GATES INDUSTRIAL CORP PLC (GTES) Stock Fundamental Analysis
USA - NYSE:GTES - GB00BD9G2S12 - Common Stock
25.93 USD
+0.05 (+0.19%)
25.93 USD
0 (0%)
Overall GTES gets a fundamental rating of 5 out of 10. We evaluated GTES against 129 industry peers in the Machinery industry. GTES has an average financial health and profitability rating. GTES has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
GTES had positive earnings in the past year.
In the past year GTES had a positive cash flow from operations.
GTES had positive earnings in each of the past 5 years.
Each year in the past 5 years GTES had a positive operating cash flow.
1.2 Ratios
GTES has a Return On Assets (2.81%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 6.20%, GTES is in line with its industry, outperforming 41.86% of the companies in the same industry.
With a Return On Invested Capital value of 6.14%, GTES perfoms like the industry average, outperforming 46.51% of the companies in the same industry.
GTES had an Average Return On Invested Capital over the past 3 years of 5.94%. This is below the industry average of 10.01%.
The 3 year average ROIC (5.94%) for GTES is below the current ROIC(6.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 6.2% | ||
| ROIC | 6.14% |
ROA(3y)3.05%
ROA(5y)2.83%
ROE(3y)6.93%
ROE(5y)6.64%
ROIC(3y)5.94%
ROIC(5y)5.37%
1.3 Margins
Looking at the Profit Margin, with a value of 5.98%, GTES is in line with its industry, outperforming 52.71% of the companies in the same industry.
In the last couple of years the Profit Margin of GTES has declined.
GTES's Operating Margin of 14.95% is fine compared to the rest of the industry. GTES outperforms 70.54% of its industry peers.
In the last couple of years the Operating Margin of GTES has grown nicely.
GTES has a Gross Margin of 40.93%. This is in the better half of the industry: GTES outperforms 74.42% of its industry peers.
GTES's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.95% | ||
| PM (TTM) | 5.98% | ||
| GM | 40.93% |
OM growth 3Y1.81%
OM growth 5Y5.56%
PM growth 3Y-12.55%
PM growth 5Y-23.86%
GM growth 3Y1.68%
GM growth 5Y1.85%
2. Health
2.1 Basic Checks
GTES has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
GTES has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GTES has less shares outstanding
Compared to 1 year ago, GTES has a worse debt to assets ratio.
2.2 Solvency
GTES has an Altman-Z score of 2.32. This is not the best score and indicates that GTES is in the grey zone with still only limited risk for bankruptcy at the moment.
GTES's Altman-Z score of 2.32 is on the low side compared to the rest of the industry. GTES is outperformed by 61.24% of its industry peers.
GTES has a debt to FCF ratio of 7.81. This is a slightly negative value and a sign of low solvency as GTES would need 7.81 years to pay back of all of its debts.
GTES has a Debt to FCF ratio (7.81) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.71 indicates that GTES is somewhat dependend on debt financing.
GTES has a Debt to Equity ratio of 0.71. This is in the lower half of the industry: GTES underperforms 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 7.81 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.67
WACC9.23%
2.3 Liquidity
GTES has a Current Ratio of 3.46. This indicates that GTES is financially healthy and has no problem in meeting its short term obligations.
GTES has a Current ratio of 3.46. This is amongst the best in the industry. GTES outperforms 83.72% of its industry peers.
GTES has a Quick Ratio of 2.46. This indicates that GTES is financially healthy and has no problem in meeting its short term obligations.
GTES has a Quick ratio of 2.46. This is amongst the best in the industry. GTES outperforms 80.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.46 | ||
| Quick Ratio | 2.46 |
3. Growth
3.1 Past
GTES shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.13%.
The Earnings Per Share has been growing slightly by 7.44% on average over the past years.
Looking at the last year, GTES shows a decrease in Revenue. The Revenue has decreased by -2.67% in the last year.
GTES shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.00% yearly.
EPS 1Y (TTM)2.13%
EPS 3Y-0.24%
EPS 5Y7.44%
EPS Q2Q%8.33%
Revenue 1Y (TTM)-2.67%
Revenue growth 3Y-0.64%
Revenue growth 5Y2%
Sales Q2Q%-0.2%
3.2 Future
GTES is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.36% yearly.
Based on estimates for the next years, GTES will show a small growth in Revenue. The Revenue will grow by 3.36% on average per year.
EPS Next Y12.31%
EPS Next 2Y14.08%
EPS Next 3Y13.36%
EPS Next 5YN/A
Revenue Next Year1.53%
Revenue Next 2Y3.19%
Revenue Next 3Y3.36%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GTES is valuated rather expensively with a Price/Earnings ratio of 18.01.
Compared to the rest of the industry, the Price/Earnings ratio of GTES indicates a somewhat cheap valuation: GTES is cheaper than 72.09% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GTES to the average of the S&P500 Index (27.40), we can say GTES is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.65, the valuation of GTES can be described as correct.
76.74% of the companies in the same industry are more expensive than GTES, based on the Price/Forward Earnings ratio.
GTES's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 14.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GTES indicates a somewhat cheap valuation: GTES is cheaper than 69.77% of the companies listed in the same industry.
63.57% of the companies in the same industry are more expensive than GTES, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.26 | ||
| EV/EBITDA | 11.51 |
4.3 Compensation for Growth
GTES's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of GTES may justify a higher PE ratio.
A more expensive valuation may be justified as GTES's earnings are expected to grow with 13.36% in the coming years.
PEG (NY)1.46
PEG (5Y)2.42
EPS Next 2Y14.08%
EPS Next 3Y13.36%
5. Dividend
5.1 Amount
No dividends for GTES!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.93
+0.05 (+0.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners106.77%
Inst Owner Change0.43%
Ins Owners1.8%
Ins Owner Change5.99%
Market Cap6.68B
Analysts83.53
Price Target30.4 (17.24%)
Short Float %2.6%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.81%
Min EPS beat(2)0.88%
Max EPS beat(2)6.74%
EPS beat(4)4
Avg EPS beat(4)5.02%
Min EPS beat(4)0.88%
Max EPS beat(4)6.74%
EPS beat(8)6
Avg EPS beat(8)7.54%
EPS beat(12)8
Avg EPS beat(12)5.45%
EPS beat(16)11
Avg EPS beat(16)8.79%
Revenue beat(2)1
Avg Revenue beat(2)-0.07%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)0.98%
Revenue beat(4)1
Avg Revenue beat(4)-0.99%
Min Revenue beat(4)-2.02%
Max Revenue beat(4)0.98%
Revenue beat(8)1
Avg Revenue beat(8)-1.78%
Revenue beat(12)2
Avg Revenue beat(12)-1.69%
Revenue beat(16)3
Avg Revenue beat(16)-1.63%
PT rev (1m)0%
PT rev (3m)22.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.18%
EPS NY rev (1m)0.35%
EPS NY rev (3m)4.46%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)3.06%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.01 | ||
| Fwd PE | 14.65 | ||
| P/S | 1.97 | ||
| P/FCF | 22.26 | ||
| P/OCF | 16.01 | ||
| P/B | 2.04 | ||
| P/tB | 477.08 | ||
| EV/EBITDA | 11.51 |
EPS(TTM)1.44
EY5.55%
EPS(NY)1.77
Fwd EY6.83%
FCF(TTM)1.17
FCFY4.49%
OCF(TTM)1.62
OCFY6.24%
SpS13.17
BVpS12.69
TBVpS0.05
PEG (NY)1.46
PEG (5Y)2.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.81% | ||
| ROE | 6.2% | ||
| ROCE | 7.81% | ||
| ROIC | 6.14% | ||
| ROICexc | 6.91% | ||
| ROICexgc | 15.86% | ||
| OM | 14.95% | ||
| PM (TTM) | 5.98% | ||
| GM | 40.93% | ||
| FCFM | 8.85% |
ROA(3y)3.05%
ROA(5y)2.83%
ROE(3y)6.93%
ROE(5y)6.64%
ROIC(3y)5.94%
ROIC(5y)5.37%
ROICexc(3y)6.65%
ROICexc(5y)5.97%
ROICexgc(3y)16.26%
ROICexgc(5y)15.01%
ROCE(3y)7.56%
ROCE(5y)6.83%
ROICexcg growth 3Y2.48%
ROICexcg growth 5Y7.25%
ROICexc growth 3Y5%
ROICexc growth 5Y10.47%
OM growth 3Y1.81%
OM growth 5Y5.56%
PM growth 3Y-12.55%
PM growth 5Y-23.86%
GM growth 3Y1.68%
GM growth 5Y1.85%
F-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 7.81 | ||
| Debt/EBITDA | 3.2 | ||
| Cap/Depr | 54.85% | ||
| Cap/Sales | 3.45% | ||
| Interest Coverage | 4.9 | ||
| Cash Conversion | 57.91% | ||
| Profit Quality | 148.05% | ||
| Current Ratio | 3.46 | ||
| Quick Ratio | 2.46 | ||
| Altman-Z | 2.32 |
F-Score7
WACC9.23%
ROIC/WACC0.67
Cap/Depr(3y)40.69%
Cap/Depr(5y)38.4%
Cap/Sales(3y)2.53%
Cap/Sales(5y)2.5%
Profit Quality(3y)132.29%
Profit Quality(5y)160.12%
High Growth Momentum
Growth
EPS 1Y (TTM)2.13%
EPS 3Y-0.24%
EPS 5Y7.44%
EPS Q2Q%8.33%
EPS Next Y12.31%
EPS Next 2Y14.08%
EPS Next 3Y13.36%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.67%
Revenue growth 3Y-0.64%
Revenue growth 5Y2%
Sales Q2Q%-0.2%
Revenue Next Year1.53%
Revenue Next 2Y3.19%
Revenue Next 3Y3.36%
Revenue Next 5YN/A
EBIT growth 1Y-2.59%
EBIT growth 3Y1.16%
EBIT growth 5Y7.67%
EBIT Next Year34.02%
EBIT Next 3Y16.2%
EBIT Next 5YN/A
FCF growth 1Y-33.72%
FCF growth 3Y-2.61%
FCF growth 5Y0.53%
OCF growth 1Y-21.52%
OCF growth 3Y-0.24%
OCF growth 5Y1.7%