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What Is Gates Industrial Corporation plc's (NYSE:GTES) Share Price Doing?

Simply Wall St · 2d ago

While Gates Industrial Corporation plc (NYSE:GTES) might not have the largest market cap around , it saw significant share price movement during recent months on the NYSE, rising to highs of US$26.13 and falling to the lows of US$21.18. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Gates Industrial's current trading price of US$21.35 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Gates Industrial’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

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Is Gates Industrial Still Cheap?

Great news for investors – Gates Industrial is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is $28.71, but it is currently trading at US$21.35 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Gates Industrial’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Check out our latest analysis for Gates Industrial

What kind of growth will Gates Industrial generate?

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NYSE:GTES Earnings and Revenue Growth December 18th 2025

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 44% over the next couple of years, the future seems bright for Gates Industrial. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? Since GTES is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on GTES for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy GTES. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

So while earnings quality is important, it's equally important to consider the risks facing Gates Industrial at this point in time. When we did our research, we found 2 warning signs for Gates Industrial (1 is concerning!) that we believe deserve your full attention.

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