(GTX) Garrett Motion - Overview
Sector: Consumer Cyclical | Industry: Auto Parts | Exchange: NASDAQ (USA) | Market Cap: 5.747m USD | Total Return: 200.8% in 12m
Avg Turnover: 94.7M
Qual. Beats: 1
Rev. Trend: -68.6%
Qual. Beats: 1
Warnings
Altman Z'' -0.83 < 1.0 - financial distress zone
Tailwinds
Rs(ibd) Leader, Idiosyncratic Leader, Tailwind, Confidence
Garrett Motion Inc. (GTX) is a Switzerland-based technology provider specializing in turbocharging and high-speed electric motor solutions. The company serves original equipment manufacturers (OEMs) and distributors across the passenger vehicle, commercial vehicle, and industrial sectors. Its portfolio spans mechanical and electrical products for internal combustion engines-including gasoline, diesel, and hydrogen-as well as specialized e-powertrain and e-cooling compressors for battery-electric and fuel-cell vehicles.
The turbocharger market is characterized by high barriers to entry due to the complex thermal management and precision engineering required for high-speed rotating components. As the automotive industry transitions toward electrification, Garrett is pivotally expanding its business model to include zero-emission technologies such as hydrogen fuel cell compressors and high-speed e-motors. Investors can further evaluate these sector transitions by reviewing the detailed performance metrics available on ValueRay.
GTX operates a global manufacturing footprint to support international supply chains and maintains a significant presence in the aftermarket through a network of authorized distributors. This dual-channel approach allows the company to capture revenue from both new vehicle production and the long-term maintenance lifecycle of global fleets.
- Global emission regulations accelerate demand for high-margin hybrid and electric turbocharging technologies
- Light vehicle production volumes in China and Europe dictate core revenue fluctuations
- Hydrogen fuel cell and e-compressor adoption rates define long-term growth valuation
- Fluctuations in aluminum and nickel prices impact manufacturing costs and operating margins
- Shift toward zero-emission powertrains threatens legacy diesel and gasoline turbocharger market share
| Net Income: 343.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.16 > 0.02 and ΔFCF/TA 3.05 > 1.0 |
| NWC/Revenue: -0.84% < 20% (prev -0.61%; Δ -0.23% < -1%) |
| CFO/TA 0.19 > 3% & CFO 455.0m > Net Income 343.0m |
| Net Debt (1.38b) to EBITDA (626.0m): 2.20 < 3 |
| Current Ratio: 0.98 > 1.5 & < 3 |
| Outstanding Shares: last quarter (193.2m) vs 12m ago -6.92% < -2% |
| Gross Margin: 24.25% > 18% (prev 0.26%; Δ 2.40k% > 0.5%) |
| Asset Turnover: 158.8% > 50% (prev 151.1%; Δ 7.70% > 0%) |
| Interest Coverage Ratio: 5.09 > 6 (EBITDA TTM 626.0m / Interest Expense TTM 103.0m) |
| A: -0.01 (Total Current Assets 1.38b - Total Current Liabilities 1.41b) / Total Assets 2.37b |
| B: -0.55 (Retained Earnings -1.30b / Total Assets 2.37b) |
| C: 0.23 (EBIT TTM 524.0m / Avg Total Assets 2.32b) |
| D: -0.44 (Book Value of Equity -1.40b / Total Liabilities 3.15b) |
| Altman-Z'' = -0.83 = CCC |
| DSRI: 1.00 (Receivables 810.0m/752.0m, Revenue 3.69b/3.44b) |
| GMI: 1.07 (GM 24.25% / 26.00%) |
| AQI: 1.01 (AQ_t 0.24 / AQ_t-1 0.23) |
| SGI: 1.07 (Revenue 3.69b / 3.44b) |
| TATA: -0.05 (NI 343.0m - CFO 455.0m) / TA 2.37b) |
| Beneish M = -2.95 (Cap -4..+1) = A |
As of May 25, 2026, the stock is trading at USD 33.29 with a total of 2,772,165 shares traded.
Over the past week, the price has changed by +7.46%,
over one month by +58.45%,
over three months by +64.88% and
over the past year by +200.80%.
Garrett Motion has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy GTX.
- StrongBuy: 0
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 30.2 | -9.4% |
P/E Trailing = 17.9532
P/E Forward = 16.4474
P/S = 1.5569
Revenue TTM = 3.69b USD
EBIT TTM = 524.0m USD
EBITDA TTM = 626.0m USD
Long Term Debt = 1.41b USD (from longTermDebt, last quarter)
Short Term Debt = 20.0m USD (from shortTermDebt, last quarter)
Debt = 1.52b USD (from shortLongTermDebtTotal, last quarter) + Leases 52.0m
Net Debt = 1.38b USD (calculated: Debt 1.52b - CCE 142.0m)
Enterprise Value = 7.13b USD (5.75b + Debt 1.52b - CCE 142.0m)
Interest Coverage Ratio = 5.09 (Ebit TTM 524.0m / Interest Expense TTM 103.0m)
EV/FCF = 18.75x (Enterprise Value 7.13b / FCF TTM 380.0m)
FCF Yield = 5.33% (FCF TTM 380.0m / Enterprise Value 7.13b)
FCF Margin = 10.30% (FCF TTM 380.0m / Revenue TTM 3.69b)
Net Margin = 9.29% (Net Income TTM 343.0m / Revenue TTM 3.69b)
Gross Margin = 24.25% ((Revenue TTM 3.69b - Cost of Revenue TTM 2.80b) / Revenue TTM)
Gross Margin QoQ = 23.96% (prev 23.91%)
Tobins Q-Ratio = 3.00 (Enterprise Value 7.13b / Total Assets 2.37b)
Interest Expense / Debt = 6.77% (Interest Expense 103.0m / Debt 1.52b)
Taxrate = 19.49% (23.0m / 118.0m)
NOPAT = 421.9m (EBIT 524.0m * (1 - 19.49%))
Current Ratio = 0.98 (Total Current Assets 1.38b / Total Current Liabilities 1.41b)
Debt / Equity = -1.95 (negative equity) (Debt 1.52b / totalStockholderEquity, last quarter -781.0m)
Debt / EBITDA = 2.20 (Net Debt 1.38b / EBITDA 626.0m)
Debt / FCF = 3.63 (Net Debt 1.38b / FCF TTM 380.0m)
Total Stockholder Equity = -802.0m (last 4 quarters mean from totalStockholderEquity)
RoA = 14.76% (Net Income 343.0m / Total Assets 2.37b)
RoE = 68.19% (Net Income TTM 343.0m / Total Stockholder Equity 503.0m)
RoCE = 27.39% (EBIT 524.0m / Capital Employed (Equity 503.0m + L.T.Debt 1.41b))
RoIC = 46.12% (NOPAT 421.9m / Invested Capital 914.8m)
WACC = 8.95% (E(5.75b)/V(7.27b) * Re(9.88%) + D(1.52b)/V(7.27b) * Rd(6.77%) * (1-Tc(0.19)))
Discount Rate = 9.88% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -100.00 | Cagr: -9.57%
[DCF] Terminal Value 76.04% ; FCFF base≈346.0m ; Y1≈396.6m ; Y5≈583.7m
[DCF] Fair Price = 35.06 (EV 7.94b - Net Debt 1.38b = Equity 6.56b / Shares 187.2m; r=8.95% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 1.37 | # QB: 1
Revenue Correlation: -68.64 | Revenue CAGR: -3.34% | SUE: 1.46 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.49 | Chg30d=+9.53% | Revisions=+33% | Analysts=3
EPS next Quarter (2026-09-30): EPS=0.48 | Chg30d=+6.82% | Revisions=-14% | Analysts=3
EPS current Year (2026-12-31): EPS=1.99 | Chg30d=+9.35% | Revisions=+43% | GrowthEPS=+26.4% | GrowthRev=+5.8%
EPS next Year (2027-12-31): EPS=2.22 | Chg30d=+7.23% | Revisions=+43% | GrowthEPS=+11.3% | GrowthRev=+2.8%
[Analyst] Revisions Ratio: +43%