Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Gates IndustrialGTES -1.19%81 ROC (Joel Greenblatt) % is 28.88% as of Jun. 2026, which is 7% above its 10-year median of 27.07. 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 3,062 Industrial Products companies, Gates Industrial ranks better than 73.58% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Gates Industrial's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 28.88%.
The historical rank and industry rank for Gates Industrial's ROC (Joel Greenblatt) % or its related term are showing as below:
GTES'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 14.83 Med: 27.07 Max: 34.06
Current: 26.11
During the past 12 years, Gates Industrial's highest ROC (Joel Greenblatt) % was 34.06%. The lowest was 14.83%. And the median was 27.07%.
GTES's ROC (Joel Greenblatt) % is ranked better than 73.58% of 3062
companies
in the Industrial Products industry
Industry Median: 11.585
vs GTES: 26.11
Gates Industrial's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 8.60% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Gates Industrial ROC (Joel Greenblatt) % Related Terms
Gates Industrial ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Gates Industrial's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Specialty Industrial Machinery subindustry, Gates Industrial's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Gates Industrial's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Gates Industrial's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Jun. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 28.88% mean?
Gates Industrial (GTES) has a ROC (Joel Greenblatt) % of 28.88% as of Jun. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Gates Industrial and its competitors. This is near median its historical median of 27.07. Over the past decade, Gates Industrial's ROC (Joel Greenblatt) % has ranged from 14.83 to 34.06. According to the industry distribution chart, Gates Industrial ranks #809 out of 3062 companies in the Industrial Products industry, placing it in the top 26.4%.
Is Gates Industrial's ROC (Joel Greenblatt) % too high?
Gates Industrial's current ROC (Joel Greenblatt) % of 28.88% is near median its 10-year median of 27.07. Over the past 10 years, this metric has ranged from a low of 14.83 to a high of 34.06. The Industrial Products industry median ROC (Joel Greenblatt) % is 11.59. Gates Industrial's value of 28.88% is 149.3% above this industry median. Based on the distribution chart, Gates Industrial ranks #809 out of 3062 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 ROC (Joel Greenblatt) % compare to NPO and JBTM?
According to the Industrial Products industry distribution chart, Gates Industrial ranks #809 out of 3062 companies for ROC (Joel Greenblatt) %. This puts Gates Industrial in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 11.59. Gates Industrial's value of 28.88% is 149.3% above this benchmark. Historically, Gates Industrial's own ROC (Joel Greenblatt) % has ranged from 14.83 to 34.06 over the past decade. While the company's 10-year median is 27.07 vs. the industry median of 11.59, 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 ROC (Joel Greenblatt) % for an Industrial Products company?
The median ROC (Joel Greenblatt) % among Industrial Products companies is 11.59, based on 3,062 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gates Industrial's current ROC (Joel Greenblatt) % of 28.88% is 149.3% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Gates Industrial and its competitors. For the Industrial Products industry, the median ROC (Joel Greenblatt) % is 11.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gates Industrial's current ROC (Joel Greenblatt) % is 28.88%, which is near median its own 10-year median of 27.07. 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 ROC (Joel Greenblatt) % is 28.88%, which is near median its 10-year median of 27.07 and 149.3% above the Industrial Products industry median of 11.59. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Gates Industrial (GTES), the current ROC (Joel Greenblatt) % is 28.88% 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:
ROC (Joel Greenblatt) %: 28.88% (near median its 10-year median of 27.07)
GF Value™: $21.88 vs. price of $28.25 (29.1% above fair value)
Industry Position: 149.3% above the Industrial Products median (#809 of 3062)
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
ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
GTES has been successfully added to your 
