Gooch & Housego (GHH) AI Stock Analysis

• Market Cap: £165.92M
• Dividend Yield: 2.16%
• Average Volume (3M): 79.90K
• Price to Earnings (P/E): 44.2
• Beta (1Y): 1.03
• Revenue Growth: 10.66%
• EPS Growth: 21.19%
• Country: UK
• Employees: 911
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.20
• Shares Outstanding: 27,199,510
• 10 Day Avg. Volume: 105,270
• 30 Day Avg. Volume: 79,900
• PEG Ratio: -0.27
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 64.83
• 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: 67 Neutral
• Price Target: 638.00p ▲(5.63% Upside)

Gooch & Housego's stock is supported by strong technical momentum and improving financial performance, particularly in profitability. However, valuation concerns and liquidity risks due to increased debt and declining free cash flow growth temper the overall score.

Positive Factors

Diverse Revenue Streams

The company's diverse revenue streams from various industries and long-term contracts provide stability and reduce dependency on any single market, supporting sustained financial health.

Stable Balance Sheet

A stable balance sheet with a strong equity position and manageable debt levels ensures financial resilience and the ability to invest in growth opportunities.

Positive Cash Flow Management

Effective cash flow management, despite profitability challenges, indicates the company's ability to sustain operations and fund investments without relying heavily on external financing.

Negative Factors

Profitability Challenges

Declining revenue and negative net income highlight ongoing profitability challenges, which could impact the company's ability to reinvest in growth and innovation.

Decreased Gross Profit Margin

A decrease in gross profit margin indicates pressure on cost management and pricing power, potentially affecting long-term profitability and competitiveness.

Operating Cash Flow Concerns

A decrease in operating cash flow, despite positive free cash flow, raises concerns about the sustainability of cash generation, which is crucial for funding operations and growth.

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 primarily through the sale of its advanced optical components and systems to various industries. The company has key revenue streams from its core segments, which include aerospace and defense applications, industrial laser systems, and medical devices. GHH benefits from long-term contracts with major customers in these sectors, providing a stable income base. Additionally, the company engages in partnerships and collaborations with other technology firms and research institutions, enhancing its product offerings and expanding its market reach. The demand for sophisticated optical solutions in emerging technologies also contributes to GHH's earnings growth.

Gooch & Housego Financial Statement Overview

Summary

Gooch & Housego has shown positive revenue growth and improved profitability, with a significant turnaround in net profit margin. However, increased debt levels and declining free cash flow growth pose potential risks, necessitating careful liquidity management.

Income Statement

Gooch & Housego has shown consistent revenue growth over the past year, with a 5.05% increase in 2025. The gross profit margin has slightly decreased from previous years, indicating some pressure on cost management. However, the net profit margin has improved significantly from a negative position in 2024 to a positive 2.35% in 2025, showcasing a turnaround in profitability. EBIT and EBITDA margins are stable, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.43 in 2025, indicating a higher reliance on debt financing compared to previous years. However, the return on equity has improved to 3.01%, suggesting better utilization of equity. The equity ratio remains strong, indicating a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

There is a notable decline in free cash flow growth, down by 70.2% in 2025, which could be a concern for liquidity. The operating cash flow to net income ratio is relatively low at 0.21, indicating potential challenges in converting income into cash. The free cash flow to net income ratio is moderate, suggesting some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	150.49M	150.49M	135.99M	148.48M	124.80M	124.07M
Gross Profit	43.14M	42.71M	41.65M	36.93M	39.06M	41.32M
EBITDA	20.03M	20.03M	18.34M	18.84M	8.89M	15.79M
Net Income	3.54M	3.54M	-6.38M	4.05M	-2.01M	3.40M
Balance Sheet
Total Assets	206.86M	206.86M	166.31M	192.61M	176.09M	160.71M
Cash, Cash Equivalents and Short-Term Investments	7.96M	7.96M	6.62M	7.29M	6.00M	8.35M
Total Debt	51.05M	51.05M	32.43M	39.00M	25.07M	17.59M
Total Liabilities	89.42M	89.42M	57.92M	72.88M	57.55M	46.43M
Stockholders Equity	117.44M	117.44M	108.39M	119.73M	118.54M	114.28M
Cash Flow
Free Cash Flow	2.28M	2.28M	8.94M	8.85M	-2.03M	10.00M
Operating Cash Flow	6.84M	6.84M	14.19M	16.17M	6.54M	16.25M
Investing Cash Flow	-16.03M	-16.03M	-3.89M	-18.49M	-9.29M	-9.96M
Financing Cash Flow	9.84M	9.84M	-10.89M	4.19M	299.00K	-17.27M

Gooch & Housego Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 604.00
• 50DMA: Positive
• 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 604 is above the 20-day moving average (MA) of 572.45, above the 50-day MA of 553.12, and above the 200-day MA of 529.40, indicating a bullish trend. The MACD of 21.77 indicates Negative momentum. The RSI at 61.34 is Neutral, neither overbought nor oversold. The STOCH value of 65.59 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	74 Outperform	£130.76M	25.30	27.08%	2.00%	8.19%	―
SDI	70 Neutral	£86.38M	18.95	9.34%	―	7.36%	31.93%
SOLI	68 Neutral	£90.93M	37.56	3.88%	1.56%	8.75%	-54.73%
GHH	67 Neutral	£165.92M	44.25	3.13%	2.16%	10.66%	21.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
XAR	56 Neutral	£78.07M	-7.46	-16.64%	―	-7.35%	-222.10%
TTG	54 Neutral	£198.83M	-2.88	-31.42%	―	-16.33%	-448.12%

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.