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Thermon (THR)
:THR
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Thermon Group Holdings
(NYSE:THR)
75Outperform
Thermon Group Holdings (THR) vs. S&P 500 (SPY)
Market Cap
$931.87M
Dividend YieldN/A
Average Volume (3M)167.69K
Price to Earnings (P/E)20.2
Beta (1Y)1.31
Revenue Growth0.48%
EPS Growth-5.52%
CountryUS
Employees1,416
SectorIndustrials
Sector Strength79
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.37
Shares Outstanding33,690,120
10 Day Avg. Volume121,325
30 Day Avg. Volume167,688
Financial Highlights & Ratios
PEG Ratio4.97
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.19
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit5.23
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$36.00Price Target Upside30.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Thermon Group Holdings Business Overview & Revenue Model
Company DescriptionThermon Group Holdings, Inc. provides engineered industrial process heating solutions for process industries worldwide. Its products include electric heating products, such as air heaters and heating accessories, boilers and calorifiers, controlling and monitoring solutions, heat tracing systems, tank heating systems, thermostats, tubing bundles, and system accessories, as well as strip, tubular, immersion, and process heaters; and gas heating products, including enclosure and explosion proof gas catalytic heaters, gas fired blowers, and gas heating accessories that comprise regulators, valves, mounting brackets, and battery cables. The company also offers specialty products, which include CEMS and analytical systems, commercial construction products and services, control panels, engineered products, compressed gas scrubbing systems, temporary power solutions, and snow clearing devices for rail track and switch equipment; and steam heating solutions comprising heat transfer compounds, steam heated bundles, steam supply and condensate return lines, steam tracing solutions, steam trace accessories, and tank heating products. In addition, it provides design engineering solutions that include design optimization studies, product selection assistance, and computer-generated drawing packages; energy audit services; procurement and project management services; procurement and project management services; turnkey construction installation; recurring facility assessment or audit; maintenance services; and technical support services. The company offers its solutions to chemical and petrochemical, oil and gas, power generation, rail and transit, commercial, transportation, food and beverage, pharmaceutical, and mineral processing industries, as well as data centers, semiconductor facilities, and other markets through a network of sales and service professionals, and distributors. Thermon Group Holdings, Inc. was founded in 1954 and is headquartered in Austin, Texas.
How the Company Makes MoneyThermon Group Holdings generates revenue through the sale of its specialized heating solutions, which include heat tracing cables, control systems, and turnkey installation services. The company leverages its expertise in engineering and design to offer comprehensive solutions that are tailored to the specific needs of its clients in industries such as oil and gas, chemical processing, and power generation. Additionally, Thermon provides ongoing maintenance and support services, creating recurring revenue streams. The company's earnings are further bolstered by strategic partnerships and a global distribution network that extends its market reach and enhances customer engagement.
Thermon Group Holdings Financial Statement Overview
Summary
Thermon Group Holdings shows robust financial health with solid revenue growth, strong profit margins, and effective cash flow management. The company has a strong equity position and low leverage, which enhances its financial stability. However, maintaining low leverage remains crucial to sustain long-term stability.Income Statement
Thermon Group Holdings shows robust revenue growth with a 12.3% increase in the latest year and a strong gross profit margin of 37.6% for TTM. Net profit margin is healthy at 8.4%, and EBIT margin is solid at 13.4%. The company has consistently grown its revenue and profits, indicating strong market demand and operational efficiency.85
Very Positive
Balance Sheet
The company maintains a strong equity position with an equity ratio of 64.0% and a low debt-to-equity ratio of 0.07, indicating prudent financial management. Return on equity is decent at 9.5% for TTM, showcasing effective use of shareholder capital. However, attention should be given to maintaining low leverage to mitigate financial risk.78
Positive
Cash Flow
Thermon Group Holdings demonstrates solid cash flow management with a significant free cash flow growth of 5.8% in the latest period. The operating cash flow to net income ratio is robust at 1.47, indicating efficient cash conversion. The company shows a strong ability to generate cash, supporting future growth initiatives.82
Very Positive
| Breakdown | ||||
| Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 494.63M | 440.59M | 355.67M | 276.18M | 383.49M | Gross Profit |
| 211.56M | 185.13M | 140.12M | 117.24M | 161.64M | EBIT |
| 75.37M | 55.19M | 38.41M | 25.02M | 32.66M | EBITDA |
| 95.36M | 74.33M | 54.45M | 30.26M | 59.63M | Net Income Common Stockholders |
| 51.59M | 33.67M | 20.09M | 877.00K | 11.94M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 48.63M | 35.63M | 41.45M | 40.12M | 43.24M | Total Assets |
| 767.74M | 649.63M | 636.67M | 617.88M | 620.90M | Total Debt |
| 187.49M | 128.28M | 141.64M | 161.40M | 190.68M | Net Debt |
| 138.86M | 92.64M | 100.20M | 121.28M | 147.44M | Total Liabilities |
| 292.85M | 230.64M | 237.47M | 148.50M | 274.47M | Stockholders Equity |
| 474.89M | 418.99M | 399.20M | 379.16M | 346.44M |
| Cash Flow | Free Cash Flow | |||
| 54.94M | 48.26M | 23.53M | 22.16M | 59.87M | Operating Cash Flow |
| 65.95M | 57.71M | 28.75M | 30.29M | 70.73M | Investing Cash Flow |
| -109.52M | -44.55M | -4.53M | -7.83M | -10.01M | Financing Cash Flow |
| 56.53M | -13.46M | -22.66M | -28.20M | -46.54M |
Thermon Group Holdings Technical Analysis
Neutral
27.66
Price Trends
27.53
Positive
28.40
Negative
29.04
Negative
Market Momentum
-0.18
Negative
58.39
Neutral
89.68
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THR, the sentiment is Neutral. The current price of 27.66 is above the 20-day moving average (MA) of 25.39, above the 50-day MA of 27.53, and below the 200-day MA of 29.04, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 58.39 is Neutral, neither overbought nor oversold. The STOCH value of 89.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for THR.
Thermon Group Holdings Risk Analysis
Thermon Group Holdings disclosed 35 risk factors in its most recent earnings report. Thermon Group Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Thermon Group Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $968.95M | 21.79 | 12.06% | 1.98% | 0.92% | 21.96% | |
75 Outperform | $931.87M | 20.25 | 9.75% | ― | 0.48% | -5.52% | |
65 Neutral | $938.62M | 24.04 | 4.54% | 1.28% | -3.55% | 2.73% | |
65 Neutral | $1.33B | 16.31 | 11.04% | 1.61% | 1.35% | -40.63% | |
64 Neutral | $4.28B | 11.80 | 5.33% | 250.46% | 4.10% | -9.26% | |
48 Neutral | $1.50B | ― | -18.22% | 4.20% | 0.31% | -423.59% | |
35 Underperform | $896.79M | ― | -17.34% | ― | ― | ― |
* Industrials Sector Average
Performance Comparison
THR
Thermon Group Holdings
27.66
-5.46
-16.49%
GRC
Gorman-Rupp Company
36.85
4.70
14.62%
HI
Hillenbrand
21.31
-20.91
-49.53%
HLIO
Helios Technologies
28.16
-18.74
-39.96%
TNC
Tennant Co
71.48
-34.18
-32.35%
NNE
Nano Nuclear Energy Inc.
24.19
19.14
379.01%
Thermon Group Holdings Earnings Call Summary
Earnings Call Date:Feb 06, 2025
(Q3-2025)
| % Change Since: 2.63%|
Next Earnings Date:May 22, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were notable achievements in backlog growth, EBITDA margin improvement, and diversification efforts, challenges in large project revenue and tariff uncertainties cast a shadow. The company's strategic focus on diverse markets and operational efficiency were positive, yet ongoing pressures in large CapEx projects and acquisition integration posed concerns.Q3-2025 Updates
Positive Updates
Strong Backlog Growth
Backlog increased nearly 48% on a reported basis and 9% organically, driven by solid order trends and extended backlog conversion.
Improved EBITDA Margin
Achieved an adjusted EBITDA margin of nearly 24% during the third quarter, the highest quarterly margin performance in two years.
Free Cash Flow and Debt Reduction
Generated $23 million in free cash flow, up $3 million from last year, and paid down $12 million in debt, reducing net leverage to just over one times.
Diversification Success
Achieved FY26 goal of generating at least 70% of revenues from diverse markets, reducing reliance on the oil and gas sector.
Solid Order Momentum
Orders during the third quarter were $139 million, an 11.4% increase year-over-year, with 70% from diverse end markets.
Negative Updates
Decline in Large Project Revenue
Large project revenue was $18.6 million, down 45% from last year, due to continued delays in customer decisions on large capital projects.
Revenue Decline
Revenue in the third quarter was $134.4 million, a year-over-year decrease of 1.5%, affected by ongoing pressure in large CapEx projects.
Tariff Uncertainty
Aggressive and broad approaches to tariffs have created additional uncertainty in the business, with potential impacts on customer behaviors and business operations.
Acquisition Revenue Below Expectations
Revenues from acquisitions were below expectations, particularly from Vapor Power, due to capacity constraints and delayed project conversions.
Company Guidance
During the Fiscal Year 2025 Third Quarter Results Conference Call, key metrics highlighted include an 11% increase in orders on a reported basis, with backlog growth nearly 48%. The adjusted EBITDA margin reached 23.7%, reflecting strong operational performance despite a 1.5% revenue decrease to $134.4 million. OpEx revenues rose 12.6%, and free cash flow generation amounted to $23 million for the first nine months, with $12 million of debt paid down. The company maintains its full-year 2025 guidance for revenues between $495 million to $515 million, an adjusted EBITDA of $105 million to $110 million, and adjusted EPS of $1.77 to $1.89. The company's strategic focus on diversifying revenue streams and managing financial discipline has resulted in robust margin capture and positive growth outlooks, notwithstanding external uncertainties like tariffs.Thermon Group Holdings Corporate Events
Executive/Board Changes
Thermon Group Announces Retirement of Mark Roberts
Neutral
Feb 20, 2025
On February 17, 2025, Thermon Group Holdings announced that Mark Roberts, Senior Vice President of Thermon Heating Systems and Engineering, will retire from his position effective June 30, 2025. To ensure a smooth transition, Roberts will serve as an independent consultant until June 30, 2026, receiving compensation and continuing to vest in certain stock options. This transition plan reflects the company’s focus on maintaining stability and continuity in its leadership and operations.
Business Operations and StrategyFinancial Disclosures
Thermon Group Reports Strong Q3 Fiscal 2025 Results
Positive
Feb 6, 2025
Thermon reported its third quarter fiscal 2025 results on February 6, 2025, highlighting a revenue of $134.4 million and a net income increase of 17.1% to $18.5 million. The company emphasized its strategic focus on diverse end markets, recurring revenue streams, and operational excellence, which helped offset lower project-related revenues while maintaining strong financial discipline with a net leverage ratio of 1.1x.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.