# Gamma Communications (GAMA.LSE)

Canonical: https://gigainvestors.com/s/GAMA.LSE

Analysis as of: 2026-10-16T07:42:59.824Z. Financial observations: FY2011–FY2025.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: GBX 1,095.00 per share; close as of 2026-10-15.

Estimated value: low GBX 1,511.23 per share, central GBX 2,199.98 per share, high GBX 2,584.12 per share. Buy at or below the central value GBX 2,199.98 per share. Valuation as of 2026-10-16T07:42:59.824Z; scenarios are not confidence intervals.

Expected annual return: 16.5% at the stated quote. About 16.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.18×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.10×

- FY2017: 0.11×

- FY2018: 0.12×

- FY2019: 0.14×

- FY2020: 0.19×

- FY2021: 0.15×

- FY2022: 0.13×

- FY2023: 0.13×

- FY2024: 0.16×

- FY2025: 0.16×

### moat: pass

- ROIC, median of available years: 38.4%

- ROIC, second-lowest year: 34.9%

- Typical minus recent gross margin: -2.3 pp

- Typical gross margin (annual median): 45.5%

- Recent gross margin (lower of latest and 3-year median): 47.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.2%

- ROIC including acquisitions, ten-year median: 29.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 38.9%

- FY2017: 32.9%

- FY2018: 37.6%

- FY2019: 37.1%

- FY2020: 49.4%

- FY2021: 40.2%

- FY2022: 34.9%

- FY2023: 46.8%

- FY2024: 59.1%

- FY2025: 37.9%

### economics: pass

- Owner earnings / net income, 5-yr: 1.30×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 380M

- Net income, five-year total: GBP 291M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 0.9 pp

- Working capital / revenue, final three-year average: 18.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.29×

- FY2022: 1.37×

- FY2023: 1.12×

- FY2024: 1.19×

- FY2025: 1.54×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 37.6% vs 46.8%

- Per-share earnings: 0.19 to 0.69 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.0%

- Ordinary dilution, 5-year annual growth: -0.5%

- Market cap gain: GBP 434M

- Cumulative retained earnings: GBP 300M

- Diluted shares, 10-year annual growth: -0.0%

- Diluted shares, 5-year annual growth: -0.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 17.2%

- Per-share value change: GBP 0.50

- Per-share value, starting three-year median: GBP 0.19

- Per-share value, ending three-year median: GBP 0.69

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 2.4%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: GBP 446M

- Cumulative net income, 10 years: GBP 459M

- ROIC, first three-year median: 37.6%

- ROIC, last three-year median: 46.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: GBP 0.19

- FY2017: GBP 0.24

- FY2018: GBP 0.30

- FY2019: GBP 0.36

- FY2020: GBP 0.67

- FY2021: GBP 0.55

- FY2022: GBP 0.50

- FY2023: GBP 0.55

- FY2024: GBP 0.73

- FY2025: GBP 0.69

### accounting: pass

- Sloan accruals: -3.7%

- Receivables to sales index (DSRI): 0.93×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.35×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.03×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.6%

- FY2017: -2.4%

- FY2018: -4.1%

- FY2019: -5.0%

- FY2020: 2.5%

- FY2021: -6.3%

- FY2022: -8.7%

- FY2023: -11.5%

- FY2024: -4.4%

- FY2025: -3.7%

## Holders

## Price story

Down 40% since Oct 2021 · sales +11.5%

Story as of 2026-10-16T10:00:12.565Z; price observation 2026-10-15.

Price needs cash profits to shrink 1.1% a year for ten years

### Sales · FY2024–2025

sales +11.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: GBP 214M 

- FY2017: GBP 242M 

- FY2018: GBP 285M 

- FY2019: GBP 329M 

- FY2020: GBP 394M 

- FY2021: GBP 448M 

- FY2022: GBP 485M 

- FY2023: GBP 522M 

- FY2024: GBP 579M 

- FY2025: GBP 646M 

### Gross margin · FY2025

gross margin 47.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 46.3% 

- FY2017: 44.9% 

- FY2018: 46.4% 

- FY2019: 45.4% 

- FY2020: 45.2% 

- FY2021: 45.0% 

- FY2022: 45.5% 

- FY2023: 45.2% 

- FY2024: 51.8% 

- FY2025: 47.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in telecom services; annual sales are GBP 645.8 million.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:59.824Z); FY2025: revenue 645800000; grossProfit 308200000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GAMA.LSE: Gamma Communications plc provides technology-based communications and software services to small, medium, and large-sized organizations in the United Kingdom, rest of Europe, and internationally. The company offers Gamma Enable that enables products and platforms link business and customers to the telephone network; Gamma Connect, which allows businesses to communicate by connecting people through voice, video and chat; Gamma SIP Trunks to connect site's on-premise telephone system directly into the Gamma network through an internet connection to carry and terminate calls across the public telephone network; connectivity and broadband, mobile and FireXchnage, and FUSION IoT solutions; Gamma Connect, a connectivity for voice and data; PhoneLine+, a landline replacement service using VoIP technology to deliver voice calls over the broadband network; CircleLoop, a cloud-based telephony product through web, desktop, and mobile applications; cloud-based communication solutions under the Horizon Cloud Phone System and iPECS names; cloud connect for Webex calling; and Microsoft Teams Phone. It also provides Gamma Experience that blends products and designs enterprise-grade solution; Webex for Gamma; GammaUCX, a voice-integration platform; Amazon Connect, a contact centre platform; Horizon Contact, a cloud-based customer engagement platform; secure payments with PCI compliance; Cirrus Contact Centre, which combines technologies, such as CRM, WFO, analytics, and omni-channel; Gamma Contact for Service Providers, an omnichannel contact center solution; Gamma Secure, a managed cyber security solution; Cyber Maturity Assessment, Vulnerability Management, managed SOP, safeweb, security awareness, and Gamma Managed Detection and Response solutions; Gamma, enterprise managed, managed networks, and Clearing as a service solutions; and Gamma Toolbox, which provides tools and services for businesses. The company was founded in 2002 and is headquartered in London, the United Kingdom.

### Why customers stay

Margins ranged from 45.2% to 51.8% during 2023–25; it earns 38.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:59.824Z); FY2023: grossProfit / revenue = 45.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:59.824Z); FY2024: grossProfit / revenue = 51.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:59.824Z); FY2025: grossProfit / revenue = 47.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:59.824Z); 10-year return on capital observations [[2016,0.38919147906076007],[2017,0.3292651141707746],[2018,0.3755660631222851],[2019,0.37089243035241354],[2020,0.49355403695267025],[2021,0.4017857142857143],[2022,0.34882067085456914],[2023,0.4676605921959082],[2024,0.5913034504756366],[2025,0.3786011583846886]]; median 0.38389631872272434. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 46% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:59.824Z); Gross margin observations: [[2021,0.4498548134911771],[2022,0.4550144449030128],[2023,0.45217557983515433]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back GBP 45.1 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:59.824Z); FY2016: growth capex 2419351.8463752307; upkeep 16280648.15362477; owner earnings 11319351.84637523. Growth capex / owner earnings = 0.21373589929974426.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:59.824Z); FY2017: growth capex 1700000; upkeep 10400000; owner earnings 22600000. Growth capex / owner earnings = 0.0752212389380531.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:59.824Z); FY2018: growth capex 0; upkeep 10200000; owner earnings 32100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:59.824Z); FY2019: growth capex 0; upkeep 9900000; owner earnings 39180000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:59.824Z); FY2020: growth capex 0; upkeep 9500000; owner earnings 74980000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:59.824Z); FY2021: growth capex 0; upkeep 9100000; owner earnings 69220000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:59.824Z); FY2022: growth capex 0; upkeep 6800000; owner earnings 67480000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:59.824Z); FY2023: growth capex 0; upkeep 23000000; owner earnings 59900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:59.824Z); FY2024: growth capex 0; upkeep 19200000; owner earnings 82820000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:59.824Z); FY2025: growth capex 0; upkeep 4800000; owner earnings 100100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:59.824Z); Dividend observations: [[2016,6400000],[2017,7300000],[2018,8100000],[2019,9200000],[2020,10400000],[2021,11700000],[2022,13300000],[2023,15200000],[2024,17300000],[2025,18900000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:59.824Z); FY2025: cash repurchases 45100000 GBP.

### Are managers owners

Insiders own 0.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GAMA.LSE SharesStats.PercentInsiders = 0.7250000000000001 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 1.1% yearly over ten years; actual growth was 20.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:42:59.824Z); Ten-year compound average after fade. Initial solved rate -0.0509399806690841. Price 1095; FX 100; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.1706004305564121 → FY2025 1.0635246119356998. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 465.00 per share

- 2016-11: GBX 473.50 per share

- 2016-12: GBX 466.50 per share

- 2017-01: GBX 490.00 per share

- 2017-02: GBX 497.50 per share

- 2017-03: GBX 491.00 per share

- 2017-04: GBX 571.00 per share

- 2017-05: GBX 575.00 per share

- 2017-06: GBX 615.00 per share

- 2017-07: GBX 650.00 per share

- 2017-08: GBX 635.00 per share

- 2017-09: GBX 595.00 per share

- 2017-10: GBX 602.50 per share

- 2017-11: GBX 603.00 per share

- 2017-12: GBX 645.00 per share

- 2018-01: GBX 680.00 per share

- 2018-02: GBX 696.00 per share

- 2018-03: GBX 700.00 per share

- 2018-04: GBX 750.00 per share

- 2018-05: GBX 756.00 per share

- 2018-06: GBX 754.00 per share

- 2018-07: GBX 786.00 per share

- 2018-08: GBX 854.00 per share

- 2018-09: GBX 856.00 per share

- 2018-10: GBX 800.00 per share

- 2018-11: GBX 804.00 per share

- 2018-12: GBX 730.00 per share

- 2019-01: GBX 820.00 per share

- 2019-02: GBX 854.00 per share

- 2019-03: GBX 978.00 per share

- 2019-04: GBX 1,100.00 per share

- 2019-05: GBX 1,195.00 per share

- 2019-06: GBX 1,150.00 per share

- 2019-07: GBX 1,095.00 per share

- 2019-08: GBX 1,035.00 per share

- 2019-09: GBX 1,105.00 per share

- 2019-10: GBX 1,190.00 per share

- 2019-11: GBX 1,250.00 per share

- 2019-12: GBX 1,330.00 per share

- 2020-01: GBX 1,400.00 per share

- 2020-02: GBX 1,210.00 per share

- 2020-03: GBX 1,000.00 per share

- 2020-04: GBX 1,335.00 per share

- 2020-05: GBX 1,230.00 per share

- 2020-06: GBX 1,285.00 per share

- 2020-07: GBX 1,580.00 per share

- 2020-08: GBX 1,580.00 per share

- 2020-09: GBX 1,650.00 per share

- 2020-10: GBX 1,670.00 per share

- 2020-11: GBX 1,605.00 per share

- 2020-12: GBX 1,645.00 per share

- 2021-01: GBX 1,605.00 per share

- 2021-02: GBX 1,510.00 per share

- 2021-03: GBX 1,640.00 per share

- 2021-04: GBX 1,818.00 per share

- 2021-05: GBX 1,994.00 per share

- 2021-06: GBX 1,990.00 per share

- 2021-07: GBX 2,075.00 per share

- 2021-08: GBX 2,300.00 per share

- 2021-09: GBX 1,830.00 per share

- 2021-10: GBX 1,812.00 per share

- 2021-11: GBX 1,700.00 per share

- 2021-12: GBX 1,650.00 per share

- 2022-01: GBX 1,550.00 per share

- 2022-02: GBX 1,476.00 per share

- 2022-03: GBX 1,354.00 per share

- 2022-04: GBX 1,196.00 per share

- 2022-05: GBX 1,202.00 per share

- 2022-06: GBX 1,076.00 per share

- 2022-07: GBX 1,108.00 per share

- 2022-08: GBX 1,082.00 per share

- 2022-09: GBX 1,056.00 per share

- 2022-10: GBX 1,064.00 per share

- 2022-11: GBX 1,096.00 per share

- 2022-12: GBX 1,082.00 per share

- 2023-01: GBX 1,178.00 per share

- 2023-02: GBX 1,166.00 per share

- 2023-03: GBX 1,080.00 per share

- 2023-04: GBX 1,162.00 per share

- 2023-05: GBX 1,152.00 per share

- 2023-06: GBX 1,142.00 per share

- 2023-07: GBX 1,108.00 per share

- 2023-08: GBX 1,074.00 per share

- 2023-09: GBX 1,092.00 per share

- 2023-10: GBX 1,046.00 per share

- 2023-11: GBX 1,056.00 per share

- 2023-12: GBX 1,126.00 per share

- 2024-01: GBX 1,194.00 per share

- 2024-02: GBX 1,234.00 per share

- 2024-03: GBX 1,368.00 per share

- 2024-04: GBX 1,308.00 per share

- 2024-05: GBX 1,452.00 per share

- 2024-06: GBX 1,410.00 per share

- 2024-07: GBX 1,486.00 per share

- 2024-08: GBX 1,532.00 per share

- 2024-09: GBX 1,668.00 per share

- 2024-10: GBX 1,588.00 per share

- 2024-11: GBX 1,580.00 per share

- 2024-12: GBX 1,530.00 per share

- 2025-01: GBX 1,338.00 per share

- 2025-02: GBX 1,320.00 per share

- 2025-03: GBX 1,212.00 per share

- 2025-04: GBX 1,334.00 per share

- 2025-05: GBX 1,186.00 per share

- 2025-06: GBX 1,138.00 per share

- 2025-07: GBX 1,088.00 per share

- 2025-08: GBX 1,056.00 per share

- 2025-09: GBX 1,000.00 per share

- 2025-10: GBX 993.00 per share

- 2025-11: GBX 945.00 per share

- 2025-12: GBX 924.00 per share

- 2026-01: GBX 909.00 per share

- 2026-02: GBX 898.00 per share

- 2026-03: GBX 710.00 per share

- 2026-04: GBX 904.40 per share

- 2026-05: GBX 962.00 per share

- 2026-06: GBX 840.50 per share

- 2026-07: GBX 936.00 per share

- 2026-08: GBX 1,140.00 per share

- 2026-09: GBX 1,124.00 per share

- 2026-10: GBX 1,095.00 per share

## Annual estimated value (GBX per share)

- FY2016: low GBX 182.10 per share, central GBX 203.67 per share, high GBX 232.39 per share

- FY2017: low GBX 203.14 per share, central GBX 227.25 per share, high GBX 259.34 per share

- FY2018: low GBX 306.49 per share, central GBX 344.42 per share, high GBX 394.90 per share

- FY2019: low GBX 399.39 per share, central GBX 447.66 per share, high GBX 511.91 per share

- FY2020: low GBX 550.38 per share, central GBX 619.69 per share, high GBX 711.95 per share

- FY2021: low GBX 712.60 per share, central GBX 894.85 per share, high GBX 1,037.80 per share

- FY2022: low GBX 953.37 per share, central GBX 1,230.50 per share, high GBX 1,425.31 per share

- FY2023: low GBX 1,091.59 per share, central GBX 1,439.19 per share, high GBX 1,664.62 per share

- FY2024: low GBX 1,404.01 per share, central GBX 1,980.06 per share, high GBX 2,301.34 per share

- FY2025: low GBX 1,435.60 per share, central GBX 2,088.96 per share, high GBX 2,453.37 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations