Does Gates Industrial Corporation plc have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores Gates Industrial Corporation plc (GTES) 44.2 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 65, returns on capital 28, balance-sheet safety 30, capital discipline 51.

Is GTES stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $17.06 per share versus a recent price of $26.61 — 56% above value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has GTES's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 44.2 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

Gates Industrial Corporation plc

GTES · Industrials · $6.7B mkt cap · FY2025 filings · Shallow moat ·

Doesn't clear the bar

Shallow moat

The four filters

Pricing power65

Median gross margin 38.6% over 10y, very stable.

Returns on capital28

Median ROIC 8.2%, above the 9% hurdle in 40% of years.

Balance-sheet safety30

Net debt/EBITDA 2.1x, interest coverage 4x.

Capital discipline51

Owner earnings +5.6%/yr, share count growing (dilution).

Margin of safety

Above valueOn sale

56% above value

Owner earnings (normalized): $389.2M
Est. intrinsic value / share: $17.06
Recent price: $26.61
Discount to value: 56% above value

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

11 years of fundamentals

The business, in plain English

Gates Industrial Corporation plc booked $3.4B of revenue in FY2025 in the Industrials sector and kept 39.8% of it as gross profit — a solid-margin business by that measure. After every other cost, 7.3% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $2.7B (FY2016) to $3.4B (FY2025) — about 2.5% a year compounded over 9 years.

It earned 8.0% on invested capital in FY2025, with a median of 8.2% across 10 filed years. The Returns on Capital filter above scores it 28/100.

The balance sheet carried $2.2B of total debt in FY2025 against $392.0M of owner earnings — roughly 5.7 years of owner earnings to retire it all. Balance-Sheet Safety scores it 30/100.

The share count rose 3.2% between FY2016 and FY2025 — existing owners have been diluted over the record. Capital Discipline scores it 51/100.

Put together: Pricing Power is the strongest of the four filters (65/100) and Returns on Capital the weakest (28/100), which is how GTES lands at 44/100 — a Shallow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$3.4B FY2025

Gross marginRevenue kept after cost of goods39.8% FY2025

Return on invested capitalOperating profit on the capital employed8.0% FY2025

Owner earningsCash an owner could take out$392.0M FY2025

Gaps in a line mean that item isn’t in GTES’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale44.2 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — GTES has read Shallow moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Industrials context

#138 of 309 scored Industrials companies, ranked by Moat Score.

Nearest peers by Moat Score

#136POWL Powell Industries, Inc.44.2 out of 100, Shallow moatShallow moat
#137AZTA AZENTA, INC.44.2 out of 100, Shallow moatShallow moat
#139LYTS LSI INDUSTRIES INC44.0 out of 100, Shallow moatShallow moat
#140TAIT TAITRON COMPONENTS INCORPORATED44.0 out of 100, Shallow moatShallow moat

Compare GTES with its nearest peers →All Industrials companies on the Index →

Common questions about GTES

Does Gates Industrial Corporation plc have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores Gates Industrial Corporation plc (GTES) 44.2 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 65, returns on capital 28, balance-sheet safety 30, capital discipline 51.
Is GTES stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $17.06 per share versus a recent price of $26.61 — 56% above value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has GTES's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 44.2 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell GTES. See the disclaimer.