GATES INDUSTRIAL CORP PLC (GTES) Stock Fundamental Analysis
USA - NYSE:GTES - GB00BD9G2S12 - Common Stock
22.12 USD
+0.59 (+2.74%)
22.12 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to GTES. GTES was compared to 130 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 has a correct valuation and a medium 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.
In the past 5 years GTES has always been profitable.
GTES had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GTES's Return On Assets of 3.31% is in line compared to the rest of the industry. GTES outperforms 45.38% of its industry peers.
GTES's Return On Equity of 7.02% is in line compared to the rest of the industry. GTES outperforms 45.38% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.29%, GTES is in line with its industry, outperforming 46.92% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GTES is below the industry average of 10.24%.
The 3 year average ROIC (5.94%) for GTES is below the current ROIC(6.29%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 7.02% | ||
| ROIC | 6.29% |
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 (6.93%) which is in line with its industry peers.
GTES's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 15.08%, GTES is doing good in the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Operating Margin of GTES has grown nicely.
GTES has a Gross Margin of 40.78%. This is in the better half of the industry: GTES outperforms 74.62% of its industry peers.
In the last couple of years the Gross Margin of GTES has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.08% | ||
| PM (TTM) | 6.93% | ||
| GM | 40.78% |
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 2.22. 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 2.22. This is in the lower half of the industry: GTES underperforms 60.00% of its industry peers.
The Debt to FCF ratio of GTES is 7.83, which is on the high side as it means it would take GTES, 7.83 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.83, GTES is in line with its industry, outperforming 43.08% of the companies in the same industry.
GTES has a Debt/Equity ratio of 0.65. This is a neutral value indicating GTES is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, GTES is doing worse than 67.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 7.83 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.68
WACC9.25%
2.3 Liquidity
A Current Ratio of 3.52 indicates that GTES has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.52, GTES belongs to the best of the industry, outperforming 85.38% of the companies in the same industry.
A Quick Ratio of 2.50 indicates that GTES has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.50, GTES belongs to the best of the industry, outperforming 82.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.52 | ||
| Quick Ratio | 2.5 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.91% over the past year.
GTES shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.44% yearly.
The Revenue has decreased by -0.75% in the past year.
The Revenue has been growing slightly by 2.00% on average over the past years.
EPS 1Y (TTM)7.91%
EPS 3Y-0.24%
EPS 5Y7.44%
EPS Q2Q%18.18%
Revenue 1Y (TTM)-0.75%
Revenue growth 3Y-0.64%
Revenue growth 5Y2%
Sales Q2Q%3.01%
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 9.97% on average per year.
Based on estimates for the next years, GTES will show a small growth in Revenue. The Revenue will grow by 2.63% on average per year.
EPS Next Y12.7%
EPS Next 2Y12.78%
EPS Next 3Y12.97%
EPS Next 5Y9.97%
Revenue Next Year1.18%
Revenue Next 2Y2.64%
Revenue Next 3Y3%
Revenue Next 5Y2.63%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 14.75, GTES is valued correctly.
84.62% of the companies in the same industry are more expensive than GTES, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GTES to the average of the S&P500 Index (25.83), we can say GTES is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.79 indicates a correct valuation of GTES.
Based on the Price/Forward Earnings ratio, GTES is valued cheaper than 86.15% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GTES to the average of the S&P500 Index (32.68), we can say GTES is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.75 | ||
| Fwd PE | 12.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GTES is valued a bit cheaper than the industry average as 75.38% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GTES is valued a bit cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.96 | ||
| EV/EBITDA | 9.73 |
4.3 Compensation for Growth
GTES's 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.
GTES's earnings are expected to grow with 12.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.16
PEG (5Y)1.98
EPS Next 2Y12.78%
EPS Next 3Y12.97%
5. Dividend
5.1 Amount
GTES does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.12
+0.59 (+2.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners106.77%
Inst Owner Change-0.21%
Ins Owners1.8%
Ins Owner Change5.99%
Market Cap5.70B
Revenue(TTM)3.42B
Net Income(TTM)236.70M
Analysts83.53
Price Target30.4 (37.43%)
Short Float %3.23%
Short Ratio4.23
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)2.37%
Min EPS beat(2)0.88%
Max EPS beat(2)3.85%
EPS beat(4)4
Avg EPS beat(4)4.55%
Min EPS beat(4)0.88%
Max EPS beat(4)6.74%
EPS beat(8)6
Avg EPS beat(8)6.66%
EPS beat(12)9
Avg EPS beat(12)5.98%
EPS beat(16)12
Avg EPS beat(16)9.25%
Revenue beat(2)0
Avg Revenue beat(2)-1.84%
Min Revenue beat(2)-2.56%
Max Revenue beat(2)-1.12%
Revenue beat(4)1
Avg Revenue beat(4)-1.12%
Min Revenue beat(4)-2.56%
Max Revenue beat(4)0.98%
Revenue beat(8)1
Avg Revenue beat(8)-1.79%
Revenue beat(12)2
Avg Revenue beat(12)-1.48%
Revenue beat(16)3
Avg Revenue beat(16)-1.72%
PT rev (1m)0%
PT rev (3m)16.65%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)5.37%
EPS NY rev (1m)0.01%
EPS NY rev (3m)3.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.74%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.75 | ||
| Fwd PE | 12.79 | ||
| P/S | 1.67 | ||
| P/FCF | 19.96 | ||
| P/OCF | 14.27 | ||
| P/B | 1.69 | ||
| P/tB | 39.79 | ||
| EV/EBITDA | 9.73 |
EPS(TTM)1.5
EY6.78%
EPS(NY)1.73
Fwd EY7.82%
FCF(TTM)1.11
FCFY5.01%
OCF(TTM)1.55
OCFY7.01%
SpS13.26
BVpS13.08
TBVpS0.56
PEG (NY)1.16
PEG (5Y)1.98
Graham Number21.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 7.02% | ||
| ROCE | 8% | ||
| ROIC | 6.29% | ||
| ROICexc | 7.04% | ||
| ROICexgc | 16.03% | ||
| OM | 15.08% | ||
| PM (TTM) | 6.93% | ||
| GM | 40.78% | ||
| FCFM | 8.35% |
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%
ROICexgc growth 3Y2.48%
ROICexgc 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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 7.83 | ||
| Debt/EBITDA | 3.03 | ||
| Cap/Depr | 53.38% | ||
| Cap/Sales | 3.33% | ||
| Interest Coverage | 4.16 | ||
| Cash Conversion | 54.8% | ||
| Profit Quality | 120.58% | ||
| Current Ratio | 3.52 | ||
| Quick Ratio | 2.5 | ||
| Altman-Z | 2.22 |
F-Score7
WACC9.25%
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)7.91%
EPS 3Y-0.24%
EPS 5Y7.44%
EPS Q2Q%18.18%
EPS Next Y12.7%
EPS Next 2Y12.78%
EPS Next 3Y12.97%
EPS Next 5Y9.97%
Revenue 1Y (TTM)-0.75%
Revenue growth 3Y-0.64%
Revenue growth 5Y2%
Sales Q2Q%3.01%
Revenue Next Year1.18%
Revenue Next 2Y2.64%
Revenue Next 3Y3%
Revenue Next 5Y2.63%
EBIT growth 1Y-0.73%
EBIT growth 3Y1.16%
EBIT growth 5Y7.67%
EBIT Next Year34.02%
EBIT Next 3Y16.2%
EBIT Next 5Y11.53%
FCF growth 1Y-39.3%
FCF growth 3Y-2.61%
FCF growth 5Y0.53%
OCF growth 1Y-25.9%
OCF growth 3Y-0.24%
OCF growth 5Y1.7%
GATES INDUSTRIAL CORP PLC / GTES FAQ
What is the fundamental rating for GTES stock?
ChartMill assigns a fundamental rating of 5 / 10 to GTES.
What is the valuation status for GTES stock?
ChartMill assigns a valuation rating of 6 / 10 to GATES INDUSTRIAL CORP PLC (GTES). This can be considered as Fairly Valued.
What is the profitability of GTES stock?
GATES INDUSTRIAL CORP PLC (GTES) has a profitability rating of 6 / 10.
How financially healthy is GATES INDUSTRIAL CORP PLC?
The financial health rating of GATES INDUSTRIAL CORP PLC (GTES) is 5 / 10.