GATES INDUSTRIAL CORP PLC (GTES) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GTES - GB00BD9G2S12 - Common Stock
21.61 USD
+0.17 (+0.79%)
21.61 USD
0 (0%)
Overall GTES gets a fundamental rating of 5 out of 10. We evaluated GTES against 130 industry peers in the Machinery industry. GTES has only an average score on both its financial health and profitability. GTES has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year GTES was profitable.
In the past year GTES had a positive cash flow from operations.
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
With a Return On Assets value of 3.31%, GTES perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
With a Return On Equity value of 7.02%, GTES perfoms like the industry average, outperforming 49.23% of the companies in the same industry.
GTES has a Return On Invested Capital (6.29%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for GTES is below the industry average of 10.32%.
The last Return On Invested Capital (6.29%) for GTES is above the 3 year average (5.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 7.02% | ||
| ROIC | 6.29% |
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
With a decent Profit Margin value of 6.93%, GTES is doing good in the industry, outperforming 60.77% of the companies in the same industry.
In the last couple of years the Profit Margin of GTES has declined.
Looking at the Operating Margin, with a value of 15.08%, GTES is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
In the last couple of years the Operating Margin of GTES has grown nicely.
GTES's Gross Margin of 40.78% is fine compared to the rest of the industry. GTES outperforms 73.85% of its industry peers.
In the last couple of years the Gross Margin of GTES has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.08% | ||
| PM (TTM) | 6.93% | ||
| GM | 40.78% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GTES is destroying value.
The number of shares outstanding for GTES has been reduced compared to 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
An Altman-Z score of 2.22 indicates that GTES is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GTES (2.22) is comparable to the rest of the industry.
GTES has a debt to FCF ratio of 7.83. This is a slightly negative value and a sign of low solvency as GTES would need 7.83 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.83, GTES is in line with its industry, outperforming 43.08% of the companies in the same industry.
GTES has a Debt/Equity ratio of 0.65. This is a neutral value indicating GTES is somewhat dependend on debt financing.
GTES has a worse Debt to Equity ratio (0.65) than 64.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 7.83 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.67
WACC9.33%
2.3 Liquidity
GTES has a Current Ratio of 3.52. This indicates that GTES is financially healthy and has no problem in meeting its short term obligations.
GTES's Current ratio of 3.52 is amongst the best of the industry. GTES outperforms 83.85% of its industry peers.
A Quick Ratio of 2.50 indicates that GTES has no problem at all paying its short term obligations.
The Quick ratio of GTES (2.50) is better than 83.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.52 | ||
| Quick Ratio | 2.5 |
3. Growth
3.1 Past
GTES shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.91%.
GTES shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.44% yearly.
The Revenue has decreased by -0.75% 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)7.91%
EPS 3Y-0.24%
EPS 5Y7.44%
EPS Q2Q%18.18%
Revenue 1Y (TTM)-0.75%
Revenue growth 3Y-0.64%
Revenue growth 5Y2%
Sales Q2Q%3.01%
3.2 Future
Based on estimates for the next years, GTES will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.97% on average per year.
GTES is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.63% yearly.
EPS Next Y12.79%
EPS Next 2Y11%
EPS Next 3Y12.57%
EPS Next 5Y9.97%
Revenue Next Year1.06%
Revenue Next 2Y2.33%
Revenue Next 3Y2.85%
Revenue Next 5Y2.63%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.41, the valuation of GTES can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of GTES indicates a rather cheap valuation: GTES is cheaper than 86.92% of the companies listed in the same industry.
GTES's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.38.
With a Price/Forward Earnings ratio of 12.90, GTES is valued correctly.
Based on the Price/Forward Earnings ratio, GTES is valued cheaply inside the industry as 88.46% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of GTES to the average of the S&P500 Index (23.83), we can say GTES is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 12.9 |
4.2 Price Multiples
GTES's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. GTES is cheaper than 82.31% 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 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.56 | ||
| EV/EBITDA | 9.72 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GTES has a very decent profitability rating, which may justify a higher PE ratio.
GTES's earnings are expected to grow with 12.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.13
PEG (5Y)1.94
EPS Next 2Y11%
EPS Next 3Y12.57%
5. Dividend
5.1 Amount
No dividends for GTES!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
21.61
+0.17 (+0.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners105.21%
Inst Owner Change0.82%
Ins Owners1.79%
Ins Owner Change4%
Market Cap5.58B
Revenue(TTM)3.42B
Net Income(TTM)236.70M
Analysts82.22
Price Target28.56 (32.16%)
Short Float %3.45%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)2.37%
Min EPS beat(2)0.88%
Max EPS beat(2)3.85%
EPS beat(4)4
Avg EPS beat(4)4.55%
Min EPS beat(4)0.88%
Max EPS beat(4)6.74%
EPS beat(8)6
Avg EPS beat(8)6.66%
EPS beat(12)9
Avg EPS beat(12)5.98%
EPS beat(16)12
Avg EPS beat(16)9.25%
Revenue beat(2)0
Avg Revenue beat(2)-1.84%
Min Revenue beat(2)-2.56%
Max Revenue beat(2)-1.12%
Revenue beat(4)1
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-2.56%
Max Revenue beat(4)0.98%
Revenue beat(8)1
Avg Revenue beat(8)-1.79%
Revenue beat(12)2
Avg Revenue beat(12)-1.48%
Revenue beat(16)3
Avg Revenue beat(16)-1.72%
PT rev (1m)-6.04%
PT rev (3m)-6.04%
EPS NQ rev (1m)0.69%
EPS NQ rev (3m)-2.82%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.41 | ||
| Fwd PE | 12.9 | ||
| P/S | 1.63 | ||
| P/FCF | 19.56 | ||
| P/OCF | 13.98 | ||
| P/B | 1.66 | ||
| P/tB | 38.98 | ||
| EV/EBITDA | 9.72 |
EPS(TTM)1.5
EY6.94%
EPS(NY)1.68
Fwd EY7.75%
FCF(TTM)1.11
FCFY5.11%
OCF(TTM)1.55
OCFY7.15%
SpS13.23
BVpS13.05
TBVpS0.55
PEG (NY)1.13
PEG (5Y)1.94
Graham Number20.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 7.02% | ||
| ROCE | 8% | ||
| ROIC | 6.29% | ||
| ROICexc | 7.04% | ||
| ROICexgc | 16.03% | ||
| OM | 15.08% | ||
| PM (TTM) | 6.93% | ||
| GM | 40.78% | ||
| FCFM | 8.35% |
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%
ROICexgc growth 3Y2.48%
ROICexgc 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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 7.83 | ||
| Debt/EBITDA | 3.03 | ||
| Cap/Depr | 53.38% | ||
| Cap/Sales | 3.33% | ||
| Interest Coverage | 4.16 | ||
| Cash Conversion | 54.8% | ||
| Profit Quality | 120.58% | ||
| Current Ratio | 3.52 | ||
| Quick Ratio | 2.5 | ||
| Altman-Z | 2.22 |
F-Score7
WACC9.33%
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)7.91%
EPS 3Y-0.24%
EPS 5Y7.44%
EPS Q2Q%18.18%
EPS Next Y12.79%
EPS Next 2Y11%
EPS Next 3Y12.57%
EPS Next 5Y9.97%
Revenue 1Y (TTM)-0.75%
Revenue growth 3Y-0.64%
Revenue growth 5Y2%
Sales Q2Q%3.01%
Revenue Next Year1.06%
Revenue Next 2Y2.33%
Revenue Next 3Y2.85%
Revenue Next 5Y2.63%
EBIT growth 1Y-0.73%
EBIT growth 3Y1.16%
EBIT growth 5Y7.67%
EBIT Next Year33.28%
EBIT Next 3Y15.35%
EBIT Next 5Y11.53%
FCF growth 1Y-39.3%
FCF growth 3Y-2.61%
FCF growth 5Y0.53%
OCF growth 1Y-25.9%
OCF growth 3Y-0.24%
OCF growth 5Y1.7%
GATES INDUSTRIAL CORP PLC / GTES FAQ
What is the fundamental rating for GTES stock?
ChartMill assigns a fundamental rating of 5 / 10 to GTES.
What is the valuation status for GTES stock?
ChartMill assigns a valuation rating of 6 / 10 to GATES INDUSTRIAL CORP PLC (GTES). This can be considered as Fairly Valued.
What is the profitability of GTES stock?
GATES INDUSTRIAL CORP PLC (GTES) has a profitability rating of 6 / 10.
How financially healthy is GATES INDUSTRIAL CORP PLC?
The financial health rating of GATES INDUSTRIAL CORP PLC (GTES) is 5 / 10.