pack, and unity vision periscopes. The company offers its products for use in semiconductor and microelectronic, metrology, telecommunications, and scientific research industries; and mission-critical applications. Gooch & Housego plc was founded in 1948 and is headquartered in Ilminster, the United Kingdom.

How the Company Makes Money

Gooch & Housego generates revenue primarily through the sale of its photonic products and systems. Key revenue streams include customized solutions for aerospace and defense applications, where high-performance and reliability are critical. Additionally, the company earns income from its offerings in the life sciences sector, providing equipment for advanced medical imaging and diagnostics. Industrial manufacturing and telecommunications also represent significant markets, as GHH supplies components that enhance the performance and efficiency of systems used in these industries. The company's earnings are bolstered by its strategic partnerships and collaborations with leading technology firms and research institutions, which help drive innovation and expand its market reach.

Gooch & Housego Financial Statement Overview

Summary

Gooch & Housego is facing profitability challenges, as indicated by declining revenue and negative net income. The balance sheet remains stable, with a reasonable debt level and solid equity base. Cash flow generation is positive, but the company needs to address its profitability issues to ensure long-term financial health. Continued focus on cost management and revenue growth will be key to improving overall performance.

Income Statement

The company experienced a decline in revenue from the previous year, and net income turned from positive to negative, reflecting challenges in maintaining profitability. Gross profit margin decreased slightly, and the net profit margin turned negative, indicating pressure on profitability. However, the company managed to maintain its EBIT and EBITDA margins fairly stable.

Balance Sheet

The balance sheet remains relatively stable with a manageable debt-to-equity ratio and strong equity position. There is a slight decrease in total assets and stockholders' equity compared to the previous year. However, the company maintains a solid equity ratio, indicating a stable financial foundation despite the decline in equity.

Cash Flow

Operating cash flow decreased, but free cash flow remained positive, indicating effective management of capital expenditures. The operating cash flow to net income ratio is strong despite the net loss, reflecting efficient cash generation. However, the negative net income raises concerns about future cash flow sustainability.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
140.81M	135.99M	148.48M	124.80M	124.07M	122.09M
	Gross Profit
38.15M	41.65M	44.02M	39.06M	41.32M	39.25M
	EBIT
7.23M	6.81M	6.85M	235.00K	11.26M	9.37M
	EBITDA
17.90M	18.34M	18.84M	8.89M	15.79M	17.43M
	Net Income Common Stockholders
1.09M	-6.38M	4.05M	-2.01M	3.40M	3.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.57M	6.62M	7.29M	6.00M	8.35M	19.73M
	Total Assets
174.15M	166.31M	192.61M	176.09M	160.71M	178.15M
	Total Debt
30.09M	32.43M	39.00M	25.07M	17.59M	34.47M
	Net Debt
14.52M	25.81M	31.71M	19.07M	9.24M	14.74M
	Total Liabilities
67.27M	57.92M	72.88M	57.55M	46.43M	64.80M
	Stockholders Equity
106.89M	108.39M	119.73M	118.54M	114.28M	113.35M
Cash Flow		Free Cash Flow
4.28M	8.94M	8.85M	-2.03M	10.00M	13.66M
	Operating Cash Flow
10.43M	14.19M	16.17M	6.54M	16.25M	20.44M
	Investing Cash Flow
-14.95M	-3.89M	-18.49M	-9.29M	-9.96M	-10.16M
	Financing Cash Flow
3.47M	-10.89M	4.19M	299.00K	-17.27M	-7.65M

Gooch & Housego Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 439.00
• 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:GHH, the sentiment is Negative. The current price of 439 is below the 20-day moving average (MA) of 451.45, below the 50-day MA of 446.07, and below the 200-day MA of 453.04, indicating a bearish trend. The MACD of -0.71 indicates Positive momentum. The RSI at 44.94 is Neutral, neither overbought nor oversold. The STOCH value of 56.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GHH.

Gooch & Housego Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWF	76 Outperform	£84.31M	10.54	9.64%	4.74%	-5.38%	-38.50%
SXS	63 Neutral	£2.29B	9.94	17.33%	3.47%	-10.88%	65.84%
Sector *	57 Neutral	$20.97B	10.32	-14.01%	2.49%	4.46%	-23.38%
GHH	51 Neutral	£113.46M	39.68	2.87%	3.00%	-8.41%	-31.29%

Gooch & Housego Corporate Events

Gooch & Housego PLC Successfully Passes All AGM Resolutions

Gooch & Housego PLC announced the successful passing of all resolutions at its recent Annual General Meeting. Key resolutions included the approval of the annual financial statements, re-election of directors, and authorization for directors to allot shares and purchase company shares. The passing of these resolutions supports the company’s strategic initiatives and strengthens its governance, potentially impacting its market positioning and stakeholder confidence.

Gooch & Housego Reports Strong Order Book Growth and Positive Outlook for FY2025

Gooch & Housego PLC has reported a significant increase in its order book since the start of the financial year, attributed to strong demand in medical diagnostic instruments and new orders in defence optics and subsea data networks. The integration of the acquired Phoenix Optical is progressing well, enhancing customer confidence and supporting additional demand levels. Despite macroeconomic uncertainties and potential impacts from new US tariffs, G&H maintains a positive outlook for its fiscal year 2025, with expectations of improved financial performance as industrial markets recover.

Gooch & Housego Grants Long Term Incentive Awards to Key Executives

Gooch & Housego PLC announced the grant of Long Term Incentive Plan (LTIP) awards to key management personnel, including the CEO, CFO, and Company Secretary. These grants, subject to performance criteria, are set to vest in January 2028, indicating a strategic focus on long-term growth and alignment of executive incentives with company performance, potentially enhancing shareholder value and reinforcing the company’s commitment to sustainability and governance standards.

Gooch & Housego Releases Annual Report and Announces 2025 AGM

Gooch & Housego PLC has announced the release of its Annual Report and Financial Statements for the fiscal year ending 30 September 2024, along with the Notice of its 2025 Annual General Meeting. The AGM is scheduled for 24 February 2025 at their head office in Somerset, UK. These documents are available on the company’s website, providing shareholders with insights into the company’s financial health and future plans. This announcement underlines G&H’s commitment to transparency and engagement with its stakeholders, reinforcing its position in the photonics industry.