Garrett Motion Inc. (GTX)

Garrett Motion Inc. (GTX) Consumer Business Overview

Garrett Motion Inc. designs and manufactures turbochargers and electric-boosting technologies, catering to light and commercial vehicle OEMs worldwide. With a focus on aftermarket distribution and automotive software solutions, the company maintains a competitive edge in the auto parts sector, marked by a P/E ratio of 17.6 and a dividend yield of 0.97%.

What Is the Investment Thesis for GTX?

Garrett Motion Inc. presents a notable research candidate within the automotive parts sector. The company's focus on turbocharger and electric-boosting technologies aligns with the growing demand for fuel-efficient and environmentally friendly vehicles. With a market capitalization of $6.21B and a P/E ratio of 17.6, Garrett Motion demonstrates financial stability and growth potential. Key value drivers include the increasing adoption of turbochargers in both gasoline and diesel engines, as well as the expansion of its automotive software solutions. The company's gross margin of 24.2% and dividend yield of 0.97% further enhance its investment appeal. Investors should monitor the company's ability to maintain its competitive edge and adapt to evolving industry trends.

Based on FMP financials and quantitative analysis

GTX Key Highlights

• Market capitalization of $6.21B, reflecting significant investor confidence in the company's market position and future growth prospects.
• P/E ratio of 17.6, indicating a reasonable valuation compared to its earnings and potential for future appreciation.
• Profit margin of 9.3%, showcasing the company's ability to generate profits from its operations and maintain financial health.
• Gross margin of 24.2%, demonstrating the company's efficiency in managing production costs and pricing its products effectively.
• Beta of 0.44, suggesting lower volatility compared to the overall market, making it a potentially stable investment option.

Who Are GTX's Competitors?

GTX is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are GTX's Key Strengths?

• Strong technological expertise in turbocharger and electric-boosting technologies.
• Established relationships with original equipment manufacturers (OEMs).
• Global distribution network for aftermarket sales.
• Automotive software solutions offering differentiation.

What Are GTX's Weaknesses?

• Dependence on the automotive industry, which is subject to cyclical fluctuations.
• Exposure to raw material price volatility.
• Competition from other automotive parts suppliers.
• Potential impact from changing automotive technology trends.

What Could Drive GTX Stock Higher?

• Launch of new electric-boosting technologies for hybrid and electric vehicles in Q3 2026.
• Expansion of aftermarket distribution network in emerging markets.
• Strategic partnerships and collaborations with automotive technology companies.
• Development of advanced automotive software solutions.

What Are the Key Risks for GTX?

• Negative return on equity (-42.8%) — the business is not currently generating profit on shareholder capital.
• Insider selling — insiders were net sellers of roughly $10.4M recently.
• Shift towards electric vehicles potentially reducing demand for turbochargers.
• Increased competition from new entrants in the automotive parts market.
• Economic downturns impacting vehicle sales and aftermarket demand.
• Regulatory changes affecting emissions standards and fuel efficiency requirements.

What Are the Growth Opportunities for GTX?

• Expansion of Electric-Boosting Technologies: Garrett Motion can capitalize on the growing demand for electric and hybrid vehicles by expanding its electric-boosting technology offerings. The global electric vehicle market is projected to reach $800 billion by 2027, presenting a significant opportunity for Garrett Motion to increase its revenue and market share. Timeline: Ongoing.
• Penetration of Emerging Markets: Garrett Motion can drive growth by expanding its presence in emerging markets, such as China and India, where vehicle production is increasing rapidly. These markets offer significant potential for increased sales of turbochargers and related products. The automotive market in China alone is expected to reach $400 billion by 2028. Timeline: Ongoing.
• Aftermarket Expansion: Garrett Motion can further strengthen its aftermarket business by expanding its distribution network and product offerings. The global automotive aftermarket is a large and stable market, providing a recurring revenue stream for the company. The global automotive aftermarket size is expected to reach $1 trillion by 2029. Timeline: Ongoing.
• Partnerships and Collaborations: Garrett Motion can pursue strategic partnerships and collaborations with other automotive technology companies to develop innovative solutions and expand its market reach. Collaborations can help the company access new technologies and markets more quickly and efficiently. Timeline: Ongoing.
• Software Solutions Development: Garrett Motion can invest in the development of advanced automotive software solutions to optimize vehicle performance and control systems. The demand for automotive software is growing rapidly as vehicles become more connected and autonomous. The automotive software market is projected to reach $70 billion by 2028. Timeline: Ongoing.

What Opportunities Does GTX Have?

• Expansion of electric-boosting technology offerings.
• Penetration of emerging markets with growing vehicle production.
• Further strengthening of the aftermarket business.
• Strategic partnerships and collaborations with other technology companies.

What Threats Does GTX Face?

• Shift towards electric vehicles potentially reducing demand for turbochargers.
• Increased competition from new entrants in the automotive parts market.
• Economic downturns impacting vehicle sales and aftermarket demand.
• Regulatory changes affecting emissions standards and fuel efficiency requirements.

What Are GTX's Competitive Advantages?

• Technological expertise in turbocharger and electric-boosting technologies.
• Established relationships with original equipment manufacturers (OEMs).
• Global distribution network for aftermarket sales.
• Automotive software solutions offering differentiation.

What Does GTX Do?

Garrett Motion Inc. was established in 2018 and is headquartered in Rolle, Switzerland. The company designs, manufactures, and sells turbocharger and electric-boosting technologies for light and commercial vehicle original equipment manufacturers globally. These technologies enhance vehicle performance, improve fuel efficiency, and reduce emissions. Garrett Motion's product portfolio includes turbochargers for light vehicle gasoline and diesel engines, as well as commercial vehicle applications. Additionally, the company provides automotive software solutions to optimize vehicle performance and control systems. Garrett Motion serves the aftermarket through a network of distributors, ensuring that its products are available for vehicle maintenance and repair. The company's focus on innovation and quality has positioned it as a key player in the automotive parts industry, with a market capitalization of $6.21B and a profit margin of 9.3%.

What Products and Services Does GTX Offer?

• Designs turbochargers for light vehicle gasoline engines.
• Manufactures turbochargers for light vehicle diesel engines.
• Develops turbochargers for commercial vehicle applications.
• Provides electric-boosting technologies for hybrid and electric vehicles.
• Offers automotive software solutions for vehicle performance optimization.
• Sells products to original equipment manufacturers (OEMs).
• Distributes products in the aftermarket through distributors.

How Does GTX Make Money?

• Designs and manufactures turbochargers and electric-boosting technologies.
• Sells products to original equipment manufacturers (OEMs) for integration into new vehicles.
• Distributes products in the aftermarket through a network of distributors for vehicle maintenance and repair.

What Industry Does GTX Operate In?

Garrett Motion Inc. operates in the auto parts industry, which is undergoing significant transformation due to the shift towards electric and hybrid vehicles. The demand for turbochargers and electric-boosting technologies is expected to grow as automakers seek to improve fuel efficiency and reduce emissions. The industry is competitive, with players like Dana Incorporated (DAN) and Dorman Products, Inc. (DORM) vying for market share. Garrett Motion's focus on innovation and its established relationships with original equipment manufacturers position it well to capitalize on these trends.

Who Are GTX's Key Customers?

• Light vehicle original equipment manufacturers (OEMs).
• Commercial vehicle original equipment manufacturers (OEMs).
• Aftermarket distributors and service providers.

How Garrett Motion Inc. Is Valued

Garrett Motion Inc. carries a market capitalization of $6.21B, placing it in the mid-cap category. Relative to its peer group, GTX's quantitative score of 50/100 is below the peer average of 68/100.

Company Profile

Garrett Motion Inc. operates in the Auto - Parts industry within the Consumer Cyclical sector. It is headquartered in Rolle, CH. The company is led by CEO Olivier Rabiller. GTX has traded publicly since 2018.

ROE -43%Key Financial Metrics

Return on equity for Garrett Motion Inc. stands at -42.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 14.5%, showing how much profit it generates from its asset base. GTX trades at a trailing price-to-earnings ratio of 17.64, below the Consumer Cyclical sector average of ~39x. Its free cash flow yield is 5.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.98 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 5.0%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 7/9Financial Health

Garrett Motion Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 2.63 places it in the grey zone, a middle ground that warrants monitoring.

FY2026 estForward Outlook

Wall Street analysts project Garrett Motion Inc. revenue of about $3.79B for fiscal 2026, with EPS near $1.90. The estimate reflects 5 contributing analysts.

Net sellingInsider Activity

Over the past six months, Garrett Motion Inc. insiders filed 29 SEC Form 4 transactions — 15 sales and 14 purchases. On net that is roughly 157K shares disposed (about $10.4M), a signal worth weighing alongside the fundamentals.

GTX Financials

GTX Latest News

GTX Analyst Consensus

GTX MoonshotScore

What Investors Ask About Garrett Motion Inc. (GTX) — Consumer Cyclical

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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