Want to see GB:G4M full AI Analyst Report?
Top Page
Gear4music (Holdings)
(LSE:G4M)
Select Model
Select Model
Rating:66Neutral
Price Target:
313.00 p
▲(11.79% Upside)
Action:Reiterated
Date:06/25/26
The score is driven primarily by improving fundamentals (stronger growth, higher profitability, and reduced leverage), tempered by a track record of earnings/cash-flow volatility and weaker recent cash conversion. Technicals are supportive but appear stretched on RSI, while valuation looks fair at ~14.9x earnings with no dividend support.
Positive Factors
Revenue and margin rebound
The latest annual period shows a clear operating rebound with revenue up ~15% and material margin expansion (net margin to ~3.8%, EBIT to ~6.2%). This indicates the business recovered pricing/mix and operating leverage, supporting more durable profitability if the trends persist across selling seasons.
Negative Factors
Weak cash conversion
Reported profits are not fully matched by cash: operating cash covered only ~31% of earnings and free cash flow was ~57% of net income in 2026. This limits internal reinvestment capacity, raises sensitivity to working-capital swings, and could necessitate external funding in stress periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin rebound
The latest annual period shows a clear operating rebound with revenue up ~15% and material margin expansion (net margin to ~3.8%, EBIT to ~6.2%). This indicates the business recovered pricing/mix and operating leverage, supporting more durable profitability if the trends persist across selling seasons.
Read all positive factors
Gear4music (Holdings) (G4M) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£56.22M
Dividend YieldN/A
Average Volume (3M)17.23K
Price to Earnings (P/E)7.7
Beta (1Y)0.83
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. Volume13,788
30 Day Avg. Volume17,233
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)0.21
Revenue Forecast (FY)£200.20M
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 primarily through retail and distribution of musical instruments and music/audio equipment via its e-commerce websites. The company’s main revenue stream is product sales to consumers and, where applicable, trade customers, ...
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 | 11.05M |
| 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
279.83
Negative
264.38
Positive
275.07
Negative
Market Momentum
-0.10
Positive
35.22
Neutral
49.31
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 below the 20-day moving average (MA) of 280.95, above the 50-day MA of 279.83, and above the 200-day MA of 275.07, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 35.22 is Neutral, neither overbought nor oversold. The STOCH value of 49.31 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | £506.79M | 14.00 | 21.65% | 0.02% | 11.35% | 247.54% | |
68 Neutral | £1.54B | 9.79 | 7.10% | 1.98% | 6.29% | 55.06% | |
66 Neutral | £56.22M | 7.66 | 16.69% | ― | 30.00% | 778.34% | |
66 Neutral | £547.96M | 16.72 | 6.52% | 3.56% | 5.04% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
50 Neutral | £587.05M | -4.82 | 12.75% | ― | -1.91% | ― | |
45 Neutral | £47.75M | -113.75 | -4.18% | 1.57% | -7.46% | 71.01% |
* Consumer Cyclical Sector Average
GB:G4M
Gear4music (Holdings)
265.00
-45.00
-14.52%
GB:HFD
Halfords
252.50
123.34
95.49%
GB:AO
AO World
89.30
6.86
8.32%
GB:CURY
Currys plc
151.70
20.11
15.28%
GB:THG
THG
31.70
3.04
10.61%
GB:MRK
Marks Electrical Group Plc
45.50
-15.00
-24.79%
Gear4music (Holdings) Corporate Events
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 ...
Other
Gear4music CFO Increases Stake with Share Purchase on AIM
Positive
Jun 25, 2026
Gear4music (Holdings) plc, a York-headquartered online retailer of musical instruments and equipment, runs distribution centres and showrooms across the UK and Europe to support its e-commerce platform. The group sells both own-brand products and ...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Gear4music beats forecasts with profit surge and funds tech-led expansion
Positive
Jun 23, 2026
Gear4music reported a 30% rise in revenue to £190.7m for the year to 31 March 2026, with gross profit up 37% and EBITDA climbing 84% to £18.4m, beating market expectations. Profit before tax surged to £10.3m from £1.6m, while n...
Business Operations and StrategyFinancial DisclosuresShareholder Meetings
Gear4music Schedules Online Investor Presentation on Full-Year Results
Positive
Jun 11, 2026
Gear4music (Holdings) plc has announced it will host an online investor webinar for existing and potential shareholders on 23 June 2026 at 9:00 a.m., covering results for the year ended 31 March 2026. The session, led by Executive Chair Andrew Was...
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.