Gates Industrial Corporation plc manufactures and sells engineered power transmission and fluid power solutions worldwide.
Fair value with questionable track record.
Share Price & News
How has Gates Industrial's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: GTES's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: GTES underperformed the US Machinery industry which returned -8.3% over the past year.
Return vs Market: GTES underperformed the US Market which returned 6.7% over the past year.
Price Volatility Vs. Market
How volatile is Gates Industrial's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall StHow Does Gates Industrial's (NYSE:GTES) P/E Compare To Its Industry, After Its Big Share Price Gain?
2 months ago | Simply Wall StShould You Rely On Gates Industrial's (NYSE:GTES) Earnings Growth?
3 months ago | Simply Wall StA Sliding Share Price Has Us Looking At Gates Industrial Corporation plc's (NYSE:GTES) P/E Ratio
Is Gates Industrial undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GTES ($9.94) is trading below our estimate of fair value ($20.68)
Significantly Below Fair Value: GTES is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: GTES is poor value based on its PE Ratio (25.7x) compared to the US Machinery industry average (18.8x).
PE vs Market: GTES is poor value based on its PE Ratio (25.7x) compared to the US market (16.2x).
Price to Earnings Growth Ratio
PEG Ratio: GTES is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: GTES is good value based on its PB Ratio (1.2x) compared to the US Machinery industry average (1.9x).
How is Gates Industrial forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GTES's forecast earnings growth (16.8% per year) is above the savings rate (2.2%).
Earnings vs Market: GTES's earnings (16.8% per year) are forecast to grow slower than the US market (22.9% per year).
High Growth Earnings: GTES's earnings are forecast to grow, but not significantly.
Revenue vs Market: GTES's revenue (7.7% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: GTES's revenue (7.7% 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 (8%).
How has Gates Industrial performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GTES has high quality earnings.
Growing Profit Margin: GTES's current net profit margins (3.8%) are lower than last year (25.1%).
Past Earnings Growth Analysis
Earnings Trend: GTES has become profitable over the past 5 years, growing earnings by 59.3% per year.
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 (-86.5%) over the past year, making it difficult to compare to the Machinery industry average (-5.4%).
Return on Equity
High ROE: GTES's Return on Equity (4.6%) is considered low.
How is Gates Industrial's financial position?
Financial Position Analysis
Short Term Liabilities: GTES's short term assets ($2.0B) exceed its short term liabilities ($667.7M).
Long Term Liabilities: GTES's short term assets ($2.0B) do not cover its long term liabilities ($3.7B).
Debt to Equity History and Analysis
Debt Level: GTES's debt to equity ratio (105.3%) is considered high.
Reducing Debt: GTES's debt to equity ratio has reduced from 191.3% to 105.3% over the past 5 years.
Debt Coverage: GTES's debt is not well covered by operating cash flow (14.3%).
Interest Coverage: GTES's interest payments on its debt are not well covered by EBIT (2.1x coverage).
What is Gates Industrial current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate GTES's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate GTES's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if GTES's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if GTES's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of GTES's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ivo Jurek (55yo)
Mr. Ivo Jurek has serves as a Director of Gates Industrial Corporation plc since September 2017 and serves as its Chief Executive Officer and has served as Chief Executive Officer and a Director of Gates e ...
CEO Compensation Analysis
Compensation vs Market: Ivo's total compensation ($USD10.49M) is above average for companies of similar size in the US market ($USD5.84M).
Compensation vs Earnings: Ivo's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|CEO & Director||no data||US$10.49m||0.069% $2.0m|
|Executive VP & COO||4.92yrs||US$2.39m||0.029% $829.4k|
|Executive VP & Chief Commercial Officer||1.58yrs||US$2.37m||0.024% $703.4k|
|Executive VP & CFO||0.42yr||no data||no data|
|Senior VP & Chief Accounting Officer||2.25yrs||no data||0.0014% $39.3k|
|Chief Information Officer||no data||no data||no data|
|Vice President of Investor Relations||2.58yrs||no data||no data|
|Interim General Counsel||0.50yr||no data||no data|
|Chief Marketing Officer & Senior VP of Product Line Management||3.42yrs||no data||no data|
|Executive VP & Chief Human Resources Officer||3.92yrs||US$1.07m||0.0057% $165.0k|
Experienced Management: GTES's management team is considered experienced (2.4 years average tenure).
|CEO & Director||no data||US$10.49m||0.069% $2.0m|
|Chairman||0.50yr||no data||no data|
|Independent Director||2.58yrs||US$250.00k||0.020% $570.5k|
|Independent Director||0.25yr||no data||no data|
|Non-Executive Director||2.83yrs||no data||no data|
|Independent Director||no data||no data||no data|
|Independent Director||1.67yrs||US$225.00k||0.0043% $124.6k|
|Independent Director||1.42yrs||US$204.16k||0.0021% $61.6k|
Experienced Board: GTES's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Gates Industrial Corporation plc's company bio, employee growth, exchange listings and data sources
- Name: Gates Industrial Corporation plc
- Ticker: GTES
- Exchange: NYSE
- Founded: 1911
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: US$2.890b
- Shares outstanding: 290.74m
- Website: https://www.gates.com
Number of Employees
- Gates Industrial Corporation plc
- 1144 Fifteenth Street
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|GTES||NYSE (New York Stock Exchange)||Yes||Ordinary Shares||US||USD||Jan 2018|
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, and 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 and mobile drives, engine systems, personal mobility, and vertical lifts application platforms. 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.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/07/11 23:56|
|End of Day Share Price||2020/07/10 00:00|
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.