Bedrijfsoverzicht
Garrett Motion Inc. is a specialized manufacturer that designs, builds, and markets engineered turbocharging and high-speed electric motor technologies serving original equipment manufacturers, distributors, and industrial sectors across the United States, Europe, Asia, and internationally. The firm operates within the Consumer Cyclical sector and specifically within the Auto Parts industry, positioning it as a key supplier for the automotive and industrial machinery value chains. This entity employs a workforce of 6300 individuals and maintains a market capitalization of $3.79B with total annual revenue reaching $3.58B. The market cap figure indicates that the company possesses significant enterprise value relative to smaller peers, while the revenue scale suggests a substantial operational footprint capable of influencing supply dynamics in the turbocharging market.
Financiële gezondheid
The company reported revenue of $3.58B over the trailing twelve months, generating net income of $310.00M and an EBITDA of $605.00M. The substantial gap between the $3.58B revenue and the $310.00M net income reveals a cost structure where operating expenses, including cost of goods sold and administrative costs, consume approximately 91.4% of total revenue before arriving at the bottom line. Garrett Motion generates free cash flow of $318.75M, which provides the financial flexibility to fund capital expenditures, service debt obligations, and return capital to shareholders without relying solely on external financing. The gross margin stands at 20.4%, indicating the portion of revenue remaining after direct production costs are deducted. The operating margin of 14.1% reflects the efficiency of core business operations before interest and taxes, while the profit margin of 8.6% demonstrates the final profitability available to equity holders after all expenses are accounted for. In terms of leverage, the company holds $177.00M in cash against $1.47B in debt, and the debt-to-equity ratio is listed as N/A in the provided data. The current ratio is 0.97, which indicates that short-term assets are slightly lower than short-term liabilities, suggesting a need for careful management of working capital to meet immediate obligations. Return on Equity is marked as N/A, whereas the Return on Assets is 13.6%, a metric that reveals the company's effectiveness in generating income from its total asset base.
Waarderingsbeoordeling
Valuation metrics for Garrett Motion Inc. show a Trailing Twelve Month P/E ratio of 12.82 and a Forward P/E of 9.28. The difference between the 12.82 trailing P/E and the 9.28 forward P/E implies that the market expects earnings to increase significantly in the coming year, driving the valuation multiple down on future expectations. The price-to-book ratio is -4.63, which indicates a valuation where the market price is below the book value, a situation often associated with significant intangible assets, restructuring charges, or specific accounting treatments rather than a standard market premium over tangible book value. Alternative valuation measures include a price-to-sales ratio of 1.06 and an EV/EBITDA of 8.25, suggesting the company trades at a premium to sales relative to the unit price and offers a moderate multiple on earnings before interest, taxes, depreciation, and amortization. Over the last year, the stock price has ranged between a 52-week low of $8.69 and a 52-week high of $21.43. The current trading price sits at a specific point within this range, reflecting recent market sentiment relative to the established volatility band. The beta value is 0.44, which means the stock's price volatility is significantly lower than that of the broader market, offering a more stable price profile compared to high-beta equities.
Growth & Income
Recent performance data indicates a revenue growth rate of 5.6% year-over-year while earnings growth stands at -9.8% year-over-year. The earnings are growing slower than revenue, in fact showing a contraction while sales expand, which implies that cost pressures or one-time charges may be impacting the bottom line despite top-line expansion. As a dividend payer, the company offers a dividend yield of 1.6% with a payout ratio of 17.1%. This low payout ratio suggests that the dividend is highly sustainable given the company's earnings, as only a small fraction of net income is distributed while the majority is retained. The overall growth and income profile presents a scenario of modest revenue expansion coupled with current earnings compression, supported by a low-cost capital structure that allows for continued dividend payments without aggressive dilution.