📊 GTES Key Takeaways
Is Gates Industrial Corp plc (GTES) a Good Investment?
Gates Industrial maintains solid financial health with excellent liquidity, strong free cash flow generation ($404.9M), and manageable leverage, but faces concerning profitability headwinds with net income declining 9% YoY despite flat revenue growth, indicating margin compression and operational challenges. Low returns on capital (7.5% ROE, 3.5% ROA) combined with anemic 1% revenue growth suggest limited fundamental appeal despite balance sheet stability.
Gates Industrial shows solid fundamentals with resilient margins, strong liquidity, and robust free cash flow generation despite modest top-line growth. Leverage is moderate with ample interest coverage, supporting financial flexibility. While net income declined YoY, cash conversion and margin profile suggest the core business remains healthy.
Why Buy Gates Industrial Corp plc Stock? GTES Key Strengths
- Exceptional liquidity position with 3.37x current ratio and $812.1M cash reserves providing financial flexibility
- Robust free cash flow generation of $404.9M (11.8% FCF margin) enables debt service and capital allocation
- Strong interest coverage ratio of 12.4x and conservative 0.67x debt-to-equity demonstrates low financial distress risk
- Strong liquidity and working capital (current 3.37x, quick 2.42x)
- Healthy margins with solid FCF margin (11.8%)
- Moderate leverage and strong interest coverage (12.4x)
GTES Stock Risks: Gates Industrial Corp plc Investment Risks
- Deteriorating profitability with net income down 9% YoY while revenue grew only 1%, signaling operational margin compression
- Chronically low returns on capital (7.5% ROE, 3.5% ROA) indicate inefficient capital deployment relative to asset base
- Anemic organic revenue growth of 1% in industrial machinery sector suggests competitive pressure or market headwinds; EPS growth driven by share buybacks rather than earnings expansion raises capital allocation concerns
- Muted revenue growth (+1% YoY) indicating demand softness
- Net income decline YoY suggests margin or mix pressure
- Industrial cyclicality and input cost volatility could impact margins
Key Metrics to Watch
- Operating margin trajectory and gross margin trends to confirm stabilization or identify further compression
- Net income growth rate for return to year-over-year expansion as sign of operational recovery
- Free cash flow sustainability and debt reduction pace to monitor deleveraging progress and capital efficiency
- Organic revenue growth (YoY)
- Operating margin and FCF conversion
Gates Industrial Corp plc (GTES) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.37x current ratio provides a solid financial cushion.
GTES Profit Margin, ROE & Profitability Analysis
GTES vs Industrial Sector: How Gates Industrial Corp plc Compares
How Gates Industrial Corp plc compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Gates Industrial Corp plc Stock Overvalued? GTES Valuation Analysis 2026
Based on fundamental analysis, Gates Industrial Corp plc has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Gates Industrial Corp plc Balance Sheet: GTES Debt, Cash & Liquidity
GTES Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Gates Industrial Corp plc's revenue has shown modest growth of 3% over the 5-year period. The most recent EPS of $0.84 reflects profitable operations.
GTES Revenue Growth, EPS Growth & YoY Performance
GTES Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $830.7M | $47.6M | $0.18 |
| Q2 2025 | $883.7M | $56.5M | $0.22 |
| Q1 2025 | $847.6M | $40.0M | $0.15 |
| Q3 2024 | $830.7M | $47.6M | $0.18 |
| Q2 2024 | $885.5M | $64.9M | $0.23 |
| Q1 2024 | $862.6M | $26.4M | $0.09 |
| Q3 2023 | $860.7M | $51.9M | $0.18 |
| Q2 2023 | $906.8M | $53.1M | $0.19 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Gates Industrial Corp plc Dividends, Buybacks & Capital Allocation
GTES SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Gates Industrial Corp plc (CIK: 0001718512)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 31, 2026 | 4 | xslF345X06/wk-form4_1774991399.xml | View → |
| Mar 6, 2026 | 4 | xslF345X05/wk-form4_1772833824.xml | View → |
| Mar 6, 2026 | 4 | xslF345X05/wk-form4_1772833793.xml | View → |
| Mar 6, 2026 | 4 | xslF345X05/wk-form4_1772833767.xml | View → |
| Mar 6, 2026 | 4 | xslF345X05/wk-form4_1772833742.xml | View → |
❓ Frequently Asked Questions about GTES
What is the AI rating for GTES?
Gates Industrial Corp plc (GTES) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GTES's key strengths?
Claude: Exceptional liquidity position with 3.37x current ratio and $812.1M cash reserves providing financial flexibility. Robust free cash flow generation of $404.9M (11.8% FCF margin) enables debt service and capital allocation. ChatGPT: Strong liquidity and working capital (current 3.37x, quick 2.42x). Healthy margins with solid FCF margin (11.8%).
What are the risks of investing in GTES?
Claude: Deteriorating profitability with net income down 9% YoY while revenue grew only 1%, signaling operational margin compression. Chronically low returns on capital (7.5% ROE, 3.5% ROA) indicate inefficient capital deployment relative to asset base. ChatGPT: Muted revenue growth (+1% YoY) indicating demand softness. Net income decline YoY suggests margin or mix pressure.
What is GTES's revenue and growth?
Gates Industrial Corp plc reported revenue of $3.4B.
Does GTES pay dividends?
Gates Industrial Corp plc does not currently pay dividends.
Where can I find GTES SEC filings?
Official SEC filings for Gates Industrial Corp plc (CIK: 0001718512) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GTES's EPS?
Gates Industrial Corp plc has a diluted EPS of $0.96.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GTES a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Gates Industrial Corp plc has a BUY rating with 71% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is GTES stock overvalued or undervalued?
Valuation metrics for GTES: ROE of 7.5% (sector avg: 15%), net margin of 7.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy GTES stock in 2026?
Our dual AI analysis gives Gates Industrial Corp plc a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GTES's free cash flow?
Gates Industrial Corp plc's operating cash flow is $478.1M, with capital expenditures of $73.2M. FCF margin is 11.8%.
How does GTES compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 7.3% (avg: 10%), ROE 7.5% (avg: 15%), current ratio 3.37 (avg: 1.8).