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GTES

Gates Industrial NYSE:GTES Stock Report

Last Price

US$12.29

Market Cap

US$3.5b

7D

-0.8%

1Y

-26.0%

Updated

11 Aug, 2022

Data

Company Financials +
GTES fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance1/6
Financial Health3/6
Dividends0/6

GTES Stock Overview

Gates Industrial Corporation plc manufactures and sells engineered power transmission and fluid power solutions worldwide.

Gates Industrial Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Gates Industrial
Historical stock prices
Current Share PriceUS$12.29
52 Week HighUS$18.18
52 Week LowUS$10.37
Beta1.6
1 Month Change11.73%
3 Month Change-0.89%
1 Year Change-25.96%
3 Year Change54.98%
5 Year Changen/a
Change since IPO-33.57%

Recent News & Updates

Aug 05

Gates Industrial Non-GAAP EPS of $0.32 beats by $0.05, revenue of $906.8M misses by $11.59M

Gates Industrial press release (NYSE:GTES): Q2 Non-GAAP EPS of $0.32 beats by $0.05. Revenue of $906.8M (-0.9% Y/Y) misses by $11.59M.

Shareholder Returns

GTESUS MachineryUS Market
7D-0.8%3.4%1.3%
1Y-26.0%-12.3%-11.7%

Return vs Industry: GTES underperformed the US Machinery industry which returned -13.6% over the past year.

Return vs Market: GTES underperformed the US Market which returned -11.6% over the past year.

Price Volatility

Is GTES's price volatile compared to industry and market?
GTES volatility
GTES Average Weekly Movement5.0%
Machinery Industry Average Movement6.0%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: GTES is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GTES's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
191115,050Ivo Jurekhttps://www.gates.com

Gates Industrial Corporation plc manufactures and sells engineered power transmission and fluid power solutions worldwide. It operates in two segments, Power Transmission and Fluid Power. The company offers synchronous or asynchronous belts, including V-belts, CVT belts, and Micro-V belts, as well as related components, such as sprockets, pulleys, water pumps, tensioners, or other accessories; solutions for stationary and mobile drives, engine systems, personal mobility, and vertical lifts application platforms; metal drive components; and kits for automotive replacement channels.

Gates Industrial Fundamentals Summary

How do Gates Industrial's earnings and revenue compare to its market cap?
GTES fundamental statistics
Market CapUS$3.47b
Earnings (TTM)US$217.50m
Revenue (TTM)US$3.48b

16.0x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GTES income statement (TTM)
RevenueUS$3.48b
Cost of RevenueUS$2.22b
Gross ProfitUS$1.26b
Other ExpensesUS$1.04b
EarningsUS$217.50m

Last Reported Earnings

Jul 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.77
Gross Margin36.22%
Net Profit Margin6.25%
Debt/Equity Ratio78.8%

How did GTES perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

GTES key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA10x
PEG Ratio-3.6x

Price to Earnings Ratio vs Peers

How does GTES's PE Ratio compare to its peers?

GTES PE Ratio vs Peers
The above table shows the PE ratio for GTES vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average51.9x
JBT John Bean Technologies
31.2x20.0%US$3.7b
AIMC Altra Industrial Motion
150.3x62.4%US$2.8b
TKR Timken
13.3x8.8%US$5.0b
ESAB ESAB
12.6x9.8%US$2.7b
GTES Gates Industrial
16x-4.5%US$3.5b

Price-To-Earnings vs Peers: GTES is good value based on its Price-To-Earnings Ratio (16x) compared to the peer average (51.9x).


Price to Earnings Ratio vs Industry

How does GTES's PE Ratio compare vs other companies in the US Machinery Industry?

Price-To-Earnings vs Industry: GTES is good value based on its Price-To-Earnings Ratio (16x) compared to the US Machinery industry average (22.8x)


Price to Earnings Ratio vs Fair Ratio

What is GTES'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.

GTES PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16x
Fair PE Ratio13.3x

Price-To-Earnings vs Fair Ratio: GTES is expensive based on its Price-To-Earnings Ratio (16x) compared to the estimated Fair Price-To-Earnings Ratio (13.3x).


Share Price vs Fair Value

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

Below Fair Value: GTES ($12.29) is trading below our estimate of fair value ($41.76)

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


Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Gates Industrial forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-4.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GTES's earnings are forecast to decline over the next 3 years (-4.5% per year).

Earnings vs Market: GTES's earnings are forecast to decline over the next 3 years (-4.5% per year).

High Growth Earnings: GTES's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GTES's revenue (3.8% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: GTES's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GTES's Return on Equity is forecast to be low in 3 years time (11.3%).


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Past Performance

How has Gates Industrial performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-0.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GTES has high quality earnings.

Growing Profit Margin: GTES's current net profit margins (6.3%) are lower than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: GTES's earnings have declined by 0.5% per year over the past 5 years.

Accelerating Growth: GTES's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GTES had negative earnings growth (-5%) over the past year, making it difficult to compare to the Machinery industry average (9.8%).


Return on Equity

High ROE: GTES's Return on Equity (7.5%) is considered low.


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Financial Health

How is Gates Industrial's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GTES's short term assets ($2.2B) exceed its short term liabilities ($771.5M).

Long Term Liabilities: GTES's short term assets ($2.2B) do not cover its long term liabilities ($3.1B).


Debt to Equity History and Analysis

Debt Level: GTES's net debt to equity ratio (66.5%) is considered high.

Reducing Debt: GTES's debt to equity ratio has reduced from 313.6% to 78.8% over the past 5 years.

Debt Coverage: GTES's debt is not well covered by operating cash flow (7.3%).

Interest Coverage: GTES's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet


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Dividend

What is Gates Industrial current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate GTES's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GTES's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GTES's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GTES's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as GTES has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Ivo Jurek (57 yo)

7.25yrs

Tenure

US$8,772,300

Compensation

Mr. Ivo Jurek serves as a Director of Gates Industrial Corporation plc since September 2017 and serves as its Chief Executive Officer and has served as Chief Executive Officer and a Director of Gates entit...


CEO Compensation Analysis

Compensation vs Market: Ivo's total compensation ($USD8.77M) is above average for companies of similar size in the US market ($USD6.58M).

Compensation vs Earnings: Ivo's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GTES's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: GTES's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Gates Industrial Corporation plc's employee growth, exchange listings and data sources


Key Information

  • Name: Gates Industrial Corporation plc
  • Ticker: GTES
  • Exchange: NYSE
  • Founded: 1911
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Implied Market Cap: US$3.469b
  • Shares outstanding: 282.29m
  • Website: https://www.gates.com

Number of Employees


Location

  • Gates Industrial Corporation plc
  • 1144 Fifteenth Street
  • Denver
  • Colorado
  • 80202
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/11 00:00
Earnings2022/07/02
Annual Earnings2022/01/01


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.