GATES INDUSTRIAL CORP PLC (GTES) Stock Fundamental Analysis
NYSE:GTES - New York Stock Exchange, Inc. - GB00BD9G2S12 - Common Stock - Currency: USD
Overall GTES gets a fundamental rating of 5 out of 10. We evaluated GTES against 127 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.
GTES had a positive operating cash flow in the past year.
Each year in the past 5 years GTES has been profitable.
GTES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GTES's Return On Assets of 2.87% is in line compared to the rest of the industry. GTES outperforms 45.60% of its industry peers.
The Return On Equity of GTES (6.45%) is comparable to the rest of the industry.
GTES has a Return On Invested Capital (6.68%) which is in line with its industry peers.
GTES had an Average Return On Invested Capital over the past 3 years of 5.94%. This is below the industry average of 10.84%.
The 3 year average ROIC (5.94%) for GTES is below the current ROIC(6.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 6.45% | ||
| ROIC | 6.68% |
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
GTES's Profit Margin of 5.72% is in line compared to the rest of the industry. GTES outperforms 53.60% of its industry peers.
GTES's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 15.12%, GTES is doing good in the industry, outperforming 72.80% of the companies in the same industry.
GTES's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 40.57%, GTES is in the better half of the industry, outperforming 75.20% of the companies in the same industry.
In the last couple of years the Gross Margin of GTES has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.12% | ||
| PM (TTM) | 5.72% | ||
| GM | 40.57% |
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.
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.
GTES has a worse debt/assets ratio than last year.
2.2 Solvency
GTES has an Altman-Z score of 2.15. 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 2.15 is on the low side compared to the rest of the industry. GTES is outperformed by 60.00% of its industry peers.
GTES has a debt to FCF ratio of 8.61. This is a slightly negative value and a sign of low solvency as GTES would need 8.61 years to pay back of all of its debts.
GTES has a Debt to FCF ratio of 8.61. This is comparable to the rest of the industry: GTES outperforms 41.60% of its industry peers.
GTES has a Debt/Equity ratio of 0.76. This is a neutral value indicating GTES is somewhat dependend on debt financing.
GTES has a Debt to Equity ratio of 0.76. This is in the lower half of the industry: GTES underperforms 75.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 8.61 | ||
| Altman-Z | 2.15 |
ROIC/WACC0.62
WACC10.77%
2.3 Liquidity
GTES has a Current Ratio of 3.20. This indicates that GTES is financially healthy and has no problem in meeting its short term obligations.
GTES has a better Current ratio (3.20) than 76.80% of its industry peers.
A Quick Ratio of 2.26 indicates that GTES has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.26, GTES is doing good in the industry, outperforming 79.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.2 | ||
| Quick Ratio | 2.26 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.74% 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 7.44% on average per year.
The Revenue has decreased by -4.54% in the past year.
Measured over the past years, GTES shows a small growth in Revenue. The Revenue has been growing by 2.00% on average per year.
EPS 1Y (TTM)0.74%
EPS 3Y-0.24%
EPS 5Y7.44%
EPS Q2Q%-7.69%
Revenue 1Y (TTM)-4.54%
Revenue growth 3Y-0.64%
Revenue growth 5Y2%
Sales Q2Q%-3.93%
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 12.59% yearly.
The Revenue is expected to grow by 2.19% on average over the next years.
EPS Next Y8.56%
EPS Next 2Y13.11%
EPS Next 3Y12.59%
EPS Next 5YN/A
Revenue Next Year-0.81%
Revenue Next 2Y1.83%
Revenue Next 3Y2.19%
Revenue Next 5YN/A
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.71 indicates a correct valuation of GTES.
Compared to the rest of the industry, the Price/Earnings ratio of GTES indicates a somewhat cheap valuation: GTES is cheaper than 80.00% of the companies listed in the same industry.
GTES's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.75.
The Price/Forward Earnings ratio is 13.55, which indicates a correct valuation of GTES.
GTES's Price/Forward Earnings ratio is rather cheap when compared to the industry. GTES is cheaper than 82.40% of the companies in the same industry.
GTES's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 13.55 |
4.2 Price Multiples
GTES's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GTES is cheaper than 77.60% of the companies in the same industry.
GTES's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GTES is cheaper than 73.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.72 | ||
| EV/EBITDA | 9.25 |
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 12.59% in the coming years.
PEG (NY)1.72
PEG (5Y)1.98
EPS Next 2Y13.11%
EPS Next 3Y12.59%
5. Dividend
5.1 Amount
GTES does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20
-1.64 (-7.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners109.24%
Inst Owner Change2.16%
Ins Owners1.06%
Ins Owner Change10.04%
Market Cap5.11B
Analysts82.35
Price Target26.71 (33.55%)
Short Float %3.08%
Short Ratio3.17
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)6.22%
Min EPS beat(2)5.73%
Max EPS beat(2)6.72%
EPS beat(4)2
Avg EPS beat(4)1.67%
Min EPS beat(4)-4.43%
Max EPS beat(4)6.72%
EPS beat(8)5
Avg EPS beat(8)6.85%
EPS beat(12)8
Avg EPS beat(12)7.66%
EPS beat(16)11
Avg EPS beat(16)9.31%
Revenue beat(2)0
Avg Revenue beat(2)-1.91%
Min Revenue beat(2)-2.02%
Max Revenue beat(2)-1.79%
Revenue beat(4)0
Avg Revenue beat(4)-2.43%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)-1.79%
Revenue beat(8)0
Avg Revenue beat(8)-2.26%
Revenue beat(12)2
Avg Revenue beat(12)-1.85%
Revenue beat(16)3
Avg Revenue beat(16)-1.68%
PT rev (1m)6.67%
PT rev (3m)15.9%
EPS NQ rev (1m)-10.2%
EPS NQ rev (3m)-16.76%
EPS NY rev (1m)-4.77%
EPS NY rev (3m)-8.28%
Revenue NQ rev (1m)-5.13%
Revenue NQ rev (3m)-7.05%
Revenue NY rev (1m)-3.17%
Revenue NY rev (3m)-4.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 13.55 | ||
| P/S | 1.5 | ||
| P/FCF | 18.72 | ||
| P/OCF | 13.46 | ||
| P/B | 1.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.25 |
EPS(TTM)1.36
EY6.8%
EPS(NY)1.48
Fwd EY7.38%
FCF(TTM)1.07
FCFY5.34%
OCF(TTM)1.49
OCFY7.43%
SpS13.34
BVpS11.84
TBVpS-0.52
PEG (NY)1.72
PEG (5Y)1.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.87% | ||
| ROE | 6.45% | ||
| ROCE | 8.5% | ||
| ROIC | 6.68% | ||
| ROICexc | 7.53% | ||
| ROICexgc | 18.22% | ||
| OM | 15.12% | ||
| PM (TTM) | 5.72% | ||
| GM | 40.57% | ||
| FCFM | 8.01% |
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 Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 8.61 | ||
| Debt/EBITDA | 3.16 | ||
| Cap/Depr | 49.19% | ||
| Cap/Sales | 3.13% | ||
| Interest Coverage | 3.89 | ||
| Cash Conversion | 51.84% | ||
| Profit Quality | 140.02% | ||
| Current Ratio | 3.2 | ||
| Quick Ratio | 2.26 | ||
| Altman-Z | 2.15 |
F-Score7
WACC10.77%
ROIC/WACC0.62
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)0.74%
EPS 3Y-0.24%
EPS 5Y7.44%
EPS Q2Q%-7.69%
EPS Next Y8.56%
EPS Next 2Y13.11%
EPS Next 3Y12.59%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.54%
Revenue growth 3Y-0.64%
Revenue growth 5Y2%
Sales Q2Q%-3.93%
Revenue Next Year-0.81%
Revenue Next 2Y1.83%
Revenue Next 3Y2.19%
Revenue Next 5YN/A
EBIT growth 1Y7.06%
EBIT growth 3Y1.16%
EBIT growth 5Y7.67%
EBIT Next Year36.61%
EBIT Next 3Y13.75%
EBIT Next 5YN/A
FCF growth 1Y-33.37%
FCF growth 3Y-2.61%
FCF growth 5Y0.53%
OCF growth 1Y-21.08%
OCF growth 3Y-0.24%
OCF growth 5Y1.7%