GATES INDUSTRIAL CORP PLC (GTES) Stock Fundamental Analysis
NYSE:GTES - New York Stock Exchange, Inc. - GB00BD9G2S12 - Common Stock - Currency: USD
Overall GTES gets a fundamental rating of 5 out of 10. We evaluated GTES against 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 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.
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
GTES's Return On Assets of 3.15% is in line compared to the rest of the industry. GTES outperforms 44.53% of its industry peers.
GTES has a Return On Equity of 6.99%. This is comparable to the rest of the industry: GTES outperforms 42.97% of its industry peers.
GTES has a Return On Invested Capital (6.52%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years 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 comparable to the rest of the industry.
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.
GTES's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 40.77%, GTES is doing good in the industry, outperforming 76.56% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GTES is destroying value.
The number of shares outstanding for GTES has been reduced compared to 1 year ago.
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 2.32 indicates that GTES is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.32, GTES is doing worse than 64.84% of the companies in the same industry.
The Debt to FCF ratio of GTES is 7.98, which is on the high side as it means it would take GTES, 7.98 years of fcf income to pay off all of its debts.
GTES has a Debt to FCF ratio of 7.98. This is comparable to the rest of the industry: GTES outperforms 42.97% of its industry peers.
GTES has a Debt/Equity ratio of 0.74. This is a neutral value indicating GTES is somewhat dependend on debt financing.
The Debt to Equity ratio of GTES (0.74) is worse 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's Current ratio of 3.33 is amongst the best of 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's Quick ratio of 2.35 is fine compared to the rest 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.
GTES shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.44% yearly.
Looking at the last year, GTES shows a decrease in Revenue. The Revenue has decreased by -4.01% in the last year.
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
The Earnings Per Share is expected to grow by 11.42% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.53% on average over the next years.
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
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
The Price/Earnings ratio is 17.03, which indicates a rather expensive current valuation of GTES.
GTES's Price/Earnings ratio is a bit cheaper when compared to the industry. GTES is cheaper than 74.22% of the companies in the same industry.
When comparing the Price/Earnings ratio of GTES to the average of the S&P500 Index (27.45), we can say GTES is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.10, the valuation of GTES can be described as correct.
Based on the Price/Forward Earnings ratio, GTES is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, GTES is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.03 | ||
| Fwd PE | 14.1 |
4.2 Price Multiples
GTES's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GTES is cheaper than 71.88% of the companies in the same industry.
62.50% 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 | 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%