GATES INDUSTRIAL CORP PLC (GTES) Stock Fundamental Analysis
USA - NYSE:GTES - GB00BD9G2S12 - Common Stock
25.26 USD
-0.25 (-0.98%)
25.26 USD
0 (0%)
Taking everything into account, GTES scores 5 out of 10 in our fundamental rating. GTES was compared to 128 industry peers in the Machinery industry. Both the profitability and the financial health of GTES get a neutral evaluation. Nothing too spectacular is happening here. 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.
Each year in the past 5 years GTES has been profitable.
In the past 5 years GTES always reported a positive cash flow from operatings.
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 has a Return On Equity (6.20%) which is in line with 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.
Measured over the past 3 years, the Average Return On Invested Capital for GTES 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
GTES has a Profit Margin of 5.98%. This is comparable to the rest of the industry: GTES outperforms 51.56% of its industry peers.
In the last couple of years the Profit Margin of GTES has declined.
GTES has a better Operating Margin (14.95%) than 70.31% of its industry peers.
In the last couple of years the Operating Margin of GTES has grown nicely.
GTES has a Gross Margin of 40.93%. This is in the better half of the industry: GTES outperforms 75.00% 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.
Compared to 1 year ago, GTES has less shares outstanding
The number of shares outstanding for GTES has been reduced compared to 5 years ago.
GTES has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.31 indicates that GTES is not a great score, but indicates only limited risk for bankruptcy at the moment.
GTES has a Altman-Z score (2.31) which is comparable to the rest of the industry.
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 has a Debt to FCF ratio of 7.81. This is comparable to the rest of the industry: GTES outperforms 40.63% of its industry peers.
GTES has a Debt/Equity ratio of 0.71. This is a neutral value indicating GTES is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.71, GTES is doing worse than 69.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 7.81 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.64
WACC9.67%
2.3 Liquidity
GTES has a Current Ratio of 3.46. This indicates that GTES is financially healthy and has no problem in meeting its short term obligations.
GTES's Current ratio of 3.46 is amongst the best of the industry. GTES outperforms 82.81% of its industry peers.
A Quick Ratio of 2.46 indicates that GTES has no problem at all paying its short term obligations.
GTES has a Quick ratio of 2.46. This is amongst the best in the industry. GTES outperforms 81.25% 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.
The Earnings Per Share has been growing slightly by 7.44% on average over the past years.
Looking at the last year, GTES shows a decrease in Revenue. The Revenue has decreased by -2.67% in the last year.
GTES shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.00% yearly.
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 13.09% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.29% on average over the next years.
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.
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 17.54, the valuation of GTES can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of GTES indicates a somewhat cheap valuation: GTES is cheaper than 75.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GTES to the average of the S&P500 Index (27.20), we can say GTES is valued slightly cheaper.
A Price/Forward Earnings ratio of 14.34 indicates a correct valuation of GTES.
GTES's Price/Forward Earnings ratio is rather cheap when compared to the industry. GTES is cheaper than 80.47% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, GTES is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.54 | ||
| Fwd PE | 14.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GTES is valued a bit cheaper than the industry average as 70.31% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GTES is valued a bit cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.68 | ||
| EV/EBITDA | 11.38 |
4.3 Compensation for Growth
GTES's 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 13.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.47
PEG (5Y)2.36
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 |
25.26
-0.25 (-0.98%)
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 Cap6.51B
Analysts83.53
Price Target30.4 (20.35%)
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 | 17.54 | ||
| Fwd PE | 14.34 | ||
| P/S | 1.92 | ||
| P/FCF | 21.68 | ||
| P/OCF | 15.6 | ||
| P/B | 1.99 | ||
| P/tB | 464.75 | ||
| EV/EBITDA | 11.38 |
EPS(TTM)1.44
EY5.7%
EPS(NY)1.76
Fwd EY6.97%
FCF(TTM)1.17
FCFY4.61%
OCF(TTM)1.62
OCFY6.41%
SpS13.17
BVpS12.69
TBVpS0.05
PEG (NY)1.47
PEG (5Y)2.36
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
WACC9.67%
ROIC/WACC0.64
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%