|GTES Overview
GTES

Gates Industrial Corp plc

Industrials • CIK: 0001718512

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Market Cap
$5.52B
P/E (TTM)
21.9x
Rev Growth (TTM)
+1.0%
Net Margin (TTM)
7.3%
FCF Yield (TTM)
7.3%
FCF Margin (TTM)
11.8%

LATEST EARNINGS

Q4 FY2025
22 days ago
View source
Revenue
$856.20M
+3.2%
Net Income
$56.40M
EPS
$0.20
+42.9%
Gross
39.8% -0.1%
Operating
12.7% -0.1%
Net
6.0% +1.6%
  • Fourth-quarter net sales increased 3.2% to $856.2 million, with core sales growth of 0.6%.
  • Full-year 2025 net sales grew 1.0% to $3,443.2 million, with core sales growth of 0.7%.
  • Adjusted EBITDA for Q4 2025 was $187.8 million, with a margin of 21.9%.
  • Full-year 2025 Adjusted EBITDA was $770.1 million, with a margin of 22.4%.

Cash Flow Health

Free Cash Flow6/8 positive
TTM$405M
Q4 '25
$251M+212%
Q3 '25
$81M-4%
FCF Margin
TTM11.8%
Q4 '2529.3%+212%
Sector: 5.4%Top 25%
OCF Margin13.9%
OCF/NI1.90x
CapEx Coverage6.5x
FCF Yield7.3%
FCF Growth (2Y)+29%
Cash Conversion Cycle
209 days
DSO: 84+DIO: 125DPO: 0

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM2.2%
Div Yield0.0%
+
Buyback (TTM)2.2%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$404.9M
Stock Repurchases (TTM)$119.3M
Capital Return / FCF29.5%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
6.7%
Stable
-0.1% YoY+0.7%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
11.0%
8Q: 10.6%
Asset Turnover
0.49x
8Q: 0.48x
Leverage (1+D/E)
1.67x
D/E: 0.67x
DuPont: 8.9%6.7% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
5.75x
8Q:5.62x
+9.8%
Invested Cap Turn
0.61x
8Q:0.60x
Flat
CapEx Intensity
1.3%
8Q:1.3%
CapEx/Depreciation
0.34x
Depreciation Rate Trend
⚠ Declining -2.3%
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue
$3.4B
$856.2M0.1%
$855.7M3.2%
$883.7M4.3%
$847.6M2.2%
$829.4M0.2%
$830.7M6.2%
$885.5M2.7%
$862.6M
Operating Income
$464.2M
$108.3M6.2%
$115.4M0.3%
$115.8M7.1%
$124.7M13.7%
$109.7M5.3%
$115.9M
$0100.0%
$133.3M
Net Income
$251.4M
$51.3M37.1%
$81.6M44.4%
$56.5M8.9%
$62.0M69.4%
$36.6M23.1%
$47.6M32.7%
$70.7M76.8%
$40.0M
Operating Cash Flow
$478.1M
$269.8M175.3%
$98.0M4.9%
$103.0M1311.0%
$7.3M96.2%
$190.9M64.7%
$115.9M23.6%
$93.8M546.7%
$-21.0M
Free Cash Flow
$404.9M
$251.0M211.8%
$80.5M3.7%
$83.6M919.6%
$-10.2M106.1%
$167.6M78.3%
$94.0M30.7%
$71.9M294.3%
$-37.0M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
21.9x
Volatile
8Q: 102.1x-263%
Valuation Lenses
Earnings
21.9x
vs sector
Cash Flow
17.6x
EV/FCF vs
Growth-Adj
0.7xPEG
Undervalued for growth
Quality-Adj
3.3P/E per %ROIC
ROIC: 6.7%
Shareholder Returns
Dividend
Buyback
2.2%
Total Yield
2.2%
Market Cap$5.52B
EV$7.12B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
72/100
High Quality

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Below Avg
7.8%
8Q:
Return on Invested Capital (ROIC)Top 25%
6.7%
8Q:
Flat
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 11.0%
Asset Turnover: 0.49x

Earnings Quality

Cash Conversion

1.90x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin39.8%

Capital Efficiency

Invested Capital Turnover0.61x

Working Capital

Cash Conversion Cycle209 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
61/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
1.0%
OpInc Growth YoY
-1.3%
EPS Growth YoY
31.5%
FCF 3Y CAGR
29.1%

Growth Quality Analysis

Efficient Growth: Free cash flow growing faster than revenue

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
39.8%
Operating
13.5%
Above Avg in sector
Net
7.3%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+4.5 pts
FCF: 11.8% | Net: 7.3%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $1.42B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.67x
Balance sheet risk & solvency analysis