Logo image of GTES

GATES INDUSTRIAL CORP PLC (GTES) Stock Fundamental Analysis

NYSE:GTES - New York Stock Exchange, Inc. - GB00BD9G2S12 - Common Stock - Currency: USD

20.18  -0.07 (-0.35%)

After market: 20.18 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to GTES. GTES was compared to 130 industry peers in the Machinery industry. Both the profitability and the financial health of GTES get a neutral evaluation. Nothing too spectacular is happening here. GTES has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

Quickly go to:

5

1. Profitability

1.1 Basic Checks

GTES had positive earnings in the past year.
GTES had a positive operating cash flow in the past year.
GTES had positive earnings in each of the past 5 years.
GTES had a positive operating cash flow in each of the past 5 years.
GTES Yearly Net Income VS EBIT VS OCF VS FCFGTES Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M

1.2 Ratios

GTES has a Return On Assets (3.11%) which is in line with its industry peers.
GTES has a Return On Equity (7.11%) which is in line with its industry peers.
GTES has a Return On Invested Capital of 6.48%. This is comparable to the rest of the industry: GTES outperforms 50.39% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GTES is significantly below the industry average of 11.19%.
The last Return On Invested Capital (6.48%) for GTES is above the 3 year average (5.70%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.11%
ROE 7.11%
ROIC 6.48%
ROA(3y)3.41%
ROA(5y)4.12%
ROE(3y)7.97%
ROE(5y)10.56%
ROIC(3y)5.7%
ROIC(5y)4.89%
GTES Yearly ROA, ROE, ROICGTES Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20 25

1.3 Margins

GTES has a Profit Margin (6.43%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of GTES has declined.
The Operating Margin of GTES (15.08%) is better than 74.02% of its industry peers.
GTES's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 40.23%, GTES is in the better half of the industry, outperforming 74.80% of the companies in the same industry.
GTES's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 15.08%
PM (TTM) 6.43%
GM 40.23%
OM growth 3Y13.01%
OM growth 5Y-1.82%
PM growth 3Y31.9%
PM growth 5Y-2.3%
GM growth 3Y1.02%
GM growth 5Y-0.75%
GTES Yearly Profit, Operating, Gross MarginsGTES Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40

More info and screens

5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GTES is destroying value.
Compared to 1 year ago, GTES has less shares outstanding
The number of shares outstanding for GTES has been reduced compared to 5 years ago.
The debt/assets ratio for GTES has been reduced compared to a year ago.
GTES Yearly Shares OutstandingGTES Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M
GTES Yearly Total Debt VS Total AssetsGTES Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.2 Solvency

An Altman-Z score of 2.07 indicates that GTES is not a great score, but indicates only limited risk for bankruptcy at the moment.
GTES's Altman-Z score of 2.07 is on the low side compared to the rest of the industry. GTES is outperformed by 67.72% of its industry peers.
GTES has a debt to FCF ratio of 8.48. This is a slightly negative value and a sign of low solvency as GTES would need 8.48 years to pay back of all of its debts.
The Debt to FCF ratio of GTES (8.48) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.75 indicates that GTES is somewhat dependend on debt financing.
GTES's Debt to Equity ratio of 0.75 is on the low side compared to the rest of the industry. GTES is outperformed by 74.80% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.75
Debt/FCF 8.48
Altman-Z 2.07
ROIC/WACC0.68
WACC9.51%
GTES Yearly LT Debt VS Equity VS FCFGTES Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.3 Liquidity

A Current Ratio of 3.02 indicates that GTES has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.02, GTES is in the better half of the industry, outperforming 77.17% of the companies in the same industry.
GTES has a Quick Ratio of 2.11. This indicates that GTES is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of GTES (2.11) is better than 78.74% of its industry peers.
Industry RankSector Rank
Current Ratio 3.02
Quick Ratio 2.11
GTES Yearly Current Assets VS Current LiabilitesGTES Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

More info and screens

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 14.88% over the past year.
Measured over the past 5 years, GTES shows a small growth in Earnings Per Share. The EPS has been growing by 0.91% on average per year.
GTES shows a decrease in Revenue. In the last year, the revenue decreased by -4.39%.
GTES shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.30% yearly.
EPS 1Y (TTM)14.88%
EPS 3Y24.47%
EPS 5Y0.91%
EPS Q2Q%-5.71%
Revenue 1Y (TTM)-4.39%
Revenue growth 3Y8.53%
Revenue growth 5Y1.3%
Sales Q2Q%-4.83%

3.2 Future

GTES is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.99% yearly.
Based on estimates for the next years, GTES will show a small growth in Revenue. The Revenue will grow by 0.95% on average per year.
EPS Next Y1.77%
EPS Next 2Y9.26%
EPS Next 3Y10.34%
EPS Next 5Y7.99%
Revenue Next Year-4.51%
Revenue Next 2Y-1.11%
Revenue Next 3Y0.54%
Revenue Next 5Y0.95%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
GTES Yearly Revenue VS EstimatesGTES Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
GTES Yearly EPS VS EstimatesGTES Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5

More info and screens

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 14.52 indicates a correct valuation of GTES.
GTES's Price/Earnings ratio is rather cheap when compared to the industry. GTES is cheaper than 81.10% of the companies in the same industry.
When comparing the Price/Earnings ratio of GTES to the average of the S&P500 Index (28.28), we can say GTES is valued slightly cheaper.
GTES is valuated correctly with a Price/Forward Earnings ratio of 12.52.
Based on the Price/Forward Earnings ratio, GTES is valued cheaper than 88.19% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GTES to the average of the S&P500 Index (91.29), we can say GTES is valued rather cheaply.
Industry RankSector Rank
PE 14.52
Fwd PE 12.52
GTES Price Earnings VS Forward Price EarningsGTES Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

GTES's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GTES is cheaper than 80.31% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GTES is valued a bit cheaper than 79.53% of the companies in the same industry.
Industry RankSector Rank
P/FCF 18.33
EV/EBITDA 9.45
GTES Per share dataGTES EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)8.19
PEG (5Y)15.89
EPS Next 2Y9.26%
EPS Next 3Y10.34%

More info and screens

0

5. Dividend

5.1 Amount

No dividends for GTES!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

GATES INDUSTRIAL CORP PLC

NYSE:GTES (1/29/2025, 8:04:00 PM)

After market: 20.18 0 (0%)

20.18

-0.07 (-0.35%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-30 2024-10-30/bmo
Earnings (Next)02-06 2025-02-06/amc
Inst Owners93.37%
Inst Owner Change0.61%
Ins Owners0.96%
Ins Owner Change0.43%
Market Cap5.14B
Analysts82.35
Price Target24.67 (22.25%)
Short Float %2.41%
Short Ratio2.07
Dividend
Industry RankSector 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)1
Avg EPS beat(2)2.2%
Min EPS beat(2)-1.33%
Max EPS beat(2)5.73%
EPS beat(4)2
Avg EPS beat(4)8.77%
Min EPS beat(4)-4.43%
Max EPS beat(4)35.11%
EPS beat(8)5
Avg EPS beat(8)6.7%
EPS beat(12)8
Avg EPS beat(12)10.81%
EPS beat(16)11
Avg EPS beat(16)9.22%
Revenue beat(2)0
Avg Revenue beat(2)-2.54%
Min Revenue beat(2)-3.07%
Max Revenue beat(2)-2.02%
Revenue beat(4)0
Avg Revenue beat(4)-2.46%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)-1.91%
Revenue beat(8)1
Avg Revenue beat(8)-1.66%
Revenue beat(12)2
Avg Revenue beat(12)-1.92%
Revenue beat(16)4
Avg Revenue beat(16)-1.12%
PT rev (1m)6.83%
PT rev (3m)19.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.51%
EPS NY rev (1m)0%
EPS NY rev (3m)2.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.6%
Valuation
Industry RankSector Rank
PE 14.52
Fwd PE 12.52
P/S 1.49
P/FCF 18.33
P/OCF 13.6
P/B 1.65
P/tB N/A
EV/EBITDA 9.45
EPS(TTM)1.39
EY6.89%
EPS(NY)1.61
Fwd EY7.99%
FCF(TTM)1.1
FCFY5.46%
OCF(TTM)1.48
OCFY7.35%
SpS13.51
BVpS12.21
TBVpS-0.71
PEG (NY)8.19
PEG (5Y)15.89
Profitability
Industry RankSector Rank
ROA 3.11%
ROE 7.11%
ROCE 8.21%
ROIC 6.48%
ROICexc 7.13%
ROICexgc 16.67%
OM 15.08%
PM (TTM) 6.43%
GM 40.23%
FCFM 8.15%
ROA(3y)3.41%
ROA(5y)4.12%
ROE(3y)7.97%
ROE(5y)10.56%
ROIC(3y)5.7%
ROIC(5y)4.89%
ROICexc(3y)6.33%
ROICexc(5y)5.41%
ROICexgc(3y)15.9%
ROICexgc(5y)13.99%
ROCE(3y)7.21%
ROCE(5y)6.18%
ROICexcg growth 3Y21.59%
ROICexcg growth 5Y-7.94%
ROICexc growth 3Y25.59%
ROICexc growth 5Y-1.02%
OM growth 3Y13.01%
OM growth 5Y-1.82%
PM growth 3Y31.9%
PM growth 5Y-2.3%
GM growth 3Y1.02%
GM growth 5Y-0.75%
F-Score7
Asset Turnover0.48
Health
Industry RankSector Rank
Debt/Equity 0.75
Debt/FCF 8.48
Debt/EBITDA 3.18
Cap/Depr 44.77%
Cap/Sales 2.83%
Interest Coverage 3.87
Cash Conversion 51.3%
Profit Quality 126.81%
Current Ratio 3.02
Quick Ratio 2.11
Altman-Z 2.07
F-Score7
WACC9.51%
ROIC/WACC0.68
Cap/Depr(3y)37.32%
Cap/Depr(5y)36.04%
Cap/Sales(3y)2.32%
Cap/Sales(5y)2.41%
Profit Quality(3y)118.76%
Profit Quality(5y)139.82%
High Growth Momentum
Growth
EPS 1Y (TTM)14.88%
EPS 3Y24.47%
EPS 5Y0.91%
EPS Q2Q%-5.71%
EPS Next Y1.77%
EPS Next 2Y9.26%
EPS Next 3Y10.34%
EPS Next 5Y7.99%
Revenue 1Y (TTM)-4.39%
Revenue growth 3Y8.53%
Revenue growth 5Y1.3%
Sales Q2Q%-4.83%
Revenue Next Year-4.51%
Revenue Next 2Y-1.11%
Revenue Next 3Y0.54%
Revenue Next 5Y0.95%
EBIT growth 1Y12.14%
EBIT growth 3Y22.65%
EBIT growth 5Y-0.55%
EBIT Next Year34.46%
EBIT Next 3Y16.22%
EBIT Next 5Y11.48%
FCF growth 1Y183.33%
FCF growth 3Y19.24%
FCF growth 5Y25.65%
OCF growth 1Y101.39%
OCF growth 3Y15.89%
OCF growth 5Y8.94%