Gateley (Holdings) (GTLY) AI Stock Analysis

• Market Cap: £173.58M
• Dividend Yield: 7.31%
• Average Volume (3M): 116.49K
• Price to Earnings (P/E): 29.5
• Beta (1Y): 0.32
• Revenue Growth: 4.95%
• EPS Growth: -53.49%
• Country: UK
• Employees: 1,565
• Sector: Industrials
• Sector Strength: 78
• Industry: Consulting Services
• EPS (TTM): 0.04
• Shares Outstanding: 133,519,400
• 10 Day Avg. Volume: 73,683
• 30 Day Avg. Volume: 116,493
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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: £170.00
• Price Target Upside: 30.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Gateley (Holdings) shows solid financial performance with strong cash flow and revenue growth. However, profitability challenges and a bearish technical outlook weigh on the stock. The high P/E ratio suggests the stock might be overvalued, balanced by a strong dividend yield. Recent corporate changes support growth but do not significantly alter the immediate stock outlook.

Positive Factors

Dividends

A dividend yield of 7%+ supports the attractiveness of the stock.

Financial performance

Gateley delivered a robust 1H, with revenues +5.3% to £86.3m with underlying Organic growth was 3.2%, with legal services +2.1% and consultancy services +6.1%.

Revenue growth

Consultancy services grew 13.6% to £25.7m, of which organic growth was 6.1%, and now comprise 29.8% of total revenue.

Negative Factors

Share sale restrictions

The group will not renew the Orderly Market Agreement, which ends in June 2025, allowing IPO partners potentially to sell more shares.

Gateley (Holdings) Business Overview & Revenue Model

Company Description

Gateley (Holdings) Plc, together with its subsidiaries, provides commercial legal and consultancy services in the United Kingdom, Europe, the Middle East, North and South America, Asia, and internationally. It operates through five segments: Banking and Financial Services; Corporate; Business Services; Employees, Pensions and Benefits; and Property. The company offers legal services for asset finance, banking, and restructuring services; corporate, family, private client, and taxation services; commercial, commercial dispute resolution, litigation, and shipping services; tweed services; employment and pension services; and construction, planning, real estate, and residential development services. It also provides pension trustee, tax incentive, specialist property consultancy, human capital consultancy, investment consultancy, and employee benefit trust services, as well as commercial landlord and tenant, corporate advisory, and dispute resolution and consultancy services. The company was formerly known as Gateley Plc and changed its name to Gateley (Holdings) Plc in May 2015. Gateley (Holdings) Plc was incorporated in 2014 and is based in Birmingham, the United Kingdom.

How the Company Makes Money

Gateley (Holdings) makes money primarily through providing legal and consultancy services. The company generates revenue by billing clients for professional services delivered by its team of lawyers and consultants. This includes fees for legal advice, representation in legal matters, compliance services, and business consultancy. Gateley has successfully diversified its revenue streams by expanding into related consultancy services, which complement its core legal offerings. Additionally, strategic partnerships and acquisitions play a key role in enhancing its service portfolio and expanding its client base, thereby contributing to its financial growth.

Gateley (Holdings) Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
172.49M	162.68M	137.25M	121.38M	109.84M
	Gross Profit
164.48M	155.44M	131.03M	43.91M	46.31M
	EBIT
16.09M	21.00M	19.74M	17.03M	15.55M
	EBITDA
24.19M	25.10M	34.13M	24.55M	21.93M
	Net Income Common Stockholders
10.07M	12.24M	23.02M	13.16M	11.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.67M	11.11M	16.11M	19.61M	2.92M
	Total Assets
163.12M	148.65M	146.43M	121.64M	98.51M
	Total Debt
41.43M	38.79M	34.64M	30.45M	29.26M
	Net Debt
24.76M	27.68M	18.54M	10.84M	26.34M
	Total Liabilities
82.79M	70.54M	71.30M	62.37M	53.67M
	Stockholders Equity
80.33M	78.11M	75.14M	59.27M	44.84M
Cash Flow		Free Cash Flow
16.98M	9.01M	4.21M	23.71M	11.37M
	Operating Cash Flow
18.03M	11.11M	5.31M	24.22M	12.56M
	Investing Cash Flow
194.00K	-1.62M	-43.00K	-999.00K	-4.47M
	Financing Cash Flow
-12.65M	-14.49M	-8.77M	-6.54M	-8.05M

Gateley (Holdings) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 130.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GTLY, the sentiment is Negative. The current price of 130 is below the 20-day moving average (MA) of 130.68, below the 50-day MA of 134.53, and below the 200-day MA of 130.19, indicating a bearish trend. The MACD of -1.42 indicates Negative momentum. The RSI at 42.38 is Neutral, neither overbought nor oversold. The STOCH value of 68.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GTLY.

Gateley (Holdings) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNOS	75 Outperform	£899.01M	17.66	35.07%	3.90%	-4.13%	23.09%
FRAN	73 Outperform	£270.33M	36.90	3.36%	1.65%	14.79%	165.03%
RWS	69 Neutral	£247.77M	5.24	5.03%	18.58%	-2.13%	―
Sector *	63 Neutral	$4.21B	11.55	5.28%	250.72%	4.13%	-9.42%
GTLY	63 Neutral	£173.58M	29.55	7.13%	7.31%	4.95%	-53.49%
RCDO	56 Neutral	£153.01M	205.36	-5.28%	4.34%	-8.12%	-794.85%
SFOR	48 Neutral	£163.73M	99.88	-42.53%	―	-16.14%	-5856.63%

Gateley (Holdings) Corporate Events

Gateley Appoints Martin Pike as Independent Non-Executive Director

Gateley (Holdings) Plc has appointed Martin Pike as an Independent Non-Executive Director, enhancing its board with his extensive experience in global professional services and leadership roles in FTSE 100 and FTSE 250 companies. This strategic appointment aligns with Gateley’s growth strategy and commitment to attracting exceptional talent, while Colin Jones will step down from his role as a Non-Executive Director at the end of April 2025.

Spark’s Take on GB:GTLY Stock

According to Spark, TipRanks’ AI Analyst, GB:GTLY is a Neutral.

Gateley (Holdings) is in a healthy financial position with strong revenue growth and cash flow generation. The recent credit facility boosts financial flexibility for growth initiatives. However, challenges in profitability margins and a high P/E ratio suggest caution. Technical indicators point to a bearish trend, impacting the overall stock score.

To see Spark’s full report on GB:GTLY stock, click here.

Gateley Secures £80 Million Credit Facility to Fuel Growth

Gateley (Holdings) PLC has secured a new £80 million revolving credit facility to support its growth strategy, replacing its previous £30 million facility. This new agreement, involving Bank of Scotland, HSBC UK, Barclays, and NatWest, provides Gateley with increased financial flexibility to pursue organic growth and acquisitions, enhancing its service offerings and market resilience.

Spark’s Take on GB:GTLY Stock

According to Spark, TipRanks’ AI Analyst, GB:GTLY is a Neutral.

Gateley (Holdings) shows strong financial performance with robust cash flow and revenue growth, though profitability margins need attention. Technical analysis indicates an upward trend, but caution is advised due to potential overbought signals. The valuation suggests the stock may be overvalued, despite a high dividend yield. Overall, the company is stable but faces profitability and valuation challenges.

To see Spark’s full report on GB:GTLY stock, click here.