Our advice tool can cross-verify current
analyst consensus on Gates Industrial and to analyze the company potential to grow in the current economic cycle.
This firm dividends can provide a clue to the current value of the stock. Gates Industrial is not expected to issue dividends this year as it is trying to preserve or re-invest any of the funds available for distribution to stakeholders.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Gates Industrial income statement, its balance sheet, and the statement of cash flows. Potential Gates Industrial investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Gates Industrial investors may use each financial statement separately, they are all related. The changes in Gates Industrial's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Gates Industrial's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Gates Industrial
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Gates Industrial performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Gates Industrial shares is the value that is considered the true value of the share. If
the intrinsic value of Gates is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Gates Industrial. Please read more on our
fundamental analysis page.
How effective is Gates Industrial in utilizing its assets?
Gates Industrial reports assets on its Balance Sheet. It represents the amount of Gates resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Gates Industrial aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Industrial Machinery & Supplies & Components space. To get a better handle on how balance sheet or income statements item affect Gates volatility, please check the breakdown of all its
fundamentals.
Are Gates Industrial Earnings Expected to grow?
The
future earnings power of Gates Industrial involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Gates Industrial factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Gates Industrial
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Gates
expected earnings.
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.
What is driving Gates Industrial Investor Appetite?
Institutional investor usually refers to an organization that invests money in Gates Industrial on behalf of clients or other money managers. Buying and selling of large positions of Gates Industrial stock by institutional investors can create supply and demand imbalances that result in sudden price moves of Gates Industrial stock. Let's take a look at how the ownership of Gates is distributed among investors.
Ownership Allocation
Gates Industrial secures a total of 291.6 Million outstanding shares. The majority of Gates Industrial Corp
outstanding shares are owned by
outside corporations. These institutional investors are usually referred to as non-private investors looking to purchase positions in Gates Industrial to benefit from reduced commissions. Consequently, third-party entities are subject to a different set of regulations than regular investors in Gates Industrial Corp. Please pay attention to any change in the institutional holdings of Gates Industrial Corp as this could imply that something significant has changed or about to change at the company. Also note that almost twenty-three million three hundred twenty-eight thousand invesors are currently shorting Gates Industrial expressing very little confidence in its
future performance.
| Retail Investors | -7.88 |
| Insiders | 0.23 |
| Institutions | 107.65 |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Gates Industrial has an asset utilization ratio of 37.89 percent. This connotes that the company is making $0.38 for each dollar of assets. An increasing asset utilization means that Gates Industrial Corp is more efficient with each dollar of assets it utilizes for everyday operations.
| Assets Non Current5.4 B | Goodwill4.2 B | |
| Current Assets | 1.86 Billion | 15.66 |
| Assets Non Current | 5.41 Billion | 45.59 |
| Goodwill | 4.19 Billion | 35.33 |
| Tax Assets | 404.58 Million | 3.41 |
Is Gates Industrial fall permanent?
Latest skewness indicator falls down to -0.75. Possible price gain? Gates Industrial Corp exhibits very low volatility with skewness of -0.75 and kurtosis of 1.53. However, we advise investors to further study Gates Industrial Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Gates Industrial's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Gates Industrial's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Gates Industrial Implied Volatility
Gates Industrial's implied volatility exposes the market's sentiment of Gates Industrial Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Gates Industrial's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Gates Industrial stock will not fluctuate a lot when Gates Industrial's options are near their expiration.
While many of the other players in the specialty industrial machinery industry are either recovering or due for a correction, Gates Industrial may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Gates as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Gates Industrial.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Gates Industrial. Please refer to our
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