Gates Industrial Corporation plc manufactures and sells engineered power transmission and fluid power solutions worldwide. It operates in two segments, Power Transmission and Fluid Power. The company offers synchronous or asynchronous belts, including V-belts, CVT belts, and Micro-V belts, as well as related components, such as sprockets, pulleys, water pumps, tensioners, and other accessories; solutions for stationary and mobile drives, engine systems, and personal mobility application platforms; metal drive components; and kits for automotive replacement channels. It also provides fluid power solutions comprising stationary hydraulics, mobile hydraulics, vehicle systems, and other industrial application platforms; and hydraulics, including hoses, tubing, coupling, and fittings, as well as assemblies. The company’s products are used in applications across various markets, including industrial off-highway, such as construction and agriculture; industrial on-highway commercial vehicles comprising heavy-duty trucks and buses, energy and resources, automotive, and personal mobility; and various industrial applications, such as automated manufacturing and logistics systems. It sells its products under the Gates brand. It offers its products to replacement channel customers, as well as to original equipment manufacturers. The company was founded in 1911 and is headquartered in Denver, Colorado.
Margin Expansion | Gates Industrial targets 400 basis point margin improvement through strategic initiatives, focusing on the 80/20 principle and supply chain optimization |
Market Resilience | Explore Gates' "defensive cyclical" position, with 65% of business from aftermarket segments, providing stability amid market volatility |
Growth Catalysts | Delve into emerging opportunities in datacenter liquid cooling and chain-to-belt conversion trends driving Gates' diversified growth strategy |
Analyst Outlook | Analyst price targets range from $16 to $26, reflecting varied perspectives on Gates' ability to navigate sector-specific challenges and capitalize on growth |
Metrics to compare | GTES | Sector Sector - Average of metrics from a broad group of related Industrials sector companies | Relationship RelationshipGTESPeersSector | |
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P/E Ratio | 29.8x | 12.7x | 12.5x | |
PEG Ratio | −3.40 | 0.03 | 0.03 | |
Price/Book | 2.1x | 1.1x | 1.4x | |
Price / LTM Sales | 1.9x | 1.1x | 1.2x | |
Upside (Analyst Target) | 6.8% | 32.1% | 14.9% | |
Fair Value Upside | Unlock | 24.2% | 6.9% | Unlock |