Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Gates IndustrialSTU:1JL -1.71%79 Gross Margin % is 41.00% as of Jun. 2026, which is 6% above its 10-year median of 38.58. GuruFocus rates STU:1JL with a GF Score™ of 79/100 and a GF Value™ of €19.34 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 2,996 Industrial Products companies, Gates Industrial ranks better than 77.8% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Gates Industrial had a gross margin of 41.00% for the quarter that ended in Jun. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Gates Industrial Gross Margin % Related Terms
Gates Industrial Gross Margin % Historical Data
* Premium members only.
The historical data trend for Gates Industrial's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:1JL vs NPO, JBTM, MIDD: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Gates Industrial's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Gates Industrial Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Gates Industrial's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Gates Industrial's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Gates Industrial (STU:1JL) has a Gross Margin % of 41.00% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Gates Industrial and its competitors. This is near median its historical median of 38.58. Over the past decade, Gates Industrial's Gross Margin % has ranged from 35.19 to 40.04. According to the industry distribution chart, Gates Industrial ranks #665 out of 2996 companies in the Industrial Products industry, placing it in the top 22.2%.
Is Gates Industrial's Gross Margin % too high?
Gates Industrial's current Gross Margin % of 41.00% is near median its 10-year median of 38.58. Over the past 10 years, this metric has ranged from a low of 35.19 to a high of 40.04. The Industrial Products industry median Gross Margin % is 26.79. Gates Industrial's value of 41.00% is 53% above this industry median. Based on the distribution chart, Gates Industrial ranks #665 out of 2996 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Gates Industrial has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Gates Industrial's Gross Margin % compare to NPO and JBTM?
According to the Industrial Products industry distribution chart, Gates Industrial ranks #665 out of 2996 companies for Gross Margin %. This places Gates Industrial in the top 22% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.79. Gates Industrial's value of 41.00% is 53% above this benchmark. Historically, Gates Industrial's own Gross Margin % has ranged from 35.19 to 40.04 over the past decade. While the company's 10-year median is 38.58 vs. the industry median of 26.79, Gates Industrial has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.79, based on 2,996 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gates Industrial's current Gross Margin % of 41.00% is 53% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Gates Industrial and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gates Industrial's current Gross Margin % is 41.00%, which is near median its own 10-year median of 38.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gates Industrial stock overvalued right now?
Based on GuruFocus' analysis, Gates Industrial (STU:1JL) is currently considered Modestly Overvalued. The stock's GF Value™ is €19.34, compared to a current price of €23.00 — trading 18.9% above its estimated fair value. The current Gross Margin % is 41.00%, which is near median its 10-year median of 38.58 and 53% above the Industrial Products industry median of 26.79. Gates Industrial's overall GF Score™ is 79/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Gates Industrial (STU:1JL), the current Gross Margin % is 41.00% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Gates Industrial (STU:1JL) Overvalued in 2026?
Based on GuruFocus' analysis, Gates Industrial stock appears to be overvalued.
The current stock price of €23.00 is trading 18.9% above its estimated GF Value™ of €19.34.
GuruFocus considers Gates Industrial to be Modestly Overvalued.
Key valuation signals for STU:1JL:
Gross Margin %: 41.00% (near median its 10-year median of 38.58)
GF Value™: €19.34 vs. price of €23.00 (18.9% above fair value)
Industry Position: 53% above the Industrial Products median (#665 of 2996)
No single metric tells the full story. See the STU:1JL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gates Industrial Corp PLC is a manufacturer of engineered power transmission and fluid power solutions. The company has two operating segments; Power Transmission and Fluid Power segments. The Power Transmission solutions convey power and control motion. It is used in applications in which belts, chains, cables, geared transmissions, or direct drives transfer power from an engine or motor to another part or system. The Fluid power solutions are used in applications in which hoses and rigid tubing assemblies either transfer power hydraulically or convey fluids, gases, or granular materials from one location to another. The company generates key revenue from the Power Transmission segment. Company operates in USA, United Kingdom, Luxembourg, EMEA, with majority revenue from USA.
79GF Score
Get the complete analysis for STU:1JL
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
STU:1JL has been successfully added to your 
