Logo image of GTES

GATES INDUSTRIAL CORP PLC (GTES) Stock Fundamental Analysis

NYSE:GTES - New York Stock Exchange, Inc. - GB00BD9G2S12 - Common Stock - Currency: USD

24.46  +0.01 (+0.04%)

Fundamental Rating

5

GTES gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 127 industry peers in the Machinery industry. GTES has only an average score on both its financial health and profitability. GTES has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

Quickly go to:

6

1. Profitability

1.1 Basic Checks

GTES had positive earnings in the past year.
In the past year GTES had a positive cash flow from operations.
GTES had positive earnings in each of the past 5 years.
Each year in the past 5 years GTES had a positive operating cash flow.
GTES Yearly Net Income VS EBIT VS OCF VS FCFGTES Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

1.2 Ratios

With a Return On Assets value of 2.81%, GTES perfoms like the industry average, outperforming 44.09% of the companies in the same industry.
The Return On Equity of GTES (6.20%) is comparable to the rest of the industry.
GTES's Return On Invested Capital of 6.14% is in line compared to the rest of the industry. GTES outperforms 45.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GTES is below the industry average of 10.54%.
The 3 year average ROIC (5.94%) for GTES is below the current ROIC(6.14%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.81%
ROE 6.2%
ROIC 6.14%
ROA(3y)3.05%
ROA(5y)2.83%
ROE(3y)6.93%
ROE(5y)6.64%
ROIC(3y)5.94%
ROIC(5y)5.37%
GTES Yearly ROA, ROE, ROICGTES Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

The Profit Margin of GTES (5.98%) is comparable to the rest of the industry.
GTES's Profit Margin has declined in the last couple of years.
The Operating Margin of GTES (14.95%) is better than 69.29% of its industry peers.
GTES's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 40.93%, GTES is doing good in the industry, outperforming 74.80% of the companies in the same industry.
In the last couple of years the Gross Margin of GTES has grown nicely.
Industry RankSector Rank
OM 14.95%
PM (TTM) 5.98%
GM 40.93%
OM growth 3Y1.81%
OM growth 5Y5.56%
PM growth 3Y-12.55%
PM growth 5Y-23.86%
GM growth 3Y1.68%
GM growth 5Y1.85%
GTES Yearly Profit, Operating, Gross MarginsGTES Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

More info and screens

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GTES is destroying value.
The number of shares outstanding for GTES has been reduced compared to 1 year ago.
Compared to 5 years ago, GTES has less shares outstanding
GTES has a worse debt/assets ratio than last year.
GTES Yearly Shares OutstandingGTES Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M
GTES Yearly Total Debt VS Total AssetsGTES Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

An Altman-Z score of 2.26 indicates that GTES is not a great score, but indicates only limited risk for bankruptcy at the moment.
GTES's Altman-Z score of 2.26 is on the low side compared to the rest of the industry. GTES is outperformed by 61.42% of its industry peers.
The Debt to FCF ratio of GTES is 7.81, which is on the high side as it means it would take GTES, 7.81 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.81, GTES is doing worse than 60.63% of the companies in the same industry.
A Debt/Equity ratio of 0.71 indicates that GTES is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.71, GTES is doing worse than 70.87% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.71
Debt/FCF 7.81
Altman-Z 2.26
ROIC/WACC0.63
WACC9.68%
GTES Yearly LT Debt VS Equity VS FCFGTES Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.3 Liquidity

A Current Ratio of 3.46 indicates that GTES has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.46, GTES belongs to the top of the industry, outperforming 81.89% of the companies in the same industry.
GTES has a Quick Ratio of 2.46. This indicates that GTES is financially healthy and has no problem in meeting its short term obligations.
GTES's Quick ratio of 2.46 is amongst the best of the industry. GTES outperforms 80.31% of its industry peers.
Industry RankSector Rank
Current Ratio 3.46
Quick Ratio 2.46
GTES Yearly Current Assets VS Current LiabilitesGTES Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

More info and screens

4

3. Growth

3.1 Past

GTES shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.13%.
GTES shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.44% yearly.
GTES shows a decrease in Revenue. In the last year, the revenue decreased by -2.67%.
GTES shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.00% yearly.
EPS 1Y (TTM)2.13%
EPS 3Y-0.24%
EPS 5Y7.44%
EPS Q2Q%8.33%
Revenue 1Y (TTM)-2.67%
Revenue growth 3Y-0.64%
Revenue growth 5Y2%
Sales Q2Q%-0.2%

3.2 Future

Based on estimates for the next years, GTES will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.70% on average per year.
GTES is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.69% yearly.
EPS Next Y8.11%
EPS Next 2Y11.89%
EPS Next 3Y11.7%
EPS Next 5YN/A
Revenue Next Year-0.03%
Revenue Next 2Y2.19%
Revenue Next 3Y2.69%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
GTES Yearly Revenue VS EstimatesGTES Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
GTES Yearly EPS VS EstimatesGTES Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5

More info and screens

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 16.99 indicates a correct valuation of GTES.
Based on the Price/Earnings ratio, GTES is valued a bit cheaper than 78.74% of the companies in the same industry.
GTES is valuated rather cheaply when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.37, GTES is valued correctly.
74.80% of the companies in the same industry are more expensive than GTES, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of GTES to the average of the S&P500 Index (35.24), we can say GTES is valued rather cheaply.
Industry RankSector Rank
PE 16.99
Fwd PE 14.37
GTES Price Earnings VS Forward Price EarningsGTES Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

72.44% of the companies in the same industry are more expensive than GTES, based on the Enterprise Value to EBITDA ratio.
62.20% of the companies in the same industry are more expensive than GTES, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 21.01
EV/EBITDA 11.01
GTES Per share dataGTES EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GTES has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.09
PEG (5Y)2.28
EPS Next 2Y11.89%
EPS Next 3Y11.7%

More info and screens

0

5. Dividend

5.1 Amount

GTES does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

GATES INDUSTRIAL CORP PLC

NYSE:GTES (8/19/2025, 3:25:58 PM)

24.46

+0.01 (+0.04%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)07-30 2025-07-30/bmo
Earnings (Next)10-28 2025-10-28/bmo
Inst Owners104.97%
Inst Owner Change-0.13%
Ins Owners1.8%
Ins Owner Change31.81%
Market Cap6.31B
Analysts83.75
Price Target29.78 (21.75%)
Short Float %2.19%
Short Ratio3.03
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.81%
Min EPS beat(2)0.88%
Max EPS beat(2)6.74%
EPS beat(4)4
Avg EPS beat(4)5.02%
Min EPS beat(4)0.88%
Max EPS beat(4)6.74%
EPS beat(8)6
Avg EPS beat(8)7.54%
EPS beat(12)8
Avg EPS beat(12)5.45%
EPS beat(16)11
Avg EPS beat(16)8.79%
Revenue beat(2)1
Avg Revenue beat(2)-0.07%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)0.98%
Revenue beat(4)1
Avg Revenue beat(4)-0.99%
Min Revenue beat(4)-2.02%
Max Revenue beat(4)0.98%
Revenue beat(8)1
Avg Revenue beat(8)-1.78%
Revenue beat(12)2
Avg Revenue beat(12)-1.69%
Revenue beat(16)3
Avg Revenue beat(16)-1.63%
PT rev (1m)20.3%
PT rev (3m)25.96%
EPS NQ rev (1m)5.14%
EPS NQ rev (3m)1.06%
EPS NY rev (1m)0%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)3.01%
Revenue NQ rev (3m)2.44%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)0.38%
Valuation
Industry RankSector Rank
PE 16.99
Fwd PE 14.37
P/S 1.86
P/FCF 21.01
P/OCF 15.12
P/B 1.93
P/tB 450.36
EV/EBITDA 11.01
EPS(TTM)1.44
EY5.89%
EPS(NY)1.7
Fwd EY6.96%
FCF(TTM)1.16
FCFY4.76%
OCF(TTM)1.62
OCFY6.62%
SpS13.16
BVpS12.68
TBVpS0.05
PEG (NY)2.09
PEG (5Y)2.28
Profitability
Industry RankSector Rank
ROA 2.81%
ROE 6.2%
ROCE 7.81%
ROIC 6.14%
ROICexc 6.91%
ROICexgc 15.86%
OM 14.95%
PM (TTM) 5.98%
GM 40.93%
FCFM 8.85%
ROA(3y)3.05%
ROA(5y)2.83%
ROE(3y)6.93%
ROE(5y)6.64%
ROIC(3y)5.94%
ROIC(5y)5.37%
ROICexc(3y)6.65%
ROICexc(5y)5.97%
ROICexgc(3y)16.26%
ROICexgc(5y)15.01%
ROCE(3y)7.56%
ROCE(5y)6.83%
ROICexcg growth 3Y2.48%
ROICexcg growth 5Y7.25%
ROICexc growth 3Y5%
ROICexc growth 5Y10.47%
OM growth 3Y1.81%
OM growth 5Y5.56%
PM growth 3Y-12.55%
PM growth 5Y-23.86%
GM growth 3Y1.68%
GM growth 5Y1.85%
F-Score7
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0.71
Debt/FCF 7.81
Debt/EBITDA 3.2
Cap/Depr 54.85%
Cap/Sales 3.45%
Interest Coverage 4.9
Cash Conversion 57.91%
Profit Quality 148.05%
Current Ratio 3.46
Quick Ratio 2.46
Altman-Z 2.26
F-Score7
WACC9.68%
ROIC/WACC0.63
Cap/Depr(3y)40.69%
Cap/Depr(5y)38.4%
Cap/Sales(3y)2.53%
Cap/Sales(5y)2.5%
Profit Quality(3y)132.29%
Profit Quality(5y)160.12%
High Growth Momentum
Growth
EPS 1Y (TTM)2.13%
EPS 3Y-0.24%
EPS 5Y7.44%
EPS Q2Q%8.33%
EPS Next Y8.11%
EPS Next 2Y11.89%
EPS Next 3Y11.7%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.67%
Revenue growth 3Y-0.64%
Revenue growth 5Y2%
Sales Q2Q%-0.2%
Revenue Next Year-0.03%
Revenue Next 2Y2.19%
Revenue Next 3Y2.69%
Revenue Next 5YN/A
EBIT growth 1Y-2.59%
EBIT growth 3Y1.16%
EBIT growth 5Y7.67%
EBIT Next Year32.46%
EBIT Next 3Y15.24%
EBIT Next 5YN/A
FCF growth 1Y-33.72%
FCF growth 3Y-2.61%
FCF growth 5Y0.53%
OCF growth 1Y-21.52%
OCF growth 3Y-0.24%
OCF growth 5Y1.7%