GARRETT MOTION INC (GTX) Stock Fundamental Analysis
USA - NASDAQ:GTX - US3665051054 - Common Stock
16.4265 USD
+1.5 (+10.02%)
We assign a fundamental rating of 5 out of 10 to GTX. GTX was compared to 83 industry peers in the Automobile Components industry. While GTX has a great profitability rating, there are some minor concerns on its financial health. GTX may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year GTX was profitable.
GTX had a positive operating cash flow in the past year.
GTX had positive earnings in 4 of the past 5 years.
Of the past 5 years GTX 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 12.53%, GTX belongs to the best of the industry, outperforming 96.39% of the companies in the same industry.
The Return On Invested Capital of GTX (33.77%) is better than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GTX is significantly above the industry average of 8.52%.
The last Return On Invested Capital (33.77%) for GTX is above the 3 year average (33.21%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 8.70%, GTX belongs to the top of the industry, outperforming 96.39% of the companies in the same industry.
GTX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 13.44%, GTX belongs to the top of the industry, outperforming 95.18% of the companies in the same industry.
In the last couple of years the Operating Margin of GTX has remained more or less at the same level.
GTX's Gross Margin of 20.46% is on the low side compared to the rest of the industry. GTX is outperformed by 68.67% 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.
GTX has more shares outstanding than it did 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 1.78. This is a bad value and indicates that GTX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.78, GTX is doing worse than 78.31% of the companies in the same industry.
GTX has a debt to FCF ratio of 4.46. This is a neutral value as GTX would need 4.46 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.46, GTX belongs to the top of the industry, outperforming 85.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.46 | ||
| Altman-Z | 1.78 |
ROIC/WACC7.06
WACC4.78%
2.3 Liquidity
A Current Ratio of 1.03 indicates that GTX should not have too much problems paying its short term obligations.
GTX's Current ratio of 1.03 is on the low side compared to the rest of the industry. GTX is outperformed by 90.36% 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.
GTX has a Quick ratio of 0.82. This is amonst the worse of the industry: GTX underperforms 84.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
GTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 53.92%, which is quite impressive.
Measured over the past years, GTX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.21% on average per year.
Looking at the last year, GTX shows a very negative growth in Revenue. The Revenue has decreased by -10.58% in the last year.
GTX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.36% yearly.
EPS 1Y (TTM)53.92%
EPS 3Y-6.91%
EPS 5Y-19.21%
EPS Q2Q%58.33%
Revenue 1Y (TTM)-10.58%
Revenue growth 3Y-1.47%
Revenue growth 5Y1.36%
Sales Q2Q%9.2%
3.2 Future
The Earnings Per Share is expected to grow by 6.29% on average over the next years.
GTX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.02% yearly.
EPS Next Y7.68%
EPS Next 2Y8.73%
EPS Next 3Y6.29%
EPS Next 5YN/A
Revenue Next Year0.74%
Revenue Next 2Y1.24%
Revenue Next 3Y2.02%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.46, which indicates a very decent valuation of GTX.
Compared to the rest of the industry, the Price/Earnings ratio of GTX indicates a somewhat cheap valuation: GTX is cheaper than 79.52% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.83. GTX is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.94 indicates a reasonable valuation of GTX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GTX indicates a somewhat cheap valuation: GTX is cheaper than 63.86% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of GTX to the average of the S&P500 Index (22.82), we can say GTX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 10.94 |
4.2 Price Multiples
GTX's Enterprise Value to EBITDA ratio is in line with the industry average.
GTX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GTX is cheaper than 80.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.06 | ||
| EV/EBITDA | 7.63 |
4.3 Compensation for Growth
GTX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GTX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.36
PEG (5Y)N/A
EPS Next 2Y8.73%
EPS Next 3Y6.29%
5. Dividend
5.1 Amount
GTX has a Yearly Dividend Yield of 1.92%.
Compared to an average industry Dividend Yield of 4.49, GTX has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, GTX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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
8.31% of the earnings are spent on dividend by GTX. This is a low number and sustainable payout ratio.
DP8.31%
EPS Next 2Y8.73%
EPS Next 3Y6.29%
NASDAQ:GTX (10/24/2025, 1:17:35 PM)
16.4265
+1.5 (+10.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners77.02%
Inst Owner Change0.07%
Ins Owners0.9%
Ins Owner Change-0.1%
Market Cap3.31B
Revenue(TTM)3.48B
Net Income(TTM)301.00M
Analysts83.33
Price Target16.07 (-2.17%)
Short Float %4.14%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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)12.5%
PT rev (3m)12.5%
EPS NQ rev (1m)-14.58%
EPS NQ rev (3m)-9.65%
EPS NY rev (1m)-5.06%
EPS NY rev (3m)2.64%
Revenue NQ rev (1m)-0.65%
Revenue NQ rev (3m)-0.87%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.46 | ||
| Fwd PE | 10.94 | ||
| P/S | 0.96 | ||
| P/FCF | 10.06 | ||
| P/OCF | 8.04 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.63 |
EPS(TTM)1.57
EY9.56%
EPS(NY)1.5
Fwd EY9.14%
FCF(TTM)1.63
FCFY9.94%
OCF(TTM)2.04
OCFY12.44%
SpS17.17
BVpS-4.03
TBVpS-4.99
PEG (NY)1.36
PEG (5Y)N/A
Graham NumberN/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%
ROICexgc growth 3Y-7.1%
ROICexgc 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 | 1.78 |
F-Score8
WACC4.78%
ROIC/WACC7.06
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)53.92%
EPS 3Y-6.91%
EPS 5Y-19.21%
EPS Q2Q%58.33%
EPS Next Y7.68%
EPS Next 2Y8.73%
EPS Next 3Y6.29%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.58%
Revenue growth 3Y-1.47%
Revenue growth 5Y1.36%
Sales Q2Q%9.2%
Revenue Next Year0.74%
Revenue Next 2Y1.24%
Revenue Next 3Y2.02%
Revenue Next 5YN/A
EBIT growth 1Y0.65%
EBIT growth 3Y-2.15%
EBIT growth 5Y1.7%
EBIT Next Year29.95%
EBIT Next 3Y11.99%
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%
GARRETT MOTION INC / GTX FAQ
What is the ChartMill fundamental rating of GARRETT MOTION INC (GTX) stock?
ChartMill assigns a fundamental rating of 5 / 10 to GTX.
What is the valuation status for GTX stock?
ChartMill assigns a valuation rating of 7 / 10 to GARRETT MOTION INC (GTX). This can be considered as Undervalued.
What is the profitability of GTX stock?
GARRETT MOTION INC (GTX) has a profitability rating of 7 / 10.
What is the financial health of GARRETT MOTION INC (GTX) stock?
The financial health rating of GARRETT MOTION INC (GTX) is 4 / 10.
Can you provide the expected EPS growth for GTX stock?
The Earnings per Share (EPS) of GARRETT MOTION INC (GTX) is expected to grow by 7.68% in the next year.