Assessing Gates Industrial Corp: Insights From 4 Financial Analysts

Across the recent three months, 4 analysts have shared their insights on Gates Industrial Corp GTES, expressing a variety of opinions spanning from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $19.5, with a high estimate of $22.00 and a low estimate of $16.00. Highlighting a 2.5% decrease, the current average has fallen from the previous average price target of $20.00.

Understanding Analyst Ratings: A Comprehensive Breakdown

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: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Gates Industrial Corp. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Gates Industrial Corp compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Gates Industrial Corp's stock. This analysis reveals shifts in analysts' expectations over time.

To gain a panoramic view of Gates Industrial Corp's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Gates Industrial Corp analyst ratings.

Unveiling the Story Behind Gates Industrial Corp

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.

Financial Insights: 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 Challenges: Gates Industrial Corp's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -3.91%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Gates Industrial Corp's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 4.64%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Gates Industrial Corp's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.25%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Gates Industrial Corp's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.56%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Gates Industrial Corp's debt-to-equity ratio surpasses industry norms, standing at 0.77. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

How Are Analyst Ratings Determined?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

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.