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Relative to Consumer Discretionary Sector Median (N=442)
Metric
GTX
Benchmark
P/E Ratio
12.4x
-49%
EV/EBITDA
9.4x
+92%
Price / Book
-5.6x
Implied Value Audit
OVERVALUED
Implied Fair Value (vs Sector)
-57.4%
$8.31Spot: $19.48
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Consumer Discretionary sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
-45.4%
Sector: 6.2%
Dividend Analysis audit
GROWTH
1.32%
Trailing Yield
$1.32
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
16%SAFE
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
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Based on our 6-factor quantitative model, Garrett Motion Inc. (GTX) receives a "Hold" rating with a composite score of 53.5/100, ranked #822 out of 4446 stocks. Key factor scores: Quality 50/100, Value 73/100, Momentum 68/100. This is quantitative analysis only — not investment advice.
Garrett Motion Inc. (GTX) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Garrett Motion Inc. Do?
Garrett Motion Inc., together with its subsidiaries, designs, manufactures, and sells turbocharger and electric-boosting technologies for light and commercial vehicle original equipment manufacturers worldwide. The company offers light vehicle gasoline and diesel, and commercial vehicle turbochargers; and provides automotive software solutions. It offers its products in the aftermarket through distributors. Garrett Motion Inc. was incorporated in 2018 and is headquartered in Rolle, Switzerland. Garrett Motion Inc. (GTX) is classified as a mid-cap stock in the Consumer Discretionary sector, specifically within the Automobiles And Trucks industry. The company is led by CEO Olivier Rabiller and employs approximately 9,300 people. With a market capitalization of $3.5B, GTX is one of the notable companies in the Consumer Discretionary sector.
Garrett Motion Inc. (GTX) Stock Rating — Hold (April 2026)
As of April 2026, Garrett Motion Inc. receives a Hold rating with a composite score of 53.5/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.GTX ranks #822 out of 4,446 stocks in our coverage universe. Within the Consumer Discretionary sector, Garrett Motion Inc. ranks #57 of 442 stocks, placing it in the top quartile of its Consumer Discretionary peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
GTX Stock Price and 52-Week Range
Garrett Motion Inc. (GTX) currently trades at $19.48. The stock gained $0.07 (0.4%) in the most recent trading session. The 52-week high for GTX is $21.42, which means the stock is currently trading -9.1% from its annual peak. The 52-week low is $7.01, putting the stock 177.7% above its annual trough. Recent trading volume was 1.4M shares, reflecting moderate market activity.
Is GTX Overvalued or Undervalued? — Valuation Analysis
Garrett Motion Inc. (GTX) carries a value factor score of 73/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 12.37x, compared to the Consumer Discretionary sector average of 24.47x — a discount of 49%. The price-to-sales ratio is 0.98x, compared to 0.27x for the average Consumer Discretionary stock. On an enterprise value basis, GTX trades at 9.42x EV/EBITDA, versus 4.91x for the sector.
Based on these multiples, Garrett Motion Inc. appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
Garrett Motion Inc. Profitability — ROE, Margins, and Quality Score
Garrett Motion Inc. (GTX) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is -45.4%, compared to the Consumer Discretionary sector average of 6.2%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 11.7% versus the sector average of 2.5%.
On a margin basis, Garrett Motion Inc. reports gross margins of 20.2%, compared to 36.9% for the sector. The operating margin is 10.3% (sector: 3.8%). Net profit margin stands at 7.9%, versus 2.1% for the average Consumer Discretionary stock. Revenue growth is running at 1.4% on a trailing basis, compared to 3.3% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
GTX Debt, Balance Sheet, and Financial Health
Garrett Motion Inc. has a debt-to-equity ratio of -180.0%, compared to the Consumer Discretionary sector average of 89.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 0.97x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $1.47B. Cash and equivalents stand at $230M.
GTX has a beta of 1.04, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Garrett Motion Inc. is 59/100, reflecting average volatility within the normal range for its sector.
Garrett Motion Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Garrett Motion Inc. reported revenue of $3.52B and earnings per share (EPS) of $1.55. Net income for the quarter was $278M. Gross margin was 20.2%. Operating income came in at $365M.
In FY 2025, Garrett Motion Inc. reported revenue of $3.58B and earnings per share (EPS) of $1.55. Net income for the quarter was $310M. Gross margin was 20.4%. Revenue grew 3.1% year-over-year compared to FY 2024. Operating income came in at $392M.
In Q3 2025, Garrett Motion Inc. reported revenue of $902M and earnings per share (EPS) of $0.39. Net income for the quarter was $77M. Gross margin was 20.6%. Revenue grew 9.2% year-over-year compared to Q3 2024. Operating income came in at $102M.
In Q2 2025, Garrett Motion Inc. reported revenue of $913M and earnings per share (EPS) of $0.43. Net income for the quarter was $87M. Gross margin was 19.8%. Revenue grew 2.6% year-over-year compared to Q2 2024. Operating income came in at $102M.
Over the past 8 quarters, Garrett Motion Inc. has demonstrated a growth trajectory, with revenue expanding from $890M to $3.52B. Investors analyzing GTX stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
GTX Dividend Yield and Income Analysis
Garrett Motion Inc. (GTX) currently pays a dividend yield of 1.3%. At this yield, a $10,000 investment in GTX stock would generate approximately $$132.00 in annual dividend income. The net margin of 7.9% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
GTX Momentum and Technical Analysis Profile
Garrett Motion Inc. (GTX) has a momentum factor score of 68/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 33/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 12/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
GTX vs Competitors — Consumer Discretionary Sector Ranking and Peer Comparison
Comparing GTX against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full GTX vs S&P 500 (SPY) comparison to assess how Garrett Motion Inc. stacks up against the broader market across all factor dimensions.
GTX Next Earnings Date
No upcoming earnings date has been announced for Garrett Motion Inc. (GTX) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy GTX? — Investment Thesis Summary
Garrett Motion Inc. presents a balanced picture with arguments on both sides. The value score of 73/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 68/100, suggesting the trend favors buyers.
In summary, Garrett Motion Inc. (GTX) earns a Hold rating with a composite score of 53.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on GTX stock.
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Institutional Research Dossier
Garrett Motion Inc. (GTX) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Garrett Motion Inc. (GTX) receives a Hold rating, primarily driven by its attractive valuation metrics offset by concerns regarding its historical financial performance and the inherent cyclicality of the automotive industry. While the company demonstrates strong profitability relative to its sector, its negative ROE and substantial debt burden warrant caution. The transition to electric vehicles also poses a long-term threat to its core turbocharger business.
The company's current valuation, reflected in its low P/E and EV/EBITDA ratios compared to the consumer discretionary sector, suggests potential undervaluation. However, investors should carefully consider the risks associated with the automotive industry's ongoing transformation and Garrett Motion's ability to adapt to the evolving technological landscape. The Hold rating reflects a balanced view of the company's potential upside and the significant challenges it faces.
Business Strategy & Overview
Garrett Motion operates as a key supplier of turbocharging technologies to the global automotive industry, catering to both light and commercial vehicle manufacturers. Its core business revolves around the design, manufacturing, and sale of turbochargers, which enhance engine efficiency and performance. The company also offers automotive software solutions, indicating a strategic move towards incorporating digital technologies into its product portfolio. A significant portion of its revenue is generated through sales to original equipment manufacturers (OEMs), with a secondary channel focused on the aftermarket through distributors.
The company's strategic positioning is heavily influenced by the evolving trends in the automotive industry, particularly the shift towards electrification. While turbochargers are primarily used in internal combustion engines (ICE), Garrett Motion is actively investing in electric-boosting technologies to adapt to the changing market dynamics. This includes developing electric turbochargers and other solutions that can be integrated into hybrid and electric vehicles. The company's ability to successfully transition its product portfolio to align with the growing demand for electric vehicles will be crucial for its long-term success.
Garrett Motion's product pipeline likely includes advancements in turbocharger technology aimed at improving fuel efficiency and reducing emissions for ICE vehicles, as well as the development of electric-boosting solutions for hybrid and electric powertrains. The company's focus on innovation is essential for maintaining its competitive edge in a rapidly changing industry. Furthermore, its expansion into automotive software solutions suggests a broader strategy of offering integrated systems that enhance vehicle performance and efficiency.
The automotive industry is characterized by intense competition, with numerous suppliers vying for contracts with OEMs. Garrett Motion competes with other major turbocharger manufacturers, as well as companies developing alternative powertrain technologies. The company's success depends on its ability to offer innovative, high-quality products at competitive prices, while also maintaining strong relationships with its OEM customers. The industry is also subject to cyclical fluctuations in demand, which can impact Garrett Motion's revenue and profitability.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
1.4%
Sector: 3.3%
-59% VS SCTR
Economic Moat Analysis
Garrett Motion's economic moat can be classified as Narrow, primarily stemming from intangible assets and switching costs. The company possesses significant expertise and intellectual property in turbocharger technology, accumulated over decades of research and development. This technical know-how creates a barrier to entry for new competitors, as it requires substantial investment and time to develop comparable products. Furthermore, Garrett Motion's established relationships with major automotive OEMs provide a competitive advantage, as these customers often prefer to work with trusted suppliers with a proven track record.
The switching costs associated with turbocharger technology also contribute to the company's narrow moat. Automotive manufacturers invest significant resources in integrating turbochargers into their engine designs, and switching to a new supplier can be costly and time-consuming. This creates a degree of stickiness for Garrett Motion's products, as OEMs are less likely to switch suppliers unless there is a compelling reason to do so. However, these switching costs are not insurmountable, and OEMs can and do switch suppliers when faced with better pricing, technology, or service.
While Garrett Motion benefits from intangible assets and switching costs, its moat is not considered Wide due to the presence of strong competitors and the evolving nature of the automotive industry. The company faces competition from other established turbocharger manufacturers, as well as companies developing alternative powertrain technologies. The shift towards electric vehicles also poses a long-term threat to its core turbocharger business, as electric vehicles do not require turbochargers. This technological disruption could erode Garrett Motion's competitive advantage over time.
The company's ability to maintain and expand its narrow moat depends on its continued investment in research and development, its ability to adapt to the changing technological landscape, and its success in maintaining strong relationships with its OEM customers. The development of electric-boosting technologies and other solutions for hybrid and electric vehicles will be crucial for ensuring the company's long-term competitiveness. Furthermore, Garrett Motion must continue to innovate and improve its existing turbocharger technology to maintain its edge in the internal combustion engine market.
Financial Health & Profitability
Garrett Motion's financial health presents a mixed picture. The company's revenue has shown modest growth, with TTM revenue of $3.58 billion compared to $3.48 billion in the prior year. However, this growth rate of 1.4% is below the sector average of 3.2%, indicating potential challenges in gaining market share. The company's gross margin of 20.2% is significantly lower than the sector average of 36.9%, suggesting potential inefficiencies in its cost structure or pricing strategies. However, its operating margin of 10.3% and net margin of 7.9% are substantially higher than the sector averages of 3.8% and 2.1%, respectively, indicating strong profitability relative to its peers.
The company's ROE is a concerning -45.4%, significantly below the sector average of 5.8%. This negative ROE suggests that the company is not effectively utilizing its equity to generate profits. This could be due to a combination of factors, including high debt levels and restructuring costs associated with its emergence from bankruptcy. The company's debt-to-equity ratio is -180.00, which is misleading due to negative equity. However, the total debt of $1.47 billion and total cash of $230 million indicate a highly leveraged balance sheet.
The company's current ratio of 0.97 indicates that its current liabilities are slightly higher than its current assets, which could pose liquidity challenges in the short term. However, the company's free cash flow of $270.38 million suggests that it is generating sufficient cash to meet its obligations. The quarterly financial history reveals some volatility in revenue and net income, but overall, the company has demonstrated consistent profitability over the past few quarters.
Analyzing the quarterly trends, we observe that revenue peaked in Q2 2023 at $1.01 billion and has generally trended downwards since then. Net income has also fluctuated, with a significant loss in Q2 2023 impacting the full-year EPS. However, recent quarters have shown improved profitability, with net income consistently above $50 million. The gross margin has remained relatively stable, while the operating margin has shown some improvement in recent quarters. Overall, Garrett Motion's financial health is characterized by strong profitability relative to its sector, but also by high debt levels and a negative ROE, which warrant careful monitoring.
Valuation Assessment
Garrett Motion's valuation appears attractive based on several key metrics. The company's P/E ratio of 10.9x is significantly lower than the sector average of 28.0x, suggesting potential undervaluation. Similarly, its EV/EBITDA ratio of 2.1x is substantially lower than the sector average of 5.3x, further indicating that the company may be undervalued relative to its peers. These low multiples could reflect investor concerns about the company's debt levels, its historical financial performance, and the long-term impact of the shift towards electric vehicles.
However, it's important to consider the company's growth prospects and its specific industry context when assessing its valuation. While Garrett Motion's revenue growth of 1.4% is below the sector average, the company is operating in a mature industry that is undergoing significant technological disruption. The shift towards electric vehicles poses a long-term threat to its core turbocharger business, which could limit its future growth potential. Therefore, the company's low valuation multiples may be justified to some extent.
The company's free cash flow yield, calculated as free cash flow divided by market capitalization, is approximately 8.4%, which is relatively high. This suggests that the company is generating a significant amount of cash relative to its market value, which could be attractive to value investors. However, it's important to consider the sustainability of this free cash flow, as it could be impacted by changes in demand for turbochargers or by increased capital expenditures related to the development of electric-boosting technologies.
Overall, Garrett Motion's valuation appears attractive based on its low P/E and EV/EBITDA ratios, as well as its high free cash flow yield. However, investors should carefully consider the risks associated with the automotive industry's ongoing transformation and Garrett Motion's ability to adapt to the evolving technological landscape. The company's high debt levels and negative ROE also warrant caution. A fair valuation would likely fall somewhere between the current depressed multiples and the sector averages, reflecting both the company's potential upside and the significant challenges it faces.
Risk & Uncertainty
Garrett Motion faces several specific risks that could negatively impact its business and financial performance. The most significant risk is the accelerating shift towards electric vehicles, which could reduce demand for its core turbocharger products. As electric vehicles gain market share, the demand for internal combustion engines, and consequently turbochargers, is likely to decline. This could lead to a decrease in Garrett Motion's revenue and profitability, particularly if the company is unable to successfully transition its product portfolio to align with the growing demand for electric-boosting technologies.
Another significant risk is the company's high debt levels. Garrett Motion emerged from bankruptcy in 2021, and its balance sheet remains highly leveraged. This high debt burden could limit the company's financial flexibility and its ability to invest in research and development, acquisitions, or other strategic initiatives. Furthermore, rising interest rates could increase the company's debt servicing costs, further straining its financial resources. The company's ability to generate sufficient cash flow to meet its debt obligations is crucial for its long-term survival.
The automotive industry is highly competitive, and Garrett Motion faces competition from other established turbocharger manufacturers, as well as companies developing alternative powertrain technologies. Increased competition could lead to price pressures and reduced profit margins. Furthermore, the company's reliance on a limited number of OEM customers creates concentration risk. A loss of a major customer or a significant reduction in orders from a key customer could have a material adverse effect on the company's revenue and profitability.
Finally, the automotive industry is subject to cyclical fluctuations in demand, which can impact Garrett Motion's revenue and profitability. Economic downturns or changes in consumer preferences could lead to a decrease in demand for vehicles, which would negatively impact the company's sales. Furthermore, regulatory changes related to emissions standards or fuel efficiency could also affect the demand for turbochargers. The company's ability to navigate these cyclical fluctuations and regulatory changes is crucial for its long-term success.
Bulls Say / Bears Say
The Bull Case
BULL VIEWGarrett Motion's low valuation multiples (P/E and EV/EBITDA) offer significant upside potential as the company continues to deleverage and improve its financial performance.
BULL VIEWThe company's expertise in turbocharger technology and its established relationships with major OEMs provide a competitive advantage that will allow it to successfully transition to electric-boosting technologies.
BULL VIEWGarrett Motion's strong free cash flow generation provides ample resources for debt repayment, strategic investments, and potential shareholder returns.
The Bear Case
BEAR VIEWThe accelerating shift towards electric vehicles will significantly reduce demand for Garrett Motion's core turbocharger products, leading to a decline in revenue and profitability.
BEAR VIEWGarrett Motion's high debt levels limit its financial flexibility and its ability to invest in research and development, acquisitions, or other strategic initiatives.
BEAR VIEWThe company's negative ROE and below-sector revenue growth indicate fundamental weaknesses that justify its low valuation multiples.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score GTX and 4,400+ other equities.
Garrett Motion Inc. exhibits a 19% valuation discount relative to institutional benchmarks. This represents a constructive entry window based on current multiples.
Return on Assets
Efficiency of asset utilization
11.7%
Sector: 2.5%
Gross Margin
Pricing power and cost efficiency
20.2%
Sector: 36.9%
Operating Margin
Core business profitability
10.3%
Sector: 3.8%
Net Margin
Bottom-line profitability
7.9%
Sector: 2.1%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $132 annually in dividends at the current trailing rate.
