Gamma Communications (CHIX:GAMAL) Operating Income: £101.5 Mil (TTM As of Dec. 2025)


CHIX:GAMAL Gamma Communications PLC CHIX:GAMAL
63 GF Score
Price £8.96
GF Value £15.84
Valuation Significantly Undervalued
! 3 Warning Signs
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What is Gamma Communications Operating Income?

Gamma Communications CHIX:GAMAL -0.11% 63 Operating Income is £101.5 Mil as of Dec. 2025. GuruFocus rates CHIX:GAMAL with a GF Score™ of 63/100 and a GF Value™ of £15.84 (Significantly Undervalued). The stock has 3 warning signs investors should review.

Gamma Communications's Operating Income for the six months ended in Dec. 2025 was £57.1 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was £101.5 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Gamma Communications's Operating Income for the six months ended in Dec. 2025 was £57.1 Mil. Gamma Communications's Revenue for the six months ended in Dec. 2025 was £329.2 Mil. Therefore, Gamma Communications's Operating Margin % for the quarter that ended in Dec. 2025 was 17.35%.

Warning Sign:

Gamma Communications PLC operating margin has been in a 5-year decline. The average rate of decline per year is -2.2%.

Gamma Communications's 5-Year average Growth Rate for Operating Margin % was -2.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Gamma Communications's annualized ROC % for the quarter that ended in Dec. 2025 was 15.63%. Gamma Communications's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 234.65%.

Gamma Communications  (CHIX:GAMAl) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Gamma Communications's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=114.2 * ( 1 - 26.24% )/( (508.4 + 569.5)/ 2 )
=84.23392/538.95
=15.63 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=628.2 - 94.6 - ( 25.2 - max(0, 133.3 - 162.2+25.2))
=508.4

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=621.3 - 28.1 - ( 23.7 - max(0, 109.7 - 154.1+23.7))
=569.5

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Gamma Communications's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=94.8/( ( (40.8 + max(-33.2, 0)) + (40 + max(-21.1, 0)) )/ 2 )
=94.8/( ( 40.8 + 40 )/ 2 )
=94.8/40.4
=234.65 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(86.6 + 8.4 + 2) - (94.6 + 0 + 35.6)
=-33.2

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(78.4 + 7.5 + 2.7) - (28.1 + 0 + 81.6)
=-21.1

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Gamma Communications's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2025 )/Revenue (Q: Dec. 2025 )
=57.1/329.2
=17.35 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Gamma Communications Operating Income Related Terms

Gamma Communications Operating Income Historical Data

* Premium members only.

The historical data trend for Gamma Communications's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Gamma Communications Operating Income Chart

Gamma Communications Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 68.30 65.40 83.00 90.30 101.50

Gamma Communications Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 40.80 45.70 44.60 44.40 57.10
CHIX:GAMAL
63GF Score
Gamma Communications PLC CHIX:GAMAL
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Gamma Communications Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was £101.5 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of £101.5 Mil mean?
Gamma Communications (CHIX:GAMAL) has a Operating Income of £101.5 Mil as of Dec. 2025. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Gamma Communications and its competitors.
Is Gamma Communications' Operating Income too high?
Gamma Communications' current Operating Income is £101.5 Mil. Overall, Gamma Communications has a GF Score™ of 63/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Gamma Communications' Operating Income compare to TMUS and VZ?
Gamma Communications' Operating Income of £101.5 Mil can be compared against companies in the Telecommunication Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Telecommunication Services company?
A good Operating Income depends on the Telecommunication Services industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Gamma Communications and its competitors. Gamma Communications's current Operating Income is £101.5 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gamma Communications stock overvalued right now?
Based on GuruFocus' analysis, Gamma Communications (CHIX:GAMAL) is currently considered Significantly Undervalued. The stock's GF Value™ is £15.84, compared to a current price of £8.96 — trading 43.4% below its estimated fair value. The current Operating Income is £101.5 Mil. Gamma Communications' overall GF Score™ is 63/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Gamma Communications (CHIX:GAMAL), the current Operating Income is £101.5 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Gamma Communications (CHIX:GAMAL) Overvalued in 2026?

Based on GuruFocus' analysis, Gamma Communications stock appears to be undervalued. The current stock price of £8.96 is trading 43.4% below its estimated GF Value™ of £15.84. GuruFocus considers Gamma Communications to be Significantly Undervalued.

Key valuation signals for CHIX:GAMAL:

  • Operating Income: £101.5 Mil
  • GF Value™: £15.84 vs. price of £8.96 (43.4% below fair value)
  • GF Score™: 63/100 with 3 warning signs

No single metric tells the full story. See the CHIX:GAMAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Gamma Communications Business Description

Other Exchanges GAMA:UK6GC:Germany
Address 63 Saint Mary Axe, 3rd Floor, London, Berkshire, GBR, EC3A 8AA
Gamma Communications PLC is a supplier of Unified Communications as a Service (UCaaS) in the United Kingdom and other markets, supplying communication solutions directly and via its network of trusted channel partners. The company offers various products across categories including Unified Communications, Voice Enablement, and Connectivity. The company also offers cybersecurity and managed enterprise solutions. Its operating segments are Gamma Business, Gamma Enterprise, Europe, and Central Functions. The majority of the company's revenue is generated from the Gamma Business segment which sells its products to smaller businesses in the UK. Geographically, the company generates a majority of its revenue from the United Kingdom and the rest from Europe.
63GF Score

Get the complete analysis for CHIX:GAMAL

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£8.96
Price
£15.84
GF Value