$Gates Industrial (GTES.US)$Over the past 5 years, there has...
$Gates Industrial (GTES.US)$Over the past 5 years, there has been minimal fluctuation in revenue, while the operating profit curve is similar to the revenue curve, declining in 2019 and 2020, rebounding in 2021. The net income was affected by tax refunds, reaching 0.7 billion in 2019, with an average growth rate of 31% over 5 years and a rapid decline in the average growth rate to 7% over the past 3 years.
The revenue for the first three quarters of 2022 remained almost unchanged, with a 29% decline in operating profit and a 42% decline in net income.
The gross margin has declined from 40% to 38.5% over the past five years, and plummeted to 36% in the first three quarters of 2022, which is consistent with the performance of the entire sector.
The asset-liability ratio has decreased from 79% to 54% over the past five years.
The balance sheet shows that accounts receivable and inventory growth are relatively normal. The goodwill and other intangible assets are 3.705 billion, accounting for half of the total assets, exceeding the net assets of 0.2 billion, indicating that the assets are relatively inflated.
Over the past five years, long-term loans have decreased from 2.95 billion to 2.53 billion, and further decreased to 2.47 billion in the first three quarters of 2022, indicating that the management team's efforts to reduce debt have been ongoing.
Over the past 5 years, operating net cash flows have remained higher than investment net cash flows, resulting in a surplus for the shareholders.
The current P/E ratio is 13, and the trailing P/E ratio is 19.6, which is not very attractive in the short term.
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