Gateley (Holdings) (GTLY) AI Stock Analysis

• Market Cap: £162.89M
• Dividend Yield: 778.69%
• Average Volume (3M): 109.87K
• Price to Earnings (P/E): 120.1
• Beta (1Y): 0.32
• Revenue Growth: 4.95%
• EPS Growth: -53.49%
• Country: UK
• Employees: 1,565
• Sector: Industrials
• Sector Strength: 94
• Industry: Consulting Services
• EPS (TTM): >-0.01
• Shares Outstanding: 133,519,400
• 10 Day Avg. Volume: 95,790
• 30 Day Avg. Volume: 109,872
• PEG Ratio: -0.70
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.15
• 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: £165.00
• Price Target Upside: 35.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: 141.00p ▲(15.57%Upside)

The overall stock score is influenced significantly by financial performance and corporate events. The company's solid financial foundation, evidenced by strong cash flow and revenue growth, is a key strength. However, technical indicators suggest cautious sentiment, and the high P/E ratio reflects potential overvaluation concerns. The positive corporate events, including strategic growth initiatives, further bolster the outlook.

Positive Factors

Mergers and Acquisitions

Gateley's strong balance sheet provides headroom for M&A, with the pipeline promising.

Operating Margins

Management targets a rise in operating margins to 13.5% or more through increased pricing, enhanced cross-selling, and returns from recent investments.

Negative Factors

Earnings Estimates

The analyst has trimmed the earnings per share estimates for the coming years due to a higher effective tax rate.

Shareholder Agreement

The group will not renew the Orderly Market Agreement, which ends in June 2025. This limited IPO partners to selling 10% of the shares they held at admission p.a.

Gateley (Holdings) Business Overview & Revenue Model

Company Description

Gateley (Holdings) PLC is a UK-based legal and professional services group that operates across various sectors, including real estate, banking and financial services, corporate, and commercial. The company offers a range of services such as legal advice, consultancy, and strategic advisory, focusing on delivering integrated and comprehensive solutions to its clients.

How the Company Makes Money

Gateley makes money primarily through fees charged for its legal and professional services. The company's revenue streams include billing clients for legal representation, consultancy services, and advisory projects. Gateley benefits from a diverse client base spread across multiple industries, which helps mitigate sector-specific risks. Additionally, the company may engage in strategic partnerships and collaborations, enhancing its service offerings and market reach. Its multidisciplinary approach allows Gateley to capitalize on cross-selling opportunities within its varied service lines, further bolstering its financial performance.

Gateley (Holdings) Financial Statement Overview

Summary

Gateley (Holdings) demonstrates solid revenue growth and strong cash flow generation, supporting its operations and financial stability. While the income statement shows growing revenues, profitability challenges are evident due to lower EBIT margins. The balance sheet reflects a well-managed capital structure with moderate leverage. Overall, the company is in a healthy financial position, but it should focus on improving profitability margins.

Income Statement

Gateley (Holdings) shows a consistent increase in revenue with a 6% growth from 2023 to 2024. The gross profit margin remains high at approximately 95%, indicating efficient cost management. However, the net profit margin decreased from 7.5% to 5.8%, reflecting a dip in profitability, primarily due to lower EBIT. Overall, the company demonstrates revenue growth but faces challenges in maintaining net profitability.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.52, suggesting a balanced leverage. Return on equity (ROE) has declined to 12.5% from 15.7% the previous year, reflecting reduced profitability. The equity ratio remains strong at 49.2%, indicating a solid capital structure with adequate equity financing. Despite some weakening in profitability metrics, the balance sheet remains stable.

Cash Flow

Operating cash flow increased significantly, supporting a robust operating cash flow to net income ratio of 1.79. Free cash flow grew by 88%, indicating strong cash generation and efficient capital expenditure management. The free cash flow to net income ratio also improved, highlighting the company's ability to convert earnings into cash effectively. Overall, cash flow performance is a strong point for the company.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	176.83M	172.49M	162.68M	137.25M	121.38M	109.84M
Gross Profit	65.61M	78.09M	155.44M	131.03M	43.91M	46.31M
EBITDA	23.08M	24.19M	25.10M	34.13M	24.55M	21.93M
Net Income	5.85M	10.07M	12.24M	23.02M	13.16M	11.72M
Balance Sheet
Total Assets	153.51M	163.12M	148.65M	146.43M	121.64M	98.51M
Cash, Cash Equivalents and Short-Term Investments	14.16M	16.67M	11.11M	16.11M	19.61M	2.92M
Total Debt	40.64M	41.43M	38.79M	34.64M	30.45M	29.26M
Total Liabilities	72.68M	82.79M	70.54M	71.30M	62.37M	53.67M
Stockholders Equity	80.83M	80.33M	78.11M	75.14M	59.27M	44.84M
Cash Flow
Free Cash Flow	13.55M	16.98M	9.01M	4.21M	23.71M	11.37M
Operating Cash Flow	14.84M	18.03M	11.11M	5.31M	24.22M	12.56M
Investing Cash Flow	4.01M	194.00K	-1.62M	-43.00K	-999.00K	-4.47M
Financing Cash Flow	-16.33M	-12.65M	-14.49M	-8.77M	-6.54M	-8.05M

Gateley (Holdings) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 122.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 122 is below the 20-day moving average (MA) of 129.95, below the 50-day MA of 129.62, and below the 200-day MA of 130.98, indicating a bearish trend. The MACD of -2.07 indicates Positive momentum. The RSI at 23.68 is Positive, neither overbought nor oversold. The STOCH value of 10.71 is Positive, 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
KEYS	78 Outperform	£196.33M	22.84	45.84%	287.92%	13.00%	11.16%
KGH	77 Outperform	£145.88M	12.81	11.37%	267.65%	5.40%	19.01%
GTLY	68 Neutral	£162.89M	120.10	1.85%	778.69%	4.95%	-53.49%
RST	67 Neutral	£374.49M	30.09	5.32%	193.36%	-0.65%	―
Sector *	67 Neutral	£2.85B	10.42	4.69%	215.06%	2.73%	-20.56%
RWA	55 Neutral	£116.06M	29.69	-3.96%	1021.95%	-16.16%	-145.46%
MANO	54 Neutral	£34.13M	38.24	2.18%	―	31.96%	-95.27%

Gateley (Holdings) Corporate Events

Gateley Reports Revenue Growth and Strategic Expansion Plans for FY25

Gateley (Holdings) PLC reported a 4% increase in group revenue for the fiscal year ending April 30, 2025, with organic growth contributing 3%. Despite a decline in net interest income due to lower interest rates, the company maintained its operating margin and plans to propose a final dividend of 6.2p, aligning annual dividends with the previous year. The company also renewed and increased its revolving credit facility to £80m to support its growth strategy, positioning itself for further expansion in FY26. The company remains optimistic about its future prospects despite the unpredictable economic environment.

The most recent analyst rating on (GB:GTLY) stock is a Buy with a £170.00 price target. To see the full list of analyst forecasts on Gateley (Holdings) stock, see the GB:GTLY Stock Forecast page.

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.

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.