Garrett Motion (GTX) AI Stock Analysis

• Market Cap: $3.44B
• Dividend Yield: 1.49%
• Average Volume (3M): 2.48M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.20
• Revenue Growth: -1.09%
• EPS Growth: 56.16%
• Country: US
• Employees: 6,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.42
• Shares Outstanding: 194,482,510
• 10 Day Avg. Volume: 2,973,054
• 30 Day Avg. Volume: 2,476,594
• PEG Ratio: -0.01
• Price to Book (P/B): -2.98
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 6.33
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 4.46
• Enterprise Value/Ebitda: 6.90
• 1Y Price Target: $20.00
• Price Target Upside: 14.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.5
• Revenue Forecast (FY): $3.57B

• Rating: 71 Outperform
• Price Target: $19.00 ▲(9.07% Upside)

Garrett Motion's overall stock score is driven by strong earnings performance and positive technical indicators. While the company faces financial leverage challenges, its robust cash flow and strategic advancements in technology provide a solid foundation for future growth. The valuation is fair, and recent dividend increases enhance shareholder value.

Positive Factors

Cash Flow Generation

Strong cash flow growth indicates efficient operations and financial health, providing flexibility for investments and debt management.

Technological Advancements

Innovations in zero-emission technologies position Garrett as a leader in sustainable automotive solutions, aligning with industry trends.

Revenue Growth in Gasoline Sales

Growth in gasoline sales reflects strong demand and market share expansion, supporting long-term revenue stability.

Negative Factors

Financial Leverage Challenges

High leverage and negative equity pose risks to financial stability, potentially limiting growth and investment opportunities.

Aftermarket Segment Weakness

Weak aftermarket performance can impact overall revenue and profitability, highlighting a need for strategic adjustments.

Commercial Vehicle Segment Challenges

Challenges in the commercial vehicle segment may limit growth and require strategic focus to improve performance in this area.

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 generates revenue primarily through the sale of its turbochargers and electric boosting solutions to OEMs and aftermarket customers in the automotive industry. The company leverages its extensive R&D capabilities to develop cutting-edge technologies that meet the evolving demands for fuel efficiency and emission reductions, which are critical in the current regulatory environment. Key revenue streams include long-term supply agreements with major automotive manufacturers and the sale of replacement parts and services in the aftermarket. Additionally, strategic partnerships with OEMs for joint development projects and collaborations on emerging technologies contribute to its earnings, as these alliances often lead to increased sales and market penetration.

Garrett Motion Financial Statement Overview

Summary

Garrett Motion shows moderate financial performance with stable revenue growth and improved gross profit margin. However, significant leverage challenges and negative equity on the balance sheet pose financial risks. Strong cash flow generation is a positive aspect, but overall financial stability needs improvement.

Income Statement

Garrett Motion shows a stable revenue growth trajectory with a 2.2% increase in TTM, despite a previous decline. The gross profit margin has improved to 21.5% in TTM, indicating better cost management. However, the net profit margin remains moderate at 9.2%, suggesting room for profitability enhancement. The EBIT margin is healthy at 13.9%, but the EBITDA margin has decreased significantly to 3.8%, highlighting potential operational inefficiencies.

Balance Sheet

The company faces significant financial leverage challenges, with a negative debt-to-equity ratio due to negative equity, indicating high financial risk. The return on equity is also negative, reflecting losses relative to shareholder equity. The equity ratio is concerning, as negative equity suggests potential solvency issues.

Cash Flow

Garrett Motion demonstrates strong cash flow performance with a 72% growth in free cash flow in TTM. The operating cash flow to net income ratio is robust, indicating efficient cash generation relative to earnings. However, the free cash flow to net income ratio is slightly below 1, suggesting that not all earnings are translating into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.54B	3.48B	3.89B	3.60B	3.63B	3.03B
Gross Profit	906.00M	889.00M	908.00M	840.00M	859.00M	676.00M
EBITDA	586.00M	590.00M	597.00M	664.00M	724.00M	286.00M
Net Income	326.00M	282.00M	261.00M	390.00M	495.00M	80.00M
Balance Sheet
Total Assets	2.44B	2.28B	2.53B	2.64B	2.71B	3.02B
Cash, Cash Equivalents and Short-Term Investments	232.00M	126.00M	260.00M	248.00M	464.00M	693.00M
Total Debt	1.52B	1.52B	1.69B	1.20B	1.63B	1.67B
Total Liabilities	3.25B	2.95B	3.26B	2.75B	3.17B	5.33B
Stockholders Equity	-813.00M	-673.00M	-735.00M	-116.00M	-468.00M	-2.31B
Cash Flow
Free Cash Flow	372.00M	317.00M	382.00M	284.00M	-382.00M	-55.00M
Operating Cash Flow	445.00M	408.00M	465.00M	375.00M	-310.00M	25.00M
Investing Cash Flow	-42.00M	-14.00M	-55.00M	-91.00M	-71.00M	-80.00M
Financing Cash Flow	-268.00M	-520.00M	-403.00M	-482.00M	139.00M	530.00M

Garrett Motion Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTX, the sentiment is Positive. The current price of 17.42 is above the 20-day moving average (MA) of 16.83, above the 50-day MA of 16.20, and above the 200-day MA of 12.39, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 62.58 is Neutral, neither overbought nor oversold. The STOCH value of 82.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GTX.

Garrett Motion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEA	75 Outperform	$6.12B	14.33	8.96%	2.63%	-1.90%	-13.86%
VC	73 Outperform	$2.68B	8.70	23.16%	0.57%	-4.03%	-39.51%
PHIN	72 Outperform	$2.35B	27.58	5.47%	1.77%	-0.72%	-4.90%
GTX	71 Outperform	$3.44B	11.07	―	1.49%	-1.09%	56.16%
ALSN	71 Outperform	$8.39B	12.30	40.38%	1.07%	-4.21%	-0.45%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	58 Neutral	$2.77B	53.17	-4.82%	1.70%	-18.23%	―

Garrett Motion Corporate Events

Garrett Motion’s General Counsel Announces Retirement

On September 25, 2025, Jerome Maironi, Senior Vice President, General Counsel & Corporate Secretary of Garrett Motion Inc., announced his intention to retire effective March 31, 2026. He will step down from his current roles on October 1, 2025, and will assist in the transition of his duties until his retirement.