Ticker
$GTX
Industry
Auto Supplier
Type
Post Reorg
Rating
Covered
Category
General
Target Price
$12.00
Latest Report
Spin-off of turbo-charger segment of Honeywell. Filed for bankruptcy and emerged in 2021. Operates in a duopology with BorgWarner ($BWA).
Notes
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- Series B — treat like debt; GTX has repaid a lot of this as of FY21 and into 1Q22 — $207m present value remaining as of 1Q22
- Series A — treat like equity; converts into 246m shares of common as of FY21
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Financials & Valuation
FY21 Valuation — Competitors with similar balance sheets are trading at 10-12x earnings/FCF. With $440m in FY22 FCF that would be $14-17 per share vs. $7.40 today (90%+ upside). Using the median group earnings multiple (8.5x) would net $12/share for GTX.
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Resources
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- October 2020 — while still in bankruptcy
- October 2021 — preferred share pitch
Garrett Motion ($GTX) — FY21 Update