Gates Industrial Corporation plc (NYSE:GTES) has a beta of 1.84, a 12-month trailing P/E ratio of 48.02, and a growth ratio of 1.70. The stock’s Relative Strength Index (RSI) is 56.66, with weekly volatility at 2.18% and ATR at 0.43. The GTES stock’s 52-week price range has touched low of $9.60 and a $18.94 high. Its shares traded lower over the last trading session, losing -0.06% on 06/10/21. The shares fell to a low of $17.97 before closing at $18.15. Intraday shares traded counted 0.53 million, which was 16.6% higher than its 30-day average trading volume of 637.14K. GTES’s previous close was $18.16 while the outstanding shares total 291.17M.
Investors have identified the Specialty Industrial Machinery company Gates Industrial Corporation plc as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $5.17 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Gates Industrial Corporation plc (GTES) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For GTES, the company has in raw cash 447.4 million on their books with 30.3 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 2.0 billion total, with 756.6 million as their total liabilities.
GTES were able to record -42.1 million as free cash flow during the 08/10/2021 quarter of the year, this saw their quarterly net cash flow reduce by -74.1 million. In cash movements, the company had a total of -24.0 million as operating cash flow.
Potential earnings growth for Gates Industrial Corporation plc (GTES)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/10/2021 quarter of the year, Gates Industrial Corporation plc recorded a total of 881.3 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 19.43% coming in sequential stages and their sales for the 08/10/2021 quarter increasing by 9.88%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 535.8 million trying to sell their products during the last quarter, with the result yielding a gross income of 345.5 million. This allows shareholders to hold on to 291.17M with the recently reported earning now reading 0.23 cents per share. This is a figure that compared to analyst’s prediction for their 08/10/2021 (0.33 cents a share).
Having a look at the company’s valuation, the company is expected to record 1.44 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on GTES sounds very interesting.
Is the stock of GTES attractive?
In related news, 10% Owner, Omaha Aggregator (Cayman) L.P. sold 25,300,000 shares of the company’s stock in a transaction that recorded on Mar 02. The sale was performed at an average price of 14.40, for a total value of 364,320,000. As the sale deal closes, the 10% Owner, Blackstone Group Inc now sold 25,300,000 shares of the company’s stock, valued at 364,320,000. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.20%.
8 out of 11 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Gates Industrial Corporation plc. 0 analysts has assigned a Sell rating on the GTES stock. The 12-month mean consensus price target for the company’s shares has been set at $22.39.