Thermon Group Holdings (THR) AI Stock Analysis

• Market Cap: $1.27B
• Dividend Yield: N/A
• Average Volume (3M): 220.68K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 1.16
• Revenue Growth: 3.08%
• EPS Growth: 35.81%
• Country: US
• Employees: 1,416
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.55
• Shares Outstanding: 32,840,076
• 10 Day Avg. Volume: 169,460
• 30 Day Avg. Volume: 220,684
• PEG Ratio: 4.47
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 1.88
• P/FCF Ratio: 17.76
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 2.06
• Enterprise Value/Gross Profit: 4.54
• Enterprise Value/Ebitda: 9.66
• 1Y Price Target: $38.00
• Price Target Upside: -1.58% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $43.00 ▲(11.37% Upside)

Thermon Group Holdings receives a strong overall score driven by robust financial performance and positive earnings call insights. The technical indicators suggest caution due to overbought conditions, while the valuation is moderate. The company's strategic initiatives and raised guidance enhance its market position, supporting a positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategy, enhancing Thermon's competitive position.

Strategic Initiatives

Focus on decarbonization, digitization, and diversification positions Thermon for long-term growth in emerging sectors.

Financial Stability

Strong financial stability and liquidity provide flexibility for strategic investments and resilience against market fluctuations.

Negative Factors

APAC Revenue Decline

Revenue decline in APAC could indicate challenges in a key growth region, potentially impacting future expansion and market share.

Flat Order Growth

Flat order growth suggests potential stagnation in demand, which could limit future revenue growth if not addressed.

Decline in Free Cash Flow Growth

A decline in free cash flow growth could constrain Thermon's ability to invest in new opportunities and maintain financial flexibility.

Thermon Group Holdings Business Overview & Revenue Model

Company Description

Thermon 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 Money

Thermon generates revenue through the sale of its heat tracing products and systems, along with related services such as installation, maintenance, and support. The company operates on a direct sales model, often working closely with engineering firms and contractors to secure contracts for large-scale projects in critical infrastructure sectors. Key revenue streams include sales of heat tracing cables, control systems, and installation services. Additionally, Thermon benefits from long-term relationships with major players in the oil & gas and chemical manufacturing industries, which provide consistent demand for its products. Partnerships with technology providers and distributors also enhance its market reach and drive sales.

Thermon Group Holdings Financial Statement Overview

Summary

Thermon Group Holdings shows strong financial performance with consistent revenue and profit growth, a robust balance sheet with low leverage, and efficient cash flow management. The decline in free cash flow growth is a concern but is offset by solid margins and effective equity use.

Income Statement

Thermon Group Holdings demonstrates strong revenue growth with a TTM increase of 3.47% and consistent profitability, evidenced by a healthy gross profit margin of 45.31% and a net profit margin of 11.60%. The EBIT and EBITDA margins are robust at 12.53% and 20.08%, respectively, indicating efficient operational management. The company has shown steady revenue growth over the years, supporting its competitive position in the industry.

Balance Sheet

The balance sheet reflects a solid financial structure with a low debt-to-equity ratio of 0.037, indicating minimal leverage and financial risk. The return on equity is strong at 11.76%, showcasing effective use of shareholder funds to generate profits. The equity ratio of 66.20% suggests a stable capital structure, although the company should monitor its asset utilization to maintain this stability.

Cash Flow

Thermon Group Holdings maintains a healthy cash flow position with an operating cash flow to net income ratio of 0.59, indicating efficient cash generation relative to net income. However, the free cash flow growth rate has declined by 4.46%, which could be a concern if it persists. The free cash flow to net income ratio of 0.83 shows that the company is effectively converting its earnings into cash, supporting its operational and strategic initiatives.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	509.05M	498.21M	494.63M	440.59M	355.67M	276.18M
Gross Profit	230.67M	222.90M	211.56M	185.13M	140.12M	116.87M
EBITDA	108.48M	102.78M	95.36M	74.33M	54.45M	30.26M
Net Income	59.05M	53.52M	51.59M	33.67M	20.09M	877.00K
Balance Sheet
Total Assets	778.18M	755.45M	767.74M	649.63M	636.67M	617.88M
Cash, Cash Equivalents and Short-Term Investments	29.75M	39.54M	48.63M	35.63M	41.45M	40.12M
Total Debt	151.62M	151.69M	187.49M	128.28M	141.64M	161.40M
Total Liabilities	262.95M	260.14M	292.85M	230.64M	237.47M	239.01M
Stockholders Equity	515.23M	495.31M	474.89M	418.99M	399.20M	378.87M
Cash Flow
Free Cash Flow	50.12M	52.87M	54.94M	48.26M	23.53M	22.16M
Operating Cash Flow	60.06M	63.12M	65.95M	57.71M	28.75M	30.29M
Investing Cash Flow	-14.63M	-14.97M	-109.52M	-44.55M	-4.53M	-7.83M
Financing Cash Flow	-62.24M	-56.42M	56.53M	-13.46M	-22.66M	-28.20M

Thermon Group Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 38.61 is above the 20-day moving average (MA) of 37.43, above the 50-day MA of 32.96, and above the 200-day MA of 28.67, indicating a bullish trend. The MACD of 1.68 indicates Positive momentum. The RSI at 60.61 is Neutral, neither overbought nor oversold. The STOCH value of 21.72 is Neutral, 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
GRC	76 Outperform	$1.29B	25.68	13.01%	1.52%	3.19%	31.51%
THR	75 Outperform	$1.27B	22.06	11.74%	―	3.08%	35.81%
SXI	73 Outperform	$2.73B	51.56	7.72%	0.58%	18.51%	-28.69%
GHM	69 Neutral	$676.53M	49.94	11.39%	―	16.04%	75.37%
HI	68 Neutral	$2.23B	52.00	3.07%	2.85%	-16.00%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TNC	59 Neutral	$1.35B	25.53	8.51%	1.60%	-2.24%	-48.77%

Thermon Group Holdings Corporate Events

Thermon Group Reports Strong Q2 Fiscal 2026 Results

On November 6, 2025, Thermon Group Holdings announced its second quarter fiscal 2026 results, showcasing a 14.9% increase in revenue to $131.7 million and a 57.9% rise in net income to $15.0 million. The company raised its full-year guidance amid margin expansion and strategic execution, reflecting strong performance and positioning in the market, with a focus on strategic growth initiatives and favorable demand trends.