Gear4music (Holdings)

G4M.L

Specialty Retail · Consumer Cyclical

Price

275.00 GBp

+0.00 (+0.00%)

Market Cap

57.7M GBp

Exchange

London Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Mar 31, 2026

How the score breaks down

Quality

Good

Growth

Strong

Cash Flow

Good

Stability

Strong

Valuation

Good

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Share count falling — buybacks

−2.5% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 21.5M (2022) → 21.0M (2026)

Winston Score History

The full picture

Gear4music is a UK-based online retailer that sells musical instruments and music equipment. Its product range covers everything from guitars, drums, and keyboards to DJ gear, studio equipment, and accessories. It serves hobbyist musicians, students, and working professionals, and is one of the largest dedicated online music retailers in Europe.

The company makes money by selling products directly to customers through its website, earning a margin on each sale. Most of its revenue comes from the UK, but it also sells across Europe. Its competitive edge comes from its wide product selection, own-brand instruments that carry higher margins, and a purpose-built warehouse and logistics operation. The main risk the business faces is competition from larger generalist retailers like Amazon, which can undercut on price and reach more customers — keeping margins thin in a market where consumers are highly price-sensitive.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+29.4% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+153.5% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

£0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

29.4%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

£8M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Gear4music (Holdings) grew revenue 29% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

26.7%

Modest — 26.7% gross margin

Profit after running costs

Operating Margin

7.0%

Modest — 7.0% operating margin

Return on the money invested

ROCE

17.8%

Strong — 17.8% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth

Sales YoY

+30.0%

Fast-growing sales (+30.0% YoY)

Profit growth

EPS YoY

+773.5%

Earnings growing fast (+773.5% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

98%

Turns 98% of profit into real cash

Spare cash per sale

FCF Margin

3.6%

Thin free cash flow (3.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.28

Conservative — low debt load (0.28)

Covers its interest

Interest Cover

7.41x

Adequate interest coverage (7.4x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

8.0x

Attractive valuation — P/E 8.0

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

-5.1

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.

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