GTES Stock Analysis: Gates Industrial | NYSE
Specialty Industrial Machinery | NYSE, USA | Market Cap: 6.637m USD | 12M Return: 7.5% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 55.4M
EPS Trend: 88.1%
Qual. Beats: 1
Rev. Trend: -82.6%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 8.4 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Gates Industrial Corporation plc (NYSE: GTES) is a global manufacturer of engineered power transmission and fluid power solutions, operating across the United States, Europe, the Middle East, Africa, India, East Asia, Greater China, and South America. The company runs two reporting segments-Power Transmission and Fluid Power-offering products such as elastomer drive belts (V-belts, CVT belts, Micro-V belts), metal drive components (tensioners, idlers, pulleys, sprockets, water pumps), hydraulic hoses, couplings, fittings, and thermal/emissions management products. Within the Industrials sector (GICS Sub-Industry: Industrial Machinery & Supplies & Components), Gates sits in the highly fragmented industrial components subsector, where suppliers typically sell through two distinct channels-OEMs and the aftermarket-that often have different demand cycles and margin profiles.
The companys products serve a broad set of end markets, including diversified industrial applications (automated manufacturing, logistics, data centers), consumer applications (printers, power washers, automatic doors, vacuum cleaners), off-highway markets (construction, agriculture), on-highway commercial vehicles (heavy-duty trucks, buses), energy and resources (oil, gas, mining), and personal mobility (scooters, motorcycles, bicycles, ATVs, snowmobiles). Sales are made under the Gates brand to both original equipment manufacturers and aftermarket channel customers. The aftermarket exposure is a defining feature of the business model, as replacement-driven demand tends to be more recurring and less cyclical than new-equipment sales.
Gates was founded in 1911 and is headquartered in Denver, Colorado, with the company having listed on the NYSE following its January 2018 IPO. Its century-long operating history reflects the long product lifecycles common in industrial components, where installed bases of belts, hoses, and related parts generate steady replacement demand across diverse geographies and industries.
- Power Transmission margins expand on automotive aftermarket strength
- Construction and agriculture end-markets weigh on Fluid Power segment sales
- Data center cooling demand lifts industrial hose revenue growth
| Net Income: 249.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 1.66 > 1.0 |
| NWC/Revenue: 52.54% < 20% (prev 48.85%; Δ 3.69% < -1%) |
| CFO/TA 0.07 > 3% & CFO 501.0m > Net Income 249.1m |
| Net Debt (1.71b) to EBITDA (677.6m): 2.53 < 3 |
| Current Ratio: 3.67 > 1.5 & < 3 |
| Outstanding Shares: last quarter (256.9m) vs 12m ago -1.80% < -2% |
| Gross Margin: 40.20% > 18% (prev 40.47%; Δ -0.27% > 0.5%) |
| Asset Turnover: 49.24% > 50% (prev 49.28%; Δ -0.04% > 0%) |
| Interest Coverage Ratio: 3.07 > 6 (EBIT TTM 460.3m / Interest Expense TTM 149.9m) |
| A: 0.25 (Total Current Assets 2.49b - Total Current Liabilities 678.5m) / Total Assets 7.12b |
| B: 0.24 (Retained Earnings 1.67b / Total Assets 7.12b) |
| C: 0.07 (EBIT TTM 460.3m / Avg Total Assets 7.00b) |
| D: 0.99 (Book Value of Equity 3.37b / Total Liabilities 3.39b) |
| Altman-Z'' = 3.92 = AA |
| DSRI: 1.00 (Receivables 837.5m/821.3m, Revenue 3.45b/3.39b) |
| GMI: 1.01 (GM 40.47% / 40.20%) |
| AQI: 0.99 (AQ_t 0.54 / AQ_t-1 0.55) |
| SGI: 1.02 (Revenue 3.45b / 3.39b) |
| TATA: -0.04 (NI 249.1m - CFO 501.0m) / TA 7.12b) |
| Beneish M = -3.02 (Cap -4..+1) = AA |
As of July 09, 2026, the stock is trading at USD 25.72 with a total of 1,473,360 shares traded. Over the past week, the price has changed by -8.04%, over one month by -1.49%, over three months by +4.94% and over the past year by +7.48%.
Current recommended Stop Loss: 23.90 (which is 7.1% or 1.8 ATR below the current price).
Gates Industrial has received a consensus analysts rating of 4.27. Therefore, it is recommended to buy GTES.
- StrongBuy: 6
- Buy: 2
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 31.4 | 21.9% |
P/E Trailing = 27.5053
P/E Forward = 16.1812
P/S = 1.9256
P/B = 2.0135
Revenue TTM = 3.45b USD
EBIT TTM = 460.3m USD
EBITDA TTM = 677.6m USD
Long Term Debt = 2.20b USD (from longTermDebt, last quarter)
Short Term Debt = 30.9m USD (from shortTermDebt, last quarter)
Debt = 2.50b USD (from shortLongTermDebtTotal, last quarter) + Leases 135.5m
Net Debt = 1.71b USD (calculated: Debt 2.50b - CCE 785.3m)
Enterprise Value = 8.35b USD (6.64b + Debt 2.50b - CCE 785.3m)
Interest Coverage Ratio = 3.07 (Ebit TTM 460.3m / Interest Expense TTM 149.9m)
EV/FCF = 19.82x (Enterprise Value 8.35b / FCF TTM 421.3m)
FCF Yield = 5.04% (FCF TTM 421.3m / Enterprise Value 8.35b)
FCF Margin = 12.22% (FCF TTM 421.3m / Revenue TTM 3.45b)
Net Margin = 7.23% (Net Income TTM 249.1m / Revenue TTM 3.45b)
Gross Margin = 40.20% ((Revenue TTM 3.45b - Cost of Revenue TTM 2.06b) / Revenue TTM)
Gross Margin QoQ = 40.01% (prev 40.10%)
Tobins Q-Ratio = 1.17 (Enterprise Value 8.35b / Total Assets 7.12b)
Interest Expense / Debt = 6.00% (Interest Expense 149.9m / Debt 2.50b)
Taxrate = 15.23% (49.4m / 324.3m)
NOPAT = 390.2m (EBIT 460.3m * (1 - 15.23%))
Current Ratio = 3.67 (Total Current Assets 2.49b / Total Current Liabilities 678.5m)
Debt / Equity = 0.74 (Debt 2.50b / totalStockholderEquity, last quarter 3.37b)
Debt / EBITDA = 2.53 (Net Debt 1.71b / EBITDA 677.6m)
Debt / FCF = 4.07 (Net Debt 1.71b / FCF TTM 421.3m)
Total Stockholder Equity = 3.33b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.56% (Net Income 249.1m / Total Assets 7.12b)
RoE = 7.47% (Net Income TTM 249.1m / Total Stockholder Equity 3.33b)
RoCE = 8.32% (EBIT 460.3m / Capital Employed (Equity 3.33b + L.T.Debt 2.20b))
RoIC = 6.20% (NOPAT 390.2m / Invested Capital 6.30b)
WACC = 9.50% (E(6.64b)/V(9.14b) * Re(11.16%) + D(2.50b)/V(9.14b) * Rd(6.00%) * (1-Tc(0.15)))
Discount Rate = 11.16% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -91.11 | Cagr: -1.79%
[DCF] Terminal Value 74.35% ; FCFF base≈370.0m ; Y1≈424.2m ; Y5≈624.3m
[DCF] Fair Price = 24.01 (EV 7.81b - Net Debt 1.71b = Equity 6.10b / Shares 254.0m; r=9.50% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 88.11 | EPS CAGR: 8.27% | SUE: 1.42 | # QB: 1
Revenue Correlation: -82.59 | Revenue CAGR: -2.01% | SUE: -0.79 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.42 | Chg30d=+0.00% | Revisions=+25% | Analysts=11
EPS next Quarter (2026-09-30): EPS=0.43 | Chg30d=-0.02% | Revisions=-25% | Analysts=11
EPS current Year (2026-12-31): EPS=1.63 | Chg30d=+0.13% | Revisions=+0% | GrowthEPS=+7.4% | GrowthRev=+3.8%
EPS next Year (2027-12-31): EPS=1.87 | Chg30d=+0.22% | Revisions=-25% | GrowthEPS=+14.5% | GrowthRev=+4.5%
[Analyst] Revisions Ratio: -12% (up=2, down=3)