Garrett Motion FY 2024 Update
Lindy's Lollapalooza Land Gets Additional Attractions
Disclaimer: I own shares of Garrett Motion and stand to benefit if they rise in price. I may decide to purchase or sell shares at any time without prior notice. Do your own research and size positions appropriately if you invest. Nothing here is meant to be understood as investment or financial advice.
But every song′s like gold teeth, Grey Goose, trippin' in the bathroom
Blood stains, ball gowns, trashin′ the hotel room
We don't care, we're driving Cadillacs in our dreams
But everybody′s like Cristal, Maybach, diamonds on your time piece
Jet planes, islands, tigers on a gold leash
We don′t care we aren't caught up in your love affair
Source: Royals Lyrics, Lorde.
Introduction
It has been a while since my last post on Garrett Motion:
Since then, the company has updated its capital returns policy in December and reported FY2024 earnings back in February. A car part manufacturer may not be as flashy as AI, crypto plays, or 0DTE options, but the longer I follow the company, the more I am intrigued by its business operations - hence the chosen lyrics.
As the current earnings season is pretty packed and I know everyone (including myself) is very busy, so I thought I save time by referencing timely posts and focusing on my additions beyond those. In particular, I point you to
’s February 20 article and ’s February 19 article. In a nutshell, I only add what I believe has not been captured by these two articles.Outline
Introduction
Outline
TL;DR
Equity Summary
Comments Beyond The Referenced Articles
Updated ROIC Decomposition Analysis
My Take And Valuation
TL;DR
Compared to the competition, Garrett Motion continues to successfully combine production advantages with a differentiation strategy.
Product wins and seemingly longer horizon for ICE turbocharger products. Notably, there is a possibility to enter with its new products into very large markets apart other than the vehicle sector.
Its variable cost structure provides resilience in a challenged market.
The combination of business resilience, new products, and capital returns appears to be attractively priced by Mr Market currently, still.