Gooch & Housego (GHH) AI Stock Analysis

• Market Cap: £144.70M
• Dividend Yield: 2.46%
• Average Volume (3M): 81.28K
• Price to Earnings (P/E): 26.5
• Beta (1Y): 0.89
• Revenue Growth: 1.74%
• EPS Growth: 359.50%
• Country: UK
• Employees: 911
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.15
• Shares Outstanding: 27,199,510
• 10 Day Avg. Volume: 105,237
• 30 Day Avg. Volume: 81,278
• PEG Ratio: 0.06
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.76
• P/FCF Ratio: 11.59
• 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: £537.00
• Price Target Upside: 0.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: 537.00p ▲(0.19% Upside)

The overall stock score of 52 reflects the company's current profitability challenges and bearish technical indicators. While the balance sheet remains stable and cash flow is positive, the high P/E ratio suggests the stock is expensive. The dividend yield offers some compensation, but the company needs to address its profitability issues to improve its stock performance.

Gooch & Housego Business Overview & Revenue Model

Company Description

Gooch & Housego (GHH) is a leading manufacturer of advanced photonic components and systems, catering primarily to the aerospace, defense, medical, and industrial sectors. The company specializes in the development and production of optical fibers, laser systems, and precision optics. With a strong emphasis on innovation and quality, GHH supports its clients with tailored solutions that enhance performance in various applications, including telecommunications, sensing, and medical devices.

How the Company Makes Money

Gooch & Housego generates revenue through multiple channels, primarily by selling high-value photonic products and systems to a diverse range of industries. Key revenue streams include the sale of precision optics, passive and active optical components, and laser systems. GHH also earns income from long-term contracts and partnerships with major players in the aerospace and defense sectors, which provide stable revenue through ongoing projects. Additionally, the company benefits from research and development collaborations that lead to new product innovations, allowing it to maintain a competitive edge and attract new customers. The demand for advanced photonic solutions in emerging markets further contributes to GHH's financial growth.

Gooch & Housego Financial Statement Overview

Summary

Gooch & Housego is facing profitability challenges, with declining revenue and negative net income. The balance sheet is stable with a reasonable debt level and solid equity base. Cash flow is positive, but profitability issues need addressing for long-term health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	143.25M	135.99M	148.48M	124.80M	124.07M	122.09M
Gross Profit	41.51M	41.65M	36.93M	39.06M	41.32M	39.25M
EBITDA	20.42M	18.34M	18.84M	8.89M	15.79M	17.43M
Net Income	5.18M	-6.38M	4.05M	-2.01M	3.40M	3.78M
Balance Sheet
Total Assets	185.26M	166.31M	192.61M	176.09M	160.71M	178.15M
Cash, Cash Equivalents and Short-Term Investments	5.55M	6.62M	7.29M	6.00M	8.35M	19.73M
Total Debt	41.08M	32.43M	39.00M	25.07M	17.59M	34.47M
Total Liabilities	74.74M	57.92M	72.88M	57.55M	46.43M	64.80M
Stockholders Equity	110.52M	108.39M	119.73M	118.54M	114.28M	113.35M
Cash Flow
Free Cash Flow	7.64M	8.94M	8.85M	-2.03M	10.00M	13.66M
Operating Cash Flow	11.84M	14.19M	16.17M	6.54M	16.25M	20.44M
Investing Cash Flow	-9.39M	-3.89M	-18.49M	-9.29M	-9.96M	-10.16M
Financing Cash Flow	-1.84M	-10.89M	4.19M	299.00K	-17.27M	-7.65M

Gooch & Housego Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 536.00
• 50DMA: Negative
• 100DMA: Negative
• 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:GHH, the sentiment is Negative. The current price of 536 is below the 20-day moving average (MA) of 571.05, below the 50-day MA of 546.92, and above the 200-day MA of 504.48, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 40.17 is Neutral, neither overbought nor oversold. The STOCH value of 14.02 is Positive, 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
QTX	73 Outperform	£135.60M	25.76	27.08%	1.93%	8.19%	―
SDI	67 Neutral	£90.46M	22.26	8.38%	―	0.50%	-6.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SOLI	55 Neutral	£98.05M	191.67	0.81%	1.54%	-23.42%	-94.25%
GHH	52 Neutral	£144.70M	26.49	4.79%	2.46%	1.74%	359.50%
TTG	49 Neutral	£168.65M	―	-31.42%	2.00%	-16.33%	-448.12%
XAR	46 Neutral	£108.74M	―	-16.64%	―	-7.35%	-222.10%

Gooch & Housego Corporate Events

Gooch & Housego Announces CFO Transition Amidst Strategic Growth

Gooch & Housego PLC announced the resignation of Chief Financial Officer Chris Jewell, effective 30 September 2025, with Martin Hopcroft stepping in as Interim CFO. Jewell, who joined in 2019, played a key role in the company’s strategic and operational changes, including the acquisition of Global Photonics. The company is navigating a period of global macroeconomic uncertainty and is actively managing supply chain complexities due to new US tariffs. Despite these challenges, the company maintains a strong order book and is poised for continued growth.

Gooch & Housego Sees Increased Stake by Octopus Investments

Gooch & Housego PLC has announced a change in its major holdings, with Octopus Investments Limited increasing its voting rights to 11.09% as of July 11, 2025. This acquisition reflects a slight increase from the previous 10.98% holding, indicating a strategic move by Octopus Investments to strengthen its influence within the company. The adjustment in voting rights could have implications for the company’s governance and strategic direction, potentially affecting stakeholders and market positioning.

Gooch & Housego Expands with Global Photonics Acquisition

Gooch & Housego PLC has announced the acquisition of Global Photonics, which was partly financed through the issuance of new ordinary shares. This acquisition resulted in a notification of major holdings, with Gan Atid USA LLC now holding 4.41% of voting rights. The move is expected to strengthen Gooch & Housego’s market position by expanding its capabilities and product offerings in the photonics sector.

Gooch & Housego Updates Shareholder Voting Rights Notification

Gooch & Housego PLC announced a correction to a previous notification regarding a change in the breakdown of voting rights. The correction clarifies that Odyssean Investment Trust PLC has a 12.846820% voting right in the company, slightly reduced from a previous 13.010000%. This adjustment in voting rights reflects a minor change in the company’s shareholder structure, which could impact the company’s governance dynamics.

Gooch & Housego Announces Change in Voting Rights

Gooch & Housego PLC has announced a change in the voting rights held by Odyssean Investment Trust PLC, which now holds 12.846820% of the company’s voting rights, down from a previous position of 13.010000%. This adjustment reflects a recent acquisition or disposal of voting rights, impacting the company’s shareholder structure and potentially influencing future corporate decisions.

Gooch & Housego Expands U.S. Presence with Global Photonics Acquisition

Gooch & Housego PLC has completed the acquisition of Global Photonics, a U.S.-based company, enhancing its presence in the U.S. Aerospace & Defence market. This strategic move aims to replicate the success of its UK optical systems hub by establishing a comprehensive optical systems engineering and manufacturing capability in the United States. As part of the acquisition, G&H has issued 1,328,636 new ordinary shares, representing approximately 4.9% of its enlarged share capital, with trading expected to commence on 20 June 2025. This acquisition is a significant step for G&H in strengthening its market position and expanding its operational footprint.

Gooch & Housego Reports Strong Interim Results and Strategic Expansion

Gooch & Housego PLC reported strong financial results for the first half of 2025, with an 11.4% increase in revenue and a 91% rise in adjusted profit before tax compared to the previous year. The company’s strategic integration of Phoenix Optical and acquisition of Global Photonics are expected to enhance its market position, particularly in the Aerospace and Defence sector. Despite global uncertainties, the company maintains a robust order book and anticipates further profitable growth, aiming for mid-teens returns by 2028.

Gooch & Housego to Announce Half-Year Results and Host Investor Engagement Events

Gooch & Housego PLC, a specialist manufacturer of optical components and systems, is set to announce its half-year results for the period ending 31 March 2025 on 3 June 2025. The announcement will be accompanied by an analyst meeting and a live audio webcast, with a recording available on the company’s website. Additionally, the company will present via the Investor Meet Company platform on 5 June 2025, allowing investors to engage and submit questions. This series of events underscores the company’s commitment to transparency and engagement with stakeholders, potentially impacting its market positioning and investor relations.