Gates Industrial Corporation plc Ordinary Shares (GTES) Company Bio
Gates Industrial Corporation plc manufactures and sells engineered power transmission and fluid power solutions worldwide. Its power transmission products include synchronous belts, V-belts, CVT belts, or micro-V belts, as well as related components, including sprockets, pulleys, water pumps, tensioners, or other accessories. The company’s power transmission product applications comprise stationary drives, mobile drives, engine systems, personal mobility products, and vertical lifts. Its fluid power products consist of hydraulic hoses and assemblies, hydraulic couplings, hydraulic tubing products, industrial hoses and assemblies, and engine hoses. The company’s fluid power products are used in stationary hydraulics, mobile hydraulics, engine systems, and other industrial applications. It serves various end markets, such as construction, agriculture, energy, automotive, transportation, general industrial, consumer products, and others. The company sells its engineered products under the Gates brand. It offers its products to replacement channel customers, as well as to original equipment manufacturers as specified components. The company was founded in 1911 and is based in Denver, Colorado
GTES Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Gates Industrial Corp plc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Gates Industrial Corp plc ranked in the 24th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for GTES, they are:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 58. Its equity weight surpasses that of only 24.19% of free cash flow generating stocks in the Industrials sector.
The company's compound free cash flow growth rate over the past 2.81 years comes in at -0.06%; that's greater than only 17.72% of US stocks we're applying DCF forecasting to.
Gates Industrial Corp plc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BDC, CNI, MWA, NNBR, and TAYD can be thought of as valuation peers to GTES, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.