Gates Industrial Corp PLC Receives ‘Hold’ Rating from Analysts
December 19, 2023
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Gates Industrial ($NYSE:GTES) Corp PLC has recently been given a “Hold” rating by analysts. Gates Industrial Corp PLC is a global provider of industry-leading power transmission solutions for industrial, automotive, and off-highway applications. The company produces and distributes a range of products including timing components, v-belts, hydraulic hose, and industrial drive components. Analysts have given Gates Industrial Corp PLC an average rating of “Hold”, citing a lack of near-term catalysts to drive the stock higher.
They have also noted that the company faces competitive pressures and may need to increase its marketing expenditure in order to maintain its current market share. Despite these concerns, analysts believe that Gates Industrial Corp PLC’s long-term prospects remain bright and that the company has the potential to outperform its peers in the coming years.
Share Price
This rating comes as GATES stock opened at $12.5 and closed at $12.4, down by 0.5% from the prior closing price of $12.5. This hold rating highlights the mixed outlook of analysts on the company’s performance in the near future. Nonetheless, GATES remains confident that their long-term strategy for growth will eventually be successful. 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 |
| 3.6k | 254.9 | 6.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Gates Industrial. More…
| Operations | Investing | Financing |
| 538.7 | -77.2 | -317.8 |
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 |
| 7.11k | 3.7k | 11.7 |
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 |
| 9.7% | 24.8% | 12.7% |
| FCF Margin | ROE | ROA |
| 13.1% | 9.3% | 4.0% |
Analysis
As GoodWhale, we conducted an analysis of GATES INDUSTRIAL‘s wellbeing. According to Star Chart, GATES INDUSTRIAL is strong in asset, medium in growth, profitability and weak in dividend. Based on this information, we classified GATES INDUSTRIAL as a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Therefore, investors that are looking for long-term investments with high returns may find GATES INDUSTRIAL to be an attractive option. On the other hand, GATES INDUSTRIAL has a high health score of 8/10 with regard to its cash flows and debt, indicating that it is capable of sustaining future operations even in times of crisis. This could make GATES INDUSTRIAL an attractive option for investors who are looking for a safe and secure investment option. 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 Corporation PLC (Gates) has recently been given an average rating of “Hold” by equities research analysts. This rating is based on the analysis of several factors including the company’s financial health, future outlook, and other investors’ opinions. Investors are also taking into account the company’s solid cash flow and operating margin. Gates is likely to remain a profitable investment for the long-term given its healthy financial indicators and bullish investor sentiment.
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