GTX - Unveiling Garrett Motion's Growth Strategies FCF Growth And Current Undervaluation

2024-04-10 07:08:50 ET

Summary

• Garrett Motion Inc. offers optimistic figures for light vehicle turbo penetration on internal combustion engines for 2030.
• The company aims to become a fundamental part of its clients' production chains by providing high-tech products for emission reduction.
• The company recently authorized the repurchase of shares for $350 million.

Garrett Motion Inc. ( GTX ) recently offered optimistic figures with regard to light vehicles turbo penetration on internal combustion engines for 2030. With many analysts expecting an increase in EPS in 2025 and 2025 net sales growth, I believe that GTX could be under the radar of many investors out there. In my view, successful development of growth of zero emission technologies, a decrease in net debt/EBITDA ratio, and more stock purchases could bring stock price enhancements. Potential risks from the total amount of debt, changes in the environmental regulations, or changes in the price of raw materials could damage the FCF line. With that, GTX appears quite undervalued at 5.9x forward EBITDA.

Garrett

Garrett is a North American company that designs, manufactures, and distributes high-tech products for energy solutions and the reduction of polluting emissions in industries and businesses....

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