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GTES

Gates Industrial Corporation Ltd.
$25.10
-6.03% Oct 22 close
IndustrialsS&P 600 CompareTechnicals
-19%-10%-1%+8%+17%Oct 2025Oct 2026Apr 2026
GTESSPY
1W
-4.7%
1M
-4.0%
3M
-7.1%
6M
-1.6%
YTD
+16.9%
1Y
-1.3%

Live chart

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What they do

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.

Industrials · Specialty Industrial Machinery

For information only · Important disclosures

Grades vs sector

Momentum
64th percentile in sector
B
12-1 return: +18.7%
Percentile within its GICS sector across the S&P 1500.
Growth
36th percentile in sector
C-
Revenue growth (YoY): +6.6%
Percentile within its GICS sector across the S&P 1500.
Value
72nd percentile in sector
B
Forward E/P: 7.4% · EBITDA/EV: 8.8%
Percentile within its GICS sector across the S&P 1500.
Profitability
45th percentile in sector
C
Profit margin: +10.4% · Return on equity: +10.4%
Percentile within its GICS sector across the S&P 1500.
Revisions
Not enough data yet
–
EPS estimate change, 30 days (current FY): –
30-day change in analysts' current-year EPS estimate; graded across covered stocks.

Systematic Models

Not held by any of our 5 live models right now.

Quality Growth
Outside this model's universe or screens
Momentum Top 15
Outside this model's universe or screens
Momentum Blend
Not in the current book
New Highs Growth
Outside this model's universe or screens
Coteau Long Book
Not in the current book

News

More news
Gates Grows Its Warehouse Automation Portfolio with IntraLogix™ LRB-100
PR Newswire · Oct 13
Rockwell Automation, Fluence Energy, Redwire, Perma-Fix, and Gates Industrial Corporation Shares Are Falling, What You Need To Know
StockStory · Oct 08
3 Reasons to Avoid GTES and 1 Stock to Buy Instead
StockStory · Oct 07
Gates Industrial Announces Third Quarter 2026 Earnings Release Date
PR Newswire · Oct 06
Gates Gains From Business Strength Amid Persisting Headwinds
Zacks · Oct 02

Key stats

Market value$6.4B
P/E (last 12 months)18.9
P/E (next 12 months, estimated)13.1
52-week range$20.88 – $30.34
Revenue growth (latest quarter vs a year ago)+6.6%
Dividend yieldNo dividend
Analyst consensusBuy (12)
Average analyst price target$33.25 (+32%)
Valuation and fundamentals

Valuation & fundamentals

Bottom line
Leans undervalued
Model read-out from the numbers below, not advice. Score +1 (DCF counts double).
▼DCF (base case)below the price by 41%
▲Forward P/E vs sector13.1x vs median 17.1x
▲Piotroski F-score7/9
•Altman Z2.4 (grey)
•Net debt / EBITDA2.1x
▲Analyst target+32% (12 analysts)

Discounted cash flow

Bear
$8
-68%
growth -2% · disc. 11.7% · term. 2.0%
Base
$15
-41%
growth 3% · disc. 10.7% · term. 2.5%
Bull
$23
-7%
growth 6% · disc. 9.7% · term. 3.0%

A DCF starts from trailing free cash flow, so it can overstate value if the last 12 months were unusually strong (or weak). Use the bear case or edit the starting cash flow if so.

Reverse DCFfor context, not a signal
Today's price assumes free cash flow grows about 8% a year for 10 years.
Implied
+8%/yr
FCF, last 3 yrs
+29%/yr
FCF, last 5 yrs
+10%/yr
Revenue, last 3 yrs
-1%/yr
Revenue, last 5 yrs
+4%/yr
Same inputs as the DCF above: trailing free cash flow 0.4B, 10.7% discount rate, 2.5% growth after year 10, net debt and today's share count. Actual growth rates are compound annual rates from SEC annual filings through FY2025; "n/a" means too little history or a negative starting year.
Edit assumptions · recalculates instantly
Your value per share–

Free cash flow = operating cash flow − capital spending, trailing 12 months (TTM to 2026-06-27). Growth default: average of 3-year revenue CAGR and latest revenue growth, capped at 30%. Years 6–10 fade linearly to terminal growth. Discount rate = 4.25% risk-free assumption + beta 1.28 × 5% equity premium, kept within 7–13%. Bear: lower growth, +1 pt discount, 2% terminal. Bull: higher growth, −1 pt, 3%.

Multiples vs Industrials

P/E (trailing)
sector median 26.4× · 25th pct
18.9×
cheaper
Forward P/E
sector median 17.1× · 26th pct
13.1×
cheaper
EV / EBITDA
sector median 14.8× · 29th pct
11.3×
cheaper
Price / sales
sector median 2.1× · 44th pct
1.8×
cheaper
Price / book
sector median 3.5× · 17th pct
1.8×
cheaper
FCF yield
sector median 4.5% · 69th pct
6.4%
cheaper

Forward EPS $1.92 vs trailing $1.33 (+44% expected growth). Forward P/E uses analysts' next-12-month estimate.

Quality & financial health

Gross margin
39.7%
Operating margin
13.3%
FCF margin
11.6%
Net margin
10.4%
Return on equity
10.3%
Return on invested capital
9.4%
Net debt / EBITDA
2.1×
Current ratio
3.2×
Interest cover
3.7×
Cash conversion (OCF/NI)
1.3×
Piotroski F-score 7/9 · last two fiscal years
✓ Positive net income✓ Positive operating cash flow✓ Return on assets improved✓ Cash flow above net income✓ Long-term debt / assets fell✓ Current ratio improved✓ No share dilution✗ Gross margin improved✗ Asset turnover improved

Altman Z-score 2.4 (grey zone; above 3.0 = safe, below 1.8 = distress). Not meaningful for banks and insurers.

Analysts

Mean target
$33
+32%
Analysts
12
Buy
Range
$29–$39
low – high
● price · ◆ mean target

Annual history

FYRevenueNet incomeFree cash flow
2025$3.4B$251.4M$404.9M
2024$3.4B$194.9M$296.5M
2023$3.6B$232.9M$419.8M
2022$3.6B$220.8M$188.2M
2022$3.5B$297.1M$304.7M
2021$2.8B$79.4M$250.8M

From the company's 10-K filings via SEC XBRL. 3-year revenue CAGR -1.1%.

Earnings

Next report: 2026-10-30 · before open · EPS est 0.44
24-1025-0225-0425-0725-1026-0226-0526-070.000.44
EstimateActual (beat)Actual (miss)
ReportEPS estActualSurprise
2026-07-310.420.44+5.8%
2026-05-010.330.35+6.5%
2026-02-120.370.38+4.0%
2025-10-290.370.39+5.4%
2025-07-300.380.39+3.0%
2025-04-300.330.36+9.2%
2025-02-060.330.36+8.7%
2024-10-300.310.33+8.1%

Quarterly revenue

QuarterRevenueYoY
2026-06-30$941.6M+6.6%
2026-03-31$851.1M–
2025-12-31$856.2M–
2025-09-30$855.7M–
2025-06-30$883.7M–
Rating changes
Initiated
2026-09-01 · DA Davidson started covering GTES at Neutral
Reiterated
2026-08-11 · Evercore ISI Group reiterated In-Line on GTES
Reiterated
2026-08-03 · Citigroup reiterated Buy on GTES
Reiterated
2026-08-03 · RBC Capital reiterated Outperform on GTES
Reiterated
2026-08-03 · JP Morgan reiterated Overweight on GTES
Reiterated
2026-08-03 · Wells Fargo reiterated Equal-Weight on GTES

Third-party analyst actions, not Coteau's views. All rating changes

Stats refreshed 2026-10-22 21:43:24 ET from Yahoo Finance (yfinance). "–" means the data isn't available. Refresh now

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coteau

Independent research · Not investment advice · Hypothetical unless marked Live · Data: Yahoo Finance (15-min delayed), SEC EDGAR, House Clerk · Important disclosures · Contact desk@coteau.app

Beta 0.9 · Oct 21, 2026