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Gooch & Housego PLC (GB:GHH)
LSE:GHH

Gooch & Housego (GHH) AI Stock Analysis

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GB

Gooch & Housego

(LSE:GHH)

58Neutral
Gooch & Housego faces profitability challenges, impacting its financial performance score. However, strong technical momentum and promising corporate events support its growth potential. The high P/E ratio raises valuation concerns, but strategic expansions and order growth provide optimism for future improvement.

Gooch & Housego (GHH) vs. S&P 500 (SPY)

Gooch & Housego Business Overview & Revenue Model

Company DescriptionGooch & Housego (GHH) is a leading global manufacturer specializing in photonic components and systems. The company operates primarily in sectors such as aerospace and defense, life sciences, and industrial technology. GHH's core products include acousto-optic devices, electro-optic devices, fiber optics, precision optics, and advanced photonic systems, serving a diverse range of applications from telecommunications to scientific research.
How the Company Makes MoneyGooch & Housego generates revenue through the sale of its photonic components and systems to various industries. Key revenue streams include direct sales to manufacturers and businesses in the aerospace, defense, life sciences, and industrial sectors. The company also benefits from long-term contracts and partnerships with major clients seeking custom photonic solutions. Additionally, GHH invests in research and development to innovate and expand its product offerings, thereby enhancing its competitive edge and market reach. Strategic acquisitions of complementary businesses further contribute to its revenue growth by broadening its technological capabilities and market presence.

Gooch & Housego Financial Statement Overview

Summary
Gooch & Housego is facing profitability challenges, reflected by declining revenue and negative net income. However, the balance sheet remains stable with a reasonable debt level and solid equity base. Cash flow generation is positive, albeit concerns remain due to the negative net income.
Income Statement
45
Neutral
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
60
Neutral
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
55
Neutral
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
Sep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
135.99M148.48M124.80M124.07M122.09M
Gross Profit
41.65M44.02M39.06M41.32M39.25M
EBIT
6.81M6.85M235.00K11.26M9.37M
EBITDA
18.34M18.84M8.89M15.79M17.43M
Net Income Common Stockholders
-6.38M4.05M-2.01M3.40M3.78M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.62M7.29M6.00M8.35M19.73M
Total Assets
166.31M192.61M176.09M160.71M178.15M
Total Debt
32.43M39.00M25.07M17.59M34.47M
Net Debt
25.81M31.71M19.07M9.24M14.74M
Total Liabilities
57.92M72.88M57.55M46.43M64.80M
Stockholders Equity
108.39M119.73M118.54M114.28M113.35M
Cash FlowFree Cash Flow
8.94M8.85M-2.03M10.00M13.66M
Operating Cash Flow
14.19M16.17M6.54M16.25M20.44M
Investing Cash Flow
-3.89M-18.49M-9.29M-9.96M-10.16M
Financing Cash Flow
-10.89M4.19M299.00K-17.27M-7.65M

Gooch & Housego Technical Analysis

Technical Analysis Sentiment
Positive
Last Price506.00
Price Trends
50DMA
428.00
Positive
100DMA
441.39
Positive
200DMA
444.80
Positive
Market Momentum
MACD
26.40
Negative
RSI
74.24
Negative
STOCH
90.42
Negative
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 506 is above the 20-day moving average (MA) of 430.20, above the 50-day MA of 428.00, and above the 200-day MA of 444.80, indicating a bullish trend. The MACD of 26.40 indicates Negative momentum. The RSI at 74.24 is Negative, neither overbought nor oversold. The STOCH value of 90.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:GHH.

Gooch & Housego Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£106.24M19.938.61%1.99%-11.80%-32.11%
GBQTX
75
Outperform
£124.47M25.8926.51%1.76%8.43%
GBSDI
72
Outperform
£78.62M22.597.69%-5.19%115.58%
GBXAR
61
Neutral
£81.00M-15.96%-13.04%-387.05%
60
Neutral
$11.59B10.34-7.15%2.94%7.49%-10.88%
GBGHH
58
Neutral
£130.48M46.532.87%2.61%-8.41%-31.29%
GBTTG
56
Neutral
£158.17M-22.95%7.74%-15.12%-690.29%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:GHH
Gooch & Housego
536.00
-28.13
-4.99%
GB:TTG
TT Electronics
89.00
-65.50
-42.39%
GB:XAR
Xaar plc
102.00
-20.00
-16.39%
GB:SOLI
Solid State
182.50
-118.54
-39.38%
GB:QTX
Quartix Holdings
262.00
125.25
91.59%
GB:SDI
SDI Group
75.00
3.50
4.90%

Gooch & Housego Corporate Events

Business Operations and StrategyFinancial Disclosures
Gooch & Housego to Announce Half-Year Results and Host Investor Engagement Events
Neutral
May 20, 2025

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.

The most recent analyst rating on (GB:GHH) stock is a Buy with a £635.00 price target. To see the full list of analyst forecasts on Gooch & Housego stock, see the GB:GHH Stock Forecast page.

Spark’s Take on GB:GHH Stock

According to Spark, TipRanks’ AI Analyst, GB:GHH is a Neutral.

Gooch & Housego faces profitability challenges, impacting its financial performance score. However, strong technical momentum and promising corporate events support its growth potential. The high P/E ratio raises valuation concerns, but strategic expansions and order growth provide optimism for future improvement.

To see Spark’s full report on GB:GHH stock, click here.

M&A TransactionsBusiness Operations and Strategy
Gooch & Housego Expands U.S. Presence with Global Photonics Acquisition
Positive
May 14, 2025

Gooch & Housego PLC has announced the acquisition of U.S.-based Global Photonics for $17.5 million, a move that will enhance its presence in the U.S. Aerospace & Defence market. This acquisition is expected to be earnings enhancing and will establish a full optical systems engineering and manufacturing capability in the U.S., complementing G&H’s existing operations. Global Photonics’ expertise in optical systems for military applications will bolster G&H’s offerings, allowing the company to leverage its reputation and relationships with U.S. defence contractors, thus opening new growth channels in North America.

The most recent analyst rating on (GB:GHH) stock is a Buy with a £635.00 price target. To see the full list of analyst forecasts on Gooch & Housego stock, see the GB:GHH Stock Forecast page.

Spark’s Take on GB:GHH Stock

According to Spark, TipRanks’ AI Analyst, GB:GHH is a Neutral.

Gooch & Housego’s overall stock score reflects the company’s current profitability challenges amid strong order growth and strategic expansions. While technical analysis and valuation point to caution, positive corporate events and a solid balance sheet provide potential for future performance improvement.

To see Spark’s full report on GB:GHH stock, click here.

Business Operations and Strategy
Odyssean Investment Trust Increases Stake in Gooch & Housego
Neutral
Apr 9, 2025

Odyssean Investment Trust PLC has increased its voting rights in Gooch & Housego PLC to 13.01%, up from a previous 12.6%. This acquisition of voting rights signifies a strengthened position for Odyssean within the company, potentially influencing future strategic decisions and impacting stakeholder interests.

Spark’s Take on GB:GHH Stock

According to Spark, TipRanks’ AI Analyst, GB:GHH is a Neutral.

Gooch & Housego’s stock is currently challenged by profitability issues and a negative technical outlook. However, positive corporate developments and a robust order book suggest potential for future improvement. Valuation remains a concern, but strategic initiatives and market demand provide a foundation for recovery.

To see Spark’s full report on GB:GHH stock, click here.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Gooch & Housego Reports Strong Revenue Growth Amid Strategic Expansion
Positive
Apr 8, 2025

Gooch & Housego PLC reported a 7.5% increase in revenue for the first half of 2025, driven by strong demand in the Aerospace & Defence and Life Sciences markets, despite subdued activity in the industrial laser and semiconductor sectors. The acquisition of Phoenix Optical has bolstered the company’s order book and capabilities, while strategic investments in operations and supply chain are enhancing production efficiency. The company is navigating global tariff changes and remains financially robust, with extended debt facilities and plans to pass on cost increases through pricing adjustments. The integration of Phoenix Optical is on track, contributing to new customer orders and operational synergies.

Spark’s Take on GB:GHH Stock

According to Spark, TipRanks’ AI Analyst, GB:GHH is a Neutral.

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.

To see Spark’s full report on GB:GHH stock, click here.

Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
Gooch & Housego PLC Successfully Passes All AGM Resolutions
Positive
Feb 24, 2025

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.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Gooch & Housego Reports Strong Order Book Growth and Positive Outlook for FY2025
Positive
Feb 24, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.