Gates Industrial Corp. Plc (GTES) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

John Bean Technologies Corp.

Watts Water Technologies, Inc.

The Timken Co.

Zurn Elkay Water Solutions Corp.

Flowserve Corp.

AAON, Inc.

Badger Meter, Inc.

Gates Industrial Corp. Plc

ESAB Corp.

Franklin Electric Co., Inc.

Crane NXT Co.

Why is Gates Industrial Corp. Plc ?

Poor long term growth as Operating profit has grown by an annual rate 15.96% of over the last 5 years

Flat results in Jun 25

INVENTORY TURNOVER RATIO(HY) Lowest at 2.82 times

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%

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%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Gates Industrial Corp. Plc should be less than 10%
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

22.53%

0.83

41.13%

S&P 500

22.24%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

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

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

8.87%

ROE (avg)

8.13%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

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

ROCE (Latest)

11.01%

ROE (Latest)

8.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

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

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 501 MM

RAW MATERIAL COST(Y)

Fallen by 1.69% (YoY

CASH AND EQV(HY)

Highest at USD 1,600.3 MM

DEBT-EQUITY RATIO (HY)

Lowest at 46.89 %

DEBTORS TURNOVER RATIO(HY)

Highest at 4.16 times

-4What is not working for the Company

OPERATING PROFIT(Q)

Lowest at USD 170.6 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 20.05 %

PRE-TAX PROFIT(Q)

Lowest at USD 77.5 MM

NET PROFIT(Q)

Lowest at USD 59.56 MM

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

Operating Cash Flow

Highest at USD 501 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)

Cash and Eqv

Highest at USD 1,600.3 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 46.89 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 4.16 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 1.69% (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 55.7 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

Operating Profit

Lowest at USD 170.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 20.05 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 77.5 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 59.56 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)