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

5/6

Valuation Score 5/6

  • 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 ($20.23) is trading below our estimate of fair value ($46.5)

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 Ratio23.2x
EarningsUS$221.80m
Market CapUS$5.31b

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 Average23.4x
TKR Timken
14.6x15.4%US$5.0b
FELE Franklin Electric
24.4x9.3%US$4.5b
JBT John Bean Technologies
27.3x13.3%US$3.9b
ESAB ESAB
27.2x9.6%US$7.5b
GTES Gates Industrial
23.2x23.4%US$5.3b

Price-To-Earnings vs Peers: GTES is good value based on its Price-To-Earnings Ratio (23.2x) compared to the peer average (23.4x).

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
2.3xn/aUS$541.12m
CVGI Commercial Vehicle Group
2.5x-46.6%US$73.11m
FATH Fathom Digital Manufacturing
2.6xn/aUS$35.24m
ZEVY Lightning eMotors
n/an/aUS$659.00
No more companies available in this PE range
GTES 23.2xIndustry Avg. 22.5xNo. of Companies9PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GTES is expensive based on its Price-To-Earnings Ratio (23.2x) compared to the US Machinery industry average (22.5x).

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 Ratio23.2x
Fair PE Ratio26.7x

Price-To-Earnings vs Fair Ratio: GTES is good value based on its Price-To-Earnings Ratio (23.2x) compared to the estimated Fair Price-To-Earnings Ratio (26.7x).

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$20.23
US$24.73
+22.2%
6.9%US$27.00US$22.00n/a11
Dec ’25US$22.16
US$22.64
+2.1%
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$12.50US$22.167
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

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 06:24
End of Day Share Price 2024/12/19 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