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Gates IndustrialGTES -1.19%81 Net Margin % is 18.15% as of Jun. 2026, which is 185% above its 10-year median of 6.37. 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 3,034 Industrial Products companies, Gates Industrial ranks better than 76.24% on this metric.
Gates Industrial (NYSE:GTES) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Gates Industrial Net Margin % Related Terms
Gates Industrial Net Margin % Historical Data
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The historical data trend for Gates Industrial's Net 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.
For the Specialty Industrial Machinery subindustry, Gates Industrial's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Gates Industrial's Net Margin % distribution charts can be found below:
* The bar in red indicates where Gates Industrial's Net 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.
Gates Industrial (GTES) has a Net Margin % of 18.15% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Gates Industrial and its competitors. This is 185% above median its historical median of 6.37. Over the past decade, Gates Industrial's Net Margin % has ranged from 2.10 to 22.35. According to the industry distribution chart, Gates Industrial ranks #721 out of 3034 companies in the Industrial Products industry, placing it in the top 23.8%.
Is Gates Industrial's Net Margin % too high?
Gates Industrial's current Net Margin % of 18.15% is 185% above median its 10-year median of 6.37. Over the past 10 years, this metric has ranged from a low of 2.10 to a high of 22.35. The Industrial Products industry median Net Margin % is 4.51. Gates Industrial's value of 18.15% is 302.9% above this industry median. Based on the distribution chart, Gates Industrial ranks #721 out of 3034 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 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Gates Industrial's Net Margin % compare to NPO and JBTM?
According to the Industrial Products industry distribution chart, Gates Industrial ranks #721 out of 3034 companies for Net Margin %. This places Gates Industrial in the top 24% of its industry — outperforming the majority of peers. The industry median Net Margin % is 4.51. Gates Industrial's value of 18.15% is 302.9% above this benchmark. Historically, Gates Industrial's own Net Margin % has ranged from 2.10 to 22.35 over the past decade. While the company's 10-year median is 6.37 vs. the industry median of 4.51, 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 Net Margin % for an Industrial Products company?
The median Net Margin % among Industrial Products companies is 4.51, based on 3,034 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gates Industrial's current Net Margin % of 18.15% is 302.9% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Gates Industrial and its competitors. For the Industrial Products industry, the median Net Margin % is 4.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gates Industrial's current Net Margin % is 18.15%, which is 185% above median its own 10-year median of 6.37. 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 Net Margin % is 18.15%, which is 185% above median its 10-year median of 6.37 and 302.9% above the Industrial Products industry median of 4.51. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Gates Industrial (GTES), the current Net Margin % is 18.15% 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:
Net Margin %: 18.15% (185% above median its 10-year median of 6.37)
GF Value™: $21.88 vs. price of $28.25 (29.1% above fair value)
Industry Position: 302.9% above the Industrial Products median (#721 of 3034)
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
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