Decoding 4 Analyst Evaluations For Gates Industrial Corp

During the last three months, 4 analysts shared their evaluations of Gates Industrial Corp GTES, revealing diverse outlooks from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $18.25, a high estimate of $21.00, and a low estimate of $14.00. This upward trend is apparent, with the current average reflecting a 46.0% increase from the previous average price target of $12.50.

Decoding Analyst Ratings: A Detailed Look

A comprehensive examination of how financial experts perceive Gates Industrial Corp is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Gates Industrial Corp. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Gates Industrial Corp compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Gates Industrial Corp's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Gates Industrial Corp's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Gates Industrial Corp analyst ratings.

Delving into Gates Industrial Corp's Background

Gates Industrial Corp PLC is a manufacturer of engineered power transmission and fluid power solutions. The company has two operating segments; Power Transmission and Fluid Power segments. The Power Transmission solutions convey power and control motion. It is used in applications in which belts, chains, cables, geared transmissions, or direct drives transfer power from an engine or motor to another part or system. The Fluid power solutions are used in applications in which hoses and rigid tubing assemblies either transfer power hydraulically or convey fluids, gases, or granular materials from one location to another. The company generates key revenue from the Power Transmission segment.

Unraveling the Financial Story of Gates Industrial Corp

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Gates Industrial Corp's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2023, the company experienced a revenue decline of approximately -3.36%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 7.29%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.99%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Gates Industrial Corp's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.88%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a high debt-to-equity ratio of 0.8, Gates Industrial Corp faces challenges in effectively managing its debt levels, indicating potential financial strain.

Understanding the Relevance of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.