Gooch & Housego (GHH) AI Stock Analysis

• Market Cap: £155.04M
• Dividend Yield: 2.36%
• Average Volume (3M): 79.90K
• Price to Earnings (P/E): 28.4
• Beta (1Y): 0.93
• 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: 105,270
• 30 Day Avg. Volume: 79,900
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: 585.00p ▲(4.46% Upside)

The overall stock score of 56 reflects Gooch & Housego's stable financial foundation but highlights concerns about profitability and valuation. Technical indicators suggest neutral momentum, while the high P/E ratio indicates potential overvaluation. The dividend yield offers some compensation for investors.

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 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: Neutral
• Last Price: 560.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• 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 Neutral. The current price of 560 is below the 20-day moving average (MA) of 563.70, above the 50-day MA of 559.08, and above the 200-day MA of 512.20, indicating a neutral trend. The MACD of 1.73 indicates Positive momentum. The RSI at 47.11 is Neutral, neither overbought nor oversold. The STOCH value of 30.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	£125.92M	23.92	27.08%	2.06%	8.19%	―
SDI	67 Neutral	£84.70M	21.26	8.38%	―	0.50%	-6.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GHH	56 Neutral	£155.04M	28.39	4.79%	2.36%	1.74%	359.50%
SOLI	55 Neutral	£79.58M	155.56	0.81%	1.71%	-23.42%	-94.25%
TTG	55 Neutral	£265.59M	-3.81	-31.42%	―	-16.33%	-448.12%
XAR	51 Neutral	£99.67M	-8.91	-16.64%	―	-7.35%	-222.10%

Gooch & Housego Corporate Events

Gooch & Housego Completes Global Photonics Acquisition with New Share Issue

Gooch & Housego PLC, a specialist in optical components and systems, has issued 84,477 new ordinary shares as the final consideration for its acquisition of Global Photonics, a U.S.-based company. This move increases the company’s issued share capital to 27,199,510 ordinary shares, all with voting rights, and these shares are expected to commence trading on AIM on 13 October 2025. This strategic acquisition and share issuance are likely to enhance Gooch & Housego’s market positioning and operational capabilities in the photonics industry.

The most recent analyst rating on (GB:GHH) stock is a Hold with a £591.00 price target. To see the full list of analyst forecasts on Gooch & Housego stock, see the GB:GHH Stock Forecast page.

Gooch & Housego Reports Strong FY25 Performance Amid Global Challenges

Gooch & Housego PLC reported sustained trading momentum for the financial year ending September 30, 2025, despite global macroeconomic challenges. The company saw growth in industrial revenues, particularly in fibre optic components for subsea networks, and increased activity in the semiconductor market. Life Sciences and Aerospace & Defence sectors also experienced revenue growth, supported by operational improvements and strategic acquisitions. The integration of Phoenix Optical and Global Photonics is progressing well, enhancing G&H’s capabilities and market reach, especially in North America. The company’s strong financial position and growing order book indicate a positive outlook for the next financial year.

The most recent analyst rating on (GB:GHH) stock is a Hold with a £591.00 price target. To see the full list of analyst forecasts on Gooch & Housego stock, see the GB:GHH Stock Forecast page.