Garrett Motion (GTX) AI Stock Analysis

• Market Cap: $2.06B
• Dividend Yield: 0.59%
• Average Volume (3M): 2.30M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 1.00
• Revenue Growth: -10.26%
• EPS Growth: N/A
• Country: US
• Employees: 6,600
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Auto - Parts
• EPS (TTM): 0.36
• Shares Outstanding: 202,484,950
• 10 Day Avg. Volume: 2,699,265
• 30 Day Avg. Volume: 2,295,354
• PEG Ratio: 3.46
• Price to Book (P/B): -3.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.95
• Enterprise Value/Market Cap: 1.83
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 5.27
• Enterprise Value/Ebitda: 2.06
• 1Y Price Target: $14.00
• Price Target Upside: 37.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: $11.00 ▲(7.95%Upside)

Garrett Motion's overall stock score is primarily influenced by its solid valuation and the positive sentiment from its recent earnings call, which highlighted strategic wins and operational improvements. However, financial performance is a concern due to significant leverage and negative equity, which pose long-term risks. The technical analysis suggests bullish momentum, but overbought conditions could result in short-term volatility.

Positive Factors

Financial Performance

GTX reported first quarter sales of $878 million compared to the previously raised forecast of $843 million.

New Projects and Designs

GTX has won several new designs and projects with existing and new customers that are expected to contribute to sales growth.

Sales and Demand

GTX experienced better than expected demand in the first quarter after ending 2024 with positive sequential sales momentum.

Negative Factors

Currency and Sales Impact

GTX reported lower sales for the first nine months of 2024, leading to an anticipation of difficulty in achieving a slight sequential increase in sales in the fourth quarter due to the sharp decline in the Euro against the US Dollar.

Supply Chain Issues

The supply chain and inventory readjustments that curbed demand for Garrett Motion (GTX) in 2024 have been replaced by the dynamics of foreign exchange and the global macro economy.

Garrett Motion Business Overview & Revenue Model

Company Description

Garrett Motion Inc., together with its subsidiaries, designs, manufactures, and sells turbocharger and electric-boosting technologies for light and commercial vehicle original equipment manufacturers worldwide. The company offers light vehicle gasoline and diesel, and commercial vehicle turbochargers; and provides automotive software solutions. It offers its products in the aftermarket through distributors. Garrett Motion Inc. was incorporated in 2018 and is headquartered in Rolle, Switzerland.

How the Company Makes Money

Garrett Motion makes money primarily through the sale of its turbocharging and electric boosting products to original equipment manufacturers (OEMs) and the aftermarket. The company's revenue streams are driven by its ability to provide cutting-edge technology that improves engine performance and fuel efficiency, which is increasingly in demand as global emissions regulations become more stringent. Garrett also engages in partnerships with automotive manufacturers to develop and integrate its technologies into their vehicles. Additionally, the company's focus on research and innovation allows it to maintain a competitive edge and sustain its earnings in the evolving automotive market.

Garrett Motion Financial Statement Overview

Summary

Garrett Motion shows moderate operational efficiency with stable profitability margins, but faces significant financial instability due to negative equity and high leverage. The company's cash flow generation remains robust, offering some protection against financial challenges. Overall financial health is affected by inconsistent revenue growth and reliance on debt financing, posing potential risks.

Income Statement

The company's gross profit and net income have shown fluctuations over the years, with a decline in total revenue in the TTM period compared to the previous annual report. The TTM gross profit margin is approximately 26.0%, and net profit margin is around 10.1%, indicating moderate profitability. Revenue growth has been inconsistent, as seen in the recent decrease. Despite these challenges, the company maintains positive EBIT and EBITDA margins, indicative of underlying operational efficiency.

Balance Sheet

The balance sheet reveals significant financial leverage with a negative stockholders' equity of $700 million in the TTM period. The debt-to-equity ratio is not computable due to negative equity, which is a critical risk. However, the company has been reducing its total debt over time, which is a positive sign. The equity ratio is negative, reflecting the company's reliance on debt financing. These factors highlight considerable financial instability.

Cash Flow

Free cash flow in the TTM period has remained strong at $321 million, with a positive free cash flow to net income ratio, demonstrating efficient cash generation relative to net income. The operating cash flow to net income ratio indicates solid cash flow generation from operations, although not significantly improving year-over-year. Despite healthy cash flow metrics, the company has faced fluctuating cash flow from financing activities, reflecting ongoing debt management efforts.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.44B	3.48B	3.89B	3.60B	3.63B	3.03B
	Gross Profit
712.00M	705.00M	756.00M	683.00M	707.00M	556.00M
	EBIT
351.00M	465.00M	307.00M	586.00M	506.00M	281.00M
	EBITDA
277.00M	590.00M	597.00M	588.00M	596.00M	279.00M
	Net Income Common Stockholders
278.00M	282.00M	261.00M	390.00M	495.00M	80.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
130.00M	125.00M	259.00M	246.00M	423.00M	592.00M
	Total Assets
2.27B	2.28B	2.53B	2.64B	2.71B	3.02B
	Total Debt
1.54B	1.52B	1.69B	1.16B	1.19B	1.67B
	Net Debt
1.41B	1.40B	1.43B	909.00M	765.00M	1.08B
	Total Liabilities
2.98B	2.95B	3.26B	2.75B	3.17B	5.33B
	Stockholders Equity
-700.00M	-673.00M	-735.00M	-116.00M	-468.00M	-2.31B
Cash Flow		Free Cash Flow
295.00M	317.00M	382.00M	284.00M	-382.00M	-55.00M
	Operating Cash Flow
380.00M	408.00M	465.00M	375.00M	-310.00M	25.00M
	Investing Cash Flow
-8.00M	-14.00M	-55.00M	-91.00M	-71.00M	-80.00M
	Financing Cash Flow
-439.00M	-520.00M	-403.00M	-482.00M	139.00M	530.00M

Garrett Motion Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 10.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTX, the sentiment is Neutral. The current price of 10.19 is below the 20-day moving average (MA) of 11.05, above the 50-day MA of 9.87, and above the 200-day MA of 8.89, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.34 is Neutral, neither overbought nor oversold. The STOCH value of 9.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GTX.

Garrett Motion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	79 Outperform	$2.25B	7.82	25.15%	―	-1.35%	-39.06%
PLOW	79 Outperform	$638.49M	10.20	26.52%	4.29%	1.14%	127.04%
PHIN	69 Neutral	$1.69B	24.25	4.49%	2.39%	-5.44%	-22.90%
HSAI	65 Neutral	$2.65B	―	-0.30%	―	23.48%	97.67%
GTX	63 Neutral	$2.06B	7.86	-41.90%	0.59%	-10.26%	―
Sector *	62 Neutral	$6.83B	11.28	2.95%	3.88%	2.70%	-24.56%
DAN	61 Neutral	$2.40B	―	-2.40%	2.43%	-7.00%	-366.59%

Garrett Motion Corporate Events

Garrett Motion Confirms Directors at Annual Meeting

On May 22, 2025, Garrett Motion Inc. held its 2025 Annual Meeting of Shareholders, where the election of nine directors was confirmed, and Deloitte SA was ratified as the independent registered public accounting firm for 2025. Additionally, shareholders approved the executive compensation plan and agreed to hold annual advisory votes on executive compensation, reflecting strong shareholder engagement and alignment with the company’s governance practices.

The most recent analyst rating on (GTX) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Garrett Motion stock, see the GTX Stock Forecast page.

Garrett Motion Announces Secondary Stock Offering

On May 20, 2025, Garrett Motion Inc. announced a secondary public offering of 17 million shares of its common stock held by entities affiliated with Oaktree Capital Management, Centerbridge Partners, and Cyrus Capital Partners. The company also plans to repurchase approximately 2 million shares as part of its existing $250 million share repurchase program. The offering and repurchase are expected to impact Garrett’s financial operations by potentially altering its share structure and providing liquidity to the selling stockholders, while the company itself will not receive any proceeds from the offering.

The most recent analyst rating on (GTX) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Garrett Motion stock, see the GTX Stock Forecast page.