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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Gates Industrial's 3-Year RORE % for the quarter that ended in Jun. 2026 was 15.02%.
The industry rank for Gates Industrial's 3-Year RORE % or its related term are showing as below:
GTES's 3-Year RORE % is ranked better than 61.74% of 2893
companies
in the Industrial Products industry
Industry Median: 5.08
vs GTES: 15.02
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Gates Industrial 3-Year RORE % Related Terms
Gates Industrial 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Gates Industrial's 3-Year RORE % 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 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Gates Industrial's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Gates Industrial's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Jun. 2026 and 3-year before.
Gates Industrial (GTES) has a 3-Year RORE % of 15.02 as of Jun. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Gates Industrial and its competitors. According to the industry distribution chart, Gates Industrial ranks #1107 out of 2893 companies in the Industrial Products industry, placing it in the top 38.3%.
Is Gates Industrial's 3-Year RORE % too high?
Gates Industrial's current 3-Year RORE % is 15.02. The Industrial Products industry median 3-Year RORE % is 5.08. Gates Industrial's value of 15.02 is 195.7% above this industry median. Based on the distribution chart, Gates Industrial ranks #1107 out of 2893 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 3-Year RORE % compare to NPO and JBTM?
According to the Industrial Products industry distribution chart, Gates Industrial ranks #1107 out of 2893 companies for 3-Year RORE %. This puts Gates Industrial in the upper half of its industry. The industry median 3-Year RORE % is 5.08. Gates Industrial's value of 15.02 is 195.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for an Industrial Products company?
The median 3-Year RORE % among Industrial Products companies is 5.08, based on 2,893 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Gates Industrial's current 3-Year RORE % of 15.02 is 195.7% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Gates Industrial and its competitors. For the Industrial Products industry, the median 3-Year RORE % is 5.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gates Industrial's current 3-Year RORE % is 15.02. 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 3-Year RORE % is 15.02 and 195.7% above the Industrial Products industry median of 5.08. 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 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Gates Industrial (GTES), the current 3-Year RORE % is 15.02 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:
3-Year RORE %: 15.02
GF Value™: $21.88 vs. price of $28.25 (29.1% above fair value)
Industry Position: 195.7% above the Industrial Products median (#1107 of 2893)
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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