Gates Industrial Corporation plc

DB:1JL Stock Report

Market Cap: €5.1b

Gates Industrial Valuation

Is 1JL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 1JL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1JL (€19.7) is trading below our estimate of fair value (€46.35)

Significantly Below Fair Value: 1JL is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1JL?

Key metric: As 1JL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1JL. This is calculated by dividing 1JL's market cap by their current earnings.
What is 1JL's PE Ratio?
PE Ratio23.8x
EarningsUS$221.80m
Market CapUS$5.29b

Price to Earnings Ratio vs Peers

How does 1JL's PE Ratio compare to its peers?

The above table shows the PE ratio for 1JL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.1x
GIL DMG MORI
22.3xn/a€3.6b
G1A GEA Group
19.5x8.3%€7.9b
KRN Krones
15.3x16.0%€3.8b
RAA RATIONAL
39.4x7.1%€9.3b
1JL Gates Industrial
23.8x23.4%€5.3b

Price-To-Earnings vs Peers: 1JL is good value based on its Price-To-Earnings Ratio (23.8x) compared to the peer average (24.1x).

Price to Earnings Ratio vs Industry

How does 1JL's PE Ratio compare vs other companies in the DE Machinery Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No more companies available in this PE range
1JL 23.8xIndustry Avg. 16.9xNo. of Companies7PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1JL is expensive based on its Price-To-Earnings Ratio (23.8x) compared to the German Machinery industry average (16.9x).

Price to Earnings Ratio vs Fair Ratio

What is 1JL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1JL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.8x
Fair PE Ratio21.9x

Price-To-Earnings vs Fair Ratio: 1JL is expensive based on its Price-To-Earnings Ratio (23.8x) compared to the estimated Fair Price-To-Earnings Ratio (21.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 1JL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€19.70
€24.08
+22.3%
7.8%€27.17€21.35n/a11
Dec ’25€20.60
€21.48
+4.3%
5.4%€23.72€19.92n/a11
Nov ’25€17.60
€19.55
+11.1%
13.7%€23.07€14.76n/a11
Oct ’25€15.60
€18.36
+17.7%
12.0%€21.59€14.40n/a11
Sep ’25€15.90
€18.40
+15.7%
11.2%€19.85€14.43n/a10
Aug ’25€17.00
€18.44
+8.5%
11.8%€20.39€13.90n/a10
Jul ’25€14.30
€18.10
+26.6%
15.1%€23.89€13.78n/a10
Jun ’25€15.80
€18.23
+15.4%
14.4%€23.94€13.81n/a10
May ’25€16.40
€18.43
+12.4%
15.4%€24.32€13.09n/a10
Apr ’25€16.30
€16.44
+0.9%
12.9%€19.19€12.79n/a10
Mar ’25€13.40
€15.32
+14.3%
15.4%€19.43€12.03n/a9
Feb ’25€11.70
€14.21
+21.4%
15.7%€17.48€11.50n/a8
Jan ’25€12.00
€14.37
+19.8%
13.6%€16.85€11.70€19.607
Dec ’24€11.00
€14.37
+30.7%
13.6%€16.85€11.70€20.607
Nov ’24€10.10
€15.08
+49.3%
13.3%€18.94€13.26€17.607
Oct ’24€10.80
€14.80
+37.0%
12.6%€18.72€13.10€15.608
Sep ’24€11.10
€14.61
+31.7%
11.3%€18.33€12.83€15.909
Aug ’24€12.20
€14.20
+16.4%
10.1%€16.92€12.47€17.009
Jul ’24€12.10
€15.16
+25.3%
14.3%€20.16€12.83€14.3010
Jun ’24€10.50
€15.19
+44.6%
13.8%€20.07€12.77€15.8010
May ’24€11.80
€15.15
+28.3%
13.6%€20.50€13.05€16.4010
Apr ’24€12.00
€15.15
+26.2%
13.6%€20.50€13.05€16.3010
Mar ’24€13.10
€15.22
+16.2%
14.1%€20.74€13.20€13.4010
Feb ’24€11.70
€12.97
+10.8%
17.7%€19.33€10.12€11.7011
Jan ’24€10.30
€13.25
+28.6%
19.6%€19.93€10.44€12.0011

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/05 13:40
End of Day Share Price 2025/01/03 00:00
Earnings2024/09/28
Annual Earnings2023/12/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Gates Industrial Corporation plc is covered by 24 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David LarkamArden Partners Plc.
Michael HalloranBaird
Julian MitchellBarclays