GATES INDUSTRIAL CORP PLC (GTES) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GTES - GB00BD9G2S12 - Common Stock
22.75 USD
-0.3 (-1.3%)
22.75 USD
0 (0%)
GTES gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Machinery industry. GTES has only an average score on both its financial health and profitability. GTES is not valued too expensively and it also shows a decent 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.
- In the past 5 years GTES has always been profitable.
- Each year in the past 5 years GTES had a positive operating cash flow.
1.2 Ratios
- GTES has a Return On Assets (3.31%) which is in line with its industry peers.
- GTES's Return On Equity of 7.02% is in line compared to the rest of the industry. GTES outperforms 49.24% of its industry peers.
- GTES has a Return On Invested Capital (6.29%) which is comparable to the rest of the industry.
- GTES had an Average Return On Invested Capital over the past 3 years of 5.94%. This is below the industry average of 10.24%.
- The 3 year average ROIC (5.94%) for GTES is below the current ROIC(6.29%), indicating increased profibility in the last year.
| 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
- GTES's Profit Margin of 6.93% is fine compared to the rest of the industry. GTES outperforms 60.61% of its industry peers.
- GTES's Profit Margin has declined in the last couple of years.
- The Operating Margin of GTES (15.08%) is better than 70.45% of its industry peers.
- GTES's Operating Margin has improved in the last couple of years.
- GTES's Gross Margin of 40.78% is fine compared to the rest of the industry. GTES outperforms 75.76% 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 2.29 indicates that GTES is not a great score, but indicates only limited risk for bankruptcy at the moment.
- GTES has a Altman-Z score of 2.29. This is comparable to the rest of the industry: GTES outperforms 40.15% of its industry peers.
- The Debt to FCF ratio of GTES is 7.83, which is on the high side as it means it would take GTES, 7.83 years of fcf income to pay off 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 44.70% 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.
- With a Debt to Equity ratio value of 0.65, GTES is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 7.83 | ||
| Altman-Z | 2.29 |
ROIC/WACC0.68
WACC9.26%
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.
- The Current ratio of GTES (3.52) is better than 84.85% 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 84.85% 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%.
- 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.
- Looking at the last year, GTES shows a decrease in Revenue. The Revenue has decreased by -0.75% in the last 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.
- The Revenue is expected to grow by 2.63% on average over the next years.
EPS Next Y12.69%
EPS Next 2Y10.56%
EPS Next 3Y12.33%
EPS Next 5Y9.97%
Revenue Next Year1.04%
Revenue Next 2Y2.29%
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.
- 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
- Based on the Price/Earnings ratio of 15.17, the valuation of GTES can be described as correct.
- Based on the Price/Earnings ratio, GTES is valued cheaper than 87.88% of the companies in the same industry.
- GTES's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.47.
- The Price/Forward Earnings ratio is 13.68, which indicates a correct valuation of GTES.
- Based on the Price/Forward Earnings ratio, GTES is valued cheaply inside the industry as 88.64% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, GTES is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.17 | ||
| Fwd PE | 13.68 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GTES is valued cheaper than 84.09% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, GTES is valued a bit cheaper than 71.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.59 | ||
| EV/EBITDA | 10.29 |
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 12.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.2
PEG (5Y)2.04
EPS Next 2Y10.56%
EPS Next 3Y12.33%
5. Dividend
5.1 Amount
- No dividends for GTES!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
22.75
-0.3 (-1.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)02-05 2026-02-05/amc
Inst Owners105.39%
Inst Owner Change-0.04%
Ins Owners1.77%
Ins Owner Change3.07%
Market Cap5.88B
Revenue(TTM)3.42B
Net Income(TTM)236.70M
Analysts82.22
Price Target28.48 (25.19%)
Short Float %3.91%
Short Ratio3.87
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)-0.3%
PT rev (3m)-6.32%
EPS NQ rev (1m)0.52%
EPS NQ rev (3m)-2.32%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)0.34%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-1.59%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.17 | ||
| Fwd PE | 13.68 | ||
| P/S | 1.72 | ||
| P/FCF | 20.59 | ||
| P/OCF | 14.72 | ||
| P/B | 1.74 | ||
| P/tB | 41.03 | ||
| EV/EBITDA | 10.29 |
EPS(TTM)1.5
EY6.59%
EPS(NY)1.66
Fwd EY7.31%
FCF(TTM)1.11
FCFY4.86%
OCF(TTM)1.55
OCFY6.79%
SpS13.23
BVpS13.05
TBVpS0.55
PEG (NY)1.2
PEG (5Y)2.04
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 | 2.29 |
F-Score7
WACC9.26%
ROIC/WACC0.68
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 Y12.69%
EPS Next 2Y10.56%
EPS Next 3Y12.33%
EPS Next 5Y9.97%
Revenue 1Y (TTM)-0.75%
Revenue growth 3Y-0.64%
Revenue growth 5Y2%
Sales Q2Q%3.01%
Revenue Next Year1.04%
Revenue Next 2Y2.29%
Revenue Next 3Y2.85%
Revenue Next 5Y2.63%
EBIT growth 1Y-0.73%
EBIT growth 3Y1.16%
EBIT growth 5Y7.67%
EBIT Next Year33.22%
EBIT Next 3Y15.23%
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.
Can you provide the valuation status for GATES INDUSTRIAL CORP PLC?
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.
What is the expected EPS growth for GATES INDUSTRIAL CORP PLC (GTES) stock?
The Earnings per Share (EPS) of GATES INDUSTRIAL CORP PLC (GTES) is expected to grow by 12.69% in the next year.