Gamma CommunicationsCHIX:GAMAL -0.11%63 5-Year Yield-on-Cost % is 4.65 as of Jul. 12, 2026, which is 128% above its 10-year median of 2.04. 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. Among 228 Telecommunication Services companies, Gamma Communications ranks better than 51.75% on this metric.
Gamma Communications's yield on cost for the quarter that ended in Dec. 2025 was 4.65.
The historical rank and industry rank for Gamma Communications's 5-Year Yield-on-Cost % or its related term are showing as below:
CHIX:GAMAl'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.88 Med: 2.04 Max: 5.46
Current: 4.65
During the past 13 years, Gamma Communications's highest Yield on Cost was 5.46. The lowest was 0.88. And the median was 2.04.
CHIX:GAMAl's 5-Year Yield-on-Cost % is ranked better than 51.75% of 228
companies
in the Telecommunication Services industry
Industry Median: 4.525
vs CHIX:GAMAl: 4.65
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Gamma Communications 5-Year Yield-on-Cost % Related Terms
CHIX:GAMAL vs TMUS, VZ, T: 5-Year Yield-on-Cost % Comparison
For the Telecom Services subindustry, Gamma Communications's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Gamma Communications's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Gamma Communications's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Gamma Communications (CHIX:GAMAL) has a 5-Year Yield-on-Cost % of 4.65 as of Jul. 12, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Gamma Communications and its competitors. This is 128% above median its historical median of 2.04. Over the past decade, Gamma Communications' 5-Year Yield-on-Cost % has ranged from 0.88 to 5.46. According to the industry distribution chart, Gamma Communications ranks #110 out of 228 companies in the Telecommunication Services industry, placing it in the top 48.2%.
Is Gamma Communications' 5-Year Yield-on-Cost % too high?
Gamma Communications' current 5-Year Yield-on-Cost % of 4.65 is 128% above median its 10-year median of 2.04. Over the past 10 years, this metric has ranged from a low of 0.88 to a high of 5.46. The Telecommunication Services industry median 5-Year Yield-on-Cost % is 4.53. Gamma Communications' value of 4.65 is 2.8% above this industry median. Based on the distribution chart, Gamma Communications ranks #110 out of 228 companies in the Telecommunication Services industry, which is above the industry midpoint. 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' 5-Year Yield-on-Cost % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Gamma Communications ranks #110 out of 228 companies for 5-Year Yield-on-Cost %. This puts Gamma Communications in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 4.53. Gamma Communications' value of 4.65 is 2.8% above this benchmark. Historically, Gamma Communications' own 5-Year Yield-on-Cost % has ranged from 0.88 to 5.46 over the past decade. While the company's 10-year median is 2.04 vs. the industry median of 4.53, Gamma Communications has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Telecommunication Services company?
The median 5-Year Yield-on-Cost % among Telecommunication Services companies is 4.53, based on 228 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gamma Communications's current 5-Year Yield-on-Cost % of 4.65 is 2.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Gamma Communications and its competitors. For the Telecommunication Services industry, the median 5-Year Yield-on-Cost % is 4.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gamma Communications's current 5-Year Yield-on-Cost % is 4.65, which is 128% above median its own 10-year median of 2.04. 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 5-Year Yield-on-Cost % is 4.65, which is 128% above median its 10-year median of 2.04 and 2.8% above the Telecommunication Services industry median of 4.53. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Gamma Communications (CHIX:GAMAL), the current 5-Year Yield-on-Cost % is 4.65 as of Jul. 12, 2026. 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:
5-Year Yield-on-Cost %: 4.65 (128% above median its 10-year median of 2.04)
GF Value™: £15.84 vs. price of £8.96 (43.4% below fair value)
Industry Position: 2.8% above the Telecommunication Services median (#110 of 228)
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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