Gates Industrial Corporation plc (GTES) AI Stock Analysis

Gates Industrial Corporation plc is a global manufacturer and distributor of engineered solutions in power transmission and fluid power systems. Operating across two segments, Power Transmission and Fluid Power, its portfolio includes synchronous and asynchronous belts such as V-belts, CVT belts, and Micro-V belts, along with sprockets, pulleys, tensioners, and water pumps. The company also produces hydraulics, hoses, tubing, fittings, and assemblies for stationary and mobile applications. Gates Industrial serves diverse sectors including construction, agriculture, energy, automotive, transportation, and automated manufacturing through both replacement and original equipment manufacturing channels.

Gates Industrial grew revenue at a 5-year CAGR of 4.3% from FY2020 to FY2025. Annual revenue expanded from $3.47B in FY2021 to $3.55B in FY2022 and $3.57B in FY2023, before falling 4.5% to $3.41B in FY2024. Revenue rebounded 1.0% to $3.44B in FY2025, as gross margin reached 40.5% and operating margin rose to 15.3%, lifting net income to $251.4M. For the trailing twelve months ended June 30, 2026, revenue stood at $3.50B with a profit margin of 10.4%. In the quarter ended June 30, 2026, quarterly revenue grew 6.6% year-over-year while quarterly earnings grew 205.8%.

As of June 30, 2026, Gates Industrial held $823.5M in cash and short-term investments against total debt of $2.36B, resulting in net debt of $1.54B. Shareholders' equity was $3.52B, corresponding to a debt-to-equity ratio of 0.67 and a current ratio of 3.24. In FY2025, operating cash flow reached $478.1M, which supported $73.2M in capital expenditures and $119.3M in share buybacks. The company's 5-year share count change was -14.2%.

At a share price of $25.83, Gates Industrial has a market capitalization of $6.54B and an enterprise value of $8.21B. The stock trades at a trailing P/E of 18.3x and a forward P/E of 13.9x, compared to medians of 24.8x and 17.2x for its US-listed Industrials peers. Its EV/EBITDA is 12.0x versus 13.9x for the peer group, while its price-to-sales ratio is 1.9x against the peer median of 1.5x. Over the past year, the stock returned -0.2% compared to a 16.8% return for the S&P 500.

Wall Street coverage includes 6 Strong Buy, 2 Buy, and 4 Hold ratings. The mean price target of $33.25 represents an upside of 28.7% from the last close of $25.83. For the fiscal year ending December 31, 2026, analysts estimate revenue of $3.61B and EPS of $1.67, representing 10.1% earnings growth. For the following fiscal year, 12 analysts project revenue of $3.79B and EPS of $1.92. Gates Industrial beat EPS estimates in each of the last 4 quarters, with its next earnings report scheduled for October 30, 2026.

This page is an AI-written research summary of Gates Industrial Corporation plc (GTES). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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