Breaking Down Gates Industrial Corp: 6 Analysts Share Their Views

Throughout the last three months, 6 analysts have evaluated Gates Industrial Corp GTES, offering a diverse set of opinions 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.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $19.33, a high estimate of $22.00, and a low estimate of $16.00. This current average has increased by 0.83% from the previous average price target of $19.17.

Understanding Analyst Ratings: A Comprehensive Breakdown

In examining recent analyst actions, we gain insights into how financial experts perceive Gates Industrial Corp. The following summary outlines 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: Offering insights into predictions, analysts assign qualitative values, 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.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Gates Industrial Corp's market position. Stay informed and make data-driven decisions with the assistance of 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.

Breaking Down Gates Industrial Corp's Financial Performance

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Challenges: Gates Industrial Corp's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -5.43%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in 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 7.98%, 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 2.22%, 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 1.0%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Gates Industrial Corp's debt-to-equity ratio stands notably higher than the industry average, reaching 0.77. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Core of Analyst Ratings: What Every Investor Should Know

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 also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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