tiprankstipranks
Trending News
More News >
Gentherm (THRM)
NASDAQ:THRM
Advertisement

Gentherm (THRM) AI Stock Analysis

Compare
104 Followers

Top Page

THRM

Gentherm

(NASDAQ:THRM)

Select Model
Select Model
Select Model
Neutral 69 (OpenAI - 4o)
Rating:69Neutral
Price Target:
$37.00
▲(4.88% Upside)
Gentherm's overall stock score is driven by strong financial performance and strategic growth initiatives highlighted in the earnings call. However, the high P/E ratio and lack of dividend yield weigh on the valuation. Technical indicators suggest a neutral market sentiment, contributing to a moderate overall score.

Gentherm (THRM) vs. SPDR S&P 500 ETF (SPY)

Gentherm Business Overview & Revenue Model

Company DescriptionGentherm 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 MoneyGentherm generates revenue primarily through the sale of its thermal management products and systems to automotive manufacturers, which is its largest market segment. The company earns money by supplying both original equipment manufacturers (OEMs) and aftermarket solutions, with a significant portion of revenue derived from long-term contracts with major automotive brands. Additionally, Gentherm has diversified its revenue streams by expanding into medical and industrial applications, leveraging its thermal technologies. Strategic partnerships with automotive companies and collaborations with research institutions also contribute to its earnings, ensuring continuous innovation and the development of new applications for its products.

Gentherm Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with significant new business awards and strategic expansions offset by revenue declines and underperformance in certain regions. The company is taking steps to address these issues, particularly in the Asian market, while also focusing on expanding into adjacent markets.
Q2-2025 Updates
Positive Updates
Strong New Business Awards
Secured over $600 million in new automotive business in Q2 and $1 billion year-to-date, including a significant award from Ford for the F-Series platform.
Adjustment in EBITDA Margin
Improved adjusted EBITDA margin performance by more than 100 basis points compared to the first quarter.
Success in Chinese Market
70% of Chinese awards were with domestic OEMs, aiming to shift customer mix from 80-20 to 60-40 in favor of domestic OEMs.
Growth in Lumbar and Massage Product Line
Lumbar and massage product line grew more than 15% year-to-date, expected to increase from $175 million in 2024 to over $300 million by 2027.
Expansion into Adjacent Markets
Secured 5 new awards in adjacent markets including commercial vehicles and powersports platforms.
Negative Updates
Revenue Decline
Second quarter revenue decreased 0.2% compared to the same period last year, with a foreign exchange adjusted revenue decrease of 1.6%.
Underperformance in Asia
Automotive Climate and Comfort Solutions underperformed in Asia, impacting overall results despite strong performance in North America and Europe.
Decrease in Medical Revenue
Medical revenue decreased 3.8% year-over-year or 4.8% when excluding FX.
Decreased Adjusted EBITDA Margin
Adjusted EBITDA margin decreased to 12.2% from 13.3% in the second quarter of last year, due to higher material costs and unfavorable product mix.
Company Guidance
During Gentherm's second quarter 2025 earnings call, the company provided guidance emphasizing several key metrics and strategic priorities for the remainder of the year. They increased their revenue forecast to range between $1.43 billion and $1.5 billion and narrowed their adjusted EBITDA margin guidance to 11.7% to 12.5%. The company highlighted significant achievements, including securing over $600 million in new automotive business awards in Q2 and $1 billion year-to-date, with a notable award from Ford for their F-Series platform. Operationally, Gentherm improved its adjusted EBITDA margin by more than 100 basis points compared to the first quarter and expects further margin expansion in the second half of the year, driven by operational efficiencies. The company continues to focus on diversifying its customer mix in China, projecting a shift toward 60% global and 40% domestic OEMs by next year, and has already achieved 70% of Chinese awards with domestic OEMs in 2025. Furthermore, Gentherm is actively pursuing growth in adjacent markets, securing five new awards in commercial vehicles and powersports platforms, and anticipates rapid market entry with cycle times of less than a year.

Gentherm Financial Statement Overview

Summary
Gentherm presents a strong financial position with consistent profitability and efficient cash flow management. The income statement shows solid margins and improving profitability, while the balance sheet reflects a prudent debt strategy. Cash flows are robust, though there's some volatility in free cash flow.
Income Statement
78
Positive
Gentherm's income statement shows a solid gross profit margin and consistent EBIT and EBITDA margins, indicating stable operational efficiency. The net profit margin has shown improvement in the TTM, reflecting enhanced profitability. Revenue growth has been moderate, with some fluctuations over the years, but the recent period shows a positive trajectory. Overall, the company's income statement reflects a strong financial performance with room for improvement in revenue growth consistency.
Balance Sheet
72
Positive
The balance sheet of Gentherm demonstrates a conservative debt-to-equity ratio, which suggests a balanced approach to leveraging. The equity ratio is healthy, indicating that the company has a stable capital structure with a significant portion of assets financed by equity. However, the return on equity shows potential for enhancement. The overall balance sheet stability is strong, with manageable risks from debt levels.
Cash Flow
75
Positive
Gentherm's cash flow statement indicates a positive free cash flow growth in the TTM, showing effective cash management. The operating cash flow to net income ratio is favorable, suggesting efficient conversion of earnings into cash. However, fluctuations in free cash flow over the years highlight potential volatility in cash generation. Overall, cash flows are robust, with opportunities for further stabilization.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.08B1.46B1.47B1.20B1.05B913.10M
Gross Profit357.20M366.43M351.62M273.65M303.63M268.10M
EBITDA132.09M169.20M119.83M99.63M157.64M136.13M
Net Income31.64M64.95M40.34M24.44M93.43M59.69M
Balance Sheet
Total Assets1.36B1.25B1.23B1.24B935.34M1.02B
Cash, Cash Equivalents and Short-Term Investments128.30M134.13M149.67M153.89M190.61M268.35M
Total Debt61.19M264.77M246.71M262.78M64.21M222.70M
Total Liabilities661.66M630.61M589.65M567.03M281.54M436.51M
Stockholders Equity699.75M616.95M644.72M672.27M653.81M586.33M
Cash Flow
Free Cash Flow47.49M36.33M80.85M-25.25M97.05M90.33M
Operating Cash Flow114.52M109.65M119.27M14.95M143.08M110.69M
Investing Cash Flow-48.68M-53.53M-24.12M-239.90M-48.83M-18.22M
Financing Cash Flow-52.26M-51.70M-106.05M189.93M-169.14M115.48M

Gentherm Technical Analysis

Technical Analysis Sentiment
Positive
Last Price35.28
Price Trends
50DMA
34.88
Positive
100DMA
31.76
Positive
200DMA
32.27
Positive
Market Momentum
MACD
-0.10
Positive
RSI
52.07
Neutral
STOCH
42.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THRM, the sentiment is Positive. The current price of 35.28 is above the 20-day moving average (MA) of 35.24, above the 50-day MA of 34.88, and above the 200-day MA of 32.27, indicating a bullish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 52.07 is Neutral, neither overbought nor oversold. The STOCH value of 42.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for THRM.

Gentherm Risk Analysis

Gentherm disclosed 35 risk factors in its most recent earnings report. Gentherm reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Gentherm Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$3.30B11.5420.46%0.22%-3.26%-45.84%
76
Outperform
$5.39B11.839.24%3.00%-3.12%-8.23%
76
Outperform
$4.76B21.2016.14%6.76%34.97%
69
Neutral
$1.04B33.714.72%-0.78%-51.80%
66
Neutral
$6.13B15.841.72%2.43%-1.25%
61
Neutral
$2.62B-121.13-1.99%2.00%-14.46%-2170.83%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
THRM
Gentherm
35.28
-6.86
-16.28%
DAN
Dana Incorporated
20.01
9.64
92.96%
DORM
Dorman Products
155.77
47.13
43.38%
GNTX
Gentex
27.84
-0.74
-2.59%
LEA
Lear
102.50
-0.86
-0.83%
VC
Visteon
122.26
31.77
35.11%

Gentherm Corporate Events

Business Operations and StrategyFinancial Disclosures
Gentherm Reports Strong Q2 2025 Financial Results
Neutral
Jul 24, 2025

On July 24, 2025, Gentherm reported its second quarter financial results, highlighting a revenue of $375 million and securing over $600 million in new automotive business awards, including significant deals with Ford. Despite a slight decrease in product revenues and net income compared to the previous year, the company demonstrated strong performance in its Automotive Climate and Comfort Solutions segment. The gross margin decreased due to higher material and labor costs, but the company maintained a stable net leverage and liquidity. Gentherm narrowed its full-year guidance range and remains focused on executing strategic priorities amid macroeconomic uncertainties.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Oct 03, 2025