Stock fact sheet · data as of
Garrett Motion Inc. (GTX): fair value, margin of safety and Wheel Score
Consumer Cyclical · Auto - Parts · United States · Value
Is GTX undervalued?
At 24.45 (close of 16 Oct 2026), GTX trades 11% under the GLS average fair value of 27.54. 3 of the 8 models that produced a value land above the price. A discount of this size counts as a positive margin of safety in every GLS screen; whether it is enough depends on the rest of the picture - the health score, the moat and the option premium below.
There is a wide gap between DDM (4.71) and Graham Growth (57.42). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files GTX under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for GTX
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 21.54 | -12% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | 57.42 | +135% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 21.26 | -13% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 5.58 | -77% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 51.28 | +110% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 37.36 | +53% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 4.71 | -81% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 21.18 | -13% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -9.92 | -141% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 38.00 | +55% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Garrett Motion Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 3.0/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are high - ROIC 44.0%, ROE -38.7%, ROA 13.1% - with debt at -1.88 times equity and a free-cash-flow yield of 8.0%.
The dividend yield is 1.31% with a payout ratio of 16% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Original Equipment Manufacturers 84%, Aftermarket 14%, Other 2% (quarter Q3 FY2024).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 44.0% |
|---|---|---|---|
| GLS Moat | 3.0 / 10 | ROE | -38.7% |
| Debt / equity | -1.88 | ROA | 13.1% |
| Free-cash-flow yield | 8.0% | Payout ratio | 16% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 76: Good
With a Wheel Score of 76 - the Good band - Garrett Motion Inc. clears the Sunday Scan's "70 or higher" rule. The parts: Value 17/25, Health 16/20, Moat 5/15, Premium 20/20, Stability 19/20; Moat (5/15) scores lowest.
Implied volatility is 57% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 7,799 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 4.5M shares a day on a market cap of $4.6B, with a beta of 0.84; the Stability part of the Wheel Score gives that 19 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 17 / 25 | 11% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 5 / 15 | moat 3.0/10 | |
| Premium | 20 / 20 | implied volatility 57% | |
| Stability | 19 / 20 | 4.5M shares/day, $4.6B cap, beta 0.84 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Garrett Motion Inc. reports earnings on 22 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Auto - Parts
The 12 companies below are the closest to Garrett Motion Inc. by market cap within the Auto - Parts industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| GNTX Gentex Corporation | 21.11 | 35.91 | +41% | 93Prime | $4.4B |
| LKQ LKQ Corporation | 22.36 | 35.96 | +38% | 82Prime | $5.7B |
| DORM Dorman Products, Inc. | 123.63 | 160.86 | +23% | 84Prime | $3.7B |
| ATMU Atmus Filtration Technologies Inc. | 43.98 | 37.08 | -19% | 65Good | $3.6B |
| LEA Lear Corporation | 121.49 | 231.62 | +48% | 79Good | $6.0B |
| MBLY Mobileye Global Inc. | 7.43 | 6.31 | -18% | 45Weak | $6.3B |
| DAN Dana Incorporated | 28.49 | 29.24 | +3% | 45Weak | $3.1B |
| ALV Autoliv, Inc. | 115.96 | 186.41 | +38% | 87Prime | $8.5B |
| QS QuantumScape Corporation | 3.93 | 0.2596 | -1414% | 34Weak | $2.4B |
| VC Visteon Corporation | 86.61 | 175.91 | +51% | 76Good | $2.3B |
| ALSN Allison Transmission Holdings, Inc. | 112.55 | 150.45 | +25% | 79Good | $9.3B |
| APTV Aptiv PLC | 45.19 | 57.86 | +22% | 84Prime | $9.4B |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about GTX
Is GTX undervalued right now?
By the GLS models, moderately: at 24.45 the stock trades 11% below the average fair value of 27.54 (data as of 16 Oct 2026).
What is the Wheel Score of GTX and what does it mean?
GTX scores 76 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for GTX?
27.54 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Garrett Motion Inc. report earnings next?
The next earnings report is due on 22 Oct 2026 (before the open), 6 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does GTX have listed options, and how liquid are they?
Yes. The nightly snapshot found 478 listed contracts with 7,799 open interest across all expiries and implied volatility of 57% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.