📊 AI Stock Rating — Summary

Gates Industrial Corp reported quarterly revenues of $855.7 million with a net income of $81.6 million, resulting in an EPS of $0.32. The net margin is approximately 9.5%, while free cash flow came in at $80.5 million. Year-over-year, the financial metrics exhibit a healthy growth trajectory. Gates Industrial demonstrated solid performance, generating significant operating cash flow of $98 million. The balance sheet remains robust, with total assets at $7.15 billion and total equity of $3.72 billion. Notably, the company holds net cash of $532.6 million, underscoring financial resilience. Despite not paying dividends or conducting share buybacks, the company's stock price performance and positive forecast by analysts, with target prices suggesting up to $35, indicate investor optimism. The stock's valuation metrics suggest potential upside relative to analyst expectations.

AI Score Breakdown

Revenue Growth — Score: 7/10

Revenue growth appears strong and stable, with main drivers likely being increased market demand and internal operational efficiencies.

Profitability — Score: 8/10

With a net margin of 9.5% and EPS of $0.32, profitability remains strong. Efficiency improvements and cost management are evident.

Cash Flow Quality — Score: 8/10

Free cash flow is healthy at $80.5 million, indicating good cash generation. Liquidity is solid, but no dividends or buybacks were noted.

Leverage & Balance Sheet — Score: 9/10

The company boasts a strong balance sheet with net cash of $532.6 million, offering excellent financial flexibility and low leverage.

Shareholder Returns — Score: 7/10

No dividends or buybacks, but share prices have shown favorable trends. Strong market performance over the last year is indicative of potential future returns.

Analyst Sentiment & Valuation — Score: 8/10

Analyst targets up to $35 imply further upside potential. Valuation metrics suggest stock may be fairly to modestly undervalued.

⚠ AI-generated — informational only, not financial advice.