📊 GTX Key Takeaways
Is Garrett Motion Inc. (GTX) a Good Investment?
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.
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
- 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
- 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: 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
- 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 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
- 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 |
|---|---|---|---|
| Apr 10, 2026 | DEF 14A | ny20063321x1_def14a.htm | View → |
| 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 → |
❓ Frequently Asked Questions about GTX
What is the AI rating for GTX?
Garrett Motion Inc. (GTX) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 65% combined 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. 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: Negative stockholders equity of -$802M indicates balance sheet insolvency. Poor liquidity position: Current ratio 0.97x and Quick ratio 0.72x below safe thresholds. 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 $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 65% 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 8.6% (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 HOLD 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 $413.0M, with capital expenditures of $72.0M. FCF margin is 9.5%.
How does GTX compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 8.6% (avg: 6%), ROE N/A (avg: 12%), current ratio 0.97 (avg: 1.2).