Getech Group plc (GTC) AI Stock Analysis

• Market Cap: £3.02M
• Dividend Yield: N/A
• Average Volume (3M): 232.16K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.79
• Revenue Growth: 6.03%
• EPS Growth: 75.91%
• Country: UK
• Employees: 58
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): >-0.01
• Shares Outstanding: 152,513,820
• 10 Day Avg. Volume: 79,915
• 30 Day Avg. Volume: 232,157
• PEG Ratio: 0.02
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.44
• P/FCF Ratio: -1.64
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: 2.00p ▼(-2.44% Downside)

The overall stock score of 49 reflects significant financial challenges, including ongoing losses and cash flow issues. However, recent corporate events provide a positive outlook with new contracts and strategic restructuring. Technical analysis shows mixed signals, and valuation remains unattractive due to negative earnings and no dividend yield.

Positive Factors

Strategic Partnerships

Strategic partnerships foster long-term relationships and expand service offerings, providing a durable competitive advantage and potential revenue growth.

Revenue Growth

Positive revenue growth indicates potential market expansion and product adoption, which can lead to improved financial performance over time.

Cash Position

A strong cash position offers financial stability and flexibility, allowing the company to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Declining Revenue

Persistent revenue decline suggests challenges in market demand or competitive positioning, potentially impacting long-term growth and profitability.

Negative Profitability

Ongoing negative profitability indicates operational inefficiencies and may limit the company's ability to reinvest in growth or return value to shareholders.

Rising Leverage

Increased leverage can strain financial resources and limit strategic options, posing risks to long-term financial health and stability.

Getech Group plc Business Overview & Revenue Model

Company Description

Getech Group Plc, together with its subsidiaries, provides geoscience and geospatial products and services to the companies and governments. The company offers ArcGIS for renewables platform for use in wind and solar projects to operate authoritative information, streamline operations, and transform data; and ArcGIS pipeline referencing to manage pipeline data, and track the status and health of pipeline assets. It also provides emergency response; exploration risk management; production optimization; and site analysis and planning solutions. In addition, the company offers geospatial software, such as Exploration Analyst, a favorability mapping tool that helps companies quantitatively rank information essential to day-to-day business decisions; Unconventionals Analyst, a production operations optimization tool used in unconventional resource projects, which include shale gas and shale oil; and Data Assistant that enables data transfer between Esri's geographic information system technology and subsurface interpretation systems used in geo energy operations, including CCS, petroleum, and geothermal. Further, it is involved in the building and managing a network of hydrogen hubs; and provision of government advisory services. The company has operations in the United Kingdom, Italy, France, Ireland, rest of Europe, the United States, rest of the Americas, Malaysia, Kazakhstan, Australia, rest of the Asia Pacific, Sierra Leone, and rest of Africa. Getech Group Plc was founded in 1986 and is based in Leeds, the United Kingdom.

How the Company Makes Money

Getech Group plc generates revenue primarily through the sale of its proprietary software products, subscription services, and consultancy offerings. The company offers its software solutions on a subscription basis, allowing clients to access advanced geoscience and data analytics tools for their exploration projects. Additionally, GTC provides consultancy services that help energy companies optimize their exploration and production strategies, which are typically billed on a project basis. Key revenue streams include software licensing fees, project-based consultancy contracts, and recurring subscriptions. Strategic partnerships with energy firms and industry stakeholders also enhance GTC's market presence and contribute to its earnings by fostering long-term relationships and expanding its service offerings.

Getech Group plc Financial Statement Overview

Summary

Getech Group plc faces significant challenges across its financial statements. The income statement shows continued losses and margin pressures, while the balance sheet reveals a stable yet increasingly leveraged position. Cash flow weaknesses further underscore the need for operational and strategic improvements to enhance financial performance and stability.

Income Statement

The company has faced declining revenue over the past few years, with a notable revenue decrease from 2019 to 2024. Despite a small recovery in 2024, profitability remains a significant challenge, as evidenced by negative EBIT and net income margins each year within the period. The gross profit margin has also been inconsistent, showing volatility in the cost structure. The revenue growth rate from 2023 to 2024 is positive, but margins are still under pressure, indicating a need for improved operational efficiencies.

Balance Sheet

The company's balance sheet indicates a relatively stable financial position with a positive equity ratio. However, the debt-to-equity ratio has increased slightly, suggesting rising leverage. Return on equity remains negative due to continued net losses, highlighting concerns about shareholder returns. While the reduction in total assets and stockholders' equity over time is concerning, the company maintains a healthy cash position, which provides some stability.

Cash Flow

Cash flow from operations has been negative, reflecting ongoing challenges in generating cash internally. Free cash flow remains negative, and the free cash flow to net income ratio is unfavorable. Despite a positive financing cash flow in 2024, indicating external funding support, the company's cash flow situation requires strategic improvement to ensure sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.59M	4.66M	4.02M	5.07M	4.28M	3.56M
Gross Profit	1.91M	1.65M	1.73M	357.00K	602.00K	708.00K
EBITDA	-1.48M	-697.00K	-4.12M	-2.02M	-1.31M	-599.00K
Net Income	-1.69M	-1.58M	-5.15M	-2.83M	-1.95M	-1.64M
Balance Sheet
Total Assets	6.06M	7.40M	7.65M	12.77M	15.05M	10.71M
Cash, Cash Equivalents and Short-Term Investments	419.00K	898.00K	385.00K	4.32M	5.86M	2.19M
Total Debt	180.00K	427.00K	621.00K	847.00K	1.06M	1.24M
Total Liabilities	2.48M	3.04M	3.26M	3.39M	3.02M	2.66M
Stockholders Equity	3.58M	4.36M	4.39M	9.38M	12.03M	8.05M
Cash Flow
Free Cash Flow	-818.00K	-1.25M	-3.75M	-1.36M	-1.72M	-1.16M
Operating Cash Flow	-792.00K	-479.00K	-2.84M	-500.00K	-843.00K	-229.00K
Investing Cash Flow	-123.00K	-117.00K	-892.00K	-858.00K	-930.00K	-926.00K
Financing Cash Flow	1.14M	1.09M	-305.00K	-287.00K	5.44M	-156.00K

Getech Group plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.05
• 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:GTC, the sentiment is Positive. The current price of 2.05 is above the 20-day moving average (MA) of 2.01, below the 50-day MA of 2.06, and above the 200-day MA of 1.93, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.00 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:GTC.

Getech Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POS	69 Neutral	£9.71M	-9.87	―	―	79.18%	-319.23%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
GTC	49 Neutral	£3.02M	-1.83	-46.75%	―	6.03%	75.91%

Getech Group plc Corporate Events

Getech Group Secures Twelve New Contracts Amidst Expanded Market Reach

Getech Group plc has announced a successful trading period with twelve new contracts worth approximately £333k, largely expected to be recognized within the current financial year. These contracts, including three with new customers, highlight the company’s expanded market reach across oil & gas, geothermal, and critical minerals sectors. The recent enhancement of their sales team has contributed to this growth, reflecting an increase in both the size and quality of their sales pipeline.

Getech Group Reports Interim Results and Strategic Restructuring for Growth

Getech Group plc announced its unaudited interim results for the first half of 2025, highlighting a significant restructuring that led to a 20% reduction in annualized costs and improved sales leadership. The company secured 54 contracts, with 57% being new customers, and enhanced its product offerings with new versions of its flagship earth modeling product, Globe. The financial results showed revenues of £2.1 million, a slight decrease from the previous year, but with a strong order book value of £4.2 million. The company aims for mid-to-high single-digit organic revenue growth and to be EBITDA positive by the end of 2025. The restructuring and strategic focus on core markets like Oil & Gas and Mining, along with new opportunities in Natural Hydrogen, position Getech for improved operational efficiency and growth.