Gooch & Housego (GHH) AI Stock Analysis

• Market Cap: £136.12M
• Dividend Yield: 2.49%
• Average Volume (3M): 48.60K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 0.69
• 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: 27,115,032
• 10 Day Avg. Volume: 29,996
• 30 Day Avg. Volume: 48,602
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £740.00
• Price Target Upside: 39.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: 582.00p ▲(9.81% Upside)

Gooch & Housego's overall stock score reflects a mix of challenges and opportunities. The company's financial performance is under pressure due to declining profitability, but the stable balance sheet and positive cash flow are supportive. Technical indicators suggest a bearish trend, while the valuation indicates potential overvaluation. The strategic acquisition of Global Photonics is a significant positive, expected to enhance earnings and market position.

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 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

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	135.99M	148.48M	124.80M	124.07M	122.09M
Gross Profit	41.65M	44.02M	39.06M	41.32M	39.25M
EBITDA	18.34M	18.84M	8.89M	15.79M	17.43M
Net Income	-6.38M	4.05M	-2.01M	3.40M	3.78M
Balance Sheet
Total Assets	166.31M	192.61M	176.09M	160.71M	178.15M
Cash, Cash Equivalents and Short-Term Investments	6.62M	7.29M	6.00M	8.35M	19.73M
Total Debt	32.43M	39.00M	25.07M	17.59M	34.47M
Total Liabilities	57.92M	72.88M	57.55M	46.43M	64.80M
Stockholders Equity	108.39M	119.73M	118.54M	114.28M	113.35M
Cash Flow
Free Cash Flow	8.94M	8.85M	-2.03M	10.00M	13.66M
Operating Cash Flow	14.19M	16.17M	6.54M	16.25M	20.44M
Investing Cash Flow	-3.89M	-18.49M	-9.29M	-9.96M	-10.16M
Financing Cash Flow	-10.89M	4.19M	299.00K	-17.27M	-7.65M

Gooch & Housego Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 530.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 530 is above the 20-day moving average (MA) of 529.45, below the 50-day MA of 580.34, and above the 200-day MA of 490.87, indicating a neutral trend. The MACD of -22.37 indicates Negative momentum. The RSI at 47.02 is Neutral, neither overbought nor oversold. The STOCH value of 43.98 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QTX	73 Outperform	£134.64M	25.57	27.08%	1.98%	8.19%	―
SDI	72 Outperform	£95.14M	24.15	8.38%	―	0.50%	-6.16%
Sector *	61 Neutral	$35.45B	8.20	-10.60%	1.91%	8.56%	-9.51%
GHH	52 Neutral	£136.12M	26.39	4.79%	2.49%	1.74%	359.50%
TTG	52 Neutral	£173.91M	―	-22.95%	5.35%	-15.12%	-690.29%
SOLI	51 Neutral	£88.68M	173.89	0.81%	2.45%	-23.42%	-94.25%
XAR	49 Neutral	£93.50M	―	-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.