15 NASDAQ Stocks with the Lowest P/E Ratios

4. Garrett Motion Inc. (NASDAQ:GTX)

Forward P/E ratio: 6.91

No. of Hedge Fund Holders: 32

Garrett Motion Inc. (NASDAQ:GTX) is a Switzerland-based automotive technology company. It specializes in turbocharging and electric boosting technology for vehicles. Garrett designs and manufactures turbochargers, which increase engine power output by forcing more air into the combustion chamber. The company’s turbochargers for engines are powered by gasoline, diesel, natural gas, and even hybrid systems. The company also offers services and products for the connected vehicle market, including automotive cybersecurity and integrated vehicle health management (IVHM).

On February 12, BWS Financial analyst Hamed Khorsand kept a Buy rating on GTX shares with a price target of $12 per share. The analyst remains bullish on GTX and emphasizes the firm’s financial health and future potential. Garrett Motion Inc. (NASDAQ:GTX) showed a strong ability to generate FCF, despite the challenges during the second half of 2024. During Q4 2024, the company achieved an adjusted EBITDA of $153 million, with a margin of 18.1%. The company now expects its adjusted EBITDA around $575 million and adjusted FCF of almost $345 million in 2025, providing financial leverage to exercise share repurchases and pay dividends.

McIntyre Partnerships stated the following regarding Garrett Motion Inc. (NASDAQ:GTX) in its Q4 2024 investor letter:

“Garrett Motion Inc. (NASDAQ:GTX) is a leading manufacturer in the moat-rich turbocharger (TB) market, with a global end-market and industry-leading margins. As TBs are not used in battery electric vehicles (BEVs), the market has concerns about GTX’s terminal value, which is suppressing its valuation. GTX trades ~5x my 2025 levered FCF with leverage at 2x EBITDA. Beyond its core business in TBs, GTX has a separate BEV growth story that is currently pre-revenue with high upfront costs, depressing GTX’s reported run-rate FCF. As a result, I believe GTX is even cheaper on owners’ earnings than the headline numbers suggest. Beyond its BEV investments, GTX has been using its FCF to buy back significant amounts of stock. Since 2022, GTX has retired almost one-third of its shares outstanding. If either BEV penetration is less bad than feared or GTX has success in its BEV investments, I believe GTX shares are significantly undervalued.”