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Gates Industrial Corp. Plc

  • Market Cap: Small Cap
  • Industry: Industrial Manufacturing
  • ISIN: GB00BD9G2S12
  • NYSE: GTES
USD
26.15
0.7 (2.75%)

Sep 22

NYS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Gates Industrial Corp. Plc
AAON, Inc.
Watts Water Technologies, Inc.
John Bean Technologies Corp.
The Timken Co.
Zurn Elkay Water Solutions Corp.
Franklin Electric Co., Inc.
Flowserve Corp.
Badger Meter, Inc.
Crane NXT Co.
ESAB Corp.

Why is Gates Industrial Corp. Plc ?

1
Poor long term growth as Operating profit has grown by an annual rate 15.96% of over the last 5 years
2
Flat results in Jun 25
  • INVENTORY TURNOVER RATIO(HY) Lowest at 2.82 times
3
With ROCE of 10.55%, it has a very expensive valuation with a 1.52 Enterprise value to Capital Employed
  • The stock is trading at a discount compared to its peers' average historical valuations
  • Over the past year, while the stock has generated a return of 0.54%, its profits have fallen by -12.1%
4
Underperformed the market in the last 1 year
  • The stock has generated a return of 0.54% in the last 1 year, much lower than market (S&P 500) returns of 14.11%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you buy?

  1. Overall Portfolio exposure to Gates Industrial Corp. Plc should be less than 10%
  2. Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Gates Industrial Corp. Plc for you?

High Risk, High Return

Absolute
Risk Adjusted
Volatility
Gates Industrial Corp. Plc
2.27%
0.83
41.13%
S&P 500
15.76%
0.70
20.15%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
4.27%
EBIT Growth (5y)
14.30%
EBIT to Interest (avg)
2.85
Debt to EBITDA (avg)
3.00
Net Debt to Equity (avg)
0.55
Sales to Capital Employed (avg)
0.63
Tax Ratio
28.79%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
8.87%
ROE (avg)
8.13%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
1.68
EV to EBIT
13.41
EV to EBITDA
9.54
EV to Capital Employed
1.48
EV to Sales
2.05
PEG Ratio
0.67
Dividend Yield
NA
ROCE (Latest)
11.01%
ROE (Latest)
8.98%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
Bearish
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

23What is working for the Company
OPERATING CASH FLOW(Y)

Highest at USD 476.6 MM

ROCE(HY)

Highest at 10.72%

INTEREST COVERAGE RATIO(Q)

Highest at 573.74

RAW MATERIAL COST(Y)

Fallen by -2.28% (YoY

CASH AND EQV(HY)

Highest at USD 1,608.8 MM

DEBT-EQUITY RATIO (HY)

Lowest at 43.71 %

NET SALES(Q)

Highest at USD 941.6 MM

OPERATING PROFIT(Q)

Highest at USD 205.4 MM

PRE-TAX PROFIT(Q)

Highest at USD 111.1 MM

NET PROFIT(Q)

Highest at USD 182 MM

EPS(Q)

Highest at USD 0.67

-1What is not working for the Company
DEBTORS TURNOVER RATIO(HY)

Lowest at 3.88 times

Here's what is working for Gates Industrial Corp. Plc

Operating Cash Flow
Highest at USD 476.6 MM and Grown
In each year in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Interest Coverage Ratio
Highest at 573.74
in the last five periods
MOJO Watch
The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit
At USD 182 MM has Grown at 174.24%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Sales
Highest at USD 941.6 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (USD MM)

Operating Profit
Highest at USD 205.4 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit
Highest at USD 111.1 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit
Highest at USD 182 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is positive

Net Profit (USD MM)

EPS
Highest at USD 0.67
in the last five periods
MOJO Watch
Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv
Highest at USD 1,608.8 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio
Lowest at 43.71 %
in the last five Semi-Annual periods
MOJO Watch
The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost
Fallen by -2.28% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation
Highest at USD 57.1 MM
in the last five periods
MOJO Watch
The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Gates Industrial Corp. Plc

Debtors Turnover Ratio
Lowest at 3.88 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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