* Note: Prices are in Million (M) USD.
Description:
Gates Industrial Corporation plc manufactures and sells engineered power transmission and fluid power solutions worldwide. The company is headquartered in Denver, Colorado.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $720 M
Debt : $2,473 M
EBITDA : $619 M
Net Debt (Debt - Cash): $1,754 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: Industrials
Industry: Diversified industrials
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 22.15
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 13 overlapping fiscal years (max 20).Average Free Cash Flow: $209 M
Average Revenue: $3,152 M
Revenue Converted To Free Cash Flow (%): 6.6%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $3,408 M
Revenue 4 Years Ago (2020-12-31): $2,793 M
Last 5 Years Average Revenue Growth: 4%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $263 M
Share Count 5 Years Ago (2020-12-31): $292 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.55
Trailing 12-Month Earnings Per Share (EPS): $0.80
Average Earnings Per Share (EPS): $1.18
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 12 valid ROE years (max 20).Average ROE: 6.3%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $26
52-Week Low: $15
Threshold Price (15% Above 52-Week Low): $17
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $6,499 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 13 points to above Gates Industrial Corporation plc (GTES) stock.
Last 7 Years Avg PE 12.81, Fair Value PE 12, Industry Based PE 15, Growth Based PE 4, RCFC Based PE 15.3, ROE Based PE 15.03, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 13.03. Value-Trades has assined P/E value 13.03. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.18.
The fair value of Gates Industrial Corporation plc (GTES) stock should be (13.03 x $1.18) = $15.38.
