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Gooch & Housego
(LSE:GHH)
Select Model
Select Model
Rating:62Neutral
Price Target:
1,288.00 p
▲(6.89% Upside)
Action:Reiterated
Date:07/17/26
The score is driven primarily by improving profitability and a generally solid balance sheet, offset by weak cash flow trends (sharp free cash flow decline and low cash conversion). Technicals are supportive with strong trend/momentum, but elevated RSI signals the move may be overextended. Valuation is a meaningful headwind due to the very high P/E and low dividend yield.
Positive Factors
Design-in business model and recurring OEM revenue
Gooch & Housego’s model of supplying precision photonics and engineered systems that are ‘designed into’ OEM platforms creates durable, repeatable revenue streams. Design-in and value-added manufacturing drive long product lifecycles and recurring program orders, supporting stable medium-term revenue.
Negative Factors
Sharp free cash flow decline
A 70% fall in free cash flow and weak cash conversion indicate earnings are not translating into cash. That constrains funding for capex, working capital for multi-year programs, and increases reliance on external financing or slower organic reinvestment over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Design-in business model and recurring OEM revenue
Gooch & Housego’s model of supplying precision photonics and engineered systems that are ‘designed into’ OEM platforms creates durable, repeatable revenue streams. Design-in and value-added manufacturing drive long product lifecycles and recurring program orders, supporting stable medium-term revenue.
Read all positive factors
Gooch & Housego (GHH) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£329.82M
Dividend Yield0.81%
Average Volume (3M)375.13K
Price to Earnings (P/E)81.7
Beta (1Y)1.20
Revenue Growth12.73%
EPS Growth-26.74%
CountryUK
Employees975
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.15
Shares Outstanding27,370,726
10 Day Avg. Volume352,164
30 Day Avg. Volume375,133
Financial Highlights & Ratios
PEG Ratio-0.26
Price to Book (P/B)1.26
Price to Sales (P/S)0.98
P/FCF Ratio64.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,230.00Price Target Upside2.07% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.45
Revenue Forecast (FY)£174.79M
Gooch & Housego Business Overview & Revenue Model
Company Description
Gooch & Housego PLC is a global innovator and provider of advanced optical components and systems, specializing in acousto-optic, electro-optic, fiber optic, and precision optic technologies. Operating across the United Kingdom, North America, Eur...
How the Company Makes Money
GHH primarily makes money by selling photonics products and engineered solutions to OEM and institutional customers, generating revenue through a mix of (1) manufactured components, (2) higher-value modules/subsystems, and (3) bespoke engineering ...
Gooch & Housego Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 161.48M | 150.49M | 135.99M | 148.48M | 124.80M | 124.07M |
| Gross Profit | 45.04M | 42.71M | 41.65M | 36.93M | 39.06M | 41.32M |
| EBITDA | 20.88M | 20.03M | 18.34M | 18.84M | 8.89M | 15.79M |
| Net Income | 3.94M | 3.54M | -6.38M | 4.05M | -2.01M | 3.40M |
Balance Sheet | ||||||
| Total Assets | 211.60M | 206.86M | 166.31M | 192.61M | 176.09M | 160.71M |
| Cash, Cash Equivalents and Short-Term Investments | 5.18M | 7.96M | 6.62M | 7.29M | 6.00M | 8.35M |
| Total Debt | 54.26M | 51.05M | 32.43M | 39.00M | 25.07M | 17.59M |
| Total Liabilities | 92.54M | 89.42M | 57.92M | 72.88M | 57.55M | 46.43M |
| Stockholders Equity | 119.06M | 117.44M | 108.39M | 119.73M | 118.54M | 114.28M |
Cash Flow | ||||||
| Free Cash Flow | 2.35M | 2.28M | 8.94M | 8.85M | -2.03M | 10.00M |
| Operating Cash Flow | 7.88M | 6.84M | 14.19M | 16.17M | 6.54M | 16.25M |
| Investing Cash Flow | -15.16M | -16.03M | -3.89M | -18.49M | -9.29M | -9.96M |
| Financing Cash Flow | 6.42M | 9.84M | -10.89M | 4.19M | 299.00K | -17.27M |
Gooch & Housego Technical Analysis
Positive
1205.00
Price Trends
1142.22
Positive
1042.62
Positive
867.53
Positive
Market Momentum
11.21
Positive
58.11
Neutral
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:GHH, the sentiment is Positive. The current price of 1205 is below the 20-day moving average (MA) of 1206.25, above the 50-day MA of 1142.22, and above the 200-day MA of 867.53, indicating a neutral trend. The MACD of 11.21 indicates Positive momentum. The RSI at 58.11 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 Positive sentiment for GB:GHH.
Gooch & Housego Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £3.62B | 50.29 | 8.06% | 1.52% | 4.99% | -24.08% | |
73 Outperform | £47.84M | 3.69 | 22.93% | ― | 136.76% | ― | |
72 Outperform | £746.86M | 26.33 | 9.04% | 1.65% | 4.82% | 17.80% | |
62 Neutral | £329.82M | 81.69 | 3.33% | 0.81% | 12.73% | -26.74% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | £294.81M | -8.40 | -24.38% | 3.68% | -2.68% | 47.33% | |
42 Neutral | £11.04M | -3.27 | -21.49% | ― | 26.04% | -101.19% |
* Technology Sector Average
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Gooch & Housego Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Gooch & Housego Confirms Q4-Weighted Outlook as Acquisition Advances
Positive
Jul 30, 2026
Gooch Housego has issued a trading update alongside the publication of the scheme document for its recommended cash acquisition by Greenlight Bidco Limited. The deal progresses as the group reiterates that its financial year performance to 30 Sep...
Business Operations and StrategyExecutive/Board Changes
Gooch & Housego names Serena Lang as chair designate to lead next growth phase
Positive
Jun 3, 2026
Gooch Housego, the AIM-listed specialist in optical components and photonic systems, has appointed Serena Lang as an independent non-executive director and chair designate, with an orderly transition planned from current chair Gary Bullard. Lang ...
Business Operations and StrategyFinancial Disclosures
Gooch & Housego lifts revenue, builds record order book on defence demand
Positive
Jun 2, 2026
Gooch Housego reported a strong first half, with revenue up 15.5% to £81.9m and adjusted profit before tax up 13.9%, driven largely by aerospace and defence, where sales surged 51.7% and profitability rose to £3.6m. Industrial sales wer...
Business Operations and StrategyFinancial Disclosures
Gooch & Housego lifts revenue and order book on booming defence demand
Positive
Jun 2, 2026
Gooch Housego reported a strong first half to 31 March 2026, with revenue up 15.5% to £81.9m and adjusted profit before tax rising 13.9% to £5.8m, driven by robust demand in aerospace and defence and early recovery in industrial laser a...
Business Operations and StrategyFinancial Disclosures
Gooch & Housego Sets Date for Half‑Year Results and Investor Briefings
Positive
May 20, 2026
Gooch Housego will publish its half‑year results for the six months to 31 March 2026 on 2 June 2026, signalling an upcoming update on trading and operational performance for investors and analysts. The company is coordinating an in‑pe...
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.