Latest Ratios: P/E Ratio 28.3x · EV/EBITDA 11.6x · ROE 7.2%. (2012–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $6.9B | $5.6B | $5.4B | $3.7B | $3.3B | $4.7B | $3.7B | $4.0B | $3.9B | — | — |
| Enterprise Value | $8.6B | $7.3B | $7.2B | $5.5B | $5.3B | $6.8B | $6.0B | $6.5B | $6.4B | — | — |
| P/E Ratio → | 28.28 | 22.36 | 27.93 | 15.79 | 14.82 | 15.91 | 47.26 | 5.81 | 15.76 | — | — |
| P/S Ratio | 2.01 | 1.62 | 1.60 | 1.04 | 0.92 | 1.36 | 1.33 | 1.30 | 1.15 | — | — |
| P/B Ratio | 1.92 | 1.52 | 1.63 | 1.04 | 0.95 | 1.36 | 1.17 | 1.33 | 1.65 | — | — |
| P/FCF | 17.07 | 13.81 | 18.36 | 9.03 | 18.35 | 16.01 | 15.43 | 15.10 | 29.53 | — | — |
| P/OCF | 14.46 | 11.70 | 14.34 | 7.69 | 12.35 | 12.37 | 12.06 | 11.50 | 12.32 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.12 | 2.12 | 1.55 | 1.49 | 1.95 | 2.17 | 2.10 | 1.92 | — | — |
| EV / EBITDA | 11.60 | 9.83 | 10.41 | 8.15 | 8.83 | 9.59 | 14.08 | 11.38 | 9.01 | — | — |
| EV / EBIT | 16.30 | 13.80 | 15.72 | 12.61 | 13.37 | 14.02 | 26.85 | 18.15 | 13.44 | — | — |
| EV / FCF | — | 18.01 | 24.42 | 13.53 | 29.71 | 22.93 | 25.03 | 24.35 | 49.26 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 40.5% | 40.5% | 39.9% | 38.1% | 35.2% | 38.5% | 37.0% | 37.0% | 39.7% | 40.0% | 38.6% |
| Operating Margin | 15.3% | 15.3% | 14.0% | 13.0% | 10.8% | 13.9% | 7.6% | 11.2% | 14.8% | 13.2% | 11.1% |
| Net Profit Margin | 7.3% | 7.3% | 5.7% | 6.5% | 6.2% | 8.6% | 2.8% | 22.4% | 7.3% | 5.0% | 2.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.2% | 7.2% | 5.7% | 6.7% | 6.4% | 8.9% | 2.6% | 25.8% | 13.0% | 12.1% | 5.1% |
| ROA | 3.6% | 3.6% | 2.8% | 3.2% | 3.0% | 4.0% | 1.1% | 9.8% | 3.6% | 2.3% | 0.9% |
| ROIC | 7.5% | 7.5% | 6.8% | 6.4% | 5.2% | 6.6% | 2.9% | 5.0% | 7.7% | 6.6% | 5.0% |
| ROCE | 8.5% | 8.5% | 7.6% | 7.2% | 5.9% | 7.2% | 3.1% | 5.4% | 8.1% | 6.7% | 5.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.68 | 0.68 | 0.74 | 0.72 | 0.76 | 0.78 | 0.89 | 1.03 | 1.29 | 2.77 | 3.59 |
| Debt / EBITDA | 3.38 | 3.38 | 3.56 | 3.77 | 4.34 | 3.83 | 6.62 | 5.44 | 4.20 | 6.43 | 7.03 |
| Net Debt / Equity | — | 0.46 | 0.54 | 0.52 | 0.59 | 0.59 | 0.73 | 0.82 | 1.11 | 2.37 | 3.10 |
| Net Debt / EBITDA | 2.29 | 2.29 | 2.58 | 2.71 | 3.38 | 2.89 | 5.40 | 4.32 | 3.61 | 5.51 | 6.06 |
| Debt / FCF | — | 4.19 | 6.06 | 4.50 | 11.35 | 6.92 | 9.61 | 9.26 | 19.74 | 16.76 | 10.91 |
| Interest Coverage | 3.55 | 3.55 | 2.70 | 2.53 | 2.74 | 3.57 | 1.43 | 2.15 | 2.40 | 1.47 | 1.43 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.37 | 3.37 | 3.20 | 3.08 | 3.03 | 2.66 | 2.63 | 2.98 | 2.67 | 2.62 | 2.80 |
| Quick Ratio | 2.42 | 2.42 | 2.26 | 2.25 | 2.15 | 1.86 | 1.93 | 2.25 | 1.88 | 1.96 | 2.17 |
| Cash Ratio | 1.10 | 1.10 | 0.95 | 0.92 | 0.77 | 0.77 | 0.72 | 0.97 | 0.62 | 0.81 | 0.91 |
| Asset Turnover | — | 0.48 | 0.50 | 0.49 | 0.49 | 0.46 | 0.38 | 0.42 | 0.50 | 0.44 | 0.43 |
| Inventory Turnover | 2.93 | 2.93 | 3.03 | 3.42 | 3.51 | 3.13 | 3.46 | 4.09 | 3.75 | 3.99 | 4.60 |
| Days Sales Outstanding | — | 78.89 | 80.46 | 81.64 | 84.37 | 76.40 | 94.56 | 84.75 | 81.72 | 85.66 | 87.62 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.5% | 4.5% | 3.6% | 6.3% | 6.7% | 6.3% | 2.1% | 17.2% | 6.3% | — | — |
| FCF Yield | 5.9% | 7.2% | 5.4% | 11.1% | 5.4% | 6.2% | 6.5% | 6.6% | 3.4% | — | — |
| Buyback Yield | 1.7% | 2.1% | 3.2% | 6.8% | 5.4% | 0.2% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 1.7% | 2.1% | 3.2% | 6.8% | 5.4% | 0.2% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $261M | $263M | $276M | $288M | $297M | $292M | $292M | $292M | $284M | $284M |
Stagnant organic revenue growth
According to current market data, GTES trades at a forward P/E of 17.64, which appears elevated given the company's 1.03% revenue growth, suggesting that investors are pricing in a recovery in industrial demand that has yet to materialize in the reported financial results.
The valuation multiples, including an EV/EBITDA of 12.16, reflect a market expectation of stability rather than aggressive expansion. This pricing warrants caution, as the current P/E premium relative to the company's historical growth trajectory may be vulnerable if the industrial cycle fails to accelerate.
Based on recent quarterly filings, the company's ROIC has remained consistently low, hovering near 1.6% to 1.9%, which indicates that the firm is struggling to generate meaningful returns on its invested capital compared to its industrial peers and historical performance benchmarks.
The persistent gap between the cost of capital and these low returns suggests that the company's massive goodwill and intangible asset base may be diluting overall efficiency. Investors should monitor whether management can improve asset utilization or if the current capital structure is structurally optimized for lower-growth environments.
As reported in financial statements, the cash conversion cycle has fluctuated significantly, reaching as high as 150 days in 2025Q3, which highlights the company's reliance on heavy inventory stocking to maintain its distribution network and service the fragmented aftermarket replacement channel.
The high days inventory outstanding (DIO) suggests that the company is carrying substantial capital in the form of unsold parts, which ties up cash flow and limits operational agility. This inefficiency appears to be a structural byproduct of the high-SKU business model rather than a temporary operational lapse.
According to the most recent quarterly data, the company has aggressively reduced its debt-to-equity ratio to 0.68%, a significant improvement that provides a much-needed buffer against the volatility inherent in the industrial machinery sector and potential future interest rate fluctuations.
This shift toward a cleaner balance sheet suggests that management is prioritizing financial stability over aggressive debt-funded expansion. While this reduces insolvency risk, it also raises questions about whether the company will deploy this newfound capacity for value-accretive M&A or continue to favor share repurchases.
The P/E ratio is frequently misapplied to this business model because it fails to account for the significant non-cash charges and restructuring costs that often depress reported net income, thereby obscuring the company's underlying ability to generate consistent free cash flow from its aftermarket operations.
Analysts should instead focus on EV/EBITDA or P/FCF to better capture the cash-generative nature of the replacement-driven revenue stream. Relying solely on P/E may lead to an undervaluation of the company's true earning power, especially given the recent volatility in net margins.
Includes 30+ ratios · 13 years · Updated daily
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Quick answers to the most common questions about buying GTES stock.
Gates Industrial Corporation plc's current P/E ratio is 28.3x. The historical average is 20.7x. This places it at the 88th percentile of its historical range.
Gates Industrial Corporation plc's current EV/EBITDA is 11.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.2x.
Gates Industrial Corporation plc's return on equity (ROE) is 7.2%. The historical average is 7.6%.
Based on historical data, Gates Industrial Corporation plc is trading at a P/E of 28.3x. This is at the 88th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Gates Industrial Corporation plc has 40.5% gross margin and 15.3% operating margin. Operating margin between 10-20% is typical for established companies.
Gates Industrial Corporation plc's Debt/EBITDA ratio is 3.4x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.