Garrett Motion Inc., listed as NASDAQ:GTX, operates in the Auto-Tires-Trucks sector, which includes 96 stocks and is ranked #16 by Zacks Sector Rank. GTX is a key player in this sector, holding a Zacks Rank of #2 (Buy), indicating strong potential for outperforming the broader market. This makes GTX an attractive option for investors interested in this industry.
On July 3, 2025, CYRUS CAPITAL PARTNERS, L.P., a 10 percent owner of GTX, sold 219,647 shares of Common Stock at approximately $11.04 each. This transaction was reported under Form 4, indicating a disposition of securities. Despite this sale, GTX's strong sector performance and Zacks Rank suggest continued investor interest.
GTX's financial metrics reveal a price-to-earnings (P/E) ratio of 8.12, indicating a low valuation compared to its earnings. The price-to-sales ratio is 0.65, meaning investors pay 65 cents for every dollar of sales. These figures suggest GTX is undervalued, offering potential growth opportunities for investors.
The enterprise value to sales ratio of 1.06 and enterprise value to operating cash flow ratio of 9.57 indicate efficient conversion of operating cash flow into enterprise value. This efficiency, combined with an earnings yield of 12.32%, highlights GTX's ability to generate returns for investors.
However, GTX's debt-to-equity ratio of -2.20 suggests a higher level of debt compared to equity, possibly due to negative equity. The current ratio of 0.98 indicates slightly less than enough current assets to cover current liabilities. Despite these challenges, GTX's strong sector performance and valuation metrics make it a noteworthy stock in the Auto-Tires-Trucks sector.
