Gooch & Housego PLC (GB:GHH)
LSE:GHH
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Gooch & Housego
(LSE:GHH)
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Rating:67Neutral
Price Target:
931.00 p
▲(50.65% Upside)
Action:ReiteratedDate:03/19/26
The score is driven mainly by improving profitability and a clear upward price trend (price above major moving averages with positive MACD). Offsetting these positives are weakening cash generation (large free cash flow decline and low cash conversion) and a relatively elevated valuation (P/E 25.56), with only a moderate dividend yield.
Positive Factors
Consistent revenue growth
A 5.05% revenue increase in 2025 signals durable demand for G&H's photonics products across aerospace, defense and life‑sciences end markets. Sustained top-line growth supports scale in manufacturing, steadier production runs and stronger negotiating leverage with suppliers over the next 2–6 months.
Negative Factors
Sharp free cash flow decline
A 70.2% drop in free cash flow undermines G&H’s ability to self‑fund capital expenditure, NRE for custom programs, or sustain distributions. Weak cash conversion (operating cash flow to net income ~0.21) suggests earnings are not converting to cash, raising medium‑term funding and liquidity risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent revenue growth
A 5.05% revenue increase in 2025 signals durable demand for G&H's photonics products across aerospace, defense and life‑sciences end markets. Sustained top-line growth supports scale in manufacturing, steadier production runs and stronger negotiating leverage with suppliers over the next 2–6 months.
Read all positive factors
Gooch & Housego (GHH) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£238.13M
Dividend Yield2.19%
Average Volume (3M)79.90K
Price to Earnings (P/E)41.7
Beta (1Y)1.00
Revenue Growth10.66%
EPS Growth23.08%
CountryUK
Employees911
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.20
Shares Outstanding27,370,726
10 Day Avg. Volume105,270
30 Day Avg. Volume79,900
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)1.26
Price to Sales (P/S)0.98
P/FCF Ratio64.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.45
Revenue Forecast (FY)£174.22M
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 Aero...
How the Company Makes Money
GHH makes money primarily by selling photonics components and higher-value engineered subsystems to OEM and industrial customers, generating revenue when products are delivered under customer purchase orders and longer-running supply arrangements....
Gooch & Housego Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
55
Neutral
| Breakdown | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 150.49M | 135.99M | 148.48M | 124.80M | 124.07M |
| Gross Profit | 42.71M | 41.65M | 36.93M | 39.06M | 41.32M |
| EBITDA | 20.03M | 18.34M | 18.84M | 8.89M | 15.79M |
| Net Income | 3.54M | -6.38M | 4.05M | -2.01M | 3.40M |
Balance Sheet | |||||
| Total Assets | 206.86M | 166.31M | 192.61M | 176.09M | 160.71M |
| Cash, Cash Equivalents and Short-Term Investments | 7.96M | 6.62M | 7.29M | 6.00M | 8.35M |
| Total Debt | 51.05M | 32.43M | 39.00M | 25.07M | 17.59M |
| Total Liabilities | 89.42M | 57.92M | 72.88M | 57.55M | 46.43M |
| Stockholders Equity | 117.44M | 108.39M | 119.73M | 118.54M | 114.28M |
Cash Flow | |||||
| Free Cash Flow | 2.28M | 8.94M | 8.85M | -2.03M | 10.00M |
| Operating Cash Flow | 6.84M | 14.19M | 16.17M | 6.54M | 16.25M |
| Investing Cash Flow | -16.03M | -3.89M | -18.49M | -9.29M | -9.96M |
| Financing Cash Flow | 9.84M | -10.89M | 4.19M | 299.00K | -17.27M |
Gooch & Housego Technical Analysis
Positive
618.00
Price Trends
776.40
Positive
691.92
Positive
623.48
Positive
Market Momentum
29.26
Negative
65.04
Neutral
74.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GHH, the sentiment is Positive. The current price of 618 is below the 20-day moving average (MA) of 799.20, below the 50-day MA of 776.40, and below the 200-day MA of 623.48, indicating a bullish trend. The MACD of 29.26 indicates Negative momentum. The RSI at 65.04 is Neutral, neither overbought nor oversold. The STOCH value of 74.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:GHH.
Gooch & Housego Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | £626.71M | 10.73 | 8.34% | 2.09% | 0.49% | 61.73% | |
73 Outperform | £68.79M | 3.57 | 22.93% | ― | 136.76% | ― | |
72 Outperform | £3.24B | 17.58 | 8.06% | 2.12% | 4.99% | -24.08% | |
67 Neutral | £238.13M | 41.75 | 3.10% | 2.19% | 10.66% | 23.08% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | £208.70M | -4.02 | -31.21% | ― | -7.62% | 5.48% | |
39 Underperform | £29.96M | -21.06 | -12.60% | ― | -14.81% | -1362.50% |
* Technology Sector Average
GB:GHH
Gooch & Housego
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135.98%
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Gooch & Housego Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Gooch & Housego lifts H1 revenue and order book on defence demand
Positive
Apr 9, 2026
Gooch Housego reported first-half 2026 revenue of £81.9 million, up 9.1% on an organic, constant-currency basis, driven by strong and growing demand from aerospace and defence and an improving backdrop in industrial laser and semiconductor m...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Gooch & Housego faces shareholder backlash on pay at AGM
Negative
Feb 27, 2026
Gooch Housego reported that all resolutions at its Annual General Meeting were passed except the advisory vote to approve its Remuneration Committee Report, which was rejected by a majority of shareholders. The board said it had consulted major i...
Business Operations and StrategyFinancial Disclosures
Gooch & Housego Order Book Surges as Defence and Industrial Demand Rebounds
Positive
Feb 27, 2026
Gooch Housego reported strong order book growth since the start of its new financial year, with orders rising to £168.3m, driven in particular by increased demand from aerospace and defence customers in the U.S. and Europe. Recent acquisitio...
Business Operations and StrategyExecutive/Board Changes
Gooch & Housego Confirms Start Date for New Chief Financial Officer
Positive
Feb 2, 2026
Gooch Housego PLC has confirmed that James Corte will join the company as Chief Financial Officer and Executive Director, with his appointment effective from 9 April 2026. The move finalises a previously announced leadership transition and is exp...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.