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  5. GTX: Can I get your take on this company. [Garrett Motion Inc.]
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Q: Can I get your take on this company.

Thanks
Asked by Scott on May 27, 2025
5i Research Answer:

GTX provides tech products to the auto sector. Market cap $2.2B, up 21% YTD. P/E is low at just below 9X. The balance sheet is quite levered, with debt at 3.5X cash flow. This adds risk in a cyclical industry. Earnings and sales have been volatile, and current year estimates for earnings are lower than they were seven and eight years ago. The Q1 results were decent and slightly ahead of estimates. There was a very big recent stock sale by its largest shareholder, Oaktree. Oaktree sold 17M shares but the company bought and cancelled 2M of those. All-in, we would just deem it 'OK'. We do not like the debt here, nor the earnings volatility. 

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