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Gear4music (Holdings)
(LSE:G4M)
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Rating:62Neutral
Price Target:
239.00 p
▼(-14.64% Downside)
Action:Reiterated
Date:09/25/26
The score is supported by improving financial performance (stronger growth, margin recovery, and reduced leverage) and an attractive low P/E, but is held back by weak technicals (price below major moving averages with negative MACD) and ongoing concerns about earnings and cash-flow consistency.
Positive Factors
Revenue and Margin Recovery
The latest period shows a meaningful operating recovery, combining renewed revenue growth with sharply better profitability. Higher EBIT and net margins can strengthen internal funding capacity and provide greater resilience, although continued execution is needed to establish that the improvement is durable.
Negative Factors
Earnings Volatility
The sharp variation in profitability across the cycle means the latest recovery has not yet demonstrated a stable earnings base. Such volatility can make planning, staffing, inventory decisions, and reinvestment more difficult, while leaving future profitability sensitive to changes in trading conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Recovery
The latest period shows a meaningful operating recovery, combining renewed revenue growth with sharply better profitability. Higher EBIT and net margins can strengthen internal funding capacity and provide greater resilience, although continued execution is needed to establish that the improvement is durable.
Read all positive factors
Gear4music (Holdings) (G4M) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£48.34M
Dividend YieldN/A
Average Volume (3M)23.93K
Price to Earnings (P/E)6.6
Beta (1Y)0.84
Revenue Growth30.00%
EPS Growth778.34%
CountryUK
Employees492
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.35
Shares Outstanding21,015,830
10 Day Avg. Volume40,146
30 Day Avg. Volume23,935
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.02
Price to Sales (P/S)0.25
P/FCF Ratio10.13
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.22
Revenue Forecast (FY)£200.00M
Gear4music (Holdings) Business Overview & Revenue Model
Company Description
Gear4music (Holdings) plc operates as a prominent retailer, distributing a vast selection of musical instruments and related equipment throughout the United Kingdom, across Europe, and to a global clientele. The company's diverse inventory include...
How the Company Makes Money
Gear4music makes money mainly by selling music instruments and music technology products via its online retail platforms (and associated distribution/fulfilment operations). Its key revenue streams include: (1) Retail product sales: revenue from t...
Gear4music (Holdings) Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
70
Positive
Cash Flow
61
Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 190.74M | 146.72M | 144.38M | 152.04M | 147.63M |
| Gross Profit | 54.24M | 39.66M | 39.44M | 39.04M | 41.13M |
| EBITDA | 18.66M | 9.98M | 9.26M | 7.18M | 11.08M |
| Net Income | 7.32M | 832.00K | 651.00K | -644.00K | 3.72M |
Balance Sheet | |||||
| Total Assets | 92.72M | 81.37M | 75.20M | 84.61M | 94.27M |
| Cash, Cash Equivalents and Short-Term Investments | 8.02M | 5.58M | 4.70M | 4.46M | 3.90M |
| Total Debt | 19.43M | 19.81M | 21.39M | 27.60M | 37.68M |
| Total Liabilities | 46.42M | 42.07M | 36.83M | 47.38M | 56.23M |
| Stockholders Equity | 46.30M | 39.30M | 38.37M | 37.23M | 38.04M |
Cash Flow | |||||
| Free Cash Flow | 4.68M | 4.23M | 10.72M | 13.39M | -16.82M |
| Operating Cash Flow | 8.28M | 8.26M | 14.62M | 19.71M | -7.59M |
| Investing Cash Flow | -3.49M | -3.92M | -3.86M | -6.70M | -16.50M |
| Financing Cash Flow | -2.35M | -3.47M | -10.51M | -12.41M | 21.81M |
Gear4music (Holdings) Technical Analysis
Negative
280.00
Price Trends
254.11
Negative
265.21
Negative
264.63
Negative
Market Momentum
-6.90
Negative
37.65
Neutral
57.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:G4M, the sentiment is Negative. The current price of 280 is above the 20-day moving average (MA) of 235.18, above the 50-day MA of 254.11, and above the 200-day MA of 264.63, indicating a bearish trend. The MACD of -6.90 indicates Negative momentum. The RSI at 37.65 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:G4M.
Gear4music (Holdings) Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | £497.29M | 14.12 | 21.65% | 0.02% | 11.35% | 247.54% | |
66 Neutral | £1.46B | 9.28 | 7.10% | 2.09% | 6.29% | 55.06% | |
65 Neutral | £554.50M | 16.85 | 6.52% | 3.54% | 5.04% | ― | |
62 Neutral | £48.34M | 6.65 | 16.69% | ― | 30.00% | 778.34% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
51 Neutral | £702.10M | -9.70 | -16.03% | ― | 10.14% | 57.54% | |
46 Neutral | £51.43M | -122.50 | -4.18% | 1.57% | -7.46% | 71.01% |
* Consumer Cyclical Sector Average
GB:G4M
Gear4music (Holdings)
230.00
-63.00
-21.50%
GB:HFD
Halfords
254.50
111.58
78.07%
GB:AO
AO World
90.10
-14.33
-13.72%
GB:CURY
Currys plc
143.80
6.24
4.54%
GB:THG
THG
39.18
-7.30
-15.71%
GB:MRK
Marks Electrical Group Plc
49.00
-0.50
-1.01%
Gear4music (Holdings) Corporate Events
Business Operations and StrategyFinancial Disclosures
Gear4music posts revenue growth as warehouse investment trims first-half EBITDA
Positive
Oct 20, 2026
Gear4music reported a 6% rise in total revenue to £85.4 million for the six months to 30 September 2026, with U.K. sales up 3% and European and Rest of World revenues climbing 11%, in line with board expectations despite tough comparatives. G...
Business Operations and StrategyFinancial Disclosures
Gear4music grows H1 revenue as warehouse investment trims earnings
Positive
Oct 20, 2026
Gear4music reported a 6% rise in first-half revenues to £85.4m for the six months to 30 September 2026, with UK sales up 3% and European and Rest of World revenues climbing 11%. Gross profit increased to £23.6m and gross margin held broa...
Business Operations and StrategyRegulatory Filings and Compliance
Gear4music CEO trims stake in online music retailer
Neutral
Oct 13, 2026
Gear4music (Holdings) plc, a York-based online retailer of musical instruments and equipment, operates distribution centres and showrooms across the UK and mainland Europe while serving more than 190 countries through its own multilingual e-commer...
Business Operations and StrategyShareholder Meetings
Gear4music AGM Resolutions Pass Amid Shareholder Pushback on Pay
Neutral
Sep 8, 2026
Gear4music (Holdings) plc reported that all resolutions at its Annual General Meeting on 8 September 2026 were approved by shareholders, confirming broad support for the company’s governance and strategic direction. The largest UK-based reta...
Business Operations and StrategyFinancial DisclosuresShareholder Meetings
Gear4music posts 7.3% sales rise ahead of half‑year update
Positive
Sep 8, 2026
Gear4music (Holdings) plc, the UK’s largest retailer of musical instruments and music equipment, operates a proprietary e‑commerce platform and a network of distribution centres and showrooms across the UK and Europe. It sells own̴...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Gear4music Publishes 2026 Annual Report and Sets AGM Date
Neutral
Aug 12, 2026
Gear4music (Holdings) plc has distributed its Annual Report and Accounts for the year ended 31 March 2026, along with the formal notice of its upcoming Annual General Meeting, to shareholders. The documents are now accessible on the company’...
Business Operations and Strategy
Gear4music Issues New Shares After Employee Option Exercise
Neutral
Jul 28, 2026
Gear4music (Holdings) plc has announced the issue of 38,892 new ordinary shares following the exercise of employee options under its 2023 CSOP Scheme. The new shares will be admitted to trading on AIM, with admission expected to take effect on 29 ...
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.