GTES:NYE-Gates Industrial Corporation plc (USD)

COMMON STOCK | Specialty Industrial Machinery |

Last Closing

USD 17.69

Change

+0.41 (+2.37)%

Market Cap

USD 4.64B

Volume

1.81M

Analyst Target

USD 12.94
Analyst Rating

Verdict

ducovest Verdict

Verdict

About

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, and other accessories; solutions for stationary and mobile drives, engine systems, and personal mobility application platforms; metal drive components; and kits for automotive replacement channels. It also provides fluid power solutions comprising stationary hydraulics, mobile hydraulics, vehicle systems, and other industrial application platforms; and hydraulics, including hoses, tubing, coupling, and fittings, as well as assemblies. The company's products are used in applications across various markets, including industrial off-highway, such as construction and agriculture; first-fit end markets; industrial on-highway commercial vehicles comprising heavy-duty trucks and buses, energy and resources, automotive, and personal mobility; and various industrial applications, such as automated manufacturing and logistics systems. It sells its products under the Gates brand. It offers its products to replacement channel customers, as well as to original equipment manufacturers. The company was founded in 1911 and is headquartered in Denver, Colorado.

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

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Relative Returns (From:    To: 2024-09-26 )

Largest Industry Peers for Specialty Industrial Machinery

Symbol Name Price(Change) Market Cap
ETN Eaton Corporation PLC

+4.47 (+1.36%)

USD 130.33B
EMR Emerson Electric Company

+4.50 (+4.31%)

USD 60.15B
CMI Cummins Inc

+7.12 (+2.24%)

USD 44.34B
AME Ametek Inc

+0.72 (+0.42%)

USD 39.82B
OTIS Otis Worldwide Corp

+3.84 (+3.86%)

USD 39.63B
XYL Xylem Inc

+0.52 (+0.39%)

USD 33.11B
ROK Rockwell Automation Inc

+13.12 (+5.08%)

USD 30.44B
IEX IDEX Corporation

+4.37 (+2.09%)

USD 16.09B
PNR Pentair PLC

+1.07 (+1.11%)

USD 15.77B
GGG Graco Inc

+1.93 (+2.27%)

USD 14.47B

ETFs Containing GTES

FHG:CA FT AlphaDEX U.S. Industri.. 1.31 % 0.76 %

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CAD 0.03B
XXM-B:CA 0.00 % 0.00 %

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Market Performance

  Market Performance vs. Industry/Classification (Specialty Industrial Machinery) Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 31.82% 79% B- 91% A-
Dividend Return N/A N/A N/A N/A N/A
Total Return 31.82% 79% B- 90% A-
Trailing 12 Months  
Capital Gain 51.07% 85% B 91% A-
Dividend Return N/A N/A N/A N/A N/A
Total Return 51.07% 85% B 90% A-
Trailing 5 Years  
Capital Gain 77.08% 58% F 80% B-
Dividend Return N/A N/A N/A N/A N/A
Total Return 77.08% 50% F 76% C+
Average Annual (5 Year Horizon)  
Capital Gain 14.32% 53% F 77% C+
Dividend Return 14.32% 45% F 73% C
Total Return N/A N/A N/A N/A N/A
Risk Return Profile  
Volatility (Standard Deviation) 37.68% 27% F 25% F
Risk Adjusted Return 38.01% 39% F 55% F
Market Capitalization 4.64B 48% F 77% C+

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Underpriced on cashflow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

What to not like:
Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.