GTES
Gates Industrial Corporation Ltd.

Gates Industrial Corporation Ltd.GTES

Industrials · Specialty Industrial Machinery
24.10USD
+2.29%
Nov 09, 2026
GTES overview ready
Supplier of power-transmission belts and pumps for data center cooling systems
Gates is a component supplier to liquid-cooling and facility-cooling systems, providing engineered coolant hoses, quick-disconnect couplings, tubing, compact axial-flux pumps, and power-transmission products.
Primary theme is improving
Diversified Industrials is improving (+8.5pp vs SPY over 21 sessions; 16 of 24 members ahead of SPY).
Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
Fair valuation
The price broadly reflects the cash the business actually produces, with upside and risk reasonably balanced.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Exposure to industrial capital spending cycles.
Market Nov 6Filing Sep 26Price action Nov 8Research Nov 1

Conviction Level

PriceAction5.4BusinessPerformance5.0BusinessQuality7.3Valuation4.3ThemeMomentum7.0Stable — Revenue is growing at a steady pace (+5.6% year over year). Diluted EPS is up 10% year over year ($0.34), but growth has slowed from +205%. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
+8.5pp
Theme return
+3.5%
Beating SPY
16 of 24
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads trend under pressure, with a near-term setup of failed reclaim.
The tactical setup reads failed reclaim, but the weekly structure is broken.
EntryConstructive

Structure is constructive on both timeframes without excessive extension — a reasonable entry location.

Key Financials

Market Cap
$6.1B
Avg Volume (60D)
2.2M
60 sessions
Revenue Growth YoY
+1.0%
FY2025 vs FY2024
Gross Margin
+40.3%
Trailing twelve months
Operating Margin
+13.5%
Trailing twelve months
Free Cash Flow Yield
+6.1%
Distance from 200DMA
-6.6%
P/E
16.4x
EV / EBITDA
10.6x
EV / Sales
2.1x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 26, 2026
Filed balance-sheet data as of Sep 26, 2026

Business Performance

Stable

Revenue is growing at a steady pace (+5.6% year over year). Diluted EPS is up 10% year over year ($0.34), but growth has slowed from +205%.

Latest reported: Q3 FY2026, ended Sep 26
Revenue growthGrowing
+5.6%
$904M in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. +3.2%
  2. +0.4%
  3. +6.6%
  4. +5.6%
Earnings growthSlowing
+9.7%
Diluted EPS $0.34 vs $0.31 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. +43%
  2. -4.2%
  3. +205%
  4. +9.7%
Operating marginExpanding
14.5%
+1.0 pp YoY · gross margin 42.4% (+2.5 pp)

Business Quality

7.3 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Two of the three valuation perspectives say fair; peers is the dissenting view.
Gates Industrial Corporation Ltd. has a Fair valuation stance because the price broadly reflects the cash the business actually produces, with upside and risk reasonably balanced.

Company Research

Thesis
Gates is a component supplier to liquid-cooling and facility-cooling systems, providing engineered coolant hoses, quick-disconnect couplings, tubing, compact axial-flux pumps, and power-transmission products.
Opportunity
Moderate opportunity
Hyperscaler and colocation capital spending on high-density AI data-center electrical and liquid-cooling infrastructure.
Key risk
Exposure to industrial capital spending cycles.

Economic classification

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Business & Markets

Industrials · Specialty Industrial Machinery
What they do

Gates Industrial Corporation Ltd. manufactures and sells engineered power transmission and fluid power solutions globally through two segments: Power Transmission and Fluid Power.

How it earns

The company generates revenue primarily through transactional sales of engineered components and systems to industrial customers.

Products & services
Elastomer drive belts
Asynchronous and synchronous belts
V-belts
Metal drive components
Pumps for cooling infrastructure
Customers & end markets
Industrial machinery manufacturers
Data center operators
Mobile and stationary drive system users
Market position

A recognized supplier and component manufacturer within specialty industrial machinery, serving multiple global markets.

Demand drivers
Medium cyclicality

Business is linked to industrial capital spending cycles and infrastructure buildouts, including data centers.

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