Garrett Motion (GTX) AI Stock Analysis

• Market Cap: $2.64B
• Dividend Yield: 1.38%
• Average Volume (3M): 3.19M
• Price to Earnings (P/E): 9.1
• Beta (1Y): 1.06
• Revenue Growth: -6.71%
• EPS Growth: 43.34%
• Country: US
• Employees: 6,600
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Auto - Parts
• EPS (TTM): 0.43
• Shares Outstanding: 201,575,450
• 10 Day Avg. Volume: 1,978,638
• 30 Day Avg. Volume: 3,190,158
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 1.35
• Enterprise Value/Gross Profit: 4.87
• Enterprise Value/Ebitda: 27.80
• 1Y Price Target: $14.00
• Price Target Upside: 7.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 67 Neutral
• Price Target: $14.00 ▲(7.03% Upside)

Garrett Motion's stock score is driven by strong earnings call performance and positive technical indicators. However, financial instability due to negative equity and high leverage, along with moderate valuation metrics, temper the overall score. The recent corporate event of loan repricing adds a positive note by enhancing liquidity.

Positive Factors

Currency Impact

The US Dollar has weakened versus the Euro, which should result in Garrett Motion (GTX) reporting results ahead of estimates.

Financial Performance

GTX generated greater free cash flow as the Company benefited from stability in demand.

Sales Forecast

GTX reported sales that were in line with forecasts and put the Company on path to reaching greater sales than had been projected.

Negative Factors

Market Concerns

Fears over tariffs have shifted to consumer demand for automobiles, affecting GTX's market outlook.

Sales Composition

The stronger Euro helped offset weaker diesel and aftermarket sales for GTX.

Garrett Motion Business Overview & Revenue Model

Company Description

Garrett Motion Inc. is a leading global technology company specializing in advanced turbocharging, electric boosting, and vehicle software solutions, primarily for the automotive industry. Founded in 2018 and headquartered in Rolle, Switzerland, Garrett operates in the automotive sector, providing innovative products aimed at enhancing vehicle performance, fuel efficiency, and emissions reduction. Its core offerings include a wide range of turbochargers, electric boost technologies, and related software systems that cater to both original equipment manufacturers (OEMs) and the aftermarket.

How the Company Makes Money

Garrett Motion generates revenue primarily through the sale of its turbocharging and electric boosting technologies to automotive manufacturers and aftermarket suppliers. The company operates under a business model that includes direct sales to OEMs, where it provides custom solutions tailored to specific vehicle models, as well as aftermarket sales of products designed for vehicle performance upgrades and replacements. Key revenue streams include the sale of turbochargers, electric boosting systems, and associated software solutions. Additionally, Garrett has established significant partnerships with major automotive manufacturers, leveraging these relationships to secure long-term contracts and enhance its market presence. The increasing demand for fuel-efficient and low-emission vehicles further supports its revenue growth, as automakers seek advanced technologies to meet stringent regulatory standards.

Garrett Motion Financial Statement Overview

Summary

Garrett Motion exhibits 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, providing a cushion against financial challenges. However, the overall financial health is marred by inconsistent revenue growth and reliance on debt financing, which could pose risks if not managed carefully.

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	2.55B	3.48B	3.89B	3.60B	3.63B	3.03B
Gross Profit	708.00M	705.00M	756.00M	683.00M	707.00M	556.00M
EBITDA	124.00M	590.00M	597.00M	588.00M	596.00M	279.00M
Net Income	301.00M	282.00M	261.00M	390.00M	495.00M	80.00M
Balance Sheet
Total Assets	2.40B	2.28B	2.53B	2.64B	2.71B	3.02B
Cash, Cash Equivalents and Short-Term Investments	232.00M	125.00M	259.00M	246.00M	423.00M	592.00M
Total Debt	7.00M	1.52B	1.69B	1.16B	1.19B	1.67B
Total Liabilities	3.21B	2.95B	3.26B	2.75B	3.17B	5.33B
Stockholders Equity	-812.00M	-673.00M	-735.00M	-116.00M	-468.00M	-2.31B
Cash Flow
Free Cash Flow	186.00M	317.00M	382.00M	284.00M	-382.00M	-55.00M
Operating Cash Flow	254.00M	408.00M	465.00M	375.00M	-310.00M	25.00M
Investing Cash Flow	-54.00M	-14.00M	-55.00M	-91.00M	-71.00M	-80.00M
Financing Cash Flow	-167.00M	-520.00M	-403.00M	-482.00M	139.00M	530.00M

Garrett Motion Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 13.08 is above the 20-day moving average (MA) of 12.94, above the 50-day MA of 12.22, and above the 200-day MA of 10.08, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 58.85 is Neutral, neither overbought nor oversold. The STOCH value of 42.70 is Neutral, 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
VC	82 Outperform	$3.41B	11.93	22.96%	0.22%	-3.26%	-45.84%
PLOW	81 Outperform	$770.72M	12.11	25.41%	3.53%	1.47%	131.61%
PHIN	74 Outperform	$2.28B	22.63	6.40%	1.81%	-4.30%	39.80%
GTX	67 Neutral	$2.64B	9.15	-41.90%	1.38%	-6.71%	43.34%
Sector *	61 Neutral	$17.95B	12.83	-3.20%	2.97%	1.18%	-14.28%
DAN	61 Neutral	$2.70B	―	-5.00%	1.94%	-14.46%	-2170.83%
HSAI	53 Neutral	$3.59B	238.22	2.45%	―	36.76%	―

Garrett Motion Corporate Events

Garrett Motion Board Member Kevin Mahony Resigns

On August 27, 2025, Kevin Mahony resigned from the Board of Directors of Garrett Motion Inc., a move not due to any dispute with the company. His departure follows Centerbridge Partners’ significant reduction in its ownership stake in Garrett, now below 5%. Mahony, who joined the board in January 2023, was a key figure in Garrett’s strategic planning, contributing to its success. The company expressed gratitude for his service, while Mahony expressed confidence in Garrett’s future, citing a strong team and strategic framework.

Garrett Motion Successfully Reprices $690 Million Loan

On August 6, 2025, Garrett Motion Inc. announced the successful repricing of its $690 million term loan due in 2032, reducing the interest rate by 25 basis points. This financial maneuver is expected to decrease interest expenses and enhance liquidity, supporting the company’s investment in innovation and shareholder returns.

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.