📊 GTX Key Takeaways
Is GTX a Good Investment? Thesis Analysis
Garrett Motion demonstrates strong operational execution with 9.9% net income growth and robust free cash flow generation of $341M, supported by healthy 10.9% operating margins and excellent 12.6x interest coverage. However, critical balance sheet deterioration with negative stockholders equity of -$802M and liquidity ratios below 1.0x create significant structural risk that undermines the operational strengths.
Why Buy GTX? Key Strengths
- Strong earnings growth: +9.9% net income YoY, +20.6% EPS YoY
- Robust free cash flow: $341M FCF (9.5% margin) exceeds net income
- Healthy operational efficiency: 10.9% operating margin, 13.1% ROA
- Excellent interest coverage ratio of 12.6x demonstrates debt serviceability
- Good cash generation despite modest 3.1% revenue growth indicates margin expansion
GTX Investment Risks to Consider
- CRITICAL: Negative stockholders equity of -$802M indicates balance sheet insolvency
- Poor liquidity position: Current ratio 0.97x and Quick ratio 0.72x below safe thresholds
- Liabilities of $3.2B exceed total assets of $2.4B by $800M
- High leverage with $1.4B long-term debt against negative equity base
- Modest revenue growth of 3.1% limits organic growth trajectory
Key Metrics to Watch
- Stockholders equity trend and path to positive equity restoration
- Operating cash flow sustainability and free cash flow generation
- Current and quick ratios for near-term liquidity improvement
- Debt reduction progress relative to $1.4B long-term debt level
- Revenue growth acceleration above 3% threshold
GTX Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
GTX Profitability Ratios
GTX vs Default Sector
How Garrett Motion Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is GTX Overvalued or Undervalued?
Based on fundamental analysis, Garrett Motion Inc. has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
GTX Balance Sheet & Liquidity
GTX 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: Garrett Motion Inc.'s revenue has shown modest growth of 7% over the 5-year period. The most recent EPS of $-0.31 indicates the company is currently unprofitable.
GTX Growth Metrics (YoY)
GTX Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2024 | $826.0M | $52.0M | $0.23 |
| Q2 2024 | $890.0M | $64.0M | $0.28 |
| Q1 2024 | $915.0M | $66.0M | $0.13 |
| Q3 2023 | $945.0M | $57.0M | $0.21 |
| Q2 2023 | $859.0M | $71.0M | $0.15 |
| Q1 2023 | $901.0M | $81.0M | $0.13 |
| Q3 2022 | $839.0M | $63.0M | $0.09 |
| Q2 2022 | $859.0M | $85.0M | $0.15 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
GTX Capital Allocation
GTX SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Garrett Motion Inc. (CIK: 0001735707)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 2, 2026 | 4 | xslF345X06/es260760524_4-ninivaggi.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/es260760522_4-drees.xml | View → |
| Apr 2, 2026 | 4 | xslF345X06/es260760515_4-camuti.xml | View → |
| Mar 9, 2026 | 4 | xslF345X05/es260748363_4-spenninck.xml | View → |
| Mar 9, 2026 | 4 | xslF345X05/es260748362_4-rollinger.xml | View → |
❓ Frequently Asked Questions about GTX
What is the AI rating for GTX?
Garrett Motion Inc. (GTX) has an AI rating of HOLD with 58% confidence, based on fundamental analysis of SEC EDGAR filings.
What are GTX's key strengths?
Claude: Strong earnings growth: +9.9% net income YoY, +20.6% EPS YoY. Robust free cash flow: $341M FCF (9.5% margin) exceeds net income.
What are the risks of investing in GTX?
Claude: CRITICAL: Negative stockholders equity of -$802M indicates balance sheet insolvency. Poor liquidity position: Current ratio 0.97x and Quick ratio 0.72x below safe thresholds.
What is GTX's revenue and growth?
Garrett Motion Inc. reported revenue of $3.6B.
Does GTX pay dividends?
Garrett Motion Inc. pays dividends, with $52.0M distributed to shareholders in the trailing twelve months.
Where can I find GTX SEC filings?
Official SEC filings for Garrett Motion Inc. (CIK: 0001735707) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GTX's EPS?
Garrett Motion Inc. has a diluted EPS of $1.52.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GTX a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Garrett Motion Inc. has a HOLD rating with 58% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GTX stock overvalued or undervalued?
Valuation metrics for GTX: ROE of N/A (sector avg: 15%), net margin of 8.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy GTX stock in 2026?
Our dual AI analysis gives Garrett Motion Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GTX's free cash flow?
Garrett Motion Inc.'s operating cash flow is $413.0M, with capital expenditures of $72.0M. FCF margin is 9.5%.
How does GTX compare to other Default stocks?
Vs Default sector averages: Net margin 8.6% (avg: 12%), ROE N/A (avg: 15%), current ratio 0.97 (avg: 1.8).