Garrett Motion (GTX) Posted Stronger Q3 Results And A New Buyback, Is The Stock A Bargain?
Q3 earnings, new capital return plans and industrial contract reshape the Garrett Motion story
Garrett Motion (GTX) just tied together several moving pieces. Fresh third quarter results, a new buyback and dividend, plus an industrial compressor win, all give you more data to judge the stock.
The reaction has been sharp. Garrett Motion’s share price fell 6.98% on the day of the Q3 release and is down 22.76% over the past month, with a 90 day share price decline of 31.67% that contrasts with a 1 year total shareholder return of 25.20% and a roughly 3 year total shareholder return close to 3x. This hints that investors are reassessing near term risks even after a strong multi year run.
Scan a curated set of industrial and auto suppliers that exhibit Garrett Motion like cash generation and rerating potential through the 31 high quality undervalued stocks.
After a near 32% slide in 90 days, and with Garrett Motion still generating cash and committing to buybacks and dividends, does the current valuation now overstate the risks or underprice the payoff potential?
Most Popular Narrative: 40% Undervalued
Against a last close of $20.91, the most followed narrative pegs Garrett Motion’s fair value near $34.83, which frames the recent selloff very differently.
Acceleration in industrial turbo demand, with management now expecting about US$200 million of industrial turbo sales in 2026 including data center power generation products such as the MEG200 turbo, indicates a growing contribution from this newer vertical to future revenue and potentially to EBIT margins as volumes scale.
See why 13 investors see Garrett Motion as 40% undervalued.
Result: Fair Value of $34.83 (UNDERVALUED)
Still, the Garrett Motion narrative can break if internal combustion turbo demand erodes faster than expected or if zero emission and industrial programs scale more slowly than analysts model.
Find out about the key risks to this Garrett Motion narrative.
Next Steps
Mixed signals on Garrett Motion so far. If you want to move ahead of the next sentiment swing, pressure test the story yourself by weighing the 5 key rewards and 3 important warning signs.
Looking for more Garrett Motion sized investment ideas?
Do not stop your research with Garrett Motion. Broaden your watchlist with a few targeted screens so you are not relying on a single opportunity.
Use the Simply Wall St Screener to spot complementary stocks and keep fresh ideas flowing beyond this one Q3 story.
- Target resilient cash generators that might be temporarily out of favour by scanning the 31 high quality undervalued stocks.
- Build a steadier income stream by focusing on companies that appear in the 5 dividend fortresses.
- Lower portfolio stress by filtering for sturdier balance sheets and consistent fundamentals through the list of solid balance sheet and fundamentals (24 results).
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com