Founder, BWS Financial Inc

Hamed Khorsand

Founder

Independent Stock Specific Research

BWS Financial Inc

BWS provides independent stock specific research focused on companies with distinct value that are going through a special situation where there is a tangible catalyst not priced in. The catalyst can be anything from new product, restructuring, M&A, management change, change in business strategy, etc. BWS’s focus is to understand the change and evaluate the potential return for investors.

BWS utilizes a self formed proprietary approach in discovering stocks by putting great emphasis on deep research. BWS does generate short recommendations following a similar criteria.

Equity Bottom-Up

<ul>
<li>GTX reported soft third quarter results in line with the slowdown the automotive industry continues to experience. </li>
<li>Auto OEMs have faced product mix changes and a highly competitive marketplace where the consumer is taking their time in making purchase decisions.   </li>
<li>Investments in new products should lead to sales diversification by late 2025. </li>
</ul>


GTX reported soft third quarter results in line with the slowdown the automotive industry continues to experience. 
Auto OEMs have faced product mix changes and a highly competitive marketplace where the consumer is taking their time in making purchase decisions.   
Investments in new products should lead to sales diversification by late 2025. 


<ul>
<li>When GTX reported Q2 results the global auto industry was going through a digestion period.  Many of those trends have persisted in the third quarter. </li>
<li>The state of the global automotive market remains unclear with expectations at the beginning of the year set for growth and now it could be flat to slightly down.  </li>
<li>GTX should manage through the third quarter with minimal impact to the business and a stronger Euro further insulating the earnings from downward pressure.</li>
</ul>


When GTX reported Q2 results the global auto industry was going through a digestion period.  Many of those trends have persisted in the third quarter. 
The state of the global automotive market remains unclear with expectations at the beginning of the year set for growth and now it could be flat to slightly down.  
GTX should manage through the third quarter with minimal impact to the business and a stronger Euro further insulating the earnings from downward pressure.


<ul>
<li>GTX reported Q2 results missing our estimates as demand for turbochargers softened in quarter. The magnitude of the sales miss was amplified by deflationary cost pass throughs.  </li>
<li>GTX was successful in maneuvering its cost structure at the beginning 2024 resulting in gross margin exceeding our estimate and adjusted EBITDA declining by a significantly smaller amount than sales. </li>
<li>We were already towards the low end of GTX’s previous guidance range anticipating uncertainty. Our adjustments to 2024 and 2025 adjusted EBITDA estimates are minimal.</li>
</ul>


GTX reported Q2 results missing our estimates as demand for turbochargers softened in quarter. The magnitude of the sales miss was amplified by deflationary cost pass throughs.  
GTX was successful in maneuvering its cost structure at the beginning 2024 resulting in gross margin exceeding our estimate and adjusted EBITDA declining by a significantly smaller amount than sales. 
We were already towards the low end of GTX’s previous guidance range anticipating uncertainty. Our adjustments to 2024 and 2025 adjusted EBITDA estimates are minimal.


<ul>
<li>In the month since GTX reported first quarter results, there have been more industry news pointing towards automobile models benefiting GTX. </li>
<li>Automakers are indicating to using ICE and hybrid for longer than expected, which should contribute to GTX's ability to generate free cash flow beyond the next couple of years.</li>
<li>We continue to expect 2024 sales to skew to the second half of the year, but GTX should generate adequate free cash flow to repurchase shares and reduce debt. </li>
</ul>


In the month since GTX reported first quarter results, there have been more industry news pointing towards automobile models benefiting GTX. 
Automakers are indicating to using ICE and hybrid for longer than expected, which should contribute to GTX's ability to generate free cash flow beyond the next couple of years.
We continue to expect 2024 sales to skew to the second half of the year, but GTX should generate adequate free cash flow to repurchase shares and reduce debt. 


<ul>
<li>GTX reported first quarter results exhibiting the sales decline management had been warning could appear in the first half of the year</li>
<li>GTX managed to generate positive free cash flow to repurchase $109 million worth of the stock in the quarter. GTX has been routinely buying back stock with free cash flow.</li>
<li>GTX maintained its annual guidance on all metrics with management asserting much of the growth would come in the second half of the year</li>
</ul>


GTX reported first quarter results exhibiting the sales decline management had been warning could appear in the first half of the year
GTX managed to generate positive free cash flow to repurchase $109 million worth of the stock in the quarter. GTX has been routinely buying back stock with free cash flow.
GTX maintained its annual guidance on all metrics with management asserting much of the growth would come in the second half of the year


Switzerland

Garrett Motion Inc. operates as an automobile technology provider. The Company offers turbocharging, electric boosting, and automotive software solutions. Garrett Motion serves customers worldwide.

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