Garrett Motion Inc. Fundamental Analysis (NASDAQ: GTX)
Garrett Motion Inc. (NASDAQ: GTX) shows moderate financial fundamentals with a PE ratio of 14.28, profit margin of 9.51%, and ROE of -46.50%. The company generates $3.7B in annual revenue with moderate year-over-year growth of 3.14%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 12.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GTX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentGTX demonstrates superior asset utilization.
Valuation Score
ExcellentGTX trades at attractive valuation levels.
Growth Score
ModerateGTX shows steady but slowing expansion.
Financial Health Score
ExcellentGTX maintains a strong and stable balance sheet.
Profitability Score
WeakGTX struggles to sustain strong margins.
Key Financial Metrics
Is GTX Expensive or Cheap?
P/E Ratio
GTX trades at 14.28 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GTX's PEG of 0.48 indicates potential undervaluation.
Price to Book
The market values Garrett Motion Inc. at -7.41 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.32 times EBITDA. This is generally considered low.
How Well Does GTX Make Money?
Net Profit Margin
For every $100 in sales, Garrett Motion Inc. keeps $9.51 as profit after all expenses.
Operating Margin
Core operations generate 10.63 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-46.50 in profit for every $100 of shareholder equity.
ROA
Garrett Motion Inc. generates $14.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Garrett Motion Inc. produces operating cash flow of $440.21M, showing steady but balanced cash generation.
Free Cash Flow
Garrett Motion Inc. produces free cash flow of $363.52M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.95 in free cash annually.
FCF Yield
GTX converts 7.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.48
vs 25 benchmark
P/B Ratio
Price to book value ratio
-7.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.002
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.46
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.40
vs 25 benchmark
How GTX Stacks Against Its Sector Peers
| Metric | GTX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.28 | 26.29 | Better (Cheaper) |
| ROE | -46.50% | 966.00% | Weak |
| Net Margin | 9.51% | -4927.00% (disorted) | Weak |
| Debt/Equity | -2.10 | 0.60 | Strong (Low Leverage) |
| Current Ratio | 1.00 | 2.32 | Neutral |
| ROA | 14.44% | 295.00% | Weak |
GTX outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Garrett Motion Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-55.33%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
46.54%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
524.74%
Industry Style: Cyclical, Growth, Discretionary
High Growth