Deep Value: cash covers more than 100% of the stock price

This company holds roughly $64M in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

Gemfields Group Limited

GEM.L

Other Precious Metals · Basic Materials

Price

2.85 GBp

+0.00 (+0.00%)

Market Cap

£49.1M

Exchange

London Stock Exchange

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through Dec 31, 2025

How the score breaks down

Quality

Weak

Growth

Weak

Cash Flow

Weak

Stability

Mixed

Valuation

Data not available

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Share count rising — dilution

+26.2% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 1.17B (2021) → 1.48B (2025)

Winston Score History

The full picture

Gemfields Group is a mining company that digs up colored gemstones — mainly emeralds and rubies — and sells them to jewelry makers and gem traders around the world. It owns and operates two of the most well-known colored gemstone mines on the planet: the Kagem emerald mine in Zambia and the Montepuez ruby mine in Mozambique. The company also owns a stake in Fabergé, the luxury jewelry brand.

Gemfields makes money by holding auction-style sales where gem dealers and jewelry companies bid on rough stones in bulk. It operates primarily in Africa, with sales reaching buyers across Asia, Europe, and the Middle East. Its competitive edge comes from controlling large, high-quality deposits that are difficult to replicate, but the business faces real risks from political instability in its operating countries, volatile gemstone prices, and thin margins — as the current financials show, the company is not yet consistently profitable.

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

-13.0% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+86.2% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (3%)

Research and development spending

Insider Activity

55.7%ownership

↓ Declining

Insider ownership declining — could be dilution or selling

Cash Runway

~13 months

$64M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Adequate runway but may need to raise capital within 2 years

Revenue declining

Gemfields Group Limited's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

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.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

14.8%

Thin — 14.8% gross margin

Profit after running costs

Operating Margin

-9.7%

Losing money on operations — -9.7%

Return on the money invested

ROCE

-6.5%

Weak — -6.5% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

-35.1%

Shrinking sales (-35.1% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

-13.9%

Burning cash (-13.9%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

0.31

Conservative — low debt load (0.31)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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