Garrett Motion Inc. (GTX): A Bull Case Theory

We came across a bullish thesis on Garrett Motion Inc. on Stock Analysis Compilation’s Substack. In this article, we will summarize the bulls’ thesis on GTX. Garrett Motion Inc.’s share was trading at $12.97 as of August 18^th. GTX’s trailing and forward P/E were 9.13 and 9.18, respectively according to Yahoo Finance.

Garrett Motion (GTX) is a global leader in turbocharger technologies, serving both commercial and passenger vehicle manufacturers. The company’s competitive advantage lies in its deep intellectual property portfolio and advanced design expertise, which make its products highly valued by customers. Garrett operates with a flexible cost structure and low capital intensity, enabling it to generate durable returns on invested capital (ROIC) and strong excess cash flow. Even in periods of weak end-market demand, such as during the second quarter, the company has demonstrated the resilience of its business model.

This resilience, coupled with Garrett’s disciplined approach to capital allocation, has allowed it to return substantial capital to shareholders while maintaining operational strength. The consistent ability to generate robust ROIC highlights the sustainability of Garrett’s competitive positioning and its capacity to withstand cyclical pressures in the automotive industry. As turbocharger technology remains integral to enhancing efficiency and meeting evolving regulatory requirements, Garrett is well-positioned to benefit from long-term industry trends while continuing to deliver shareholder value.

With strong cash generation, a shareholder-friendly capital return policy, and proven resilience in challenging markets, Garrett represents a compelling case for sustained value creation. Looking ahead, the company is expected to maintain its focus on innovation and efficiency, ensuring that its products remain at the forefront of performance and compliance standards globally. This combination of durable competitive advantages, cash flow generation, and shareholder alignment provides a solid foundation for GTX to continue producing superior returns for investors.

Previously, we covered a bullish thesis on Garrett Motion Inc. (GTX) by Maksim in May 2025, which highlighted margin expansion, tariff pass-throughs, hybrid demand, and debt refinancing. The company’s stock price has appreciated approximately 15.2% since our coverage, as the thesis played out. The thesis still stands with hybrid growth intact. Stock Analysis Compilation shares a similar view but emphasizes durable ROIC and shareholder returns.

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Disclosure: None.