Gates Industrial Corporation plc

NYSE:GTES Stock Report

Market Cap: US$5.3b

Gates Industrial Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 GTES when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GTES ($21.07) is trading below our estimate of fair value ($46.39)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for GTES. This is calculated by dividing GTES's market cap by their current earnings.
What is GTES's PE Ratio?
PE Ratio28.1x
EarningsUS$190.70m
Market CapUS$5.29b

Price to Earnings Ratio vs Peers

How does GTES's PE Ratio compare to its 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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.1x
TKR Timken
15.4x15.4%US$5.3b
FELE Franklin Electric
26.3x9.3%US$4.8b
KAI Kadant
40.6x6.9%US$4.6b
JBT John Bean Technologies
26x-7.8%US$3.7b
GTES Gates Industrial
28.1x25.6%US$5.3b

Price-To-Earnings vs Peers: GTES is expensive based on its Price-To-Earnings Ratio (28.1x) compared to the peer average (27.1x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AIRJ AirJoule Technologies
1.8xn/aUS$411.62m
CVGI Commercial Vehicle Group
2.8x-46.6%US$80.23m
FATH Fathom Digital Manufacturing
2.6xn/aUS$35.24m
ZEVY Lightning eMotors
n/an/aUS$6.00
No more companies available in this PE range
GTES 28.1xIndustry Avg. 24.2xNo. of Companies9PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GTES is expensive based on its Price-To-Earnings Ratio (28.1x) compared to the US Machinery industry average (24.1x).

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 Ratio28.1x
Fair PE Ratio28x

Price-To-Earnings vs Fair Ratio: GTES is expensive based on its Price-To-Earnings Ratio (28.1x) compared to the estimated Fair Price-To-Earnings Ratio (28x).

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 GTES forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$21.07
US$22.59
+7.2%
5.4%US$25.00US$21.00n/a11
Nov ’25US$19.52
US$21.18
+8.5%
13.7%US$25.00US$16.00n/a11
Oct ’25US$17.41
US$20.41
+17.2%
12.0%US$24.00US$16.00n/a11
Sep ’25US$18.16
US$20.40
+12.3%
11.2%US$22.00US$16.00n/a10
Aug ’25US$17.74
US$19.90
+12.2%
11.8%US$22.00US$15.00n/a10
Jul ’25US$15.47
US$19.70
+27.3%
15.1%US$26.00US$15.00n/a10
Jun ’25US$17.42
US$19.80
+13.7%
14.4%US$26.00US$15.00n/a10
May ’25US$16.43
US$19.70
+19.9%
15.4%US$26.00US$14.00n/a10
Apr ’25US$17.74
US$18.00
+1.5%
12.9%US$21.00US$14.00n/a10
Mar ’25US$14.83
US$16.56
+11.6%
15.4%US$21.00US$13.00n/a9
Feb ’25US$13.22
US$15.44
+16.8%
15.7%US$19.00US$12.50n/a8
Jan ’25US$13.42
US$15.36
+14.4%
13.6%US$18.00US$12.50n/a7
Dec ’24US$12.60
US$15.36
+21.9%
13.6%US$18.00US$12.50n/a7
Nov ’24US$10.86
US$15.93
+46.7%
13.3%US$20.00US$14.00US$19.527
Oct ’24US$11.61
US$15.81
+36.2%
12.6%US$20.00US$14.00US$17.418
Sep ’24US$12.43
US$15.94
+28.3%
11.3%US$20.00US$14.00US$18.169
Aug ’24US$13.67
US$15.94
+16.6%
10.1%US$19.00US$14.00US$17.749
Jul ’24US$13.48
US$16.55
+22.8%
14.3%US$22.00US$14.00US$15.4710
Jun ’24US$12.00
US$16.65
+38.7%
13.8%US$22.00US$14.00US$17.4210
May ’24US$13.50
US$16.25
+20.4%
13.6%US$22.00US$14.00US$16.4310
Apr ’24US$13.89
US$16.25
+17.0%
13.6%US$22.00US$14.00US$17.7410
Mar ’24US$14.11
US$16.15
+14.5%
14.1%US$22.00US$14.00US$14.8310
Feb ’24US$13.41
US$14.09
+5.1%
17.7%US$21.00US$11.00US$13.2211
Jan ’24US$11.41
US$13.95
+22.3%
19.6%US$21.00US$11.00US$13.4211
Dec ’23US$11.58
US$13.86
+19.7%
19.8%US$21.00US$11.00US$12.6011
Nov ’23US$11.39
US$14.55
+27.7%
23.1%US$22.00US$11.00US$10.8611

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

Discover undervalued companies

Mitsubishi

JP¥10.4t

Engages in the natural gas, industrial materials and infrastructure, chemicals, mineral resources, automotive and mobility, food and consumer industry, power solution, and urban development businesses worldwide.

MSBH.F

JP¥17.23

7D

-3.1%

1Y

7.7%

Stanley Black & Decker

US$13.2b

Provides hand tools, power tools, outdoor products, and related accessories in the United States, Canada, Other Americas, Europe, and Asia.

SWK

US$86.58

7D

-4.0%

1Y

-5.4%

NFI Group

CA$1.8b

Manufactures and sells buses in North America, the United Kingdom, rest of Europe, and the Asia Pacific.

NFYE.F

CA$10.86

7D

-3.3%

1Y

7.9%