GTES:NYE-Gates Industrial Corporation plc (USD)

COMMON STOCK | Specialty Industrial Machinery |

Last Closing

USD 17.51

Change

+0.20 (+1.16)%

Market Cap

USD 4.67B

Volume

1.11M

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: 2024-10-04 )

Largest Industry Peers for Specialty Industrial Machinery

Symbol Name Price(Change) Market Cap
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USD 130.57B
EMR Emerson Electric Company

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CMI Cummins Inc

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OTIS Otis Worldwide Corp

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AME Ametek Inc

+1.01 (+0.60%)

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XYL Xylem Inc

+0.41 (+0.31%)

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ROK Rockwell Automation Inc

+2.04 (+0.77%)

USD 30.77B
PNR Pentair PLC

+0.33 (+0.35%)

USD 16.14B
IEX IDEX Corporation

+0.25 (+0.12%)

USD 16.00B
GGG Graco Inc

-0.42 (-0.49%)

USD 14.65B

ETFs Containing GTES

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

-0.22 (0%)

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

N/A

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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 30.48% 74% C 90% A-
Dividend Return N/A N/A N/A N/A N/A
Total Return 30.48% 72% C 88% B+
Trailing 12 Months  
Capital Gain 54.00% 83% B 90% A-
Dividend Return N/A N/A N/A N/A N/A
Total Return 54.00% 83% B 89% A-
Trailing 5 Years  
Capital Gain 80.52% 57% F 80% B-
Dividend Return N/A N/A N/A N/A N/A
Total Return 80.52% 45% F 77% C+
Average Annual (5 Year Horizon)  
Capital Gain 14.50% N/A N/A 77% C+
Dividend Return 14.50% N/A N/A 73% C
Total Return N/A N/A N/A N/A N/A
Risk Return Profile  
Volatility (Standard Deviation) 37.75% N/A N/A 26% F
Risk Adjusted Return 38.40% N/A N/A 55% F
Market Capitalization 4.67B 45% F 76% 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:
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.

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.