Gates Industrial Corporation plc (GTES) 10-Year Financial Performance & Capital Metrics

GTES • • Industrial / General

IndustrialsIndustrial MachinerySpecialized Industrial ComponentsFiltration & Sealing Systems

AboutGates Industrial Corporation plc manufactures and sells engineered power transmission and fluid power solutions worldwide. It operates in two segments, Power Transmission and Fluid Power. The company offers synchronous or asynchronous belts, including V-belts, CVT belts, and Micro-V belts, as well as related components, such as sprockets, pulleys, water pumps, tensioners, or other accessories; solutions for stationary and mobile drives, engine systems, personal mobility, and vertical lifts application platforms; metal drive components; and kits for automotive replacement channels. It also provides fluid power solutions comprising stationary hydraulics, mobile hydraulics, engine systems, and other industrial application platforms; and hydraulics, including hoses, tubing, and fittings, as well as assemblies. The company serves construction, agriculture, energy and resources, automotive, transportation, mobility and recreation, consumer products, and various industrial applications, such as automated manufacturing and logistics systems. It sells its engineered products under the Gates brand. The company offers its products to replacement channel customers, as well as to original equipment manufacturers. Gates Industrial Corporation plc was founded in 1911 and is headquartered in Denver, Colorado.Show more

Revenue $3.41B -4.5%
EBITDA $696M +2.3%
Net Income $195M -16.3%
EPS (Diluted) 0.74 -12.9%
Gross Margin 39.86% +4.7%
EBITDA Margin 20.41% +7.1%
Operating Margin 14.05% +8.4%
Net Margin 5.72% -12.3%
ROE 5.66% -15.1%
ROIC 6.82% +6.8%
Debt/Equity 0.74 +2.6%
Interest Coverage 2.81 +5.4%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong Piotroski F-Score: 7/9
✓High quality earnings: Operating CF exceeds net income
✓Share count reduced 4.5% through buybacks

✗Weaknesses

✗Profits declining 22.3% over 5 years

Price & Volume

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Growth Metrics

Revenue CAGR

10Y1.46%

5Y2%

3Y-0.64%

TTM-0.75%

Profit (Net Income) CAGR

10Y6.15%

5Y-22.34%

3Y-13.11%

TTM7.01%

EPS CAGR

10Y-38.69%

5Y-20.77%

3Y-9.55%

TTM80.95%

ROCE

10Y Avg6.01%

5Y Avg6.21%

3Y Avg6.88%

Latest7.63%

Peer Comparison

Filtration & Sealing Systems

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
NPOEnPro Industries, Inc.	5.09B	241.74	70.07	-1%	7.81%	5.68%	2.55%	0.49
CSWCSW Industrials, Inc.	5.49B	328.94	39.25	10.78%	14.88%	12.5%	2.77%	0.06
DCIDonaldson Company, Inc.	11.62B	100.73	33.03	2.92%	10.25%	25.18%	2.93%	0.50
GTESGates Industrial Corporation plc	5.95B	23.05	31.15	-4.54%	6.93%	6.37%	4.98%	0.74
ITTITT Inc.	15.75B	183.08	29.06	10.59%	12.67%	18.09%	2.78%	0.27
ITWIllinois Tool Works Inc.	75.97B	261.89	22.36	-1.3%	19.05%	94.27%	3.74%	2.44
ENOVEnovis Corporation	1.39B	24.26	-1.62	23.46%	-61.22%	-67.56%		0.55

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	2.75B	2.75B	3.04B	3.35B	3.09B	2.79B	3.47B	3.55B	3.57B	3.41B
Revenue Growth %	-0.07%	0%	0.11%	0.1%	-0.08%	-0.1%	0.24%	0.02%	0%	-0.05%
Cost of Goods Sold+	1.71B	1.69B	1.82B	2.02B	1.94B	1.76B	2.14B	2.3B	2.21B	2.05B
COGS % of Revenue	0.62%	0.61%	0.6%	0.6%	0.63%	0.63%	0.61%	0.65%	0.62%	0.6%
Gross Profit+	1.04B	1.06B	1.22B	1.33B	1.14B	1.03B	1.34B	1.25B	1.36B	1.36B
Gross Margin %	0.38%	0.39%	0.4%	0.4%	0.37%	0.37%	0.39%	0.35%	0.38%	0.4%
Gross Profit Growth %	-0.07%	0.02%	0.15%	0.09%	-0.14%	-0.09%	0.29%	-0.07%	0.09%	-0%
Operating Expenses+	784.1M	740.5M	776.8M	820.1M	786.4M	823.6M	855.1M	866.6M	896.3M	879.8M
OpEx % of Revenue	0.29%	0.27%	0.26%	0.24%	0.25%	0.29%	0.25%	0.24%	0.25%	0.26%
Selling, General & Admin	784.5M	737.7M	777.1M	805.8M	777.3M	776.9M	852.7M	853.7M	882.2M	870M
SG&A % of Revenue	0.29%	0.27%	0.26%	0.24%	0.25%	0.28%	0.25%	0.24%	0.25%	0.26%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	-400K	2.8M	-300K	14.3M	9.1M	46.7M	2.4M	12.9M	14.1M	9.8M
Operating Income+	184.6M	305.3M	402.9M	496.8M	346.8M	211.1M	484.1M	384M	462.6M	478.7M
Operating Margin %	0.07%	0.11%	0.13%	0.15%	0.11%	0.08%	0.14%	0.11%	0.13%	0.14%
Operating Income Growth %	-0.44%	0.65%	0.32%	0.23%	-0.3%	-0.39%	1.29%	-0.21%	0.2%	0.03%
EBITDA+	454.5M	546.1M	615.1M	715.3M	569M	429.7M	706.7M	601.2M	680.1M	695.6M
EBITDA Margin %	0.17%	0.2%	0.2%	0.21%	0.18%	0.15%	0.2%	0.17%	0.19%	0.2%
EBITDA Growth %	-0.16%	0.2%	0.13%	0.16%	-0.2%	-0.24%	0.64%	-0.15%	0.13%	0.02%
D&A (Non-Cash Add-back)	269.9M	240.8M	212.2M	218.5M	222.2M	218.6M	222.6M	217.2M	217.5M	216.9M
EBIT	254.3M	309.3M	344.1M	479.4M	356.6M	225.3M	483.2M	397.2M	439.4M	460.7M
Net Interest Income+	-212.6M	-216.3M	-230M	-196M	-159.9M	-153.7M	-132.1M	-141.6M	-156M	-156.7M
Interest Income	0	0	4.6M	3.7M	5.7M	4.3M	3.2M	3.6M	17.5M	13.7M
Interest Expense	212.6M	216.3M	234.6M	199.7M	165.6M	158M	135.3M	145.2M	173.5M	170.4M
Other Income/Expense	-142.9M	-212.3M	-293.4M	-193.3M	-148M	-140.1M	-134.4M	-126.2M	-177.3M	-150.7M
Pretax Income+	41.7M	93M	109.5M	303.5M	198.8M	71M	349.7M	257.8M	285.3M	328M
Pretax Margin %	0.02%	0.03%	0.04%	0.09%	0.06%	0.03%	0.1%	0.07%	0.08%	0.1%
Income Tax+	-9.2M	21.1M	-72.5M	31.8M	-495.9M	-19.3M	18.4M	14.9M	28.3M	107.5M
Effective Tax Rate %	0.6%	0.62%	1.38%	0.81%	3.47%	1.12%	0.85%	0.86%	0.82%	0.59%
Net Income+	24.9M	57.7M	151.3M	245.3M	690.1M	79.4M	297.1M	220.8M	232.9M	194.9M
Net Margin %	0.01%	0.02%	0.05%	0.07%	0.22%	0.03%	0.09%	0.06%	0.07%	0.06%
Net Income Growth %	-0.77%	1.32%	1.62%	0.62%	1.81%	-0.88%	2.74%	-0.26%	0.05%	-0.16%
Net Income (Continuing)	50.9M	71.9M	182M	271.7M	694.7M	90.3M	331.3M	242.9M	257M	220.5M
Discontinued Operations	0	0	0	0	0	-300K	0	-400K	-600K	-600K
Minority Interest	406.3M	377.1M	413.8M	386.3M	359.7M	379.3M	381.7M	333.6M	323.7M	316.7M
EPS (Diluted)+	0.09	0.20	0.53	0.84	2.37	0.27	1.00	0.77	0.85	0.74
EPS Growth %	-1%	1.28%	1.65%	0.58%	1.82%	-0.89%	2.7%	-0.23%	0.1%	-0.13%
EPS (Basic)	0.09	0.20	0.53	0.86	2.38	0.27	1.02	0.78	0.86	0.75
Diluted Shares Outstanding	283.97M	283.97M	283.97M	291.7M	291.63M	292.12M	297.29M	287.59M	275.65M	263.38M
Basic Shares Outstanding	283.97M	283.97M	283.97M	285.91M	290.06M	290.68M	291.62M	284.06M	271.88M	259.87M
Dividend Payout Ratio	-	-	-	-	-	-	-	-	-	-

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	1.45B	1.62B	1.83B	1.81B	1.96B	1.91B	2.28B	2.28B	2.4B	2.31B
Cash & Short-Term Investments	339.2M	529.8M	564.4M	423.4M	635.3M	524.1M	660.9M	581.4M	720.6M	682M
Cash Only	335.7M	527.2M	564.4M	423.4M	635.3M	524.1M	660.9M	581.4M	720.6M	682M
Short-Term Investments	3.5M	2.6M	0	0	0	0	0	0	0	0
Accounts Receivable	625.9M	659.4M	713.8M	749.5M	716.8M	723.6M	727.2M	821.6M	798.6M	751.3M
Days Sales Outstanding	83.22	87.62	85.66	81.72	84.75	94.56	76.4	84.37	81.64	80.46
Inventory	415.7M	366.9M	457.1M	537.6M	475.1M	508.2M	682.6M	656.2M	647.2M	676M
Days Inventory Outstanding	88.78	79.42	91.49	97.29	89.18	105.5	116.69	103.97	106.83	120.38
Other Current Assets	4.5M	0	17.8M	0	131.4M	150.7M	208M	218.2M	234.9M	196.7M
Total Non-Current Assets+	5.12B	4.76B	5.03B	4.91B	5.45B	5.52B	5.25B	4.91B	4.85B	4.48B
Property, Plant & Equipment	660.6M	599.6M	686.2M	756.3M	850.9M	825.9M	794.5M	769.7M	750.1M	718.9M
Fixed Asset Turnover	4.16x	4.58x	4.43x	4.43x	3.63x	3.38x	4.37x	4.62x	4.76x	4.74x
Goodwill	2.01B	1.91B	2.09B	2.05B	2.06B	2.12B	2.06B	1.98B	2.04B	1.91B
Intangible Assets	2.33B	2.14B	2.13B	1.99B	1.88B	1.79B	1.64B	1.49B	1.39B	1.25B
Long-Term Investments	4.1M	3.9M	600K	-439.5M	0	0	7.7M	32.7M	54.1M	0
Other Non-Current Assets	110.1M	96.3M	-388.7M	115.2M	78.2M	112.4M	107.6M	40M	1.8M	50.4M
Total Assets+	6.57B	6.38B	6.85B	6.72B	7.41B	7.43B	7.53B	7.19B	7.25B	6.79B
Asset Turnover	0.42x	0.43x	0.44x	0.50x	0.42x	0.38x	0.46x	0.49x	0.49x	0.50x
Asset Growth %	0.33%	-0.03%	0.07%	-0.02%	0.1%	0%	0.01%	-0.05%	0.01%	-0.06%
Total Current Liabilities+	565.2M	579.5M	697.8M	679M	658.1M	726.3M	855.9M	752.3M	779.3M	721.5M
Accounts Payable	274M	313.1M	392M	424M	374.7M	417.4M	506.6M	469.6M	457.7M	408.2M
Days Payables Outstanding	58.52	67.77	78.46	76.73	70.33	86.65	86.6	74.41	75.55	72.69
Short-Term Debt	88.3M	46.9M	66.4M	51.6M	65.9M	65.3M	60.1M	61.4M	36.5M	39.1M
Deferred Revenue (Current)	1000K	1000K	0	1000K	0	0	0	0	0	0
Other Current Liabilities	107.7M	20.2M	0	-100K	169M	229.6M	255.1M	197.8M	0	0
Current Ratio	2.56x	2.80x	2.62x	2.67x	2.98x	2.63x	2.66x	3.03x	3.08x	3.20x
Quick Ratio	1.83x	2.17x	1.96x	1.88x	2.25x	1.93x	1.86x	2.15x	2.25x	2.26x
Cash Conversion Cycle	113.49	99.26	98.68	102.28	103.6	113.41	106.48	113.94	112.92	128.15
Total Non-Current Liabilities+	4.81B	4.74B	4.73B	3.71B	3.74B	3.52B	3.2B	3B	2.93B	2.72B
Long-Term Debt	3.82B	3.79B	3.89B	2.95B	2.91B	2.67B	2.53B	2.43B	2.42B	2.31B
Capital Lease Obligations	1.5M	1.3M	0	1.9M	117.6M	113.6M	118.6M	123.5M	110.6M	127.3M
Deferred Tax Liabilities	714.7M	652.3M	517.1M	439.5M	369.3M	360.4M	283.7M	192M	119.4M	56.8M
Other Non-Current Liabilities	39.3M	25.2M	321.1M	315.1M	343.3M	375M	266.9M	253.8M	286.3M	228.9M
Total Liabilities	5.37B	5.31B	5.43B	4.39B	4.4B	4.24B	4.05B	3.75B	3.71B	3.45B
Total Debt+	3.91B	3.84B	3.96B	3B	3.1B	2.84B	2.71B	2.61B	2.56B	2.48B
Net Debt	3.57B	3.31B	3.39B	2.58B	2.46B	2.32B	2.04B	2.03B	1.84B	1.8B
Debt / Equity	3.28x	3.59x	2.77x	1.29x	1.03x	0.89x	0.78x	0.76x	0.72x	0.74x
Debt / EBITDA	8.60x	7.03x	6.43x	4.20x	5.44x	6.62x	3.83x	4.34x	3.77x	3.56x
Net Debt / EBITDA	7.86x	6.06x	5.51x	3.61x	4.32x	5.40x	2.89x	3.38x	2.71x	2.58x
Interest Coverage	0.87x	1.41x	1.72x	2.49x	2.09x	1.34x	3.58x	2.64x	2.67x	2.81x
Total Equity+	1.19B	1.07B	1.43B	2.33B	3.01B	3.19B	3.48B	3.44B	3.54B	3.34B
Equity Growth %	-0.41%	-0.1%	0.34%	0.63%	0.29%	0.06%	0.09%	-0.01%	0.03%	-0.06%
Book Value per Share	4.20	3.76	5.03	8.00	10.32	10.90	11.71	11.97	12.86	12.68
Total Shareholders' Equity	786.3M	691.3M	1.01B	1.95B	2.65B	2.81B	3.1B	3.11B	3.22B	3.02B
Common Stock	0	2.5M	1.63B	2.9M	2.9M	2.9M	2.9M	2.8M	2.6M	2.6M
Retained Earnings	-72M	-14.3M	136.9M	381.9M	1.07B	1.15B	1.44B	1.48B	1.46B	1.48B
Treasury Stock	-1.5M	0	0	0	0	0	0	0	0	0
Accumulated OCI	-759.9M	-915.9M	-747.4M	-854.3M	-858.4M	-805.4M	-825.2M	-917.8M	-828.5M	-1.08B
Minority Interest	406.3M	377.1M	413.8M	386.3M	359.7M	379.3M	381.7M	333.6M	323.7M	316.7M

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	275.9M	371.6M	313.5M	313.5M	348.9M	309M	382.4M	265.8M	481M	379.6M
Operating CF Margin %	0.1%	0.14%	0.1%	0.09%	0.11%	0.11%	0.11%	0.07%	0.13%	0.11%
Operating CF Growth %	-0.03%	0.35%	-0.16%	0%	0.11%	-0.11%	0.24%	-0.3%	0.81%	-0.21%
Net Income	50.9M	84.3M	182.7M	271.1M	694.1M	90M	331.3M	242.5M	256.4M	219.9M
Depreciation & Amortization	269.9M	240.8M	212.2M	218.5M	222.2M	218.6M	222.6M	217.2M	217.5M	216.9M
Stock-Based Compensation	4.3M	4.2M	5.4M	6M	15M	19.8M	24.6M	44.3M	27.4M	28.8M
Deferred Taxes	-67.4M	-54.3M	-162.8M	-64.9M	-648.4M	-47.7M	-94.3M	-79.7M	-65.7M	-12.1M
Other Non-Cash Items	-11.1M	4.9M	103.1M	47.3M	7.2M	22.2M	24.2M	-1M	-29.3M	-47.9M
Working Capital Changes	29.3M	91.7M	-27.1M	-164.5M	58.8M	6.1M	-126M	-157.5M	74.7M	-26M
Change in Receivables	4.3M	-44.8M	-24.6M	-49.6M	41.8M	9.7M	-22.3M	-129.3M	45.6M	8.4M
Change in Inventory	9.5M	39.5M	-45.4M	-96.1M	65.1M	-22.1M	-192.4M	2.9M	24.5M	-64M
Change in Payables	46.5M	50.2M	49.9M	42.1M	-48.2M	28.6M	99.6M	-15.9M	-17.8M	-27.6M
Cash from Investing+	-60.5M	-60.1M	-220.6M	-243.6M	-78M	-77.5M	-86M	-90.7M	-81.8M	-104.4M
Capital Expenditures	-85.8M	-68.1M	-111.1M	-182.7M	-83.1M	-67.4M	-87M	-77.6M	-61.2M	-83.1M
CapEx % of Revenue	0.03%	0.02%	0.04%	0.05%	0.03%	0.02%	0.03%	0.02%	0.02%	0.02%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	29.9M	11.8M	1.2M	-10M	5.1M	-10.1M	1M	-13.1M	-20.6M	-15M
Cash from Financing+	-73.9M	-110.8M	-75.3M	-198.9M	-59.3M	-353.8M	-148.6M	-253.1M	-258.3M	-286.7M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-32.9M	-42.7M	-42.1M	-65.1M	-36M	-25.7M	-51.6M	-61.2M	-5.7M	-17.1M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	190.1M	303.5M	202.4M	130.8M	265.8M	241.6M	295.4M	178.8M	409.6M	296.5M
FCF Margin %	0.07%	0.11%	0.07%	0.04%	0.09%	0.09%	0.09%	0.05%	0.11%	0.09%
FCF Growth %	-0.06%	0.6%	-0.33%	-0.35%	1.03%	-0.09%	0.22%	-0.39%	1.29%	-0.28%
FCF per Share	0.67	1.07	0.71	0.45	0.91	0.83	0.99	0.62	1.49	1.13
FCF Conversion (FCF/Net Income)	11.08x	6.44x	2.07x	1.28x	0.51x	3.89x	1.29x	1.20x	2.07x	1.95x
Interest Paid	208M	198.8M	198M	157.9M	150.8M	135.7M	121.2M	118.7M	155.1M	132.6M
Taxes Paid	86.4M	41.7M	84.8M	114M	108.8M	60.4M	83M	117.8M	110.5M	122.3M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	1.54%	5.1%	12.12%	13.04%	25.83%	2.56%	8.91%	6.38%	6.67%	5.66%
Return on Invested Capital (ROIC)	3.4%	5.01%	6.57%	7.65%	5.01%	2.88%	6.58%	5.24%	6.39%	6.82%
Gross Margin	37.74%	38.62%	40.04%	39.75%	37.01%	37.05%	38.54%	35.19%	38.06%	39.86%
Net Margin	0.91%	2.1%	4.97%	7.33%	22.35%	2.84%	8.55%	6.21%	6.52%	5.72%
Debt / Equity	3.28x	3.59x	2.77x	1.29x	1.03x	0.89x	0.78x	0.76x	0.72x	0.74x
Interest Coverage	0.87x	1.41x	1.72x	2.49x	2.09x	1.34x	3.58x	2.64x	2.67x	2.81x
FCF Conversion	11.08x	6.44x	2.07x	1.28x	0.51x	3.89x	1.29x	1.20x	2.07x	1.95x
Revenue Growth	-6.86%	0.07%	10.73%	10.06%	-7.78%	-9.53%	24.4%	2.3%	0.45%	-4.54%

Revenue by Segment

	2018	2019	2020	2021	2022	2023	2024
Power Transmission	2.1B	1.95B	1.8B	2.22B	2.17B	2.19B	2.11B
Power Transmission Growth	-	-7.29%	-7.48%	23.11%	-1.92%	0.81%	-3.79%
Fluid Power	1.25B	1.14B	992.8M	1.26B	1.38B	1.38B	1.3B
Fluid Power Growth	-	-8.60%	-13.02%	26.72%	9.73%	-0.11%	-5.72%

Revenue by Geography

	2018	2019	2020	2021	2022	2023	2024
UNITED STATES	1.28B	-	-	-	-	-	-
UNITED STATES Growth	-	-	-	-	-	-	-
EMEA	757.3M	-	-	-	-	-	-
EMEA Growth	-	-	-	-	-	-	-
East Asia And India	399.2M	-	-	-	-	-	-
East Asia And India Growth	-	-	-	-	-	-	-
CHINA	369.7M	-	-	-	-	-	-
CHINA Growth	-	-	-	-	-	-	-
North America Excluding United States	344.9M	-	-	-	-	-	-
North America Excluding United States Growth	-	-	-	-	-	-	-
South America	103.6M	-	-	-	-	-	-
South America Growth	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Gates Industrial Corporation plc (GTES) has a price-to-earnings (P/E) ratio of 31.1x. This suggests investors expect higher future growth.

Growth & Financials

Gates Industrial Corporation plc (GTES) reported $3.42B in revenue for fiscal year 2024. This represents a 17% increase from $2.92B in 2012.

Gates Industrial Corporation plc (GTES) saw revenue decline by 4.5% over the past year.

Yes, Gates Industrial Corporation plc (GTES) is profitable, generating $236.7M in net income for fiscal year 2024 (5.7% net margin).

Dividend & Returns

Gates Industrial Corporation plc (GTES) has a return on equity (ROE) of 5.7%. This is below average, suggesting room for improvement.

Gates Industrial Corporation plc (GTES) generated $295.4M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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