📊 GTX Key Takeaways
Is Garrett Motion Inc. (GTX) a Good Investment?
While Garrett Motion demonstrates operational resilience with positive operating and free cash flows ($98M and $69M) and improving EPS momentum (+20.6% YoY), the company's balance sheet is critically impaired with negative stockholders' equity of -$781M and weak liquidity ratios (0.98x current, 0.76x quick), indicating severe financial distress that overshadows near-term operational improvements.
Garrett Motion shows resilient fundamentals with modest top-line growth, expanding earnings, double‑digit ROA, and strong free cash flow supported by healthy interest coverage. However, negative shareholders’ equity, sub‑1.0 liquidity ratios, and sizable long-term debt pose balance sheet and refinancing risks that temper operating strength. Execution should focus on deleveraging and rebuilding equity while sustaining margins.
Why Buy Garrett Motion Inc. Stock? GTX Key Strengths
- Positive operating and free cash flows demonstrate operational efficiency despite balance sheet stress
- Revenue growth of 3.1% YoY and EPS growth of 20.6% YoY show improving earnings momentum
- Reasonable profit margins (gross 19.9%, operating 12.0%, net 9.6%) and adequate interest coverage of 3.8x
- Improving profitability with solid 10.9% operating margin and 8.6% net margin
- Strong free cash flow and low capex intensity supporting deleveraging
- Healthy 12.6x interest coverage and 13.1% ROA
GTX Stock Risks: Garrett Motion Inc. Investment Risks
- Critical balance sheet insolvency with negative stockholders' equity of -$781M indicating accumulated losses or restructuring
- Weak liquidity position (current ratio 0.98x, quick ratio 0.76x) creates near-term solvency and operational risk
- High debt burden of $1.4B with minimal cash cushion of $142M increases refinancing and default risk
- Negative shareholders’ equity and elevated leverage constrain financial flexibility
- Sub‑1.0 current and quick ratios indicate tight liquidity
- Cyclical OEM demand and powertrain transition risk
Key Metrics to Watch
- Stockholders' equity trajectory and timeline to positive book value recovery
- Liquidity ratios and operating cash flow sustainability to meet debt obligations
- Debt refinancing activity, covenant compliance, and maturity schedule for long-term debt
- Current ratio
- Free cash flow margin
Garrett Motion Inc. (GTX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
GTX Profit Margin, ROE & Profitability Analysis
GTX vs Automotive Sector: How Garrett Motion Inc. Compares
How Garrett Motion Inc. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Garrett Motion Inc. Stock Overvalued? GTX Valuation Analysis 2026
Based on fundamental analysis, Garrett Motion Inc. has mixed fundamental signals relative to the Automotive 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.
Garrett Motion Inc. Balance Sheet: GTX Debt, Cash & Liquidity
GTX Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
GTX Quarterly Earnings & 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.
Garrett Motion Inc. Dividends, Buybacks & Capital Allocation
GTX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Garrett Motion Inc. (CIK: 0001735707)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 20, 2026 | 8-K | eh260781731_8k.htm | View → |
| May 15, 2026 | 4 | xslF345X06/es260780545_4-ninivaggi.xml | View → |
| May 4, 2026 | 4 | xslF345X06/es260774226_4-spenninck.xml | View → |
| May 4, 2026 | 4 | xslF345X06/es260774225_4-rabiller.xml | View → |
| May 4, 2026 | 4 | xslF345X06/es260774224_4-mabru.xml | View → |
❓ Frequently Asked Questions about GTX
What is the AI rating for GTX?
Garrett Motion Inc. (GTX) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GTX's key strengths?
Claude: Positive operating and free cash flows demonstrate operational efficiency despite balance sheet stress. Revenue growth of 3.1% YoY and EPS growth of 20.6% YoY show improving earnings momentum. ChatGPT: Improving profitability with solid 10.9% operating margin and 8.6% net margin. Strong free cash flow and low capex intensity supporting deleveraging.
What are the risks of investing in GTX?
Claude: Critical balance sheet insolvency with negative stockholders' equity of -$781M indicating accumulated losses or restructuring. Weak liquidity position (current ratio 0.98x, quick ratio 0.76x) creates near-term solvency and operational risk. ChatGPT: Negative shareholders’ equity and elevated leverage constrain financial flexibility. Sub‑1.0 current and quick ratios indicate tight liquidity.
What is GTX's revenue and growth?
Garrett Motion Inc. reported revenue of $985.0M.
Does GTX pay dividends?
Garrett Motion Inc. pays dividends, with $16.0M 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 $0.49.
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 May 2026, Garrett Motion Inc. has a SELL rating with 72% 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: 12%), net margin of 9.6% (sector avg: 6%). 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 SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is GTX's free cash flow?
Garrett Motion Inc.'s operating cash flow is $98.0M, with capital expenditures of $29.0M. FCF margin is 7.0%.
How does GTX compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 9.6% (avg: 6%), ROE N/A (avg: 12%), current ratio 0.98 (avg: 1.2).