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Gates IndustrialSTU:1JL -1.71%79 Operating Margin % is 14.38% as of Jun. 2026, which is 5% above its 10-year median of 13.71. GuruFocus rates STU:1JL with a GF Score™ of 79/100 and a GF Value™ of €19.26 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 3,036 Industrial Products companies, Gates Industrial ranks better than 79.05% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Gates Industrial Operating Margin % Related Terms
Gates Industrial Operating Margin % Historical Data
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The historical data trend for Gates Industrial's Operating 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: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, Gates Industrial's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Gates Industrial's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Gates Industrial's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Gates Industrial's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (STU:1JL) has a Operating Margin % of 14.38% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Gates Industrial and its competitors. This is near median its historical median of 13.71. Over the past decade, Gates Industrial's Operating Margin % has ranged from 9.27 to 15.25. According to the industry distribution chart, Gates Industrial ranks #636 out of 3036 companies in the Industrial Products industry, placing it in the top 20.9%.
Is Gates Industrial's Operating Margin % too high?
Gates Industrial's current Operating Margin % of 14.38% is near median its 10-year median of 13.71. Over the past 10 years, this metric has ranged from a low of 9.27 to a high of 15.25. The Industrial Products industry median Operating Margin % is 6.50. Gates Industrial's value of 14.38% is 121.2% above this industry median. Based on the distribution chart, Gates Industrial ranks #636 out of 3036 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 Operating Margin % compare to NPO and JBTM?
According to the Industrial Products industry distribution chart, Gates Industrial ranks #636 out of 3036 companies for Operating Margin %. This places Gates Industrial in the top 21% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.50. Gates Industrial's value of 14.38% is 121.2% above this benchmark. Historically, Gates Industrial's own Operating Margin % has ranged from 9.27 to 15.25 over the past decade. While the company's 10-year median is 13.71 vs. the industry median of 6.50, 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 Operating Margin % for an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.50, based on 3,036 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gates Industrial's current Operating Margin % of 14.38% is 121.2% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Gates Industrial and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gates Industrial's current Operating Margin % is 14.38%, which is near median its own 10-year median of 13.71. 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 €19.26, compared to a current price of €23.00 — trading 19.4% above its estimated fair value. The current Operating Margin % is 14.38%, which is near median its 10-year median of 13.71 and 121.2% above the Industrial Products industry median of 6.50. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Gates Industrial (STU:1JL), the current Operating Margin % is 14.38% 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 19.4% above its estimated GF Value™ of €19.26.
GuruFocus considers Gates Industrial to be Modestly Overvalued.
Key valuation signals for STU:1JL:
Operating Margin %: 14.38% (near median its 10-year median of 13.71)
GF Value™: €19.26 vs. price of €23.00 (19.4% above fair value)
Industry Position: 121.2% above the Industrial Products median (#636 of 3036)
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
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