(GTES) Gates Industrial - Overview
Stock: Belts, Hydraulics, Hoses, Pulleys, Couplings
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 36.5% |
| Relative Tail Risk | -15.9% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.62 |
| Alpha | 6.51 |
| Character TTM | |
|---|---|
| Beta | 1.492 |
| Beta Downside | 1.531 |
| Drawdowns 3y | |
|---|---|
| Max DD | 33.82% |
| CAGR/Max DD | 0.67 |
Description: GTES Gates Industrial January 08, 2026
Gates Industrial Corporation plc (NYSE:GTES) designs, manufactures, and sells engineered power-transmission and fluid-power products worldwide, operating through two segments: Power Transmission and Fluid Power. Its portfolio includes synchronous and asynchronous belts (V-belts, CVT belts, Micro-V belts), related components (sprockets, pulleys, tensioners), metal drive parts, and hydraulic systems (hoses, tubing, fittings, assemblies). These solutions serve a broad range of end-markets-from off-highway construction and agriculture equipment to on-highway commercial trucks, buses, automotive OEMs, and automated manufacturing and logistics systems-under the Gates brand, serving both replacement-channel customers and OEMs.
Key metrics from the most recent fiscal year show revenue of roughly $2.1 billion, with an adjusted EBITDA margin near 13% and free cash flow of about $200 million, indicating solid cash generation despite cyclical exposure to automotive replacement demand. The business is sensitive to macro-drivers such as global industrial production growth, infrastructure spending, and the ongoing shift toward electrified power-train technologies, which are reshaping demand for both belt-driven and hydraulic solutions. Additionally, Gates’ diversified customer base across heavy-duty vehicle, construction, and automation sectors helps mitigate concentration risk.
For a deeper quantitative assessment, you may find ValueRay’s detailed financial models and scenario analyses useful.
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income: 236.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.04 > 0.02 and ΔFCF/TA 0.19 > 1.0 |
| NWC/Revenue: 52.09% < 20% (prev 46.63%; Δ 5.46% < -1%) |
| CFO/TA 0.06 > 3% & CFO 399.2m > Net Income 236.7m |
| Net Debt (1.67b) to EBITDA (692.8m): 2.41 < 3 |
| Current Ratio: 3.52 > 1.5 & < 3 |
| Outstanding Shares: last quarter (255.0m) vs 12m ago -3.20% < -2% |
| Gross Margin: 40.44% > 18% (prev 0.40%; Δ 4005 % > 0.5%) |
| Asset Turnover: 47.88% > 50% (prev 48.33%; Δ -0.46% > 0%) |
| Interest Coverage Ratio: 3.37 > 6 (EBITDA TTM 692.8m / Interest Expense TTM 142.5m) |
Altman Z'' 3.07
| A: 0.25 (Total Current Assets 2.48b - Total Current Liabilities 705.4m) / Total Assets 7.15b |
| B: 0.23 (Retained Earnings 1.67b / Total Assets 7.15b) |
| C: 0.07 (EBIT TTM 479.6m / Avg Total Assets 7.14b) |
| D: 0.22 (Book Value of Equity 741.3m / Total Liabilities 3.43b) |
| Altman-Z'' Score: 3.07 = A |
Beneish M -3.01
| DSRI: 1.09 (Receivables 879.7m/811.8m, Revenue 3.42b/3.44b) |
| GMI: 0.98 (GM 40.44% / 39.54%) |
| AQI: 0.98 (AQ_t 0.55 / AQ_t-1 0.56) |
| SGI: 0.99 (Revenue 3.42b / 3.44b) |
| TATA: -0.02 (NI 236.7m - CFO 399.2m) / TA 7.15b) |
| Beneish M-Score: -3.01 (Cap -4..+1) = AA |
What is the price of GTES shares?
Over the past week, the price has changed by +9.37%, over one month by +14.34%, over three months by +17.53% and over the past year by +23.64%.
Is GTES a buy, sell or hold?
- StrongBuy: 6
- Buy: 2
- Hold: 3
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the GTES price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 27.2 | 5.8% |
| Analysts Target Price | 27.2 | 5.8% |
| ValueRay Target Price | 28.7 | 11.6% |
GTES Fundamental Data Overview February 03, 2026
P/E Forward = 14.4092
P/S = 1.7403
P/B = 1.7995
Revenue TTM = 3.42b USD
EBIT TTM = 479.6m USD
EBITDA TTM = 692.8m USD
Long Term Debt = 2.20b USD (from longTermDebt, last quarter)
Short Term Debt = 30.5m USD (from shortTermDebt, last quarter)
Debt = 2.36b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.67b USD (from netDebt column, last quarter)
Enterprise Value = 7.62b USD (5.95b + Debt 2.36b - CCE 689.4m)
Interest Coverage Ratio = 3.37 (Ebit TTM 479.6m / Interest Expense TTM 142.5m)
EV/FCF = 25.79x (Enterprise Value 7.62b / FCF TTM 295.4m)
FCF Yield = 3.88% (FCF TTM 295.4m / Enterprise Value 7.62b)
FCF Margin = 8.65% (FCF TTM 295.4m / Revenue TTM 3.42b)
Net Margin = 6.93% (Net Income TTM 236.7m / Revenue TTM 3.42b)
Gross Margin = 40.44% ((Revenue TTM 3.42b - Cost of Revenue TTM 2.03b) / Revenue TTM)
Gross Margin QoQ = 39.92% (prev 40.76%)
Tobins Q-Ratio = 1.07 (Enterprise Value 7.62b / Total Assets 7.15b)
Interest Expense / Debt = 1.48% (Interest Expense 34.9m / Debt 2.36b)
Taxrate = 6.43% (6.10m / 94.8m)
NOPAT = 448.7m (EBIT 479.6m * (1 - 6.43%))
Current Ratio = 3.52 (Total Current Assets 2.48b / Total Current Liabilities 705.4m)
Debt / Equity = 0.70 (Debt 2.36b / totalStockholderEquity, last quarter 3.37b)
Debt / EBITDA = 2.41 (Net Debt 1.67b / EBITDA 692.8m)
Debt / FCF = 5.66 (Net Debt 1.67b / FCF TTM 295.4m)
Total Stockholder Equity = 3.19b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.32% (Net Income 236.7m / Total Assets 7.15b)
RoE = 7.42% (Net Income TTM 236.7m / Total Stockholder Equity 3.19b)
RoCE = 8.89% (EBIT 479.6m / Capital Employed (Equity 3.19b + L.T.Debt 2.20b))
RoIC = 8.15% (NOPAT 448.7m / Invested Capital 5.51b)
WACC = 8.56% (E(5.95b)/V(8.31b) * Re(11.41%) + D(2.36b)/V(8.31b) * Rd(1.48%) * (1-Tc(0.06)))
Discount Rate = 11.41% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -2.37%
[DCF Debug] Terminal Value 76.28% ; FCFF base≈289.4m ; Y1≈293.4m ; Y5≈319.1m
Fair Price DCF = 13.06 (EV 5.04b - Net Debt 1.67b = Equity 3.37b / Shares 258.3m; r=8.56% [WACC]; 5y FCF grow 1.06% → 2.90% )
EPS Correlation: 11.06 | EPS CAGR: 6.31% | SUE: 0.41 | # QB: 0
Revenue Correlation: -25.54 | Revenue CAGR: 1.29% | SUE: -0.53 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.33 | Chg30d=-0.008 | Revisions Net=-3 | Analysts=9
EPS next Year (2026-12-31): EPS=1.58 | Chg30d=-0.046 | Revisions Net=-3 | Growth EPS=+5.6% | Growth Revenue=+3.0%