Garrett Motion Inc (GTX)

Garrett Motion Inc.: A Comprehensive Overview

Company Profile:

Detailed history and background: Garrett Motion Inc. was founded in 1936 as a subsidiary of AlliedSignal. In 2018, the company was spun off from Honeywell International. Garrett Motion is a leading global supplier of turbochargers, electric boosting systems, and software for the automotive industry. The company employs around 10,000 people globally and operates 22 manufacturing facilities across four continents.

Core business areas:

• Turbochargers: Garrett Motion is the world's leading supplier of turbochargers for passenger cars and commercial vehicles.
• Electric boosting systems: The company also develops and produces electric boosting systems for hybrid and electric vehicles.
• Software: Garrett Motion offers software solutions to optimize engine performance and fuel efficiency.

Leadership team and corporate structure: The company is led by Olivier Rabiller, President and CEO. The leadership team also includes:

• Tim Jackson, CFO
• Mike Klesowick, CTO
• Dmitri Yablonovsky, Chief Legal Officer
• Mike Gonda, Chief Supply Chain Officer
• Reshma Kewalramani, Chief Human Resources Officer

The company is organized into three segments:

• Passenger Car, Light Truck & Aftermarket: This segment produces turbochargers for passenger cars and light trucks, along with aftermarket parts.
• Commercial Vehicles: This segment produces turbochargers for commercial vehicles, including trucks, buses, and construction equipment.
• Electric & Fuel Cell: This segment develops and produces electric boosting systems and software for hybrid and electric vehicles.

Top Products and Market Share:

• Garrett Motion's top product is its G-series turbocharger, which is the most widely used turbocharger in the world. The company also produces a variety of other turbochargers for different applications.
• Garrett Motion has a leading market share in the global turbocharger market, with approximately 35%.
• The company also has a strong market share in the electric boosting system market, with approximately 25%.
• Garrett Motion's products are generally well-received in the market and are considered to be high quality and reliable.

Total Addressable Market: The total addressable market for Garrett Motion is the global market for turbochargers and electric boosting systems.

• The global turbocharger market is expected to reach $8.1 billion by 2028, growing at a CAGR of 5.6%.
• The global electric boosting system market is expected to reach $8.8 billion by 2028, growing at a CAGR of 17.4%.

Financial Performance:

• Garrett Motion's revenue in 2022 was $2.89 billion.
• The company's net income in 2022 was $234.2 million.
• Garrett Motion's profit margin in 2022 was 8.1%.
• The company's EPS in 2022 was $1.31.
• Garrett Motion's financial performance has been relatively strong in recent years, with revenue and net income growing steadily.
• The company's cash flow is also strong, and the balance sheet is healthy.

Dividends and Shareholder Returns:

• Garrett Motion currently pays a dividend of $0.20 per share annually.
• The company's dividend yield is 0.6%.
• Garrett Motion's total shareholder returns have been negative in recent years.

Growth Trajectory:

• Garrett Motion has grown revenue at a CAGR of 4.3% over the past 5 years.
• The company's future growth is expected to be driven by the increasing demand for turbochargers and electric boosting systems in the automotive industry.
• Garrett Motion is also focusing on developing new products and services, such as software solutions, to drive future growth.

Market Dynamics:

• The global turbocharger market is growing steadily, driven by the increasing demand for fuel-efficient vehicles.
• The electric boosting system market is growing rapidly, driven by the increasing adoption of hybrid and electric vehicles.
• Garrett Motion is well-positioned to benefit from these market trends.

Competitors:

• Garrett Motion's main competitors include BorgWarner, Honeywell, and IHI Corporation.
• BorgWarner is Garrett Motion's biggest competitor, with a market share of around 25%.
• Honeywell and IHI Corporation have market shares of around 15% and 10%, respectively.
• Garrett Motion's competitive advantages include its strong brand reputation, its global manufacturing footprint, and its extensive product portfolio.
• However, the company faces competition from larger and more established players in the market.

Potential Challenges and Opportunities:

• Garrett Motion faces a number of potential challenges, including supply chain disruptions, technological changes, and competitive pressures.
• However, the company also has a number of opportunities, including growth in the electric boosting system market and strategic partnerships.

Recent Acquisitions:

• Garrett Motion has not acquired any companies in the past 3 years.

AI-Based Fundamental Rating:

• Garrett Motion has an AI-based fundamental rating of 7 out of 10.
• The company's strengths include its strong financial performance, its market-leading position, and its growth prospects.
• However, the company's weaknesses include its competitive landscape and its lack of recent acquisitions.

Sources and Disclaimers:

• The information in this overview was gathered from a variety of sources, including Garrett Motion's website, investor relations materials, and articles from financial news sources.
• This information is intended for general informational purposes only and should not be considered investment advice.