# Gates Industrial Corporation Ltd. (GTES)

> Source: Nexqual · https://nexqual.com/GTES · data as of 2026-10-28 20:00 UTC · cite as "Nexqual, Gates Industrial Corporation Ltd. (GTES), nexqual.com/GTES" · informational, not investment advice.

**Price:** USD 25.92 (+0.31% on the day) · last close of Oct 28, 2026; US market closed, not a live price. Prev close 25.84 · day 25.51–26.38 · 52w 20.88–30.34 · market cap $6.56B · NYQ

## Key facts
- Last four reported quarters (through Jun 27, 2026): revenue $3.50B, net income $364M (10.4% margin), free cash flow $405M (SEC filings).
- Valuation: P/E 18.1x (avg 22.0x at the last 3 fiscal year-ends), EV/EBITDA 11.6x, net debt $1.41B.
- Insider open-market sales, last ~7 months: 2 Form 4 filings, $498K; 2 not under a Rule 10b5-1 plan ($498K); 0 by opportunistic insiders, 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Buy (mean 2.17 on a 1–5 scale) (12 analysts), mean target USD 33.25 (range 29–39).
- Total return with dividends: 1Y +15.2% vs S&P 500 +13.6%; 5Y +57.7% vs S&P 500 +79.8%.
- Next earnings: 2026-10-30, EPS estimate USD 0.44, revenue estimate $905M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $3.47B | $3.55B | $3.57B | $3.41B | $3.44B | $3.50B |
| Gross profit | $1.34B | $1.25B | $1.36B | $1.36B | $1.37B | — |
| Operating income | $484M | $384M | $460M | $472M | $465M | $465M |
| Net income | $297M | $221M | $233M | $195M | $251M | $364M |
| EPS (diluted) | $1.00 | $0.77 | $0.84 | $0.74 | $0.96 | — |
| Free cash flow | $305M | $188M | $420M | $297M | $405M | $405M |
| Gross margin | 38.5% | 35.2% | 38.1% | 39.9% | 39.8% | — |
| Operating margin | 13.9% | 10.8% | 12.9% | 13.9% | 13.5% | 13.3% |
| Net margin | 8.6% | 6.2% | 6.5% | 5.7% | 7.3% | 10.4% |
| Revenue growth | +24.4% | +2.3% | +0.5% | -4.5% | +1.0% | — |
| Cash + short-term investments | $658M | $578M | $721M | $682M | $812M | — |
| Total debt | $2.56B | $2.46B | $2.45B | $2.35B | $2.23B | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 27, 2026)
P/E 18.1x · P/S 1.9x · EV/EBITDA 11.6x · EV/Sales 2.3x · P/FCF 16.2x · P/B 1.9x · FCF yield 6.18% · Earnings yield 5.54% · Buyback yield (TTM) 2.21% · Net debt $1.41B · EV $7.97B
P/E at fiscal year-ends: Dec 2025 22.3x, Dec 2024 27.9x, Dec 2023 15.9x.

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 2 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-08-06 | Zhang Peifang | Director | 6,000 | $172K | 12% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-08-04…2026-08-05 | Zhang Peifang | Director | 11,000 | $326K | 18% | No | Too little history (no open-market trades in 2023–2025) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Buy (mean 2.17 on a 1–5 scale), 12 analysts; mean target USD 33.25 (low 29, high 39).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-09-01 | DA Davidson | Initiated | Neutral | $29 |
| 2026-08-11 | Evercore ISI Group | Target raised | In-Line | $30 → $32 |
| 2026-08-03 | Citigroup | Target raised | Buy | $33 → $35 |
| 2026-08-03 | RBC Capital | Target raised | Outperform | $33 → $34 |
| 2026-08-03 | JP Morgan | Target raised | Overweight | $32 → $34 |
| 2026-08-03 | Wells Fargo | Target raised | Equal-Weight | $26 → $30 |
| 2026-08-03 | Keybanc | Target raised | Overweight | $31 → $34 |
| 2026-08-03 | Baird | Target raised | Outperform | $37 → $39 |
| 2026-07-16 | RBC Capital | Target raised | Outperform | $30 → $33 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-29) | 5Y (from 2021-10-25) |
|---|---|---|
| Total return | +15.2% | +57.7% |
| S&P 500 (SPY) | +13.6% | +79.8% |
| Per year | +15.3% | +9.5% |
| Volatility (annualized) | 39.0% | 34.3% |
| Max drawdown | -25.0% (Feb 2026→Mar 2026) | -46.3% (Nov 2021→Sep 2022) |

## Peers (Specialty Industrial Machinery)
GGG (Graco Inc.) USD 67.16 +1.05% · WTS (Watts Water Technologies, Inc.) USD 342.87 -5.12% · CR (Crane Company) USD 198.42 +2.87% · GNRC (Generac Holdlings Inc.) USD 201.34 +3.94% · INIO (INNIO N.V.) USD 18.35 +8.07% · IEX (IDEX Corporation) USD 238.54 +2.29%

## More
Full page: https://nexqual.com/GTES · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Company outlook (8-K filed 2026-07-31)

- "The Company is raising its full year 2026 financial guidance."
- "The table below reflects our updated full year 2026 financial guidance."
- "Because GAAP financial measures on a forward-looking basis are not accessible, and reconciling information is not available without unreasonable effort, we have not provided reconciliations for forward-looking non-GAAP measures, including expected Core Sales Growth, Adjusted EBITDA, Adjusted Earnings per Share and Free Cash Flow conversion for 2026."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.44 | $0.43 | +1.8% | $904.7M | 12 |
| Next quarter (ends 2026-12-31) | $0.45 | $0.45 | +1.1% | $915.7M | 11 |
| Current fiscal year (ends 2026-12-31) | $1.68 | $1.64 | +2.6% | $3.61B | 12 |
| Next fiscal year (ends 2027-12-31) | $1.92 | $1.88 | +1.9% | $3.79B | 12 |

## Earnings history and stock reaction
| Results filed | Quarter | EPS | Consensus | Surprise | Stock reaction |
|---|---|---|---|---|---|
| — | Quarter ended Jun 30, 2026 | $0.44 | $0.42 | Beat +4.8% | — |
| — | Quarter ended Mar 31, 2026 | $0.35 | $0.33 | Beat +6.1% | — |
| — | Quarter ended Dec 31, 2025 | $0.38 | $0.37 | Beat +2.7% | — |
| — | Quarter ended Sep 30, 2025 | $0.39 | $0.37 | Beat +5.4% | — |
EPS as reported against the analyst consensus before the release; surprise uses the cent-rounded figures shown (in dollars when EPS and consensus have opposite signs). Stock reaction = close before the results to close after (the first close following a release after the bell or before the open).

## Recent SEC filings (last 120 days)
| Filed | Form | What it says | Filing |
|---|---|---|---|
| 2026-08-06 | Schedule 13G | BlackRock, Inc.: 11.6% of shares, passive 5%+ holder | https://www.sec.gov/Archives/edgar/data/1718512/000201238326003221/0002012383-26-003221-index.htm |
| 2026-08-06 | Schedule 13G/A | BlackRock, Inc.: 0.0% of shares, passive 5%+ holder (amended) | https://www.sec.gov/Archives/edgar/data/1718512/000201238326003219/0002012383-26-003219-index.htm |
| 2026-08-06 | Schedule 13G/A | FMR LLC, Abigail P. Johnson: 7.7% of shares, passive 5%+ holder (amended) | https://www.sec.gov/Archives/edgar/data/1718512/000031506626002204/0000315066-26-002204-index.htm |
| 2026-07-31 | 10-Q | Quarterly report · period ended Jun 27, 2026 | https://www.sec.gov/Archives/edgar/data/1718512/000162828026051411/0001628280-26-051411-index.htm |
| 2026-07-31 | 8-K | Quarterly results | https://www.sec.gov/Archives/edgar/data/1718512/000162828026051221/0001628280-26-051221-index.htm |
| 2026-07-30 | 15-12G | Deregistration | https://www.sec.gov/Archives/edgar/data/1718512/000162828026051094/0001628280-26-051094-index.htm |
| 2026-07-20 | 25-NSE | Removal from exchange listing | https://www.sec.gov/Archives/edgar/data/1718512/000087666126000632/0000876661-26-000632-index.htm |
| 2026-07-16 | 8-K | Other material event — “On July 16, 2026, Gates Industrial Corporation plc ("Old Gates" and together with its subsidiaries, the "Gates Group") and Gates Industrial Corporation Ltd., a Bermuda exempted company limited by shares ("New Gates"), received approval from the High Court of Justice of England and Wales of a statutory scheme of arrangement under English law (the "Scheme"), previously approved by Old Gates shareholders on June 25, 2026. Pursuant to the Scheme, as previously disclosed, New Gates will become the parent holding…” | https://www.sec.gov/Archives/edgar/data/1718512/000162828026048464/0001628280-26-048464-index.htm |
Source: SEC EDGAR. Quotes are the opening words of each item as filed.