GTESGates Industrial Corporation plc
Is the business good?
A genuinely good business: 7 of 9 health tests passed, earnings fully cash-backed (1.3×), and margins widening.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash.
Operating profit is falling even as sales grow, costs are outrunning the top line.
A balanced mix of margins, efficiency, and leverage. ROE 8% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GTES?
Gates Industrial Corporation plc earns 7.4% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 1.6 points below what the capital costs: growth destroys value
- Operating margin
- 13%
Operating margin · Specialty Industrial Machinery median 14% · 12 months to Q2 2026
- Cash conversion
- 1.30×
Cash conversion · 1.29× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.7%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 7.6% |
| FY2021 | 14% |
| FY2022 | 11% |
| FY2023 | 13% |
| FY2024 | 14% |
| FY2025 | 14% |
Details›
- Gross margin12 months to Q2 2026
- 40%
- Operating margin12 months to Q2 2026
- 13%
- Net margin12 months to Q2 2026
- 10%
- Free cash flow margin
- 12%
- Revenue, trailing twelve months
- $3.50B
- Free cash flow, trailing twelve months
- $405M
- Net income, trailing twelve months
- $364M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.4%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Specialty Industrial Machinery
Ranks #14 of 33 by RyuScore