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%
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: 125−DPO: 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
| Metric | TTM | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $3.4B | $856.2M↑0.1% | $855.7M↓3.2% | $883.7M↑4.3% | $847.6M↑2.2% | $829.4M↓0.2% | $830.7M↓6.2% | $885.5M↑2.7% | $862.6M |
Operating Income | $464.2M | $108.3M↓6.2% | $115.4M↓0.3% | $115.8M↓7.1% | $124.7M↑13.7% | $109.7M↓5.3% | $115.9M | $0↓100.0% | $133.3M |
Net Income | $251.4M | $51.3M↓37.1% | $81.6M↑44.4% | $56.5M↓8.9% | $62.0M↑69.4% | $36.6M↓23.1% | $47.6M↓32.7% | $70.7M↑76.8% | $40.0M |
Operating Cash Flow | $478.1M | $269.8M↑175.3% | $98.0M↓4.9% | $103.0M↑1311.0% | $7.3M↓96.2% | $190.9M↑64.7% | $115.9M↑23.6% | $93.8M↑546.7% | $-21.0M |
Free Cash Flow | $404.9M | $251.0M↑211.8% | $80.5M↓3.7% | $83.6M↑919.6% | $-10.2M↓106.1% | $167.6M↑78.3% | $94.0M↑30.7% | $71.9M↑294.3% | $-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