GATES INDUSTRIAL CORP PLC (GTES) Stock Fundamental Analysis
USA - NYSE:GTES - GB00BD9G2S12 - Common Stock
25.51 USD
-0.11 (-0.43%)
25.51 USD
0 (0%)
Overall GTES gets a fundamental rating of 5 out of 10. We evaluated GTES against 128 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.
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
With a Return On Assets value of 2.81%, GTES perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
GTES's Return On Equity of 6.20% is in line compared to the rest of the industry. GTES outperforms 41.41% of its industry peers.
GTES's Return On Invested Capital of 6.14% is in line compared to the rest of the industry. GTES outperforms 46.09% of 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 10.02%.
The last Return On Invested Capital (6.14%) for GTES is above the 3 year average (5.94%), which is a sign of increasing profitability.
| 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 51.56% of the companies in the same industry.
In the last couple of years the Profit Margin of GTES has declined.
The Operating Margin of GTES (14.95%) is better than 70.31% of its industry peers.
In the last couple of years the Operating Margin of GTES has grown nicely.
With a decent Gross Margin value of 40.93%, GTES is doing good in the industry, outperforming 75.00% 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 | 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.
GTES has less shares outstanding than it did 5 years ago.
GTES has a worse debt/assets ratio than last year.
2.2 Solvency
GTES has an Altman-Z score of 2.31. 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 2.31 is in line compared to the rest of the industry. GTES outperforms 41.41% of its industry peers.
The Debt to FCF ratio of GTES is 7.81, which is on the high side as it means it would take GTES, 7.81 years of fcf income to pay off all of its debts.
GTES's Debt to FCF ratio of 7.81 is in line compared to the rest of the industry. GTES outperforms 40.63% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that GTES is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.71, GTES is not doing good in the industry: 69.53% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 7.81 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.63
WACC9.68%
2.3 Liquidity
A Current Ratio of 3.46 indicates that GTES has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.46, GTES belongs to the best of the industry, outperforming 82.81% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 2.46, GTES belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.46 | ||
| Quick Ratio | 2.46 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.13% over the past year.
The Earnings Per Share has been growing slightly by 7.44% on average over the past years.
The Revenue has decreased by -2.67% 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)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
Based on estimates for the next years, GTES will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.09% on average per year.
Based on estimates for the next years, GTES will show a small growth in Revenue. The Revenue will grow by 3.29% on average per year.
EPS Next Y11.92%
EPS Next 2Y13.8%
EPS Next 3Y13.09%
EPS Next 5YN/A
Revenue Next Year1.5%
Revenue Next 2Y3.13%
Revenue Next 3Y3.29%
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.
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
With a Price/Earnings ratio of 17.72, GTES is valued on the expensive side.
Based on the Price/Earnings ratio, GTES is valued a bit cheaper than 75.00% 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 27.27.
With a Price/Forward Earnings ratio of 14.49, GTES is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GTES indicates a rather cheap valuation: GTES is cheaper than 80.47% of the companies listed in the same industry.
GTES is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.72 | ||
| Fwd PE | 14.49 |
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 70.31% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GTES is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.9 | ||
| EV/EBITDA | 11.38 |
4.3 Compensation for Growth
The 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 13.09% in the coming years.
PEG (NY)1.49
PEG (5Y)2.38
EPS Next 2Y13.8%
EPS Next 3Y13.09%
5. Dividend
5.1 Amount
No dividends for GTES!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.51
-0.11 (-0.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners104.97%
Inst Owner Change-0.14%
Ins Owners1.8%
Ins Owner Change14.52%
Market Cap6.57B
Analysts83.53
Price Target30.4 (19.17%)
Short Float %2.32%
Short Ratio3.14
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)2.05%
PT rev (3m)24.17%
EPS NQ rev (1m)1.03%
EPS NQ rev (3m)5.95%
EPS NY rev (1m)3.52%
EPS NY rev (3m)4.61%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)3.06%
Revenue NY rev (1m)1.53%
Revenue NY rev (3m)2.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.72 | ||
| Fwd PE | 14.49 | ||
| P/S | 1.94 | ||
| P/FCF | 21.9 | ||
| P/OCF | 15.75 | ||
| P/B | 2.01 | ||
| P/tB | 469.35 | ||
| EV/EBITDA | 11.38 |
EPS(TTM)1.44
EY5.64%
EPS(NY)1.76
Fwd EY6.9%
FCF(TTM)1.17
FCFY4.57%
OCF(TTM)1.62
OCFY6.35%
SpS13.17
BVpS12.69
TBVpS0.05
PEG (NY)1.49
PEG (5Y)2.38
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 | 2.31 |
F-Score7
WACC9.68%
ROIC/WACC0.63
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 Y11.92%
EPS Next 2Y13.8%
EPS Next 3Y13.09%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.67%
Revenue growth 3Y-0.64%
Revenue growth 5Y2%
Sales Q2Q%-0.2%
Revenue Next Year1.5%
Revenue Next 2Y3.13%
Revenue Next 3Y3.29%
Revenue Next 5YN/A
EBIT growth 1Y-2.59%
EBIT growth 3Y1.16%
EBIT growth 5Y7.67%
EBIT Next Year32.46%
EBIT Next 3Y15.24%
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%