Gates Industrial Corp Plc

Earnings Score
Moat Score
Safety Score

Market Cap $5.18B
PE 24
Debt $2.39B
Cash $643.10M
EV $6.93B
FCF $323.30M

Earnings

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Sales & Net Margins

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Earnings	$216.90M
EBIT	$486.70M
ROE	6%
ROA	7%
FCF	$323.30M
Equity	$3.43B
Growth Stability	22%
PE	23.89
PEG	1.18
PB	1.51
P/FCF	16.03
P/S	1.53
Price/Cash	0.12
Debt/Equity	0.7
Debt/FCF	7.39
Net Margins	7%
Gross Margins	40%
Op. Margins	14%
Earnings CAGR	-3%
Sales Growth YoY	-2%
Sales Growth QoQ	2%
Sales CAGR	2%
FCF CAGR	10%
Equity CAGR	12%
Earnings Stability	-0.15
Earnings Growth YoY	55%
Earnings Growth QoQ	69%

Earnings CAGR 5Y	20%
Sales CAGR 5Y	4%
FCF CAGR 5Y	8%
Equity CAGR 5Y	3%
Earnings CAGR 3Y	-1%
Sales CAGR 3Y	-1%
FCF CAGR 3Y	35%
Equity CAGR 3Y	1%
Market Cap	$5.18B
Revenue	$3.39B
Assets	$6.89B
Total Debt	$2.39B
Cash	$643.10M
Shares Outstanding	257.46M
EV	6.93B
Earnings Score	6%
Moat Score	81%
Safety Score	51%
Final Score	46%
Working Capital	1.66B
Current Ratio	3.33
Gross Profit	$1.37B
Shares Growth 3y	-4%
Equity Growth QoQ	3%
Equity Growth YoY	-2%

Assets & ROA

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Stockholders Equity & ROE

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Gates Industrial Corp PLC is a manufacturer of engineered power transmission and fluid power solutions. It offers a portfolio of products to diverse replacement channel customers, and to original equipment manufacturers. The company operates through Power Transmission and Fluid Power segments. The Power Transmission segment includes elastomer drive belts and related components used to efficiently transfer motion in a broad range of applications. The Fluid power segment includes hoses, tubing, and fittings designed to convey hydraulic fluid at high pressures in both mobile and stationary applications. The company markets its products under Gates brand and caters to various industries such as construction, agriculture, energy, automotive, transportation, consumer products and others.

SEC Filings

Direct access to Gates Industrial Corp Plc (GTES) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2025
- 10-Q Mar 29
2024
- 10-K Dec 28
- 10-Q Sep 28
- 10-Q Jun 29
- 10-Q Mar 30
2023
- 10-K Dec 30
- 10-Q Sep 30
- 10-Q Jul 01
- 10-Q Apr 01

Sector Comparison

How does Gates Industrial Corp Plc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Gates Industrial Corp Plc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -3%

Stability -15%

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Gates Industrial Corp Plc Discounted Cash Flow

Fully customizable DCF calculator online for Gates Industrial Corp Plc.

Years

Calculation mode

= $6.5B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$323M	$356M	$391M	$430M	$474M	$521M	$573M	$631M	$694M	$763M	$840M	$8.4B
DCF		$323M	$323M	$323M	$323M	$323M	$324M	$324M	$324M	$324M	$324M	$3.2B
Value	$6.5B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	2%	5%	7%	22%	3%	9%	6%	7%	6%	7%
ROA	-	6%	7%	5%	3%	6%	5%	6%	7%	7%
ROE	-	11%	11%	23%	2%	9%	6%	7%	6%	6%

Net Margins (7.31%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	18.53	20.89	10.95	11.02	8.59	13.43	5.98	8.1	7.39
Debt over Equity	-	2.84	1.32	1.01	0.87	0.75	0.73	0.71	0.72	0.7
Growth Stability	-	-	-	100%	22%	88%	62%	100%	78%	22%

Bad Debt/FCF ratio (7.39)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.7)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (22%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2016	12/2017	12/2018	12/2019	01/2021	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	11%	10%	-8%	-10%	24%	2%	0%	-5%	4%
Earnings YoY growth	-	162%	62%	181%	-88%	274%	-26%	5%	-16%	20%
Equity YoY growth	-	34%	63%	29%	6%	9%	-1%	3%	-6%	3%
FCF YoY growth	-	-31%	-33%	88%	-9%	21%	-38%	123%	-29%	8%