GARRETT MOTION INC (GTX) Stock Fundamental Analysis
NASDAQ:GTX - Nasdaq - US3665051054 - Common Stock - Currency: USD
Taking everything into account, GTX scores 5 out of 10 in our fundamental rating. GTX was compared to 81 industry peers in the Automobile Components industry. GTX scores excellent on profitability, but there are concerns on its financial health. GTX is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
GTX had positive earnings in the past year.
GTX had a positive operating cash flow in the past year.
GTX had positive earnings in 4 of the past 5 years.
GTX had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 12.39%, GTX belongs to the best of the industry, outperforming 97.53% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 36.20%, GTX belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
GTX had an Average Return On Invested Capital over the past 3 years of 33.21%. This is significantly above the industry average of 8.88%.
The 3 year average ROIC (33.21%) for GTX is below the current ROIC(36.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.39% | ||
| ROE | N/A | ||
| ROIC | 36.2% |
ROA(3y)4.08%
ROA(5y)3.85%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)33.21%
ROIC(5y)28.46%
1.3 Margins
With an excellent Profit Margin value of 8.12%, GTX belongs to the best of the industry, outperforming 93.83% of the companies in the same industry.
In the last couple of years the Profit Margin of GTX has declined.
Looking at the Operating Margin, with a value of 13.21%, GTX belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
GTX's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 20.29%, GTX is not doing good in the industry: 70.37% of the companies in the same industry are doing better.
GTX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.21% | ||
| PM (TTM) | 8.12% | ||
| GM | 20.29% |
OM growth 3Y-0.69%
OM growth 5Y0.33%
PM growth 3Y35.69%
PM growth 5Y-3.38%
GM growth 3Y1.4%
GM growth 5Y-1%
2. Health
2.1 Basic Checks
GTX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for GTX has been reduced compared to 1 year ago.
GTX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GTX has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.51, we must say that GTX is in the distress zone and has some risk of bankruptcy.
GTX has a Altman-Z score of 1.51. This is amonst the worse of the industry: GTX underperforms 85.19% of its industry peers.
GTX has a debt to FCF ratio of 4.64. This is a neutral value as GTX would need 4.64 years to pay back of all of its debts.
With a Debt to FCF ratio value of 4.64, GTX perfoms like the industry average, outperforming 40.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.64 | ||
| Altman-Z | 1.51 |
ROIC/WACC7.61
WACC4.76%
2.3 Liquidity
GTX has a Current Ratio of 0.93. This is a bad value and indicates that GTX is not financially healthy enough and could expect problems in meeting its short term obligations.
GTX has a Current ratio of 0.93. This is amonst the worse of the industry: GTX underperforms 95.06% of its industry peers.
A Quick Ratio of 0.71 indicates that GTX may have some problems paying its short term obligations.
GTX's Quick ratio of 0.71 is on the low side compared to the rest of the industry. GTX is outperformed by 91.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 197.69% over the past year.
GTX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.21% yearly.
Looking at the last year, GTX shows a very negative growth in Revenue. The Revenue has decreased by -10.58% in the last year.
Measured over the past years, GTX shows a small growth in Revenue. The Revenue has been growing by 1.36% on average per year.
EPS 1Y (TTM)197.69%
EPS 3Y-6.91%
EPS 5Y-19.21%
EPS Q2Q%113.64%
Revenue 1Y (TTM)-10.58%
Revenue growth 3Y-1.47%
Revenue growth 5Y1.36%
Sales Q2Q%-10.69%
3.2 Future
The Earnings Per Share is expected to grow by 11.03% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.95% on average over the next years.
EPS Next Y-0.27%
EPS Next 2Y11.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.73%
Revenue Next 2Y2.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.10, the valuation of GTX can be described as very cheap.
Based on the Price/Earnings ratio, GTX is valued a bit cheaper than 76.54% of the companies in the same industry.
GTX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 7.12, the valuation of GTX can be described as very cheap.
GTX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GTX is cheaper than 67.90% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, GTX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.1 | ||
| Fwd PE | 7.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GTX is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, GTX is valued cheaper than 83.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.82 | ||
| EV/EBITDA | 5.81 |
4.3 Compensation for Growth
GTX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.66%, GTX has a reasonable but not impressive dividend return.
GTX's Dividend Yield is comparable with the industry average which is at 4.67.
GTX's Dividend Yield is comparable with the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
GTX does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2Y11.03%
EPS Next 3YN/A
9.02
+0.08 (+0.89%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners76.04%
Inst Owner Change0.12%
Ins Owners0.72%
Ins Owner Change1.32%
Market Cap1.85B
Analysts80
Price Target12.24 (35.7%)
Short Float %4.24%
Short Ratio6.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)24.8%
Min EPS beat(2)-19.31%
Max EPS beat(2)68.91%
EPS beat(4)3
Avg EPS beat(4)15.71%
Min EPS beat(4)-19.31%
Max EPS beat(4)68.91%
EPS beat(8)4
Avg EPS beat(8)-111.04%
EPS beat(12)4
Avg EPS beat(12)-81.81%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.39%
Min Revenue beat(2)-3.9%
Max Revenue beat(2)-2.89%
Revenue beat(4)0
Avg Revenue beat(4)-5.39%
Min Revenue beat(4)-9.67%
Max Revenue beat(4)-2.89%
Revenue beat(8)2
Avg Revenue beat(8)-2.63%
Revenue beat(12)4
Avg Revenue beat(12)-2.01%
Revenue beat(16)5
Avg Revenue beat(16)-1.39%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0.87%
EPS NQ rev (3m)-3.99%
EPS NY rev (1m)-3.58%
EPS NY rev (3m)-2.98%
Revenue NQ rev (1m)0.84%
Revenue NQ rev (3m)-4.26%
Revenue NY rev (1m)-1.28%
Revenue NY rev (3m)-5.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.1 | ||
| Fwd PE | 7.12 | ||
| P/S | 0.53 | ||
| P/FCF | 5.82 | ||
| P/OCF | 4.52 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.81 |
EPS(TTM)1.27
EY14.08%
EPS(NY)1.27
Fwd EY14.04%
FCF(TTM)1.55
FCFY17.18%
OCF(TTM)1.99
OCFY22.11%
SpS16.99
BVpS-3.29
TBVpS-4.23
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.39% | ||
| ROE | N/A | ||
| ROCE | 45.99% | ||
| ROIC | 36.2% | ||
| ROICexc | 41.39% | ||
| ROICexgc | 53.13% | ||
| OM | 13.21% | ||
| PM (TTM) | 8.12% | ||
| GM | 20.29% | ||
| FCFM | 9.12% |
ROA(3y)4.08%
ROA(5y)3.85%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)33.21%
ROIC(5y)28.46%
ROICexc(3y)40.6%
ROICexc(5y)37.48%
ROICexgc(3y)51.4%
ROICexgc(5y)47.9%
ROCE(3y)42.18%
ROCE(5y)37.44%
ROICexcg growth 3Y-7.1%
ROICexcg growth 5Y-4.26%
ROICexc growth 3Y-5.96%
ROICexc growth 5Y-2.81%
OM growth 3Y-0.69%
OM growth 5Y0.33%
PM growth 3Y35.69%
PM growth 5Y-3.38%
GM growth 3Y1.4%
GM growth 5Y-1%
F-Score7
Asset Turnover1.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.64 | ||
| Debt/EBITDA | 2.67 | ||
| Cap/Depr | 101.11% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | 5.22 | ||
| Cash Conversion | 74.32% | ||
| Profit Quality | 112.41% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 1.51 |
F-Score7
WACC4.76%
ROIC/WACC7.61
Cap/Depr(3y)100.56%
Cap/Depr(5y)94.59%
Cap/Sales(3y)2.43%
Cap/Sales(5y)2.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)197.69%
EPS 3Y-6.91%
EPS 5Y-19.21%
EPS Q2Q%113.64%
EPS Next Y-0.27%
EPS Next 2Y11.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.58%
Revenue growth 3Y-1.47%
Revenue growth 5Y1.36%
Sales Q2Q%-10.69%
Revenue Next Year-1.73%
Revenue Next 2Y2.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-8.93%
EBIT growth 3Y-2.15%
EBIT growth 5Y1.7%
EBIT Next Year22.73%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-17.02%
FCF growth 3YN/A
FCF growth 5Y17.76%
OCF growth 1Y-12.26%
OCF growth 3YN/A
OCF growth 5Y11.01%