Are Gates Industrial investors ready to opt out?
 | By Raphi Shpitalnik | Macroaxis Story |
Gates Industrial is currently generating 0.3092% in daily expected returns and assumes 2.096% risk (volatility on return distribution) over the 60 days horizon. Although many risk-takers are getting more into industrials space, some of us are not very happy with Gates Industrial's current volatility. We will go over odds for Gates Industrial to generate above-average margins before the next press release.
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Reviewed by Ellen Johnson
Gates Industrial currently holds roughly 672.3 M in cash with 331.2 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.31. Volatility is a rate at which the price of Gates Industrial or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Gates Industrial may increase or decrease. In other words, similar to Gates's beta indicator, it measures the risk of Gates Industrial and helps estimate the fluctuations that may happen in a short period of time. So if prices of Gates Industrial fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Gates Industrial's Liquidity
Gates Industrial financial leverage refers to using borrowed capital as a funding source to finance Gates Industrial ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Gates Industrial financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Gates Industrial's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Gates Industrial's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Gates Industrial's total debt and its cash.
Gates Industrial Gross Profit
Gates Industrial Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Gates Industrial previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Gates Industrial Gross Profit growth over the last 10 years. Please check Gates Industrial's gross profit and other fundamental indicators for more details.
Gates Industrial Volatility Drivers
Gates Industrial unsystematic risk is unique to Gates Industrial and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Gates Industrial you can also buy Smith AO. You can also mitigate this risk by investing in the industrials sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Gates Industrial important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Gates Industrial income statement and balance sheet. Here are more details about Gates volatility.Click cells to compare fundamentals
What is driving Gates Industrial Investor Appetite?
This firm reported the previous year's revenue of 2.72 B. Net Income was 74.8 M with profit before overhead, payroll, taxes, and interest of 1.15 B.
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