Is the business good?
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.
7.4%
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 15% · 12 months to Q1 2026
- Cash conversion
- 1.72×
Cash conversion · 1.49× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −1.8%
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 Q1 2026
- 40%
- Operating margin12 months to Q1 2026
- 13%
- Net margin12 months to Q1 2026
- 7.2%
- Free cash flow margin
- 12%
- Revenue, trailing twelve months
- $3.45B
- Free cash flow, trailing twelve months
- $429M
- Net income, trailing twelve months
- $249M
- 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 from the cash flow statement.
Specialty Industrial Machinery
Ranks #39 of 44 by Smart Score