GARRETT MOTION INC (GTX) Stock Fundamental Analysis
NASDAQ:GTX - US3665051054 - Common Stock
12.99 USD
-0.06 (-0.46%)
12.99 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to GTX. GTX was compared to 80 industry peers in the Automobile Components industry. While GTX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. GTX is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year GTX was profitable.
In the past year GTX had a positive cash flow from operations.
GTX had positive earnings in 4 of the past 5 years.
GTX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
GTX has a better Return On Assets (12.53%) than 97.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 33.77%, GTX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GTX is significantly above the industry average of 8.49%.
The 3 year average ROIC (33.21%) for GTX is below the current ROIC(33.77%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.53% | ||
| ROE | N/A | ||
| ROIC | 33.77% |
ROA(3y)4.08%
ROA(5y)3.85%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)33.21%
ROIC(5y)28.46%
1.3 Margins
With an excellent Profit Margin value of 8.70%, GTX belongs to the best of the industry, outperforming 96.25% of the companies in the same industry.
In the last couple of years the Profit Margin of GTX has declined.
GTX has a Operating Margin of 13.44%. This is amongst the best in the industry. GTX outperforms 95.00% of its industry peers.
GTX's Operating Margin has been stable in the last couple of years.
GTX has a Gross Margin of 20.46%. This is in the lower half of the industry: GTX underperforms 70.00% of its industry peers.
GTX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.44% | ||
| PM (TTM) | 8.7% | ||
| GM | 20.46% |
OM growth 3Y-0.69%
OM growth 5Y0.33%
PM growth 3Y35.69%
PM growth 5Y-3.38%
GM growth 3Y1.4%
GM growth 5Y-1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GTX is creating value.
The number of shares outstanding for GTX has been reduced compared to 1 year ago.
The number of shares outstanding for GTX has been increased compared to 5 years ago.
The debt/assets ratio for GTX has been reduced compared to a year ago.
2.2 Solvency
GTX has an Altman-Z score of 1.71. This is a bad value and indicates that GTX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of GTX (1.71) is worse than 80.00% of its industry peers.
The Debt to FCF ratio of GTX is 4.46, which is a neutral value as it means it would take GTX, 4.46 years of fcf income to pay off all of its debts.
GTX's Debt to FCF ratio of 4.46 is amongst the best of the industry. GTX outperforms 86.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.46 | ||
| Altman-Z | 1.71 |
ROIC/WACC7.03
WACC4.8%
2.3 Liquidity
GTX has a Current Ratio of 1.03. This is a normal value and indicates that GTX is financially healthy and should not expect problems in meeting its short term obligations.
GTX has a Current ratio of 1.03. This is amonst the worse of the industry: GTX underperforms 93.75% of its industry peers.
GTX has a Quick Ratio of 1.03. This is a bad value and indicates that GTX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of GTX (0.82) is worse than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.58% over the past year.
The earnings per share for GTX have been decreasing by -19.21% on average. This is quite bad
GTX shows a decrease in Revenue. In the last year, the revenue decreased by -6.71%.
GTX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.36% yearly.
EPS 1Y (TTM)41.58%
EPS 3Y-6.91%
EPS 5Y-19.21%
EPS Q2Q%50%
Revenue 1Y (TTM)-6.71%
Revenue growth 3Y-1.47%
Revenue growth 5Y1.36%
Sales Q2Q%2.58%
3.2 Future
Based on estimates for the next years, GTX will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.75% on average per year.
GTX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.56% yearly.
EPS Next Y12.37%
EPS Next 2Y7.42%
EPS Next 3Y15.75%
EPS Next 5YN/A
Revenue Next Year0.62%
Revenue Next 2Y0.42%
Revenue Next 3Y2.56%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.08 indicates a reasonable valuation of GTX.
80.00% of the companies in the same industry are more expensive than GTX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.08, GTX is valued rather cheaply.
The Price/Forward Earnings ratio is 8.86, which indicates a very decent valuation of GTX.
Based on the Price/Forward Earnings ratio, GTX is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.72, GTX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.08 | ||
| Fwd PE | 8.86 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GTX is on the same level as its industry peers.
87.50% of the companies in the same industry are more expensive than GTX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.96 | ||
| EV/EBITDA | 6.93 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GTX has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GTX's earnings are expected to grow with 15.75% in the coming years.
PEG (NY)0.73
PEG (5Y)N/A
EPS Next 2Y7.42%
EPS Next 3Y15.75%
5. Dividend
5.1 Amount
GTX has a Yearly Dividend Yield of 1.84%. Purely for dividend investing, there may be better candidates out there.
GTX's Dividend Yield is comparable with the industry average which is at 3.91.
Compared to the average S&P500 Dividend Yield of 2.35, GTX is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
GTX is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
GTX pays out 8.31% of its income as dividend. This is a sustainable payout ratio.
DP8.31%
EPS Next 2Y7.42%
EPS Next 3Y15.75%
12.99
-0.06 (-0.46%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners71.7%
Inst Owner Change2.97%
Ins Owners0.9%
Ins Owner Change1.84%
Market Cap2.62B
Analysts80
Price Target14.28 (9.93%)
Short Float %5.56%
Short Ratio3.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP8.31%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.35%
Min EPS beat(2)2.78%
Max EPS beat(2)13.93%
EPS beat(4)3
Avg EPS beat(4)16.58%
Min EPS beat(4)-19.31%
Max EPS beat(4)68.91%
EPS beat(8)6
Avg EPS beat(8)10.25%
EPS beat(12)6
Avg EPS beat(12)-74.56%
EPS beat(16)7
Avg EPS beat(16)-60.98%
Revenue beat(2)1
Avg Revenue beat(2)0.8%
Min Revenue beat(2)-1.53%
Max Revenue beat(2)3.12%
Revenue beat(4)1
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-3.9%
Max Revenue beat(4)3.12%
Revenue beat(8)1
Avg Revenue beat(8)-3.19%
Revenue beat(12)4
Avg Revenue beat(12)-1.89%
Revenue beat(16)5
Avg Revenue beat(16)-2.11%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.21%
EPS NY rev (1m)8.11%
EPS NY rev (3m)12.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.08 | ||
| Fwd PE | 8.86 | ||
| P/S | 0.76 | ||
| P/FCF | 7.96 | ||
| P/OCF | 6.36 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.93 |
EPS(TTM)1.43
EY11.01%
EPS(NY)1.47
Fwd EY11.28%
FCF(TTM)1.63
FCFY12.56%
OCF(TTM)2.04
OCFY15.73%
SpS17.17
BVpS-4.03
TBVpS-4.99
PEG (NY)0.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.53% | ||
| ROE | N/A | ||
| ROCE | 42.9% | ||
| ROIC | 33.77% | ||
| ROICexc | 42.96% | ||
| ROICexgc | 55.54% | ||
| OM | 13.44% | ||
| PM (TTM) | 8.7% | ||
| GM | 20.46% | ||
| FCFM | 9.51% |
ROA(3y)4.08%
ROA(5y)3.85%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)33.21%
ROIC(5y)28.46%
ROICexc(3y)40.6%
ROICexc(5y)37.48%
ROICexgc(3y)51.4%
ROICexgc(5y)47.9%
ROCE(3y)42.18%
ROCE(5y)37.44%
ROICexcg growth 3Y-7.1%
ROICexcg growth 5Y-4.26%
ROICexc growth 3Y-5.96%
ROICexc growth 5Y-2.81%
OM growth 3Y-0.69%
OM growth 5Y0.33%
PM growth 3Y35.69%
PM growth 5Y-3.38%
GM growth 3Y1.4%
GM growth 5Y-1%
F-Score8
Asset Turnover1.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.46 | ||
| Debt/EBITDA | 2.63 | ||
| Cap/Depr | 91.21% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 5.05 | ||
| Cash Conversion | 74.1% | ||
| Profit Quality | 109.3% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 1.71 |
F-Score8
WACC4.8%
ROIC/WACC7.03
Cap/Depr(3y)100.56%
Cap/Depr(5y)94.59%
Cap/Sales(3y)2.43%
Cap/Sales(5y)2.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)41.58%
EPS 3Y-6.91%
EPS 5Y-19.21%
EPS Q2Q%50%
EPS Next Y12.37%
EPS Next 2Y7.42%
EPS Next 3Y15.75%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.71%
Revenue growth 3Y-1.47%
Revenue growth 5Y1.36%
Sales Q2Q%2.58%
Revenue Next Year0.62%
Revenue Next 2Y0.42%
Revenue Next 3Y2.56%
Revenue Next 5YN/A
EBIT growth 1Y0.65%
EBIT growth 3Y-2.15%
EBIT growth 5Y1.7%
EBIT Next Year28.49%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-13.87%
FCF growth 3YN/A
FCF growth 5Y17.76%
OCF growth 1Y-9.25%
OCF growth 3YN/A
OCF growth 5Y11.01%