Gentherm (THRM) AI Stock Analysis

• Market Cap: $843.93M
• Dividend Yield: N/A
• Average Volume (3M): 312.40K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 1.18
• Revenue Growth: -0.88%
• EPS Growth: 67.38%
• Country: US
• Employees: 14,246
• Sector: Consumer Cyclical
• Sector Strength: 51
• Industry: Auto - Parts
• EPS (TTM): 2.06
• Shares Outstanding: 30,788,988
• 10 Day Avg. Volume: 331,035
• 30 Day Avg. Volume: 312,399
• PEG Ratio: 0.19
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.23
• Price to Cash Flow (P/CF): 12.30
• P/FCF Ratio: 11.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $42.50
• Price Target Upside: 58.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

Gentherm is positioned well within its industry, with solid financials and strategic initiatives to enhance profitability. While technical indicators suggest bearish momentum, the company's valuation and corporate developments provide a balanced outlook. The focus on operational efficiencies and cash flow improvement should drive future growth, despite current market challenges.

Gentherm Business Overview & Revenue Model

Company Description

Gentherm Incorporated designs, develops, manufactures, and markets thermal management technologies. The company operates in two segments, Automotive and Medical. The Automotive segment offers climate comfort systems, which include seat heaters, blowers, and thermoelectric devices for variable temperature climate control seats and steering wheel heaters that are designed to provide thermal comfort to automobile passengers; integrated electronic components, such as electronic control units that utilize proprietary electronics technology and software; and other climate comfort systems, including neck conditioners and climate control system products for door panels, armrests, cupholders, and storage bins. It also provides battery performance solutions comprising cell connecting devices and battery cable technologies used for various types of automotive batteries, as well as thermal management products for heating and cooling 12 volts, 48 volts, and high voltage batteries and battery modules; and automotive electronic and software systems, including electronic control units for climate comfort systems, as well as for memory seat modules and other devices. This segment serves light vehicle original equipment manufacturers and first tier suppliers, such as automotive seat manufacturers, as well as aftermarket seat distributors and installers. The Medical segment offers patient temperature management systems. The company provides its products and services in the United States, Germany, Canada, China, Hungary, Japan, South Korea, Romania, Macedonia, Malta, Mexico, the United Kingdom, Ukraine, and Vietnam. The company was formerly known as Amerigon Incorporated and changed its name to Gentherm Incorporated in September 2012. Gentherm Incorporated was incorporated in 1991 and is headquartered in Northville, Michigan.

How the Company Makes Money

Gentherm generates revenue through the design, production, and sale of its thermal management solutions. The company's primary revenue streams include the automotive sector, where it provides thermal solutions like seat comfort systems and battery thermal management systems to major automotive manufacturers. Gentherm also taps into the medical field by offering patient temperature management systems for applications in surgical and critical care environments. Significant partnerships with leading car manufacturers and healthcare providers contribute to Gentherm's earnings, along with its focus on innovation and expansion into new markets and product categories.

Gentherm Financial Statement Overview

Summary

Gentherm demonstrates solid financial strength with consistent revenue growth and strong equity positions. Effective cash flow management is evident, although there are concerns about volatility in net income and free cash flow that may pose risks.

Income Statement

Gentherm has shown a healthy revenue growth trajectory from 2020 to 2023, recovering from a dip in 2020. The gross profit margin has remained robust, although net profit margins have fluctuated. EBIT and EBITDA margins are consistent, indicating operational efficiency. However, the decline in revenue in 2024 and the volatility in net income are areas of concern.

Balance Sheet

The company maintains a strong equity position with a healthy equity ratio and manageable debt levels. The debt-to-equity ratio has improved over the years, showcasing effective debt management. Return on equity has seen positive trends, indicating profitable use of shareholders' equity, though the slight decrease in equity in 2024 warrants monitoring.

Cash Flow

Operating cash flows have been strong, particularly in recent years, reflecting solid cash generation from core operations. Free cash flow has been positive, albeit with fluctuations that suggest potential capital expenditure impacts. The free cash flow to net income ratio shows stability, yet the variability in free cash flow growth rates indicates some risk.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
366.43M	1.47B	1.20B	1.05B	913.10M
	Gross Profit
366.43M	351.62M	273.65M	303.63M	268.10M
	EBIT
107.02M	77.44M	48.31M	115.01M	89.22M
	EBITDA
170.54M	119.83M	99.63M	157.64M	136.13M
	Net Income Common Stockholders
64.95M	40.34M	24.44M	93.43M	59.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
134.13M	149.67M	153.89M	190.61M	268.35M
	Total Assets
1.25B	1.23B	1.24B	935.34M	1.02B
	Total Debt
44.71M	246.71M	262.78M	64.21M	222.70M
	Net Debt
-89.43M	97.04M	108.89M	-126.40M	-45.65M
	Total Liabilities
630.61M	589.65M	567.03M	281.54M	436.51M
	Stockholders Equity
616.95M	644.72M	672.27M	653.81M	586.33M
Cash Flow		Free Cash Flow
36.33M	80.85M	-25.25M	97.05M	90.33M
	Operating Cash Flow
109.65M	119.27M	14.95M	143.08M	110.69M
	Investing Cash Flow
-53.53M	-24.12M	-239.90M	-48.83M	-18.22M
	Financing Cash Flow
-51.70M	-106.05M	189.93M	-169.14M	115.48M

Gentherm Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THRM, the sentiment is Negative. The current price of 26.74 is below the 20-day moving average (MA) of 30.59, below the 50-day MA of 34.18, and below the 200-day MA of 42.83, indicating a bearish trend. The MACD of -1.55 indicates Positive momentum. The RSI at 23.19 is Positive, neither overbought nor oversold. The STOCH value of 3.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for THRM.

Gentherm Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEN	82 Outperform	$506.61M	3.42	10.41%	8.74%	-11.02%	-51.66%
VC	77 Outperform	$2.12B	7.98	24.17%	―	-2.23%	-42.94%
THRM	70 Outperform	$843.93M	12.95	10.30%	―	-0.88%	67.38%
ALV	66 Neutral	$6.93B	11.11	26.69%	3.07%	-0.80%	39.95%
LEA	64 Neutral	$4.72B	9.81	10.81%	3.50%	-0.70%	-7.27%
BWA	62 Neutral	$6.19B	18.75	6.46%	1.56%	-11.10%	-46.32%
Sector *	59 Neutral	$12.24B	11.04	-1.00%	3.78%	1.30%	-19.54%

Gentherm Corporate Events

Gentherm Announces RSU Awards to Top Executives

On February 24, 2025, Gentherm Incorporated announced the grant of restricted stock units to its President and CEO, William Presley, and Executive Vice President and CFO, Jonathan Douyard. This inducement award aligns with the company’s existing RSU award agreements for executive officers, reflecting its commitment to retaining top leadership and potentially impacting its executive stability and market confidence.

Gentherm Reports Strong 2024 Financial Results and Guidance

Gentherm announced its financial results for the fourth quarter and full year of 2024, reporting a 61% year-over-year increase in net income and a record annual adjusted EBITDA of $183 million. The company secured automotive new business awards worth $2.4 billion and provided its 2025 financial guidance, anticipating product revenues between $1.4 billion and $1.5 billion. Despite a slight decrease in product revenues for both the quarter and the full year compared to 2023, Gentherm maintained a strong foundation with unique capabilities and sustainable competitive advantages, as mentioned by the company’s President and CEO, Bill Presley. The report also highlighted a decrease in automotive revenue due to foreign currency translation effects and strategic business adjustments.