Gates Industrial Corporation plc (GTES) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-11.0%

$21.24

vs $23.87 price

Levered DCF

$22.07

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.4

Grey zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	22.36×	27.56×	15.6×	14.63×	15.6×	47.26×	5.78×	15.4×
P/B	1.68×	1.78×	1.13×	1.04×	1.5×	1.32×	1.51×	1.94×
P/S	1.62×	1.58×	1.02×	0.91×	1.34×	1.33×	1.29×	1.13×
EV / EBITDA	10.37×	10.58×	8.36×	8.58×	9.47×	13.58×	11.15×	9.12×
Gross margin	40.5%	39.9%	38.1%	35.2%	38.5%	37.0%	37.0%	39.7%
Operating margin	15.3%	14.0%	13.0%	10.8%	13.9%	7.6%	11.2%	14.8%
Net margin	7.3%	5.7%	6.5%	6.2%	8.6%	2.8%	22.4%	7.3%
Current ratio	3.37×	3.2×	3.08×	3.03×	2.66×	2.63×	2.98×	2.67×
Debt / equity	0.75×	0.82×	0.8×	0.84×	0.87×	1.01×	1.17×	1.54×
Interest coverage	3.55×	2.81×	2.67×	2.64×	3.58×	1.34×	2.09×	2.49×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	7.5%	6.4%	7.2%	7.1%	9.6%	2.8%	26.0%	12.6%
Return on invested capital	6.6%	5.3%	6.4%	5.6%	6.8%	3.1%	5.1%	7.3%
Return on assets	3.5%	2.9%	3.2%	3.1%	3.9%	1.1%	9.3%	3.6%
Free cash flow yield	7.2%	5.5%	11.2%	5.5%	6.4%	6.5%	6.7%	3.5%
Earnings yield	4.5%	3.6%	6.4%	6.8%	6.4%	2.1%	17.3%	6.5%
Enterprise value	$7.3B	$7.2B	$5.5B	$5.3B	$6.7B	$6B	$6.5B	$6.4B
Net debt / EBITDA	2.42×	2.65×	2.8×	3.3×	2.9×	5.23×	4.25×	3.7×
Cash conversion cycle (days)	131	128	113	114	106	113	104	102