Professional
Added to YB: 2024-05-22
Pitch date: 2024-03-31
GTES [bullish]
Gates Industrial Corporation plc
+56.54%
current return
Author Info
No bio for this author
Company Info
Gates Industrial Corporation plc manufactures and sells engineered power transmission and fluid power solutions in the United States, rest of North America, South America, the United Kingdom, Luxembourg, rest of Europe, the Middle East, Africa, India, East Asia, and Greater China.
Market Cap
$7.1B
Pitch Price
$17.74
Price Target
N/A
Dividend
N/A
EV/EBITDA
11.44
P/E
29.14
EV/Sales
2.62
Sector
Machinery
Category
growth
FMI Funds Portfolio Holding: Gates Industrial Corporation plc
GTES: Leader in power transmission & fluid power solutions. Stock overhang from Blackstone's 27% stake, destocking & tough end markets pressure results but provide entry point. Markets largely replacement driven, reducing cyclicality. Targeting chain-to-belt conversions, personal mobility & auto aftermarket to drive 2x industrial production growth. Margin expansion via cost cuts & productivity. Trades 12x '24 P/E with re-rating potential given EPS growth & strong returns vs high-quality industrial peers.
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