Thermon Group Holdings (THR) AI Stock Analysis

• Market Cap: $940.78M
• Dividend Yield: N/A
• Average Volume (3M): 140.75K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 1.36
• Revenue Growth: 0.72%
• EPS Growth: 3.69%
• Country: US
• Employees: 1,416
• Sector: Industrials
• Sector Strength: 89
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 33,243,095
• 10 Day Avg. Volume: 121,117
• 30 Day Avg. Volume: 140,745
• PEG Ratio: 1.21
• Price to Book (P/B): 1.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.51
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 4.69
• Enterprise Value/Ebitda: 2.59
• 1Y Price Target: $36.00
• Price Target Upside: 27.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 79 Outperform
• Price Target: $32.00 ▲(13.15%Upside)

Thermon Group Holdings scores a solid 78.5, driven by strong financial performance and positive earnings call sentiment. The company's robust cash flow, strategic initiatives, and corporate events bolster its growth potential. However, valuation concerns and macroeconomic uncertainties slightly temper the overall outlook.

Thermon Group Holdings Business Overview & Revenue Model

Company Description

Thermon Group Holdings, Inc. is a global leader in providing highly engineered thermal solutions for process industries. The company specializes in the design, manufacture, and supply of industrial heating solutions, including electric heat tracing systems, tubing bundles, and process heating products. Thermon's technologies are used to maintain temperature, ensure safety, and improve efficiency in various sectors such as oil and gas, chemical processing, power generation, and food and beverage.

How the Company Makes Money

Thermon Group Holdings generates revenue primarily through the sale of its thermal management solutions and related services. The company's key revenue streams include the manufacture and sale of electric and steam heat tracing systems, which are critical for temperature maintenance in pipelines and tanks. Additionally, the company offers installation, maintenance, and support services, providing a recurring revenue stream. Strategic partnerships and contracts with major players in the oil and gas, petrochemical, and power industries significantly contribute to Thermon's earnings. The company also benefits from long-term relationships with its clients, which often lead to repeat business and service contracts.

Thermon Group Holdings Financial Statement Overview

Summary

Thermon Group Holdings has shown strong financial performance with significant revenue growth, improved profit margins, and robust cash flow management. While liabilities have increased, the improved debt-to-equity ratio and solid equity growth mitigate potential risks.

Income Statement

Thermon Group Holdings exhibits strong revenue growth with a notable increase in total revenue from $276.2M in 2021 to $498.2M in 2025. Gross profit margins remain consistently healthy, averaging around 45%. The EBIT and EBITDA margins have shown steady improvement, reflecting enhanced operational efficiency. The net profit margin has also improved, demonstrating effective cost management. Overall, the income statement portrays a solid growth trajectory with robust profitability metrics.

Balance Sheet

The company's balance sheet indicates a stable financial position with a consistent increase in stockholders' equity, growing from $346.4M in 2020 to $495.3M in 2025. The debt-to-equity ratio has improved over time, suggesting a reduction in leverage risk. The equity ratio has remained robust, indicating a strong capital structure. However, the total liabilities have increased, which should be monitored for potential risks. Overall, the balance sheet is solid with a positive trend in equity growth and manageable leverage.

Cash Flow

Thermon Group Holdings has demonstrated strong cash flow management, with free cash flow consistently positive and growing from $22.1M in 2021 to $52.9M in 2025. The operating cash flow to net income ratio indicates effective conversion of earnings to cash. The free cash flow to net income ratio also reflects a strong cash generation capability. Despite some fluctuations in capital expenditures, the company's cash flow position remains healthy and supports ongoing operational and investment needs.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	498.21M	494.63M	440.59M	355.67M	276.18M
Gross Profit	222.90M	211.56M	185.13M	140.12M	117.24M
EBITDA	102.78M	95.36M	74.33M	54.45M	30.26M
Net Income	53.52M	51.59M	33.67M	20.09M	877.00K
Balance Sheet
Total Assets	755.45M	767.74M	649.63M	636.67M	617.88M
Cash, Cash Equivalents and Short-Term Investments	39.54M	48.63M	35.63M	41.45M	40.12M
Total Debt	151.69M	187.49M	128.28M	141.64M	161.40M
Total Liabilities	260.14M	292.85M	230.64M	237.47M	148.50M
Stockholders Equity	495.31M	474.89M	418.99M	399.20M	379.16M
Cash Flow
Free Cash Flow	52.87M	54.94M	48.26M	23.53M	22.16M
Operating Cash Flow	63.12M	65.95M	57.71M	28.75M	30.29M
Investing Cash Flow	-14.97M	-109.52M	-44.55M	-4.53M	-7.83M
Financing Cash Flow	-56.42M	56.53M	-13.46M	-22.66M	-28.20M

Thermon Group Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THR, the sentiment is Positive. The current price of 28.28 is above the 20-day moving average (MA) of 28.16, above the 50-day MA of 27.79, and below the 200-day MA of 28.45, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 53.76 is Neutral, neither overbought nor oversold. The STOCH value of 80.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for THR.

Thermon Group Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
THR	79 Outperform	$940.78M	18.09	11.03%	―	0.72%	3.69%
GRC	73 Outperform	$1.09B	21.09	13.70%	1.79%	2.60%	51.33%
TNC	71 Outperform	$1.54B	23.11	11.04%	1.41%	1.35%	-40.63%
HLIO	68 Neutral	$1.27B	34.20	4.27%	0.98%	-5.39%	12.14%
Sector *	65 Neutral	$11.04B	15.74	4.60%	2.11%	3.27%	-26.87%
HI	54 Neutral	$1.52B	―	-18.22%	4.16%	0.31%	-423.59%
NNE	35 Underperform	$1.57B	―	-45.55%	―	―	―

Thermon Group Holdings Corporate Events

Thermon Group Re-elects Directors and Ratifies KPMG

During the 2025 annual meeting held on July 28, Thermon Group Holdings announced the re-election of several directors, including John Clarke, Linda Dalgetty, and others, with varying levels of support. Additionally, the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending March 31, 2026, was ratified, and the compensation of the company’s named executive officers was approved on a non-binding advisory basis.

The most recent analyst rating on (THR) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Thermon Group Holdings stock, see the THR Stock Forecast page.

Thermon Group Holdings Amends Credit Agreement with JPMorgan

On July 24, 2025, Thermon Group Holdings, Inc. entered into a Second Amended and Restated Credit Agreement with several lenders and JPMorgan Chase Bank, N.A. This agreement, which amends a prior credit agreement from September 2021, includes a $115 million revolving credit facility and a $125 million term loan facility, both secured and set to mature on July 24, 2030. The facilities will be used for refinancing existing debt and general corporate purposes. The agreement includes financial covenants, security interests, and guarantees by various subsidiaries, enhancing the company’s financial flexibility and operational capabilities.

The most recent analyst rating on (THR) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Thermon Group Holdings stock, see the THR Stock Forecast page.

Thermon Group Appoints New COO to Drive Growth

On July 1, 2025, Thermon Group Holdings announced the appointment of Thomas Cerovski as Senior Vice President and Chief Operating Officer. Cerovski, who has been with Thermon since 2019, will focus on executing the company’s strategic pillars to drive growth in decarbonization, digitization, and diversification. His extensive experience in the energy and industrial sectors positions him to lead Thermon in its next phase of growth, aiming to enhance shareholder value and expand the company’s installed base for recurring revenue.

The most recent analyst rating on (THR) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Thermon Group Holdings stock, see the THR Stock Forecast page.

Thermon Group Reports Strong Fiscal 2025 Results

On May 22, 2025, Thermon Group Holdings announced its fourth-quarter and full-year fiscal 2025 results, reporting significant financial growth. The company achieved a 5% increase in fourth-quarter revenue and a 68% rise in net income, reflecting strong performance and strategic acquisitions. Throughout fiscal 2025, Thermon successfully integrated acquisitions, expanded its market presence, and maintained a robust financial position, with a focus on decarbonization, digitization, and diversification strategies. The company enters fiscal 2026 with strong bookings momentum and a solid backlog, despite macroeconomic uncertainties.

The most recent analyst rating on (THR) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Thermon Group Holdings stock, see the THR Stock Forecast page.