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Gooch & Housego PLC (GB:GHH)
LSE:GHH
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Gooch & Housego (GHH) AI Stock Analysis

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GB

Gooch & Housego

(LSE:GHH)

Rating:65Neutral
Price Target:
667.00p
▲(9.34%Upside)
Gooch & Housego shows strong technical momentum and strategic growth through acquisitions, which are significant positive factors. However, the company faces profitability challenges that need to be addressed to ensure long-term financial stability. The valuation is relatively high, indicating some risk, but corporate actions are promising for future growth.

Gooch & Housego (GHH) vs. iShares MSCI United Kingdom ETF (EWC)

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, with declining revenue and negative net income. The balance sheet remains stable with a reasonable debt level, and cash flow generation is positive despite the net loss, indicating a need for improved profitability for long-term health.
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.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue135.99M148.48M124.80M124.07M122.09M
Gross Profit41.65M44.02M39.06M41.32M39.25M
EBITDA18.34M18.84M8.89M15.79M17.43M
Net Income-6.38M4.05M-2.01M3.40M3.78M
Balance Sheet
Total Assets166.31M192.61M176.09M160.71M178.15M
Cash, Cash Equivalents and Short-Term Investments6.62M7.29M6.00M8.35M19.73M
Total Debt32.43M39.00M25.07M17.59M34.47M
Total Liabilities57.92M72.88M57.55M46.43M64.80M
Stockholders Equity108.39M119.73M118.54M114.28M113.35M
Cash Flow
Free Cash Flow8.94M8.85M-2.03M10.00M13.66M
Operating Cash Flow14.19M16.17M6.54M16.25M20.44M
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 Price610.00
Price Trends
50DMA
564.74
Positive
100DMA
493.65
Positive
200DMA
471.46
Positive
Market Momentum
MACD
15.57
Positive
RSI
53.88
Neutral
STOCH
56.16
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 610 is below the 20-day moving average (MA) of 615.30, above the 50-day MA of 564.74, and above the 200-day MA of 471.46, indicating a neutral trend. The MACD of 15.57 indicates Positive momentum. The RSI at 53.88 is Neutral, neither overbought nor oversold. The STOCH value of 56.16 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£100.01M196.110.81%210.14%-11.80%-32.11%
GBQTX
76
Outperform
£116.23M24.3726.51%185.19%8.43%
GBSDI
72
Outperform
£98.28M28.317.69%-5.19%115.58%
GBGHH
65
Neutral
£171.37M31.474.79%216.39%1.74%359.50%
62
Neutral
£510.88M22.63-8.61%186.64%4.26%-25.59%
GBTTG
54
Neutral
£186.69M-22.95%478.67%-15.12%-690.29%
GBXAR
54
Neutral
£98.92M-15.96%-13.04%-387.05%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:GHH
Gooch & Housego
610.00
151.35
33.00%
GB:TTG
TT Electronics
107.20
-40.41
-27.38%
GB:XAR
Xaar plc
126.25
-19.75
-13.53%
GB:SOLI
Solid State
177.50
-118.62
-40.06%
GB:QTX
Quartix Holdings
243.00
86.72
55.49%
GB:SDI
SDI Group
94.00
26.00
38.24%

Gooch & Housego Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Gooch & Housego Announces CFO Transition Amidst Strategic Growth
Neutral
Jul 21, 2025

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.

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.

Business Operations and Strategy
Gooch & Housego Sees Increased Stake by Octopus Investments
Neutral
Jul 15, 2025

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.

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.

Private Placements and FinancingM&A Transactions
Gooch & Housego Expands with Global Photonics Acquisition
Positive
Jun 30, 2025

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.

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.

Regulatory Filings and Compliance
Gooch & Housego Updates Shareholder Voting Rights Notification
Neutral
Jun 23, 2025

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.

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.

Other
Gooch & Housego Announces Change in Voting Rights
Neutral
Jun 20, 2025

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.

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.

M&A TransactionsBusiness Operations and Strategy
Gooch & Housego Expands U.S. Presence with Global Photonics Acquisition
Positive
Jun 18, 2025

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.

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.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Gooch & Housego Reports Strong Interim Results and Strategic Expansion
Positive
Jun 3, 2025

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.

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.

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.

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.

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.Date of analysis: Jun 30, 2025