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Gates IndustrialGTES -1.19%81 Pretax Margin % is 10.64% as of Jun. 2026, which is 40% above its 10-year median of 7.62. GuruFocus rates GTES with a GF Score™ of 81/100 and a GF Value™ of $21.92 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 3,036 Industrial Products companies, Gates Industrial ranks better than 65.61% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Gates Industrial Pretax Margin % Related Terms
Gates Industrial Pretax Margin % Historical Data
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The historical data trend for Gates Industrial's Pretax 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.
GTES vs NPO, JBTM, MIDD: Pretax Margin % Comparison
For the Specialty Industrial Machinery subindustry, Gates Industrial's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Gates Industrial's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Gates Industrial's Pretax 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 Pretax Margin % of 10.64% as of Jun. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Gates Industrial and its competitors. This is 40% above median its historical median of 7.62. Over the past decade, Gates Industrial's Pretax Margin % has ranged from 2.54 to 10.07. According to the industry distribution chart, Gates Industrial ranks #1044 out of 3036 companies in the Industrial Products industry, placing it in the top 34.4%.
Is Gates Industrial's Pretax Margin % too high?
Gates Industrial's current Pretax Margin % of 10.64% is 40% above median its 10-year median of 7.62. Over the past 10 years, this metric has ranged from a low of 2.54 to a high of 10.07. The Industrial Products industry median Pretax Margin % is 5.83. Gates Industrial's value of 10.64% is 82.7% above this industry median. Based on the distribution chart, Gates Industrial ranks #1044 out of 3036 companies in the Industrial Products industry, which is above the industry midpoint. 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 Pretax Margin % compare to NPO and JBTM?
According to the Industrial Products industry distribution chart, Gates Industrial ranks #1044 out of 3036 companies for Pretax Margin %. This puts Gates Industrial in the upper half of its industry. The industry median Pretax Margin % is 5.83. Gates Industrial's value of 10.64% is 82.7% above this benchmark. Historically, Gates Industrial's own Pretax Margin % has ranged from 2.54 to 10.07 over the past decade. While the company's 10-year median is 7.62 vs. the industry median of 5.83, 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 Pretax Margin % for an Industrial Products company?
The median Pretax Margin % among Industrial Products companies is 5.83, based on 3,036 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gates Industrial's current Pretax Margin % of 10.64% is 82.7% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Gates Industrial and its competitors. For the Industrial Products industry, the median Pretax Margin % is 5.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gates Industrial's current Pretax Margin % is 10.64%, which is 40% above median its own 10-year median of 7.62. 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 $21.92, compared to a current price of $28.25 — trading 28.9% above its estimated fair value. The current Pretax Margin % is 10.64%, which is 40% above median its 10-year median of 7.62 and 82.7% above the Industrial Products industry median of 5.83. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Gates Industrial (GTES), the current Pretax Margin % is 10.64% 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 28.9% above its estimated GF Value™ of $21.92.
GuruFocus considers Gates Industrial to be Modestly Overvalued.
Key valuation signals for GTES:
Pretax Margin %: 10.64% (40% above median its 10-year median of 7.62)
GF Value™: $21.92 vs. price of $28.25 (28.9% above fair value)
Industry Position: 82.7% above the Industrial Products median (#1044 of 3036)
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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