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Gates Industrial

NYSE:GTES
Snowflake Description

Solid track record and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GTES
NYSE
$3B
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Gates Industrial Corporation plc manufactures and sells engineered power transmission and fluid power solutions worldwide. The last earnings update was 47 days ago. More info.


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  • Gates Industrial has significant price volatility in the past 3 months.
GTES Share Price and Events
7 Day Returns
2.9%
NYSE:GTES
3.4%
US Machinery
2.2%
US Market
1 Year Returns
-30.3%
NYSE:GTES
5.2%
US Machinery
3.8%
US Market
GTES Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Gates Industrial (GTES) 2.9% -5.7% -23.5% -30.3% - -
US Machinery 3.4% 7.5% 5.9% 5.2% 53.7% 25.6%
US Market 2.2% 4.2% 4.4% 3.8% 43% 40.9%
1 Year Return vs Industry and Market
  • GTES underperformed the Machinery industry which returned 5.2% over the past year.
  • GTES underperformed the Market in United States of America which returned 3.8% over the past year.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Gates Industrial undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Gates Industrial to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Gates Industrial.

NYSE:GTES Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:GTES
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.068 (1 + (1- 21%) (97.62%))
1.597
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.6
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.597 * 5.96%)
12.25%

Discounted Cash Flow Calculation for NYSE:GTES using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Gates Industrial is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:GTES DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 12.25%)
2019 270.10 Analyst x1 240.62
2020 344.10 Analyst x3 273.09
2021 374.00 Analyst x2 264.43
2022 472.00 Analyst x1 297.30
2023 533.38 Est @ 13% 299.30
2024 586.31 Est @ 9.92% 293.09
2025 631.83 Est @ 7.76% 281.38
2026 671.35 Est @ 6.25% 266.35
2027 706.24 Est @ 5.2% 249.61
2028 737.72 Est @ 4.46% 232.28
Present value of next 10 years cash flows $2,697.45
NYSE:GTES DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $737.72 × (1 + 2.73%) ÷ (12.25% – 2.73%)
$7,960.44
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $7,960.44 ÷ (1 + 12.25%)10
$2,506.47
NYSE:GTES Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,697.45 + $2,506.47
$5,203.92
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,203.92 / 290.05
$17.94
NYSE:GTES Discount to Share Price
Calculation Result
Value per share (USD) From above. $17.94
Current discount Discount to share price of $11.01
= -1 x ($11.01 - $17.94) / $17.94
38.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Gates Industrial is available for.
Intrinsic value
39%
Share price is $11.01 vs Future cash flow value of $17.94
Current Discount Checks
For Gates Industrial to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Gates Industrial's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Gates Industrial's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Gates Industrial's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Gates Industrial's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:GTES PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-30) in USD $2.88
NYSE:GTES Share Price ** NYSE (2019-06-21) in USD $11.01
United States of America Machinery Industry PE Ratio Median Figure of 99 Publicly-Listed Machinery Companies 20.9x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Gates Industrial.

NYSE:GTES PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:GTES Share Price ÷ EPS (both in USD)

= 11.01 ÷ 2.88

3.82x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gates Industrial is good value based on earnings compared to the US Machinery industry average.
  • Gates Industrial is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Gates Industrial's expected growth come at a high price?
Raw Data
NYSE:GTES PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 3.82x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
-53%per year
United States of America Machinery Industry PEG Ratio Median Figure of 80 Publicly-Listed Machinery Companies 1.47x
United States of America Market PEG Ratio Median Figure of 2,134 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NYSE:GTES PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 3.82x ÷ -53%

-0.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gates Industrial earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Gates Industrial's assets?
Raw Data
NYSE:GTES PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-30) in USD $8.89
NYSE:GTES Share Price * NYSE (2019-06-21) in USD $11.01
United States of America Machinery Industry PB Ratio Median Figure of 127 Publicly-Listed Machinery Companies 2.31x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.81x
NYSE:GTES PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:GTES Share Price ÷ Book Value per Share (both in USD)

= 11.01 ÷ 8.89

1.24x

* Primary Listing of Gates Industrial.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Gates Industrial is good value based on assets compared to the US Machinery industry average.
X
Value checks
We assess Gates Industrial's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Gates Industrial has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Gates Industrial expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-53%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Gates Industrial expected to grow at an attractive rate?
  • Gates Industrial's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Gates Industrial's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Gates Industrial's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:GTES Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:GTES Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts -53%
NYSE:GTES Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 3.2%
United States of America Machinery Industry Earnings Growth Rate Market Cap Weighted Average 10.2%
United States of America Machinery Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:GTES Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:GTES Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 3,737 1
2021-12-31 3,530 227 5
2020-12-31 3,446 476 217 7
2019-12-31 3,316 409 776 6
NYSE:GTES Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-30 3,301 292 836
2018-12-29 3,348 314 246
2018-09-29 3,337 306 289
2018-06-30 3,270 320 242
2018-03-31 3,164 306 156
2017-12-30 3,042 320 151
2017-09-30 2,928 321 34
2017-07-01 2,843 352 40
2017-04-01 2,775 306 52
2016-12-31 2,747 377 45

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Gates Industrial's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Gates Industrial's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:GTES Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Gates Industrial Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GTES Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 0.85 0.94 0.76 2.00
2020-12-31 0.81 0.95 0.66 2.00
2019-12-31 2.68 2.76 2.60 2.00
NYSE:GTES Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-30 2.88
2018-12-29 0.86
2018-09-29 1.05
2018-06-30 0.92
2018-03-31 0.62
2017-12-30 0.61
2017-09-30 0.18
2017-07-01 0.19
2017-04-01 0.23
2016-12-31 0.18

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Gates Industrial is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Gates Industrial's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Gates Industrial has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Gates Industrial performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Gates Industrial's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Gates Industrial has delivered over 20% year on year earnings growth in the past 5 years.
  • Gates Industrial's 1-year earnings growth exceeds its 5-year average (434.5% vs 51%)
  • Gates Industrial's earnings growth has exceeded the US Machinery industry average in the past year (434.5% vs 28.5%).
Earnings and Revenue History
Gates Industrial's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Gates Industrial Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GTES Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-30 3,300.50 835.60 798.50
2018-12-29 3,347.60 245.90 808.90
2018-09-29 3,337.30 288.60 816.40
2018-06-30 3,269.50 241.50 814.00
2018-03-31 3,163.50 156.40 799.10
2017-12-30 3,041.70 150.60 779.60
2017-09-30 2,927.60 33.70 620.10
2017-07-01 2,842.50 40.10 599.00
2017-04-01 2,775.30 51.55 598.65
2016-12-31 2,747.00 45.30 744.10
2016-01-02 2,745.10 24.90 626.00
2015-01-03 3,042.20 -91.80 815.70
2014-03-29 2,966.50 121.50 776.80
2013-12-31 2,947.30 107.30 784.50
2013-09-28 2,888.80 25.80 771.90
2013-06-29 2,878.10 -14.90 785.70
2013-03-30 2,872.20 -15.80 791.70
2012-12-31 2,922.80 -39.00 810.90
2012-09-29 3,050.30 79.10 929.40
2012-06-30 3,134.40 -9.40 946.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Gates Industrial has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Gates Industrial used its assets more efficiently than the US Machinery industry average last year based on Return on Assets.
  • Gates Industrial has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Gates Industrial's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Gates Industrial has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Gates Industrial's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Gates Industrial's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Gates Industrial is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Gates Industrial's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Gates Industrial's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Gates Industrial Company Filings, last reported 2 months ago.

NYSE:GTES Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-30 2,962.10 2,988.40 334.80
2018-12-29 2,333.70 3,018.80 426.90
2018-09-29 2,327.10 2,997.10 299.60
2018-06-30 2,256.50 3,016.20 308.70
2018-03-31 2,315.10 3,048.00 330.50
2017-12-30 1,428.40 3,961.90 564.40
2017-09-30 1,297.20 3,916.10 528.40
2017-07-01 1,250.00 3,924.70 509.50
2017-04-01 1,068.40 3,836.90 527.20
2016-12-31 1,068.40 3,836.90 527.20
2016-01-02 1,192.60 3,907.60 339.20
2015-01-03
2014-03-29 2,009.70 1,704.80 317.50
2013-12-31 2,031.60 1,691.80 340.90
2013-09-28 2,018.10 1,722.60 340.40
2013-06-29 1,965.90 1,810.20 400.00
2013-03-30 1,948.40 1,820.50 375.90
2012-12-31 1,943.90 1,802.50 447.60
2012-09-29 2,594.40 1,929.00 255.40
2012-06-30 2,528.30 2,502.10 835.30
  • Gates Industrial's level of debt (100.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (85.4% vs 100.9% today).
  • Debt is not well covered by operating cash flow (9.8%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.3x coverage).
X
Financial health checks
We assess Gates Industrial's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Gates Industrial has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Gates Industrial dividends. Estimated to be 0% next year.
If you bought $2,000 of Gates Industrial shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Gates Industrial's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Gates Industrial's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:GTES Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Machinery Industry Average Dividend Yield Market Cap Weighted Average of 77 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:GTES Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 0.00 5.00
2020-12-31 0.00 5.00
2019-12-31 0.00 5.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Gates Industrial has not reported any payouts.
  • Unable to verify if Gates Industrial's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Gates Industrial's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Gates Industrial has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Gates Industrial's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Gates Industrial's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Gates Industrial afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Gates Industrial has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Gates Industrial's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ivo Jurek
COMPENSATION $2,534,402
AGE 53
CEO Bio

Mr. Ivo Jurek has 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 entities since May 2015. Mr. Jurek oversees and manages all of Gates’ departments and lines of products and services globally. As Chief Executive Officer, Mr. Jurek has led Gates to expand product lines in fluid power, power transmission, and strategically grow market share through acquisitions and joint ventures, while driving improved financial performance through increased plants efficiency. Mr. Jurek has a deep understanding of new technology development, manufacturing, distribution and international business markets. Prior to joining Gates, Mr. Jurek served as President of Eaton Electrical, Asia Pacific from November 2012. During that time, Mr. Jurek had management oversight of Eaton Electrical’s Asia Pacific portfolio which included optimizing manufacturing plants, identifying new markets, and assisting with the overall performance of the company. Prior to that, Mr. Jurek served as Group President for Cooper Power Systems—Cooper Bussmann with complete oversight of all business activities and in significant general management positions for International Rectifier Corporation and TRW Inc.

CEO Compensation
  • Insufficient data for Ivo to compare compensation growth.
  • Ivo's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Gates Industrial management team in years:

2
Average Tenure
53
Average Age
  • The tenure for the Gates Industrial management team is about average.
Management Team

Ivo Jurek

TITLE
CEO & Director
COMPENSATION
$3M
AGE
53

David Naemura

TITLE
Chief Financial Officer
COMPENSATION
$1M
AGE
48
TENURE
4.3 yrs

Walt Lifsey

TITLE
Chief Operating Officer
COMPENSATION
$1M
AGE
59
TENURE
3.8 yrs

Jamey Seely

TITLE
Executive VP
COMPENSATION
$1M
AGE
46
TENURE
1.8 yrs

Grant Gawronski

TITLE
Executive VP & Chief Commercial Officer
COMPENSATION
$3M
AGE
55
TENURE
0.5 yrs

David Wisniewski

TITLE
Chief Accounting Officer
AGE
49
TENURE
1.2 yrs

Michael Rhymes

TITLE
Chief Information Officer

Bill Waelke

TITLE
Vice President of Investor Relations
TENURE
1.5 yrs

Tom Pitstick

TITLE
Chief Marketing Officer & Senior VP of Product Line Management
TENURE
2.3 yrs

Roger Gaston

TITLE
Executive Vice President of Human Resources
COMPENSATION
$1M
AGE
62
TENURE
2.8 yrs
Board of Directors Tenure

Average tenure and age of the Gates Industrial board of directors in years:

1.5
Average Tenure
56.5
Average Age
  • The average tenure for the Gates Industrial board of directors is less than 3 years, this suggests a new board.
Board of Directors

Dave Calhoun

TITLE
Chairman of the Board
AGE
60

Ivo Jurek

TITLE
CEO & Director
COMPENSATION
$3M
AGE
53
TENURE
1.8 yrs

Neil Simpkins

TITLE
Director
AGE
52
TENURE
1.6 yrs

Terry Klebe

TITLE
Director
COMPENSATION
$250K
AGE
63
TENURE
1.5 yrs

Julia Kahr

TITLE
Director
AGE
39
TENURE
1.8 yrs

John Plant

TITLE
Director
COMPENSATION
$225K
AGE
64
TENURE
1.5 yrs

James Ireland

TITLE
Director
COMPENSATION
$121K
AGE
63
TENURE
0.6 yrs

Stephanie Mains

TITLE
Director
AGE
50
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Gates Industrial individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
14. May 19 Buy Walter Lifsey Individual 13. May 19 14. May 19 76,050 $13.17 $994,457
13. May 19 Buy Grant Gawronski Individual 13. May 19 13. May 19 5,000 $13.08 $65,400
13. May 19 Buy Jamey Seely Individual 10. May 19 10. May 19 1,000 $13.34 $13,340
06. Nov 18 Buy Ivo Jurek Individual 06. Nov 18 06. Nov 18 5,000 $14.50 $72,483
X
Management checks
We assess Gates Industrial's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Gates Industrial has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Gates Industrial Corporation plc (NYSE:GTES) Trading At A 38% Discount?

We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $270.10 $344.10 $374.00 $472.00 $533.38 $586.31 $631.83 $671.35 $706.24 $737.72 Growth Rate Estimate Source Analyst x1 Analyst x3 Analyst x2 Analyst x1 Est @ 13% Est @ 9.92% Est @ 7.76% Est @ 6.25% Est @ 5.2% Est @ 4.46% Present Value ($, Millions) Discounted @ 11.91% $241.35 $274.74 $266.83 $300.90 $303.83 $298.43 $287.37 $272.84 $256.47 $239.38 Present Value of 10-year Cash Flow (PVCF)= $2.74b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 11.9%.

Simply Wall St -

What Does Gates Industrial Corporation plc's (NYSE:GTES) Balance Sheet Tell Us About It?

Does GTES Produce Much Cash Relative To Its Debt? … On top of this, GTES has produced US$292m in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 9.4%, meaning that GTES’s operating cash is less than its debt. … Looking at GTES’s US$642m in current liabilities, the company has maintained a safe level of current assets to meet its obligations, with the current ratio last standing at 2.86x.

Simply Wall St -

Have Insiders Been Buying Gates Industrial Corporation plc (NYSE:GTES) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Gates Industrial Corporation plc (NYSE:GTES). … Gates Industrial Insider Transactions Over The Last Year. … Happily, the Gates Industrial insiders decided to buy shares at close to current prices.

Simply Wall St -

Why Gates Industrial Corporation plc’s (NYSE:GTES) Return On Capital Employed Might Be A Concern

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Will Gates Industrial Corporation plc's (NYSE:GTES) Earnings Grow In The Years Ahead?

Gates Industrial Corporation plc's (NYSE:GTES) released its most recent earnings update in December 2018, whicha

Simply Wall St -

Does Gates Industrial Corporation plc's (NYSE:GTES) April Stock Price Reflect Its Future Growth?

Gates Industrial Corporation plc (NYSE:GTES) closed yesterday at $15.76, which left some investors asking whether the high earnings potential can still be justified at this price. … View our latest analysis for Gates Industrial? … Gates Industrial is poised for significantly high earnings growth in the near future

Simply Wall St -

Introducing Gates Industrial (NYSE:GTES), The Stock That Dropped 15% In The Last Year

Gates Industrial Corporation plc (NYSE:GTES) shareholders should be happy to see the share price up 16% in the last quarter. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During the unfortunate twelve months during which the Gates Industrial share price fell, it actually saw its earnings per share (EPS) improve by 41%.

Simply Wall St -

What Should We Expect From Gates Industrial Corporation plc's (NYSE:GTES) Earnings Over The Next Year?

As Gates Industrial Corporation plc (NYSE:GTES) released its earnings announcement on 29 December 2018, … with earnings expected to grow by 1.0% in the upcoming year … the higher past 5-year average growth rate of 29%.

Simply Wall St -

Read This Before You Buy Gates Industrial Corporation plc (NYSE:GTES) Because Of Its P/E Ratio

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at Gates Industrial Corporation plc's (NYSE:GTES) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Have Insiders Been Buying Gates Industrial Corporation plc (NYSE:GTES) Shares?

We often see insiders buying up shares in companies that perform well over the long term. … So before you buy or sell Gates Industrial Corporation plc (NYSE:GTES), you may well want to know whether insiders have been buying or selling. … Gates Industrial Insider Transactions Over The Last Year.

Simply Wall St -

Company Info

Description

Gates Industrial Corporation plc manufactures and sells engineered power transmission and fluid power solutions worldwide. The company offers synchronous or asynchronous belts, including V-belts, CVT belts, or Micro-V belts, as well as related components, such as sprockets, pulleys, water pumps, tensioners, or other accessories; and metal drive components and kits for stationary drives, mobile drives, engine systems, personal mobility products, and vertical lifts. It also provides fluid power products comprising hydraulic hoses, tubing, and fittings, as well as assemblies; and engine and industrial hoses for use in stationary hydraulics, mobile hydraulics, engine systems, and other industrial applications. The company serves various end markets comprising the construction, agriculture, energy, automotive, transportation, general industrial, consumer products, and others. It sells its engineered products under the Gates brand. The company offers its products to replacement channel customers, as well as to original equipment manufacturers as specified components. Gates Industrial Corporation plc was founded in 1911 and is headquartered in Denver, Colorado.

Details
Name: Gates Industrial Corporation plc
GTES
Exchange: NYSE
Founded: 1911
$3,193,403,322
290,045,715
Website: http://www.gates.com
Address: Gates Industrial Corporation plc
1144 Fifteenth Street,
Denver,
Colorado, 80202,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE GTES Ordinary Shares New York Stock Exchange US USD 25. Jan 2018
Number of employees
Current staff
Staff numbers
14,200
Gates Industrial employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/24 01:09
End of day share price update: 2019/06/21 00:00
Last estimates confirmation: 2019/06/03
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/30
Last annual earnings reported: 2018/12/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.