Gates Industrial Corporation plc cash flow to debt ratio of 19.05% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Gates Industrial Corporation plc's free cash flow has increased 36.56% from $296.50M last year to $404.90M, signaling increasing performance

Gates Industrial Corporation plc's debt to equity ratio is 0.67, which means that the company's assets are unhealthy financed, signaling financial risk.

Gates Industrial Corporation plc's debt has decreased relative to shareholder equity from 0.82 last year to 0.67 today, signaling strengthened financials

Gates Industrial Corporation plc has a net debt to EBITDA ratio of 2.42x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Gates Industrial Corporation plc's interest coverage ratio of 3.41 indicates that earnings with margin can cover interest payments on company debt

Gates Industrial Corporation plc's profit margin has increased (81.58%) in the last year from 5.72% to 10.38%, signaling increasing performance

Gates Industrial Corporation plc's short-term assets of $2.48B exceed its short-term liabilities of $735.40M

Gates Industrial Corporation plc's return on assets of 4.92% is lower than the 5.00% threshold, indicating inefficient asset utilization

Gates Industrial Corporation plc's return on equity of 10.71%, is lower than 15.00%, indicating bad performance

Gates Industrial Corporation plc's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Gates Industrial Corporation plc had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Gates Industrial Corporation plc has positive free cash flow, indicating the company generates cash after capital expenditures

Gates Industrial Corporation plc has a free cash flow yield of 5.61%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Gates Industrial Corporation plc's yearly earnings has increased 28.99% since last year from $194.90M to $251.40M, signaling increasing performance

Gates Industrial Corporation plc's yearly revenue has increased 1.03% since last year from $3.41B to $3.44B, signaling increasing performance

ROIC 7.81% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Gates Industrial Corporation plc's 3-year revenue CAGR of -1.05% is negative, indicating declining revenue over the past 3 years

Gates Industrial Corporation plc had revenue growth in 4 out of 5 years, indicating consistent revenue performance

Gates Industrial Corporation plc had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Gates Industrial Corporation plc is overvalued relative to its fair value price of 21.26 based on Discounted Cash Flow model

Gates Industrial Corporation plc has an earnings yield of 5.05%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Gates Industrial Corporation plc is overvalued relative to its fair value price of 13.54 based on EBITDA multiple model

Gates Industrial Corporation plc has an EV/EBITDA ratio of 12.68x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Gates Industrial Corporation plc is undervalued relative to its fair value price of 33.27 based on Earnings Fair Value model

Gates Industrial Corporation plc has a PEG-ratio under 1 which is considered undervalued

Gates Industrial Corporation plc has a price-to-book ratio of 1.85x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Gates Industrial Corporation plc has a price-to-sales ratio of 2.05x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue