GATES INDUSTRIAL CORP PLC (GTES)
GB00BD9G2S12 - Common Stock
We assign a fundamental rating of 5 out of 10 to GTES. GTES was compared to 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
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.
In the past 5 years GTES always reported a positive cash flow from operatings.
1.2 Ratios
GTES has a Return On Assets (3.21%) which is comparable to the rest of the industry.
The Return On Equity of GTES (7.23%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 6.09%, GTES perfoms like the industry average, outperforming 46.51% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GTES is significantly below the industry average of 10.72%.
The last Return On Invested Capital (6.09%) for GTES is above the 3 year average (5.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 7.23% | ||
| ROIC | 6.09% |
ROA(3y)3.41%
ROA(5y)4.12%
ROE(3y)7.97%
ROE(5y)10.56%
ROIC(3y)5.7%
ROIC(5y)4.89%
1.3 Margins
GTES has a Profit Margin (6.52%) which is in line with its industry peers.
GTES's Profit Margin has declined in the last couple of years.
GTES has a Operating Margin of 13.98%. This is in the better half of the industry: GTES outperforms 72.87% of its industry peers.
GTES's Operating Margin has declined in the last couple of years.
The Gross Margin of GTES (38.35%) is better than 75.97% of its industry peers.
In the last couple of years the Gross Margin of GTES has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.98% | ||
| PM (TTM) | 6.52% | ||
| GM | 38.35% |
OM growth 3Y13.01%
OM growth 5Y-1.82%
PM growth 3Y31.9%
PM growth 5Y-2.3%
GM growth 3Y1.02%
GM growth 5Y-0.75%
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
Compared to 5 years ago, GTES has less shares outstanding
Compared to 1 year ago, GTES has an improved debt to assets ratio.
2.2 Solvency
GTES has an Altman-Z score of 1.97. 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 has a Altman-Z score of 1.97. This is in the lower half of the industry: GTES underperforms 65.89% of its industry peers.
The Debt to FCF ratio of GTES is 5.99, which is a neutral value as it means it would take GTES, 5.99 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.99, GTES is in line with its industry, outperforming 51.16% of the companies in the same industry.
GTES has a Debt/Equity ratio of 0.75. This is a neutral value indicating GTES is somewhat dependend on debt financing.
GTES has a worse Debt to Equity ratio (0.75) than 72.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 5.99 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.67
WACC9.02%
2.3 Liquidity
GTES has a Current Ratio of 3.08. This indicates that GTES is financially healthy and has no problem in meeting its short term obligations.
GTES's Current ratio of 3.08 is fine compared to the rest of the industry. GTES outperforms 73.64% of its industry peers.
A Quick Ratio of 2.25 indicates that GTES has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.25, GTES belongs to the top of the industry, outperforming 80.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.08 | ||
| Quick Ratio | 2.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.42% over the past year.
GTES shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.91% yearly.
GTES shows a small growth in Revenue. In the last year, the Revenue has grown by 0.45%.
Measured over the past years, GTES shows a small growth in Revenue. The Revenue has been growing by 1.30% on average per year.
EPS 1Y (TTM)18.42%
EPS 3Y24.47%
EPS 5Y0.91%
EPS growth Q2Q56%
Revenue 1Y (TTM)0.45%
Revenue growth 3Y8.53%
Revenue growth 5Y1.3%
Revenue growth Q2Q-3.36%
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 11.67% yearly.
The Revenue is expected to grow by 2.78% on average over the next years.
EPS Next Y6.38%
EPS Next 2Y11.68%
EPS Next 3Y11.67%
EPS Next 5YN/A
Revenue Next Year-0.03%
Revenue Next 2Y2.36%
Revenue Next 3Y2.78%
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
Based on the Price/Earnings ratio of 13.10, 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 82.17% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 24.84. GTES is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.32, GTES is valued correctly.
85.27% of the companies in the same industry are more expensive than GTES, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.35, GTES is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 12.32 |
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 79.07% of the companies listed in the same industry.
89.92% of the companies in the same industry are more expensive than GTES, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.41 | ||
| EV/EBITDA | 8.95 |
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.
PEG (NY)2.05
PEG (5Y)14.35
EPS Next 2Y11.68%
EPS Next 3Y11.67%
5. Dividend
5.1 Amount
GTES does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GATES INDUSTRIAL CORP PLC
NYSE:GTES (4/29/2024, 2:24:40 PM)
17.69
-0.03 (-0.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.67B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 12.32 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.05
PEG (5Y)14.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.21% | ||
| ROE | 7.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.98% | ||
| PM (TTM) | 6.52% | ||
| GM | 38.35% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.08 | ||
| Quick Ratio | 2.25 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)18.42%
EPS 3Y24.47%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.38%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.45%
Revenue growth 3Y8.53%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y