Gates Industrial Intrinsic Value – GATES INDUSTRIAL Reports Q2 Earnings for FY2023
August 16, 2023
🌥️Earnings Overview
GATES INDUSTRIAL ($NYSE:GTES) reported their Q2 earnings for FY2023 on August 4 2023, with total revenue reaching USD 936.3 million, a 3.3% year-over-year increase. Net income was reported to be USD 64.9 million, a 22.2% rise compared to the same period in the previous fiscal year.
Market Price
On Friday, GATES INDUSTRIAL reported its second-quarter earnings for FY2023. The stock opened at $14.0 and closed at $13.1, a decrease of 1.6% from the previous day’s close of $13.4. This reflects a decrease in confidence among investors, who are growing more concerned about the company’s outlook and its ability to stay competitive in the industrial sector. These cost savings helped offset the weakened demand for the company’s products, which resulted in lower sales.
Overall, GATES INDUSTRIAL’s Q2 earnings showed signs of improvement but still left much to be desired. Investors appear to be waiting for more concrete evidence of a long-term turnaround before investing further in the company. GATES INDUSTRIAL must now prove that it can maintain profitability and remain competitive in a rapidly changing industrial landscape if it wants to attract more investor confidence. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Gates Industrial. More…
| Total Revenues | Net Income | Net Margin |
| 3.59k | 228.1 | 6.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Gates Industrial. More…
| Operations | Investing | Financing |
| 531.5 | -89.2 | -286.2 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Gates Industrial. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.28k | 3.89k | 11.64 |
Key Ratios Snapshot
Some of the financial key ratios for Gates Industrial are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.2% | 22.8% | 11.9% |
| FCF Margin | ROE | ROA |
| 12.6% | 8.5% | 3.7% |
Analysis – Gates Industrial Intrinsic Value
At GoodWhale, we recently conducted an analysis of GATES INDUSTRIAL‘s wellbeing. The results of our analysis showed that the intrinsic value of GATES INDUSTRIAL share is around $16.5, calculated by our proprietary Valuation Line. Based on this, we can see that GATES INDUSTRIAL stock is currently traded at $13.1, which is undervalued by 20.4%. We believe this provides a great opportunity for investors looking to gain exposure to the company’s future growth potential. More…
Peers
In the industrial sector, there is intense competition between Gates Industrial Corp PLC and its competitors Trelleborg AB, Graco Inc, and Vishal Bearings Ltd. All four companies are vying for market share in the production of industrial equipment and components. While each company has its own strengths and weaknesses, Gates Industrial Corp PLC has emerged as a leader in the industry due to its innovative products, efficient manufacturing, and strong marketing and sales strategies.
– Trelleborg AB ($OTCPK:TBABF)
Trelleborg AB is a Swedish industrial group that develops, manufactures, and sells products and services for a wide range of industries worldwide. The company operates through four business areas: Trelleborg Coated Systems, Trelleborg Industrial Solutions, Trelleborg Offshore & Construction, and Trelleborg Sealing Solutions. Trelleborg Coated Systems develops, manufactures, and markets polymer-coated fabrics and films. Trelleborg Industrial Solutions develop and market products and solutions within the areas of polymer technology, vibration isolation, and seals. Trelleborg Offshore & Construction develops and markets products and solutions for the oil and gas industry, the fishing industry, and the construction industry. Trelleborg Sealing Solutions develops and markets sealing solutions for a wide range of industries and applications.
– Graco Inc ($NYSE:GGG)
Graco Inc. is a publicly traded company with a market capitalization of $11.77 billion as of 2022. The company has a return on equity of 19.47%. Graco Inc. manufactures and markets equipment and systems for the management of fluids in industrial, commercial, and consumer applications worldwide. The company operates in three segments: Industrial, Contractor, and Homeowner.
– Vishal Bearings Ltd ($BSE:539398)
Vishal Bearings Ltd is an Indian company that manufactures and supplies a range of bearings and related products. The company has a market cap of 756.45M as of 2022 and a return on equity of 27.82%. Vishal Bearings Ltd is a publicly traded company listed on the Bombay Stock Exchange. The company’s products are used in a variety of industries including automotive, construction, and mining.
Summary
GATES INDUSTRIAL reported strong earnings results for their FY2023 Q2 ended June 30 2023, with total revenue increasing by 3.3% to USD 936.3 million and net income increasing by 22.2% to USD 64.9 million. This outperforms analyst expectations and signals continued robust performance in the industrial sector. Investors should take advantage of this opportunity and consider GATES INDUSTRIAL as a potential investment. The company has demonstrated consistent growth and is likely to continue to generate strong returns in the near future.
