📊 GTES Key Takeaways
Is GTES a Good Investment? Thesis Analysis
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.
Why Buy 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
GTES Investment Risks to Consider
- 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
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
GTES Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 3.37x current ratio provides a solid financial cushion.
GTES Profitability Ratios
GTES vs Industrial Sector
How Gates Industrial Corp plc compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is GTES Overvalued or Undervalued?
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.
GTES Balance Sheet & Liquidity
GTES 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
GTES Quarterly 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.
GTES Capital Allocation
GTES SEC 10-K & 10-Q Filing 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 an AI rating of HOLD with 70% 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.
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.
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 HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. 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 HOLD 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).