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Gates IndustrialGTES -1.19%81 Interest Coverage is 4.75 as of Jun. 2026, which is 65% above its 10-year median of 2.88. GuruFocus rates GTES with a GF Score™ of 81/100 and a GF Value™ of $21.88 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 2,324 Industrial Products companies, Gates Industrial ranks worse than 77.37% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Gates Industrial's
Operating Income
for the
three
months ended in Jun. 2026 was $135 Mil. Gates Industrial's Interest Expense for the
three
months ended in Jun. 2026 was $-29 Mil.
Gates Industrial's interest coverage for the quarter that ended in Jun. 2026 was 4.75.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Gates Industrial's Interest Coverage or its related term are showing as below:
GTES'
s Interest Coverage Range Over the Past 10 Years
Min: 1.48 Med: 2.88 Max: 4.19
Current: 4.04
GTES's Interest Coverage is ranked worse than 77.37% of 2324
companies
in the Industrial Products industry
Industry Median: 14.63
vs GTES: 4.04
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Gates Industrial Interest Coverage Related Terms
Gates Industrial Interest Coverage Historical Data
* Premium members only.
The historical data trend for Gates Industrial's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
GTES vs NPO, JBTM, MIDD: Interest Coverage Comparison
For the Specialty Industrial Machinery subindustry, Gates Industrial's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Gates Industrial's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Gates Industrial's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Gates Industrial (GTES) has a Interest Coverage of 4.75 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Gates Industrial and its competitors. This is 65% above median its historical median of 2.88. Over the past decade, Gates Industrial's Interest Coverage has ranged from 1.48 to 4.19. According to the industry distribution chart, Gates Industrial ranks #1798 out of 2324 companies in the Industrial Products industry, placing it in the top 77.4%.
Is Gates Industrial's Interest Coverage too high?
Gates Industrial's current Interest Coverage of 4.75 is 65% above median its 10-year median of 2.88. Over the past 10 years, this metric has ranged from a low of 1.48 to a high of 4.19. The Industrial Products industry median Interest Coverage is 14.63. Gates Industrial's value of 4.75 is 67.5% below this industry median. Based on the distribution chart, Gates Industrial ranks #1798 out of 2324 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Gates Industrial has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Gates Industrial's Interest Coverage compare to NPO and JBTM?
According to the Industrial Products industry distribution chart, Gates Industrial ranks #1798 out of 2324 companies for Interest Coverage. This places Gates Industrial in the lower half of its industry. The industry median Interest Coverage is 14.63. Gates Industrial's value of 4.75 is 67.5% below this benchmark. Historically, Gates Industrial's own Interest Coverage has ranged from 1.48 to 4.19 over the past decade. While the company's 10-year median is 2.88 vs. the industry median of 14.63, Gates Industrial has consistently been below 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 Interest Coverage for an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.63, based on 2,324 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gates Industrial's current Interest Coverage of 4.75 is 67.5% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Gates Industrial and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gates Industrial's current Interest Coverage is 4.75, which is 65% above median its own 10-year median of 2.88. 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 (GTES) is currently considered Modestly Overvalued. The stock's GF Value™ is $21.88, compared to a current price of $28.25 — trading 29.1% above its estimated fair value. The current Interest Coverage is 4.75, which is 65% above median its 10-year median of 2.88 and 67.5% below the Industrial Products industry median of 14.63. Gates Industrial's overall GF Score™ is 81/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Gates Industrial (GTES), the current Interest Coverage is 4.75 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 (GTES) Overvalued in 2026?
Based on GuruFocus' analysis, Gates Industrial stock appears to be overvalued.
The current stock price of $28.25 is trading 29.1% above its estimated GF Value™ of $21.88.
GuruFocus considers Gates Industrial to be Modestly Overvalued.
Key valuation signals for GTES:
Interest Coverage: 4.75 (65% above median its 10-year median of 2.88)
GF Value™: $21.88 vs. price of $28.25 (29.1% above fair value)
Industry Position: 67.5% below the Industrial Products median (#1798 of 2324)
No single metric tells the full story. See the GTES 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.
81GF Score
Get the complete analysis for GTES
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