Gates Industrial Corporation Lt (GTES) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Gates Industrial Corporation Lt

NYSE•Industrials•Specialty Industrial Machinery

$25.45-0.05(<0.01%)Pre-market

Market Cap

$6.53B

P/E

18.0x

P/S

1.9x

P/B

1.9x

Gates Industrial Corporation Ltd. manufactures and sells engineered power transmission and fluid power solutions in the United States, rest of North America, South America, the United Kingdom, Luxembourg, rest of Europe, the Middle East, Africa, India, East Asia, and Greater China. It operates through two segments, Power Transmission and Fluid Power. The company offers solutions for stationary and mobile drives, engine systems, and personal mobility application platforms; elastomer drive belts; asynchronous and synchronous belts, including V-belts, transmission belts, and micro-V belts; metal drive components, such as tensioners, idlers, pulleys, sprockets, mechanical water pumps, and other accessories used in belt drive systems; and kits for the automotive replacement channel. It also provides fluid power solutions for stationary and mobile hydraulics, vehicle systems, and other industrial application platforms; hydraulics comprising hoses, tubing, couplings, and fittings, as well as assemblies; thermal and emissions management and related products; and industrial hoses, including data center pumps. The company's products are used in applications across various markets, including diversified industrial applications comprising automated manufacturing, logistics systems, and data centers; consumer applications consisting of printers, power washers, automatic doors, and vacuum cleaners; industrial off-highway, such as construction and agriculture; industrial on-highway commercial vehicles, including heavy-duty trucks and buses; energy and resources markets, such as oil, gas, and mining; and personal mobility, including scooters, motorcycles, bicycles, all-terrain vehicles, and snowmobiles. It sells its products under the Gates brand. The company offers its products to aftermarket channel customers and original equipment manufacturers. Gates Industrial Corporation Ltd. was founded in 1911 and is headquartered in Denver, Colorado.

How this company scores

ExcellentMetricSide Score: 80/100

Strongest: Cash & Earnings Quality (24/25); weakest: Balance Sheet & Red Flags (17/25).

Profitability21/25

Growth18/25

Balance Sheet & Red Flags17/25

Cash & Earnings Quality24/25

Strengths

Rising free cash flowRising earningsCash-backed earningsProfit converts from growth

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 18.0x5y range 12.0x – 29.4x

Currently near its 20-quarter median.

P/S · 1.9x5y range 0.8x – 1.9x

Currently above its 20-quarter median.

P/B · 1.9x5y range 0.9x – 1.9x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $6.53B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $3.50B
Q. Revenue: $941.60M
TTM EBITDA: $687.40M
TTM Op. Income: $466.30M
Q. Op. Income: $131.60M
TTM Net Income: $363.50M
Q. Net Income: $170.90M
EPS: $0.67
Shares Out.: $253.58M

$3.50B in TTM revenue grew 3.3% YoY, reaching $941.60M last quarter. TTM EBITDA of $687.40M and TTM operating income of $466.30M show growth is flowing through to the bottom line. TTM net income of $363.50M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 4 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 41.0%
EBITDA Margin: 20.0%
Op. Margin: 14.0%
Net Margin: 18.1%

Op. margin of 14.0% is up 0.9% YoY — cost efficiency is improving. Net margin at 18.1% and gross margin of 41.0% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 2 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 18.0x
P/S Ratio: 1.9x
P/B Ratio: 1.9x

At 18.0x P/E, the stock trades within typical market levels. P/S of 1.9x and P/B of 1.9x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 39% — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $7.39B
Cash: $823.50M
Long-Term Debt: $2.19B
Book Value: $3.52B
D/E Ratio: 0.6
Debt/EBITDA: 11.6

With $7.39B in assets and $2.19B in long-term debt, D/E is 0.6and book value is $3.52B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 2 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $78.60M
TTM Free Cash Flow: $405.30M
FCF Margin: 11.6%
FCF / Net Income: 1.1

TTM FCF of $405.30M on $78.60M in operating cash flow. The FCF / Net Income ratio of 1.1x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is up 21% — a weakening trend.