Garrett Motion Inc. (GTX) stock analysis

P/E above its 5-year median

Garrett Motion's P/E of 10.8 is above its own 5-year median of 9.8.

P/E below the industry

Garrett Motion's P/E of 10.8 is below the Motor Vehicles and Motor Vehicle Equipment median of 18.7.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/S above the industry

Garrett Motion's price-to-sales of 1.03 is above the Motor Vehicles and Motor Vehicle Equipment median of 0.67 (book value is negative, so we use sales).

Trading below fair value

The share price of $21.00 is below our fair value estimate of $25.81.

Margin of safety under 20%

The price is 18.6% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -0.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 26.5% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 15.6% over the last twelve months, against a 5-year average of 31.1% a year.

Growing faster than the industry

Revenue grew 6.9% over the last twelve months; the Motor Vehicles and Motor Vehicle Equipment median is 5.5%.

Guidance raised

Garrett Motion raised its Full Year 2026 Net cash provided by operating activities (GAAP) outlook on Oct 29, 2026.

Gross margin improving

Gross margin was 21.1% over the last twelve months, against 20.6% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings grew over 5 years

Net income grew 31.1% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 10.0% over the last twelve months, against a 5-year average of 9.6%.

Net margin above the industry

Garrett Motion's net margin of 10.0% is above the Motor Vehicles and Motor Vehicle Equipment median of 1.9%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 34.9% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.04 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 1.63; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Garrett Motion paid dividends worth 1.5% of the share price over the last twelve months.

Yield below Treasuries

The 1.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Garrett Motion yields 1.5%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 16.4% of net income.

Covered by free cash flow

Dividends take 15.7% of free cash flow.