GATES INDUSTRIAL CORP PLC (GTES) Stock Fundamental Analysis
NYSE:GTES - New York Stock Exchange, Inc. - GB00BD9G2S12 - Common Stock - Currency: USD
GTES gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 128 industry peers in the Machinery industry. GTES has an average financial health and profitability rating. GTES has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year GTES was profitable.
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
Looking at the Return On Assets, with a value of 3.15%, GTES is in line with its industry, outperforming 44.53% of the companies in the same industry.
The Return On Equity of GTES (6.99%) is comparable to the rest of the industry.
GTES's Return On Invested Capital of 6.52% is in line compared to the rest of the industry. GTES outperforms 45.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GTES is below the industry average of 10.71%.
The last Return On Invested Capital (6.52%) for GTES is above the 3 year average (5.94%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.15% | ||
| ROE | 6.99% | ||
| ROIC | 6.52% |
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 has a Profit Margin (6.39%) which is in line with its industry peers.
In the last couple of years the Profit Margin of GTES has declined.
GTES has a better Operating Margin (15.09%) than 71.09% of its industry peers.
In the last couple of years the Operating Margin of GTES has grown nicely.
The Gross Margin of GTES (40.77%) is better than 76.56% of its industry peers.
GTES's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.09% | ||
| PM (TTM) | 6.39% | ||
| GM | 40.77% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GTES is destroying value.
Compared to 1 year ago, GTES has less shares outstanding
GTES has less shares outstanding than it did 5 years ago.
GTES has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.32 indicates that GTES is not a great score, but indicates only limited risk for bankruptcy at the moment.
GTES has a worse Altman-Z score (2.32) than 64.84% of its industry peers.
GTES has a debt to FCF ratio of 7.98. This is a slightly negative value and a sign of low solvency as GTES would need 7.98 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.98, GTES is in line with its industry, outperforming 42.97% of the companies in the same industry.
A Debt/Equity ratio of 0.74 indicates that GTES is somewhat dependend on debt financing.
GTES has a worse Debt to Equity ratio (0.74) than 71.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 7.98 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.68
WACC9.55%
2.3 Liquidity
A Current Ratio of 3.33 indicates that GTES has no problem at all paying its short term obligations.
GTES has a Current ratio of 3.33. This is amongst the best in the industry. GTES outperforms 81.25% of its industry peers.
GTES has a Quick Ratio of 2.35. This indicates that GTES is financially healthy and has no problem in meeting its short term obligations.
GTES has a Quick ratio of 2.35. This is in the better half of the industry: GTES outperforms 78.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.35 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.00% 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.
GTES shows a decrease in Revenue. In the last year, the revenue decreased by -4.01%.
The Revenue has been growing slightly by 2.00% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y-0.24%
EPS 5Y7.44%
EPS Q2Q%16.13%
Revenue 1Y (TTM)-4.01%
Revenue growth 3Y-0.64%
Revenue growth 5Y2%
Sales Q2Q%-1.74%
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 11.42% on average per year.
Based on estimates for the next years, GTES will show a small growth in Revenue. The Revenue will grow by 2.53% on average per year.
EPS Next Y7.51%
EPS Next 2Y11.91%
EPS Next 3Y11.42%
EPS Next 5YN/A
Revenue Next Year-0.55%
Revenue Next 2Y1.94%
Revenue Next 3Y2.53%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.03 indicates a rather expensive valuation of GTES.
74.22% of the companies in the same industry are more expensive than GTES, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.45, GTES is valued a bit cheaper.
GTES is valuated correctly with a Price/Forward Earnings ratio of 14.10.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GTES indicates a somewhat cheap valuation: GTES is cheaper than 75.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. GTES is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.03 | ||
| Fwd PE | 14.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GTES is valued a bit cheaper than the industry average as 71.88% of the companies are valued more expensively.
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 | 21.12 | ||
| EV/EBITDA | 10.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GTES does not grow enough to justify the current Price/Earnings ratio.
GTES has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.27
PEG (5Y)2.29
EPS Next 2Y11.91%
EPS Next 3Y11.42%
5. Dividend
5.1 Amount
No dividends for GTES!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.01
+0.11 (+0.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners105.61%
Inst Owner Change-2.8%
Ins Owners1.72%
Ins Owner Change34.07%
Market Cap6.19B
Analysts82.35
Price Target24.76 (3.12%)
Short Float %2.19%
Short Ratio2.98
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)6.73%
Min EPS beat(2)6.72%
Max EPS beat(2)6.74%
EPS beat(4)3
Avg EPS beat(4)4.46%
Min EPS beat(4)-1.33%
Max EPS beat(4)6.74%
EPS beat(8)6
Avg EPS beat(8)8.45%
EPS beat(12)8
Avg EPS beat(12)6.9%
EPS beat(16)11
Avg EPS beat(16)9.49%
Revenue beat(2)1
Avg Revenue beat(2)-0.4%
Min Revenue beat(2)-1.79%
Max Revenue beat(2)0.98%
Revenue beat(4)1
Avg Revenue beat(4)-1.47%
Min Revenue beat(4)-3.07%
Max Revenue beat(4)0.98%
Revenue beat(8)1
Avg Revenue beat(8)-1.83%
Revenue beat(12)2
Avg Revenue beat(12)-1.81%
Revenue beat(16)3
Avg Revenue beat(16)-1.63%
PT rev (1m)4.71%
PT rev (3m)-8.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.64%
EPS NY rev (1m)0.49%
EPS NY rev (3m)-0.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.12%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.03 | ||
| Fwd PE | 14.1 | ||
| P/S | 1.82 | ||
| P/FCF | 21.12 | ||
| P/OCF | 15.17 | ||
| P/B | 1.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.86 |
EPS(TTM)1.41
EY5.87%
EPS(NY)1.7
Fwd EY7.09%
FCF(TTM)1.14
FCFY4.74%
OCF(TTM)1.58
OCFY6.59%
SpS13.16
BVpS12.04
TBVpS-0.25
PEG (NY)2.27
PEG (5Y)2.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.15% | ||
| ROE | 6.99% | ||
| ROCE | 8.29% | ||
| ROIC | 6.52% | ||
| ROICexc | 7.28% | ||
| ROICexgc | 17% | ||
| OM | 15.09% | ||
| PM (TTM) | 6.39% | ||
| GM | 40.77% | ||
| FCFM | 8.64% |
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-Score6
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 7.98 | ||
| Debt/EBITDA | 3.18 | ||
| Cap/Depr | 53.52% | ||
| Cap/Sales | 3.38% | ||
| Interest Coverage | 4.14 | ||
| Cash Conversion | 56.15% | ||
| Profit Quality | 135.13% | ||
| Current Ratio | 3.33 | ||
| Quick Ratio | 2.35 | ||
| Altman-Z | 2.32 |
F-Score6
WACC9.55%
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)0%
EPS 3Y-0.24%
EPS 5Y7.44%
EPS Q2Q%16.13%
EPS Next Y7.51%
EPS Next 2Y11.91%
EPS Next 3Y11.42%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.01%
Revenue growth 3Y-0.64%
Revenue growth 5Y2%
Sales Q2Q%-1.74%
Revenue Next Year-0.55%
Revenue Next 2Y1.94%
Revenue Next 3Y2.53%
Revenue Next 5YN/A
EBIT growth 1Y0.71%
EBIT growth 3Y1.16%
EBIT growth 5Y7.67%
EBIT Next Year28.21%
EBIT Next 3Y14.33%
EBIT Next 5YN/A
FCF growth 1Y-13.82%
FCF growth 3Y-2.61%
FCF growth 5Y0.53%
OCF growth 1Y-3.73%
OCF growth 3Y-0.24%
OCF growth 5Y1.7%