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Gates IndustrialGTES -1.19%81 Return-on-Tangible-Asset is 16.71% as of Jun. 2026, which is 173% above its 10-year median of 6.13. 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 3,077 Industrial Products companies, Gates Industrial ranks better than 82.13% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Gates Industrial's annualizedNet Income for the quarter that ended in Jun. 2026 was $684 Mil. Gates Industrial's average total tangible assets for the quarter that ended in Jun. 2026 was $4,092 Mil. Therefore, Gates Industrial's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 16.71%.
The historical rank and industry rank for Gates Industrial's Return-on-Tangible-Asset or its related term are showing as below:
GTES'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 2.27 Med: 6.13 Max: 22.4
Current: 9.09
During the past 12 years, Gates Industrial's highest Return-on-Tangible-Asset was 22.40%. The lowest was 2.27%. And the median was 6.13%.
GTES's Return-on-Tangible-Asset is ranked better than 82.13% of 3077
companies
in the Industrial Products industry
Industry Median: 3.31
vs GTES: 9.09
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Gates Industrial Return-on-Tangible-Asset Related Terms
Gates Industrial Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Gates Industrial's Return-on-Tangible-Asset 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: Return-on-Tangible-Asset Comparison
For the Specialty Industrial Machinery subindustry, Gates Industrial's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Gates Industrial's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Gates Industrial's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Jun. 2026) net income data.
What does a Return-on-Tangible-Asset of 16.71% mean?
Gates Industrial (GTES) has a Return-on-Tangible-Asset of 16.71% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Gates Industrial and its competitors. This is 173% above median its historical median of 6.13. Over the past decade, Gates Industrial's Return-on-Tangible-Asset has ranged from 2.27 to 22.40. According to the industry distribution chart, Gates Industrial ranks #550 out of 3077 companies in the Industrial Products industry, placing it in the top 17.9%.
Is Gates Industrial's Return-on-Tangible-Asset too high?
Gates Industrial's current Return-on-Tangible-Asset of 16.71% is 173% above median its 10-year median of 6.13. Over the past 10 years, this metric has ranged from a low of 2.27 to a high of 22.40. The Industrial Products industry median Return-on-Tangible-Asset is 3.31. Gates Industrial's value of 16.71% is 404.8% above this industry median. Based on the distribution chart, Gates Industrial ranks #550 out of 3077 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 Return-on-Tangible-Asset compare to NPO and JBTM?
According to the Industrial Products industry distribution chart, Gates Industrial ranks #550 out of 3077 companies for Return-on-Tangible-Asset. This places Gates Industrial in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.31. Gates Industrial's value of 16.71% is 404.8% above this benchmark. Historically, Gates Industrial's own Return-on-Tangible-Asset has ranged from 2.27 to 22.40 over the past decade. While the company's 10-year median is 6.13 vs. the industry median of 3.31, 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 Return-on-Tangible-Asset for an Industrial Products company?
The median Return-on-Tangible-Asset among Industrial Products companies is 3.31, based on 3,077 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gates Industrial's current Return-on-Tangible-Asset of 16.71% is 404.8% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Gates Industrial and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Asset is 3.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gates Industrial's current Return-on-Tangible-Asset is 16.71%, which is 173% above median its own 10-year median of 6.13. 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 Return-on-Tangible-Asset is 16.71%, which is 173% above median its 10-year median of 6.13 and 404.8% above the Industrial Products industry median of 3.31. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Gates Industrial (GTES), the current Return-on-Tangible-Asset is 16.71% 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:
Return-on-Tangible-Asset: 16.71% (173% above median its 10-year median of 6.13)
GF Value™: $21.92 vs. price of $28.25 (28.9% above fair value)
Industry Position: 404.8% above the Industrial Products median (#550 of 3077)
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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