Gamma CommunicationsCHIX:GAMAL -2.59%63 Return-on-Tangible-Equity is Negative Tangible Equity% as of Dec. 2025. GuruFocus rates CHIX:GAMAL with a GF Score™ of 63/100 and a GF Value™ of £15.80 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 326 Telecommunication Services companies, Gamma Communications ranks better than 78.53% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Gamma Communications's annualized net income for the quarter that ended in Dec. 2025 was £65.0 Mil. Gamma Communications's average shareholder tangible equity for the quarter that ended in Dec. 2025 was £-25.3 Mil. Therefore, Gamma Communications's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was Negative Tangible Equity%.
The historical rank and industry rank for Gamma Communications's Return-on-Tangible-Equity or its related term are showing as below:
CHIX:GAMAl'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 27.98 Med: 34.73 Max: 146.83
Current: 146.83
During the past 13 years, Gamma Communications's highest Return-on-Tangible-Equity was 146.83%. The lowest was 27.98%. And the median was 34.73%.
CHIX:GAMAl's Return-on-Tangible-Equity is ranked better than 78.53% of 326
companies
in the Telecommunication Services industry
Industry Median: 14.005
vs CHIX:GAMAl: 146.83
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Gamma Communications Return-on-Tangible-Equity Related Terms
Gamma Communications Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Gamma Communications's Return-on-Tangible-Equity 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.
CHIX:GAMAL vs TMUS, VZ, T: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, Gamma Communications's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Gamma Communications Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Gamma Communications's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Gamma Communications's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Gamma Communications (CHIX:GAMAL) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Gamma Communications and its competitors. Over the past decade, Gamma Communications' Return-on-Tangible-Equity has ranged from 27.98 to 146.83. According to the industry distribution chart, Gamma Communications ranks #70 out of 326 companies in the Telecommunication Services industry, placing it in the top 21.5%.
Is Gamma Communications' Return-on-Tangible-Equity too high?
Gamma Communications' current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 27.98 to a high of 146.83. Based on the distribution chart, Gamma Communications ranks #70 out of 326 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. 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' Return-on-Tangible-Equity compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Gamma Communications ranks #70 out of 326 companies for Return-on-Tangible-Equity. This places Gamma Communications in the top 22% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 14.01. Historically, Gamma Communications' own Return-on-Tangible-Equity has ranged from 27.98 to 146.83 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 14.01, based on 326 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Gamma Communications and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 14.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gamma Communications's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 £15.80, compared to a current price of £8.33 — trading 47.3% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Gamma Communications (CHIX:GAMAL), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 £8.33 is trading 47.3% below its estimated GF Value™ of £15.80.
GuruFocus considers Gamma Communications to be Significantly Undervalued.
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 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
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