GATES INDUSTRIAL CORP PLC (GTES) Stock Fundamental Analysis
USA - NYSE:GTES - GB00BD9G2S12 - Common Stock
25.54 USD
+0.15 (+0.59%)
25.54 USD
0 (0%)
Taking everything into account, GTES scores 5 out of 10 in our fundamental rating. GTES was compared to 129 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
GTES had positive earnings in the past year.
GTES had a positive operating cash flow in the past year.
Each year in the past 5 years GTES has been profitable.
Each year in the past 5 years GTES had a positive operating cash flow.
1.2 Ratios
GTES's Return On Assets of 2.81% is in line compared to the rest of the industry. GTES outperforms 44.19% of its industry peers.
The Return On Equity of GTES (6.20%) is comparable to the rest of the industry.
GTES's Return On Invested Capital of 6.14% is in line compared to the rest of the industry. GTES outperforms 46.51% 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 10.04%.
The 3 year average ROIC (5.94%) for GTES is below the current ROIC(6.14%), indicating increased profibility in the last year.
| 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
GTES has a Profit Margin (5.98%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of GTES has declined.
GTES has a Operating Margin of 14.95%. This is in the better half of the industry: GTES outperforms 70.54% of its industry peers.
In the last couple of years the Operating Margin of GTES has grown nicely.
GTES has a better Gross Margin (40.93%) than 74.42% of its industry peers.
GTES's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GTES 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.
The debt/assets ratio for GTES is higher compared to a year ago.
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 on the low side compared to the rest of the industry. GTES is outperformed by 61.24% of its industry peers.
GTES has a debt to FCF ratio of 7.81. This is a slightly negative value and a sign of low solvency as GTES would need 7.81 years to pay back of all of its debts.
GTES has a Debt to FCF ratio (7.81) which is in line with its industry peers.
A Debt/Equity ratio of 0.71 indicates that GTES is somewhat dependend on debt financing.
The Debt to Equity ratio of GTES (0.71) is worse than 68.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 7.81 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.65
WACC9.39%
2.3 Liquidity
A Current Ratio of 3.46 indicates that GTES has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.46, GTES belongs to the top of the industry, outperforming 83.72% 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.
The Quick ratio of GTES (2.46) is better than 80.62% of its industry peers.
| 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.
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.
The Revenue has decreased by -2.67% in the past year.
The Revenue has been growing slightly by 2.00% on average over the past years.
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
The Earnings Per Share is expected to grow by 13.36% on average over the next years. This is quite good.
Based on estimates for the next years, GTES will show a small growth in Revenue. The Revenue will grow by 3.36% on average per year.
EPS Next Y12.31%
EPS Next 2Y14.08%
EPS Next 3Y13.36%
EPS Next 5YN/A
Revenue Next Year1.53%
Revenue Next 2Y3.19%
Revenue Next 3Y3.36%
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
With a Price/Earnings ratio of 17.74, GTES is valued on the expensive side.
GTES's Price/Earnings ratio is a bit cheaper when compared to the industry. GTES is cheaper than 74.42% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.91. GTES is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.43, which indicates a correct valuation of GTES.
Based on the Price/Forward Earnings ratio, GTES is valued a bit cheaper than 78.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.30. GTES is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.74 | ||
| Fwd PE | 14.43 |
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 71.32% 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 64.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.92 | ||
| EV/EBITDA | 11.39 |
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.
A more expensive valuation may be justified as GTES's earnings are expected to grow with 13.36% in the coming years.
PEG (NY)1.44
PEG (5Y)2.38
EPS Next 2Y14.08%
EPS Next 3Y13.36%
5. Dividend
5.1 Amount
GTES does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
25.54
+0.15 (+0.59%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners106.77%
Inst Owner Change0.01%
Ins Owners1.8%
Ins Owner Change7.71%
Market Cap6.58B
Analysts83.53
Price Target30.4 (19.03%)
Short Float %2.6%
Short Ratio3.12
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)1.36%
PT rev (3m)22.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.18%
EPS NY rev (1m)0.35%
EPS NY rev (3m)4.46%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)3.06%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.74 | ||
| Fwd PE | 14.43 | ||
| P/S | 1.94 | ||
| P/FCF | 21.92 | ||
| P/OCF | 15.77 | ||
| P/B | 2.01 | ||
| P/tB | 469.9 | ||
| EV/EBITDA | 11.39 |
EPS(TTM)1.44
EY5.64%
EPS(NY)1.77
Fwd EY6.93%
FCF(TTM)1.17
FCFY4.56%
OCF(TTM)1.62
OCFY6.34%
SpS13.17
BVpS12.69
TBVpS0.05
PEG (NY)1.44
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
WACC9.39%
ROIC/WACC0.65
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 Y12.31%
EPS Next 2Y14.08%
EPS Next 3Y13.36%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.67%
Revenue growth 3Y-0.64%
Revenue growth 5Y2%
Sales Q2Q%-0.2%
Revenue Next Year1.53%
Revenue Next 2Y3.19%
Revenue Next 3Y3.36%
Revenue Next 5YN/A
EBIT growth 1Y-2.59%
EBIT growth 3Y1.16%
EBIT growth 5Y7.67%
EBIT Next Year34.02%
EBIT Next 3Y16.2%
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%