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

Gooch & Housego (GHH) AI Stock Analysis

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GB:GHH

Gooch & Housego

(LSE:GHH)

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Neutral 67 (OpenAI - 5.2)
Rating:67Neutral
Price Target:
898.00 p
▲(45.31% Upside)
Action:ReiteratedDate:03/19/26
The score is driven mainly by improving profitability and a clear upward price trend (price above major moving averages with positive MACD). Offsetting these positives are weakening cash generation (large free cash flow decline and low cash conversion) and a relatively elevated valuation (P/E 25.56), with only a moderate dividend yield.
Positive Factors
Revenue Growth
Sustained top-line growth indicates expanding product adoption across industrial, aerospace/defense and life-science end markets. Durable revenue expansion supports scaling of engineered subsystems and recurring program sales, improving predictability of future cash flows and program conversion potential.
Negative Factors
Weak Cash Conversion
Severe deterioration in cash conversion undermines liquidity and reduces internal funding for capital expenditures, NRE and program qualification. Over months this raises dependence on external financing, increasing execution risk on new program ramps and limiting strategic flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained top-line growth indicates expanding product adoption across industrial, aerospace/defense and life-science end markets. Durable revenue expansion supports scaling of engineered subsystems and recurring program sales, improving predictability of future cash flows and program conversion potential.
Read all positive factors

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

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 Aero...
How the Company Makes Money
GHH makes money primarily by selling photonics components and higher-value engineered subsystems to OEM and industrial customers, generating revenue when products are delivered under customer purchase orders and longer-running supply arrangements....

Gooch & Housego Financial Statement Overview

Summary
Income statement strength (72) is supported by revenue growth and a return to positive net margins (2.35% in 2025). Balance sheet is adequate (68) with a strong equity base but rising leverage (debt-to-equity 0.43). Cash flow is the key drag (55) due to sharply lower free cash flow growth (-70.2%) and weak cash conversion (operating cash flow to net income 0.21).
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
55
Neutral
BreakdownSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue150.49M135.99M148.48M124.80M124.07M
Gross Profit42.71M41.65M36.93M39.06M41.32M
EBITDA20.03M18.34M18.84M8.89M15.79M
Net Income3.54M-6.38M4.05M-2.01M3.40M
Balance Sheet
Total Assets206.86M166.31M192.61M176.09M160.71M
Cash, Cash Equivalents and Short-Term Investments7.96M6.62M7.29M6.00M8.35M
Total Debt51.05M32.43M39.00M25.07M17.59M
Total Liabilities89.42M57.92M72.88M57.55M46.43M
Stockholders Equity117.44M108.39M119.73M118.54M114.28M
Cash Flow
Free Cash Flow2.28M8.94M8.85M-2.03M10.00M
Operating Cash Flow6.84M14.19M16.17M6.54M16.25M
Investing Cash Flow-16.03M-3.89M-18.49M-9.29M-9.96M
Financing Cash Flow9.84M-10.89M4.19M299.00K-17.27M

Gooch & Housego Technical Analysis

Technical Analysis Sentiment
Positive
Last Price618.00
Price Trends
50DMA
750.24
Positive
100DMA
660.59
Positive
200DMA
612.48
Positive
Market Momentum
MACD
2.37
Positive
RSI
51.25
Neutral
STOCH
45.26
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 618 is below the 20-day moving average (MA) of 761.30, below the 50-day MA of 750.24, and above the 200-day MA of 612.48, indicating a bullish trend. The MACD of 2.37 indicates Positive momentum. The RSI at 51.25 is Neutral, neither overbought nor oversold. The STOCH value of 45.26 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
£534.43M10.738.34%2.09%0.49%61.73%
73
Outperform
£65.18M3.5722.93%36.61%
72
Outperform
£2.62B17.588.06%2.12%3.15%-13.57%
67
Neutral
£208.56M25.563.10%2.19%10.66%21.19%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
54
Neutral
£213.67M-4.02-31.21%-16.33%-448.12%
39
Underperform
£27.57M-21.06-12.60%-14.81%-1362.50%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:GHH
Gooch & Housego
770.00
378.96
96.91%
GB:KMK
Kromek Group plc
10.00
4.85
94.17%
GB:RSW
Renishaw
3,546.00
1,328.32
59.90%
GB:TTG
TT Electronics
117.00
36.20
44.80%
GB:WPHO
Windar Photonics
27.50
-14.00
-33.73%
GB:DSCV
discoverIE Group plc
553.00
66.79
13.74%

Gooch & Housego Corporate Events

Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Gooch & Housego faces shareholder backlash on pay at AGM
Negative
Feb 27, 2026
Gooch Housego reported that all resolutions at its Annual General Meeting were passed except the advisory vote to approve its Remuneration Committee Report, which was rejected by a majority of shareholders. The board said it had consulted major i...
Business Operations and StrategyFinancial Disclosures
Gooch & Housego Order Book Surges as Defence and Industrial Demand Rebounds
Positive
Feb 27, 2026
Gooch Housego reported strong order book growth since the start of its new financial year, with orders rising to £168.3m, driven in particular by increased demand from aerospace and defence customers in the U.S. and Europe. Recent acquisitio...
Business Operations and StrategyExecutive/Board Changes
Gooch & Housego Confirms Start Date for New Chief Financial Officer
Positive
Feb 2, 2026
Gooch Housego PLC has confirmed that James Corte will join the company as Chief Financial Officer and Executive Director, with his appointment effective from 9 April 2026. The move finalises a previously announced leadership transition and is exp...
Other
Gooch & Housego Executives Sell Shares to Cover Tax on Vested Awards
Neutral
Jan 12, 2026
Gooch Housego PLC, a specialist manufacturer of photonic components and systems, serves markets that depend on precision optical and photonic technologies. The company reported that Chief Executive Officer Charlie Peppiatt and Company Secretary G...
Executive/Board Changes
Gooch & Housego Grants New Long-Term Incentive Awards to Senior Executives
Positive
Jan 12, 2026
Gooch Housego has granted new share-based awards under its Long Term Incentive Plan to Chief Executive Officer Charlie Peppiatt and Company Secretary Gareth Crowe, comprising Restricted Stock Awards and LTIP awards that will vest in January 2029 ...
Private Placements and FinancingRegulatory Filings and Compliance
Gooch & Housego Issues New Shares Following Management Incentive Vesting
Neutral
Jan 9, 2026
Gooch Housego PLC, the AIM‑quoted specialist in photonic components and systems, has expanded its issued share capital as part of its long‑term incentive arrangements for senior management. The company has issued and allotted 171,216 ...
Financial DisclosuresShareholder Meetings
Gooch & Housego Posts 2025 Annual Report and Sets Date for 2026 AGM
Neutral
Jan 7, 2026
Gooch Housego PLC has distributed its Annual Report and Financial Statements for the year ended 30 September 2025, along with the notice of its 2026 Annual General Meeting, to shareholders and has made these documents available on its investor we...
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: Mar 19, 2026