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Garrett Motion

DB:G02
Snowflake Description

Good value with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
G02
DB
$224M
Market Cap
  1. Home
  2. DE
  3. Automobiles
Company description

Garrett Motion Inc. designs, manufactures, and sells turbocharger and electric boosting technologies for light and commercial vehicle original equipment manufacturers and the aftermarket worldwide. The last earnings update was 40 days ago. More info.


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  • Garrett Motion has significant price volatility in the past 3 months.
G02 Share Price and Events
7 Day Returns
-0%
DB:G02
-3.6%
DE Auto Components
-0.6%
DE Market
1 Year Returns
-81.4%
DB:G02
-52.5%
DE Auto Components
-20.9%
DE Market
G02 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Garrett Motion (G02) -0% -52.3% -68.2% -81.4% - -
DE Auto Components -3.6% -26.6% -44.8% -52.5% -66.5% -71.2%
DE Market -0.6% -16.6% -26% -20.9% -25.8% -31.8%
1 Year Return vs Industry and Market
  • G02 underperformed the Auto Components industry which returned -52.5% over the past year.
  • G02 underperformed the Market in Germany which returned -20.9% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

G02 Value

 Is Garrett Motion undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Garrett Motion to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Garrett Motion.

DB:G02 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:G02
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Auto Components Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.077 (1 + (1- 18%) (647.62%))
4.883
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (2 * 5.44%)
10.49%

Discounted Cash Flow Calculation for DB:G02 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Garrett Motion is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:G02 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.49%)
2020 85.06 Est @ -40% 76.98
2021 61.14 Est @ -28.12% 50.08
2022 49.03 Est @ -19.8% 36.35
2023 42.18 Est @ -13.98% 28.30
2024 38.00 Est @ -9.9% 23.08
2025 35.33 Est @ -7.05% 19.42
2026 33.54 Est @ -5.05% 16.68
2027 32.32 Est @ -3.65% 14.55
2028 31.45 Est @ -2.67% 12.82
2029 30.83 Est @ -1.99% 11.37
Present value of next 10 years cash flows $289.00
DB:G02 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $30.83 × (1 + -0.39%) ÷ (10.49% – -0.39%)
$282.23
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $282.23 ÷ (1 + 10.49%)10
$104.08
DB:G02 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $289.00 + $104.08
$393.08
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $393.08 / 74.83
$5.25
DB:G02 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:G02 represents 0.90067x of NYSE:GTX
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.90067x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 5.25 x 0.90067
€4.73
Value per share (EUR) From above. €4.73
Current discount Discount to share price of €2.69
= -1 x (€2.69 - €4.73) / €4.73
43.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Garrett Motion is available for.
Intrinsic value
43%
Share price is €2.69 vs Future cash flow value of €4.73
Current Discount Checks
For Garrett Motion to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Garrett Motion's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Garrett Motion's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Garrett Motion's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Garrett Motion's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:G02 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $4.20
NYSE:GTX Share Price ** NYSE (2020-04-06) in USD $2.99
Germany Auto Components Industry PE Ratio Median Figure of 9 Publicly-Listed Auto Components Companies 11.43x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.45x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Garrett Motion.

DB:G02 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:GTX Share Price ÷ EPS (both in USD)

= 2.99 ÷ 4.20

0.71x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Garrett Motion is good value based on earnings compared to the DE Auto Components industry average.
  • Garrett Motion is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Garrett Motion's expected growth come at a high price?
Raw Data
DB:G02 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 0.71x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
-21.5%per year
Germany Auto Components Industry PEG Ratio Median Figure of 7 Publicly-Listed Auto Components Companies 0.49x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.16x

*Line of best fit is calculated by linear regression .

DB:G02 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 0.71x ÷ -21.5%

-0.03x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Garrett Motion earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Garrett Motion's assets?
Raw Data
DB:G02 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $-28.51
NYSE:GTX Share Price * NYSE (2020-04-06) in USD $2.99
Germany Auto Components Industry PB Ratio Median Figure of 13 Publicly-Listed Auto Components Companies 0.69x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
DB:G02 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:GTX Share Price ÷ Book Value per Share (both in USD)

= 2.99 ÷ -28.51

-0.1x

* Primary Listing of Garrett Motion.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Garrett Motion has negative assets, we can't compare the value of its assets to the DE Auto Components industry average.
X
Value checks
We assess Garrett Motion's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check)
  5. Garrett Motion has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

G02 Future Performance

 How is Garrett Motion expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-21.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Garrett Motion expected to grow at an attractive rate?
  • Garrett Motion's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Garrett Motion's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • Garrett Motion's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:G02 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:G02 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts -21.5%
DB:G02 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 2.3%
Germany Auto Components Industry Earnings Growth Rate Market Cap Weighted Average 48.7%
Germany Auto Components Industry Revenue Growth Rate Market Cap Weighted Average 2.4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:G02 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:G02 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 3,502 190 2
2021-12-31 3,148 183 4
2020-12-31 2,808 93 4
2020-04-07
DB:G02 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 3,248 242 313
2019-09-30 3,217 258 220
2019-06-30 3,220 131 1,111
2019-03-31 3,295 397 1,195
2018-12-31 3,375 373 1,206
2018-09-30 3,380 77 -83
2018-06-30 3,341 181 -955
2018-03-31 3,239 84 -1,000
2017-12-31 3,096 71 -983

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Garrett Motion's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Garrett Motion's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:G02 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Garrett Motion Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:G02 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 2.50 2.50 2.50 1.00
2021-12-31 2.74 3.70 2.05 4.00
2020-12-31 1.76 3.39 0.05 4.00
2020-04-07
DB:G02 Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 4.20
2019-09-30 2.96
2019-06-30 14.97
2019-03-31 16.13
2018-12-31 16.28
2018-09-30 -1.12
2018-06-30 -12.89
2018-03-31 -13.50
2017-12-31 -13.27

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Garrett Motion will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Garrett Motion's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Garrett Motion has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

G02 Past Performance

  How has Garrett Motion performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Garrett Motion's growth in the last year to its industry (Auto Components).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Garrett Motion has delivered over 20% year on year earnings growth in the past 5 years.
  • Garrett Motion's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Garrett Motion's 1-year earnings growth is negative, it can't be compared to the DE Auto Components industry average.
Earnings and Revenue History
Garrett Motion's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Garrett Motion Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:G02 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 3,248.00 313.00 257.00
2019-09-30 3,217.00 220.00 250.00
2019-06-30 3,220.00 1,111.00 243.00
2019-03-31 3,295.00 1,195.00 249.00
2018-12-31 3,375.00 1,206.00 251.00
2018-09-30 3,380.00 -83.00 253.00
2018-06-30 3,341.00 -955.00 255.00
2018-03-31 3,239.00 -1,000.00 249.00
2017-12-31 3,096.00 -983.00 248.00
2016-12-31 2,997.00 199.00 202.00
2015-12-31 2,908.00 254.00 185.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Garrett Motion has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • Garrett Motion used its assets more efficiently than the DE Auto Components industry average last year based on Return on Assets.
  • Garrett Motion's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Garrett Motion's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Garrett Motion has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

G02 Health

 How is Garrett Motion's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Garrett Motion's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Garrett Motion's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Garrett Motion's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Garrett Motion's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Garrett Motion has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Garrett Motion Company Filings, last reported 3 months ago.

DB:G02 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 -2,133.00 1,413.00 187.00
2019-09-30 -2,264.00 1,481.00 190.00
2019-06-30 -2,417.00 1,566.00 182.00
2019-03-31 -2,452.00 1,565.00 207.00
2018-12-31 -2,517.00 1,592.00 196.00
2018-09-30 -2,456.00 1,605.00 197.00
2018-06-30 -1,808.00 0.00 252.00
2018-03-31 -223.00 0.00 311.00
2017-12-31 -2,195.00 484.00 598.00
2016-12-31 -1,221.00 425.00 447.00
2015-12-31
  • Garrett Motion has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Garrett Motion's debt level has increased considering it has negative shareholder equity.
  • Debt is not well covered by operating cash flow (17.1%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.5x coverage).
X
Financial health checks
We assess Garrett Motion's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Garrett Motion has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

G02 Dividends

 What is Garrett Motion's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Garrett Motion dividends. Estimated to be 0% next year.
If you bought €2,000 of Garrett Motion shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Garrett Motion's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Garrett Motion's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:G02 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
Germany Auto Components Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 6.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 315 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:G02 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2020-04-07

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Garrett Motion has not reported any payouts.
  • Unable to verify if Garrett Motion's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Garrett Motion's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Garrett Motion has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Garrett Motion's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Garrett Motion's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Garrett Motion afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Garrett Motion has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

G02 Management

 What is the CEO of Garrett Motion's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Olivier Rabiller
COMPENSATION $7,434,223
AGE 48
CEO Bio

Mr. Olivier Rabiller is President, Chief Executive Officer and Director at Garrett Motion Inc. He served as Chief Executive Officer and President of Transportation Systems at Honeywell International Inc. since July 2016 until 2018, capping a series of increasingly large leadership roles he has held since joining Honeywell in 2002. Mr. Rabiller served as Vice President and General Manager of Honeywell Transportation Systems for High Growth Regions, Business Development and Aftermarket, for two years. He managed the TS businesses in China, India and Brazil as part of his responsibilities for generating growth in the fastest-growing geographies around the world. His responsibilities also included the global aftermarket; business development; mergers, acquisitions and divestitures; and licensing. Previously, he served two years as Vice President and General Manager of Transportation Systems Aftermarket. In this role, he was responsible for a dedicated end-to-end cross-functional and cross-business organization that allowed Honeywell to better get turbocharger and brake component distributors. He served as the Vice President of Sourcing for Transportation Systems at Honeywell for three years; its Vice President of Customer Management for Passenger Vehicles at Honeywell Turbo Technologies; Vice President of European Sales and Customer Management; and Director of Marketing and Business Development for the European region. He joined Honeywell in 2002 as Senior Program Manager and Business Development Manager for Turbo Technologies EMEA. His extensive experience includes seven years at Renault in Customer Services, Engine Project Management and Purchasing. As Purchasing Manager for powertrain operations in South America, he built a purchasing organization from scratch and developed sourcing strategies to achieve local content development targets. He holds an engineering degree from Ecole Centrale Nantes and an M.B.A. from INSEAD.

CEO Compensation
  • Olivier's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Olivier's remuneration is higher than average for companies of similar size in Germany.
Management Team

Olivier Rabiller

TITLE
President
COMPENSATION
$7M
AGE
48

Craig Balis

TITLE
Senior VP & CTO
COMPENSATION
$2M
AGE
54

Jerome Maironi

TITLE
Senior VP
COMPENSATION
$2M
AGE
53

Thierry Mabru

TITLE
Senior Vice President of Integrated Supply Chain
COMPENSATION
$2M
AGE
51

Peter Bracke

TITLE
VP & Interim CFO
COMPENSATION
$209K
AGE
52
TENURE
0.6 yrs

Martin Schiesser

TITLE
VP and Chief Digital & Information Officer

Paul Blalock

TITLE
Investor Relations Officer

Fabrice Spenninck

TITLE
Senior VP and Chief Human Resources & Communications Officer
AGE
50

Pierre Barthelet

TITLE
Senior Vice President of Marketing & Product Management

Eric Fraysse

TITLE
President Global Aftermarket & Brazil
Board of Directors Tenure

Average tenure and age of the Garrett Motion board of directors in years:

2.3
Average Tenure
56.5
Average Age
  • The average tenure for the Garrett Motion board of directors is less than 3 years, this suggests a new board.
Board of Directors

Carlos Cardoso

TITLE
Chairman of the Board
COMPENSATION
$58K
AGE
61

Olivier Rabiller

TITLE
President
COMPENSATION
$7M
AGE
48
TENURE
2.3 yrs

Carsten Reinhardt

TITLE
Independent Director
COMPENSATION
$24K
AGE
52
TENURE
2.3 yrs

Scott Tozier

TITLE
Independent Director
COMPENSATION
$27K
AGE
53
TENURE
2.3 yrs

Maura Clark

TITLE
Independent Director
COMPENSATION
$26K
AGE
60
TENURE
2.3 yrs

Courtney Enghauser

TITLE
Independent Director
COMPENSATION
$24K
AGE
47
TENURE
2.3 yrs

Sue Main

TITLE
Independent Director
COMPENSATION
$24K
AGE
60
TENURE
2.3 yrs

Jerome Stoll

TITLE
Director
AGE
65
Who owns this company?
Recent Insider Trading
  • Garrett Motion individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
05. Mar 20 Sell Olivier Rabiller Individual 03. Mar 20 03. Mar 20 -44,000 €5.88 €-258,823
05. Mar 20 Sell Thierry Mabru Individual 03. Mar 20 03. Mar 20 -10,000 €5.88 €-58,824
05. Mar 20 Sell Fabrice Spenninck Individual 03. Mar 20 03. Mar 20 -4,831 €5.88 €-28,418
05. Dec 19 Sell Fabrice Spenninck Individual 03. Dec 19 03. Dec 19 -6,012 €10.75 €-64,619
05. Dec 19 Sell Thierry Mabru Individual 03. Dec 19 03. Dec 19 -42,297 €10.45 €-442,033
30. Jul 19 Sell Craig Balis Individual 29. Jul 19 29. Jul 19 -32 €13.38 €-432
X
Management checks
We assess Garrett Motion's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Garrett Motion has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

G02 News

Simply Wall St News

G02 Company Info

Description

Garrett Motion Inc. designs, manufactures, and sells turbocharger and electric boosting technologies for light and commercial vehicle original equipment manufacturers and the aftermarket worldwide. The company offers light vehicle gasoline and diesel, and commercial vehicle turbochargers. Its integrated vehicle health management tools detect intermittent faults and anomalies to provide understanding of the real-time health of a vehicle system. The company offers its products through distribution networks. Garrett Motion Inc. was incorporated in 2018 and is headquartered in Rolle, Switzerland.

Details
Name: Garrett Motion Inc.
G02
Exchange: DB
Founded: 2018
$207,386,550
74,830,133
Website: http://www.garrettmotion.com
Address: Garrett Motion Inc.
La Pièce 16,
Rolle,
Vaud, 1180,
Switzerland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE GTX Common Stock New York Stock Exchange US USD 17. Sep 2018
DB G02 Common Stock Deutsche Boerse AG DE EUR 17. Sep 2018
BMV GTX * Common Stock Bolsa Mexicana de Valores MX MXN 17. Sep 2018
Number of employees
Current staff
Staff numbers
6,200
Garrett Motion employees.
Industry
Auto Parts and Equipment
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 01:15
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/03/30
Last earnings filing: 2020/02/27
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.