A Business at a Glance
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Gates Industrial Corp plc
GTES
$7.0B
Mkt Cap
$26.89
-0.48%
Gates Industrial Corp plc (GTES) has a current P/E ratio of 28.0, compared to its historical median P/E of 16.0. The stock is currently considered Fair based on its historical valuation range.
Gates Industrial Corp plc (GTES) has a 5-year average return on invested capital (ROIC) of 6.8%. This is below average and may indicate limited pricing power.
Gates Industrial Corp plc (GTES) has a market capitalization of $6.8B. It is classified as a mid-cap stock.
Gates Industrial Corp plc (GTES) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 1.80%.
Based on historical P/E analysis, Gates Industrial Corp plc (GTES) appears fair. The current P/E of 28.0 is 75% above its historical median of 16.0. The estimated fair value CAGR (P/E method) is -8.6%.
Gates Industrial Corp plc (GTES) operates in the General Industrial Machinery & Equipment industry, within the Industrials sector.
We are a global manufacturer of innovative, highly engineered power transmission and fluid power solutions. We offer a broad portfolio of products to diverse aftermarket channel customers, and to original equipment manufacturers (“OEM”) as specified components, with the majority of our revenue coming from aftermarket channels. Our products are used in applications across numerous end markets, including automotive aftermarket, automotive OEM, diversified industrial, industrial off-highway, industrial on-highway, energy and resources, and personal mobility. Our net sales have historically been, and remain, highly correlated with industrial activity and utilization, and not with any single end market given the diversification of our business and high exposure to the aftermarket channel.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 3.4B | 3.4B | 3.4B | 3.6B | 3.6B | 2.8B |
| Net Income | 249M | 251M | 195M | 233M | 221M | 79M |
| EPS | $0.97 | $0.96 | $0.74 | $0.84 | $0.77 | $0.27 |
| Free Cash Flow | 429M | 405M | 297M | 420M | 188M | 251M |
| ROIC | 7.8% | 7.9% | 6.5% | 8.2% | 7.2% | 4.2% |
| Gross Margin | 39.6% | 39.8% | 39.9% | 38.1% | 35.2% | 37.0% |
| Debt/Equity | 0.66 | 0.71 | 0.83 | 0.80 | 0.84 | 0.97 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 451M | 465M | 472M | 460M | 384M | 211M |
| Operating Margin | 13.1% | 13.5% | 13.9% | 12.9% | 10.8% | 7.6% |
| ROE | 7.4% | 7.9% | 6.2% | 7.4% | 7.5% | 2.8% |
| Shares Outstanding | 254M | 262M | 263M | 277M | 287M | 294M |
| Metric | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | ||||||||||
| Revenue | 2.7B | 3.0B | 3.3B | 3.1B | 2.8B | 3.6B | 3.6B | 3.4B | 3.4B | 3.4B |
| Gross Margin | 38.6% | 40.0% | 39.7% | 37.0% | 37.0% | 35.2% | 38.1% | 39.9% | 39.8% | 39.6% |
| R&D | 69M | 69M | 71M | 68M | 67M | 69M | 66M | 67M | 72M | 72M |
| SG&A | 738M | 777M | 806M | 777M | 777M | 854M | 885M | 877M | 876M | 886M |
| EBIT | 305M | 403M | 497M | 347M | 211M | 384M | 460M | 472M | 465M | 451M |
| Op. Margin | 11.1% | 13.2% | 14.8% | 11.2% | 7.6% | 10.8% | 12.9% | 13.9% | 13.5% | 13.1% |
| Net Income | 58M | 151M | 245M | 690M | 79M | 221M | 233M | 195M | 251M | 249M |
| Net Margin | 2.1% | 5.0% | 7.3% | 22.4% | 2.8% | 6.2% | 6.5% | 5.7% | 7.3% | 7.2% |
| Non-Recurring | 22M | 21M | 6.7M | 7.9M | 44M | 9.5M | 12M | 14M | 26M | 25M |
| Returns on Capital | ||||||||||
| ROIC | 149.5% | 16.3% | 10.0% | 7.2% | 4.2% | 7.2% | 8.2% | 6.5% | 7.9% | 7.8% |
| ROE | 63.0% | 14.5% | 16.6% | 30.0% | 2.8% | 7.5% | 7.4% | 6.2% | 7.9% | 7.4% |
| ROA | 38.6% | 4.3% | 3.6% | 9.8% | 1.1% | 3.0% | 3.2% | 2.8% | 3.6% | 3.5% |
| Cash Flow | ||||||||||
| Op. Cash Flow | 377M | 320M | 314M | 349M | 309M | 266M | 481M | 380M | 478M | 501M |
| Free Cash Flow | 318M | 219M | 147M | 277M | 251M | 188M | 420M | 297M | 405M | 429M |
| Owner Earnings | 132M | 102M | 89M | 112M | 71M | 4.3M | 236M | 134M | 237M | 256M |
| CapEx | 59M | 101M | 166M | 72M | 58M | 78M | 61M | 83M | 73M | 72M |
| Maint. CapEx | 241M | 212M | 219M | 222M | 219M | 217M | 218M | 217M | 214M | 217M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 241M | 212M | 219M | 222M | 219M | 217M | 218M | 217M | 214M | 217M |
| CapEx/OCF | N/A | N/A | 53.0% | 20.7% | 18.8% | 20.3% | 12.7% | 21.9% | 15.3% | 14.5% |
| Capital Allocation | ||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 2.0M | 1.6M | 0 | 0 | 0 | 176M | 252M | 176M | 119M | 123M |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | 0.3% | 6.7% | 3.2% | 2.1% | 1.8% |
| Stock-Based Comp | 4.2M | 5.4M | 6.0M | 15M | 20M | 44M | 27M | 29M | 27M | 27M |
| Debt Repayment | 67M | 677M | 934M | 593M | 331M | 677M | 120M | 1.9B | 123M | 123M |
| Balance Sheet | ||||||||||
| Net Debt | -529M | 3.4B | 2.6B | 2.5B | 2.2B | 2.0B | 1.9B | 1.8B | 1.6B | 1.4B |
| Cash & Equiv. | 529M | 564M | 423M | 635M | 521M | 578M | 721M | 682M | 812M | 785M |
| Long-Term Debt | 100K | 3.9B | 3.0B | 2.9B | 2.7B | 2.4B | 2.4B | 2.3B | 2.2B | 2.2B |
| Debt/Equity | 0.00 | 3.90 | 1.54 | 1.17 | 0.97 | 0.84 | 0.80 | 0.83 | 0.71 | 0.66 |
| Interest Coverage | 1.4 | 1.7 | 2.8 | 2.2 | 1.4 | 2.8 | 2.8 | 3.0 | 3.7 | 901.0 |
| Equity | 92M | 1.0B | 1.9B | 2.7B | 2.8B | 3.1B | 3.2B | 3.0B | 3.3B | 3.4B |
| Total Assets | 150M | 6.9B | 6.7B | 7.4B | 7.4B | 7.2B | 7.3B | 6.8B | 7.2B | 7.1B |
| Total Liabilities | 19M | 5.4B | 4.4B | 4.4B | 4.2B | 3.7B | 3.7B | 3.4B | 3.5B | 3.4B |
| Intangibles | N/A | 2.1B | 2.0B | 1.9B | 1.8B | 1.5B | 1.4B | 1.2B | 1.2B | 1.2B |
| Retained Earnings | N/A | 137M | 382M | 1.1B | 1.2B | 1.5B | 1.5B | 1.5B | 1.7B | 1.7B |
| Working Capital | N/A | 1.1B | 1.1B | 1.3B | 1.2B | 1.5B | 1.6B | 1.6B | 1.7B | 1.8B |
| Current Assets | N/A | 1.8B | 1.8B | 2.0B | 1.9B | 2.3B | 2.4B | 2.3B | 2.5B | 2.5B |
| Current Liabilities | N/A | 698M | 679M | 658M | 726M | 752M | 779M | 722M | 735M | 679M |
| Per Share Data | ||||||||||
| EPS | 0.23 | 0.60 | 0.84 | 2.37 | 0.27 | 0.77 | 0.84 | 0.74 | 0.96 | 0.97 |
| Owner EPS | 0.52 | 0.41 | 0.30 | 0.38 | 0.24 | 0.01 | 0.85 | 0.51 | 0.91 | 1.01 |
| Book Value | 0.37 | 4.02 | 6.67 | 9.10 | 9.54 | 10.85 | 11.61 | 11.48 | 12.73 | 13.26 |
| Cash Flow/Share | 1.50 | 1.27 | 1.07 | 1.20 | 1.05 | 0.93 | 1.73 | 1.44 | 1.83 | 1.84 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 250.9M | 252.2M | 292.0M | 291.2M | 294.1M | 286.8M | 277.3M | 263.4M | 261.9M | 253.9M |
| Valuation | ||||||||||
| P/E Ratio | N/A | N/A | 15.7 | 5.8 | 58.3 | 11.0 | 16.0 | 27.9 | 22.9 | 27.6 |
| P/FCF | N/A | N/A | 26.1 | 14.4 | 18.5 | 16.8 | 8.9 | 18.4 | 14.2 | 15.9 |
| EV/EBIT | N/A | N/A | 12.2 | 16.5 | 30.0 | 9.5 | 10.3 | 13.7 | 13.8 | 18.4 |
| Price/Book | N/A | N/A | 2.0 | 1.5 | 1.7 | 1.1 | 1.2 | 1.8 | 1.7 | 2.0 |
| Price/Sales | N/A | N/A | 1.4 | 1.2 | 1.7 | 1.1 | 1.0 | 1.3 | 1.7 | 2.0 |
| FCF Yield | N/A | N/A | 3.8% | 6.9% | 5.4% | 5.7% | 11.2% | 5.4% | 7.0% | 6.3% |
| Market Cap | N/A | N/A | 3.8B | 4.0B | 4.6B | 3.3B | 3.7B | 5.4B | 5.8B | 6.8B |
| Avg. Price | N/A | N/A | 16.48 | 12.39 | 16.57 | 12.67 | 12.62 | 17.15 | 22.21 | 26.89 |
| Year-End Price | N/A | N/A | 13.18 | 13.71 | 15.75 | 11.04 | 13.47 | 20.67 | 21.97 | 26.89 |
Gates Industrial Corp plc passes 2 of 9 quality checks, indicating weak fundamentals.
Gates Industrial Corp plc trades at 28.0x trailing earnings, compared to its 15-year median P/E of 16.0x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 16.9x vs a median of 16.8x. The company's 5-year average ROIC is 6.8% with a gross margin of 38.0%. Total shareholder yield (buybacks) is 1.8%. At current prices, the estimated annualized return to fair value is +14.6%.
Gates Industrial Corp plc (GTES) reported annual revenue of $3.4 billion in its most recent fiscal year, based on SEC EDGAR filings.
Gates Industrial Corp plc (GTES) has a net profit margin of 7.3%. This is a modest margin.
Gates Industrial Corp plc (GTES) generated $405 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Gates Industrial Corp plc (GTES) has a debt-to-equity ratio of 0.71. This indicates moderate leverage.
Gates Industrial Corp plc (GTES) reported earnings per share (EPS) of $0.96 in its most recent fiscal year.
Gates Industrial Corp plc (GTES) has a return on equity (ROE) of 7.9%. This indicates moderate shareholder returns.
Gates Industrial Corp plc (GTES) has a 5-year average gross margin of 38.0%. This indicates decent pricing power.
The Ledger Terminal provides 9 years of financial data for Gates Industrial Corp plc (GTES), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Gates Industrial Corp plc (GTES) has a book value per share of $12.73, based on its most recent annual SEC filing.
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