Gattaca (GATC) AI Stock Analysis

• Market Cap: £24.43M
• Dividend Yield: 4.52%
• Average Volume (3M): 14.21K
• Price to Earnings (P/E): 40.8
• Beta (1Y): 0.18
• Revenue Growth: 4.14%
• EPS Growth: -45.24%
• Country: UK
• Employees: 386
• Sector: Industrials
• Sector Strength: 78
• Industry: Staffing & Employment Services
• EPS (TTM): 0.02
• Shares Outstanding: 31,516,870
• 10 Day Avg. Volume: 9,808
• 30 Day Avg. Volume: 14,214
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Gattaca's overall stock score reflects modest financial performance with stable balance sheets but significant cash flow concerns. The technical analysis indicates bearish trends, while the high valuation may pose a risk if profitability does not improve. Positive corporate events provide some optimism, but the company needs to address its financial and operational challenges to enhance its stock performance.

Gattaca Business Overview & Revenue Model

Company Description

Gattaca plc, a human capital resources company, provides contract and permanent recruitment services in the private and public sectors. The company operates through three segments: UK Engineering, UK Technology, and International. It offers flexible, permanent, and total workforce solutions; professional, engineering, and technology support solutions; and statement of work solutions, as well as talent mapping and insights, rate/salary benchmarking, diversity consultancy, talent attraction and employer branding, recruitment process analysis, recruitment technology, workforce compliance, workforce planning, and assessment and selection solutions. The company provides its services for the infrastructure, defense, technology, public sector technology, media and telecoms, energy, retail, manufacturing and life sciences, finance, banking and insurance, and mobility markets under the Matchtech, Networkers, Barclay Meade, Alderwood, Cappo, and Resourcing Solutions brands. It has operations in the United Kingdom, rest of Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company was formerly known as Matchtech Group plc and changed its name to Gattaca plc in September 2016. The company was founded in 1984 and is headquartered in Fareham, the United Kingdom.

How the Company Makes Money

Gattaca makes money primarily through its recruitment and staffing services. The company earns revenue by charging fees for placing candidates in permanent positions, which is typically a percentage of the candidate's first-year salary. For contract staffing, Gattaca generates income by billing clients for contracted workers at a rate higher than the compensation paid to those workers, capturing the difference as profit. Additionally, Gattaca might have partnerships with various organizations to provide tailored workforce solutions, contributing to its revenue streams.

Gattaca Financial Statement Overview

Summary

Gattaca shows modest revenue growth but struggles with profitability and operational efficiency. The balance sheet is stable with low leverage, but cash flow management is concerning due to significant declines, impacting liquidity. Improvements in margins and cash flow generation are needed.

Income Statement

Gattaca's income statement reveals modest revenue growth of 1.13% in the most recent annual period. The gross profit margin stands at 10.29%, indicating some pressure on cost management. The net profit margin is low at 0.05%, reflecting challenges in translating revenue to net income. EBIT and EBITDA margins are also low at 0.28% and 0.86%, respectively, suggesting limited operational efficiency and profitability.

Balance Sheet

The balance sheet shows a solid equity base with a debt-to-equity ratio of 0.07, highlighting low leverage and financial stability. The return on equity (ROE) is weak at 0.66%, indicating limited earnings relative to shareholder investment. The equity ratio is 34.83%, reflecting a balanced approach to financing between equity and liabilities.

Cash Flow

Gattaca's cash flow statement reveals a significant decline in operating cash flow, with a 64.41% drop from the previous year. The free cash flow has also decreased by 65.45%, suggesting potential challenges in liquidity management. The operating cash flow to net income ratio is 18.26, indicating reliance on cash flow for profitability. The free cash flow to net income ratio is 17.40, further emphasizing this dependency.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
389.53M	385.17M	403.87M	415.73M	534.71M
	Gross Profit
40.08M	43.40M	44.20M	42.08M	51.87M
	EBIT
1.08M	2.09M	192.00K	1.41M	5.60M
	EBITDA
3.37M	6.03M	-2.26M	3.46M	6.60M
	Net Income Common Stockholders
186.00K	1.23M	-4.62M	-437.00K	-1.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.82M	23.38M	17.77M	29.24M	34.80M
	Total Assets
81.22M	81.38M	84.37M	109.10M	105.41M
	Total Debt
2.07M	1.82M	5.43M	15.11M	15.19M
	Net Debt
-20.75M	-21.55M	-12.34M	-14.13M	-19.61M
	Total Liabilities
52.91M	50.56M	53.91M	74.00M	65.64M
	Stockholders Equity
28.30M	30.82M	30.45M	35.11M	39.77M
Cash Flow		Free Cash Flow
3.24M	9.36M	-1.60M	-4.62M	54.88M
	Operating Cash Flow
3.40M	9.54M	-1.20M	-4.20M	57.41M
	Investing Cash Flow
-31.00K	-48.00K	-399.00K	-415.00K	-2.25M
	Financing Cash Flow
-3.49M	-3.69M	-10.06M	-598.00K	-38.52M

Gattaca Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 77.50
• 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:GATC, the sentiment is Negative. The current price of 77.5 is above the 20-day moving average (MA) of 77.49, below the 50-day MA of 80.75, and below the 200-day MA of 84.17, indicating a neutral trend. The MACD of -0.75 indicates Negative momentum. The RSI at 42.71 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:GATC.

Gattaca Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRAN	72 Outperform	£282.92M	38.62	3.36%	1.51%	14.79%	165.03%
Sector *	64 Neutral	$4.28B	11.80	5.30%	250.74%	4.12%	-9.02%
STAF	61 Neutral	£31.23M	―	8.52%	―	5.83%	19.29%
PAGE	60 Neutral	£839.46M	29.34	10.00%	6.11%	-13.50%	-62.86%
GATC	56 Neutral	£24.43M	40.79	3.66%	4.52%	4.14%	-45.24%
RWA	55 Neutral	£154.06M	29.69	-3.96%	10.44%	-16.16%	-145.46%
SFOR	48 Neutral	£161.30M	99.88	-42.53%	―	-16.14%	-5856.63%

Gattaca Corporate Events

Gattaca Reports Robust Interim Results Amid Market Challenges

Gattaca plc announced its interim results for the six months ending January 31, 2025, reporting a robust performance despite challenging market conditions. The company declared an interim dividend of 1.00 pence per share, with a slight adjustment to the payment date. The results highlighted a 3% decrease in net fee income year-on-year, with notable growth in the energy and infrastructure sectors. Gattaca’s strategic focus on expanding its contractor base and improving operational efficiency has shown resilience against macroeconomic headwinds. The company remains confident in achieving its full-year profit expectations, driven by strategic investments and a focus on core markets.

Gattaca Reports Resilient Interim Results Amid Market Challenges

Gattaca plc reported its interim financial results for the six months ending January 31, 2025, highlighting a robust performance despite challenging market conditions. The company experienced a 3% decrease in Net Fee Income (NFI) year-on-year, with notable growth in the energy and infrastructure sectors. Strategic investments in headcount and digital transformation have begun to yield positive results, with improvements in operational efficiency and client feedback. Despite macroeconomic headwinds affecting recruitment timelines, Gattaca remains focused on expanding its contractor base and maintaining cost discipline, aiming to meet its full-year profit expectations.

Gattaca Reports Steady Performance Amid Challenging Market

Gattaca plc reported a robust performance in line with expectations for the first half of 2025, despite a 3% year-on-year decline in group net fee income. The company focused on operational efficiency by reducing headcount and targeting sectors with growth opportunities. While the market environment remains tough, Gattaca is optimistic about long-term growth, planning to announce an interim dividend and maintain its profit guidance for FY25.