Gentherm (THRM) AI Stock Analysis

• Market Cap: $846.79M
• Dividend Yield: N/A
• Average Volume (3M): 216.30K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.91
• Revenue Growth: -0.51%
• EPS Growth: 9.10%
• Country: US
• Employees: 14,000
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Auto - Parts
• EPS (TTM): 0.51
• Shares Outstanding: 30,859,785
• 10 Day Avg. Volume: 193,869
• 30 Day Avg. Volume: 216,303
• PEG Ratio: -0.73
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.36
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 2.67
• Enterprise Value/Ebitda: 1.52
• 1Y Price Target: $32.50
• Price Target Upside: 18.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: $31.00 ▲(12.97%Upside)

Gentherm's overall stock score reflects a stable financial performance with strong profitability and efficient cash flow management as key strengths. The technical analysis shows moderate positive momentum, while the valuation suggests a balanced risk-reward profile. Earnings call insights indicate cautious optimism amid industry challenges, with strategic initiatives providing a buffer. Corporate events reinforce confidence in leadership. Overall, Gentherm is well-positioned within the auto-parts industry with opportunities for growth and financial refinement.

Gentherm Business Overview & Revenue Model

Company Description

Gentherm (THRM) is a global developer and marketer of innovative thermal management technologies. The company operates primarily in the automotive and medical sectors, providing a wide range of products including automotive climate comfort systems, battery performance solutions, and medical thermal management systems. Gentherm's core offerings include heated and ventilated seat systems, thermal comfort solutions, and temperature control technologies that enhance user comfort and energy efficiency.

How the Company Makes Money

Gentherm generates revenue through the sale of its thermal management products and solutions, primarily to automotive manufacturers and medical device companies. The company's key revenue streams include the automotive segment, which offers climate comfort systems, battery thermal management solutions, and automotive electronics. Gentherm maintains strategic partnerships with major automotive OEMs, which contribute significantly to its earnings. Additionally, the company invests in research and development to innovate and expand its product portfolio, which helps in maintaining competitive advantage and driving sales growth.

Gentherm Financial Statement Overview

Summary

Gentherm presents a strong financial position with consistent profitability and efficient cash flow management. The income statement reflects solid margins and improving profitability, while the balance sheet shows a prudent debt strategy. Cash flows are strong, though some volatility in free cash flow suggests room for stability.

Income Statement

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

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

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.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.45B	1.46B	1.47B	1.20B	1.05B	913.10M
	Gross Profit
368.81M	366.43M	351.62M	273.65M	303.63M	268.10M
	EBIT
113.13M	107.02M	77.44M	48.31M	115.01M	89.22M
	EBITDA
155.27M	169.20M	119.83M	99.63M	157.64M	136.13M
	Net Income Common Stockholders
50.03M	64.95M	40.34M	24.44M	93.43M	59.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
125.11M	134.13M	149.67M	153.89M	190.61M	268.35M
	Total Assets
1.25B	1.25B	1.23B	1.24B	935.34M	1.02B
	Total Debt
253.26M	264.77M	246.71M	262.78M	64.21M	222.70M
	Net Debt
128.16M	130.64M	97.04M	108.89M	-126.40M	-45.65M
	Total Liabilities
602.88M	630.61M	589.65M	567.03M	281.54M	436.51M
	Stockholders Equity
647.06M	616.95M	644.72M	672.27M	653.81M	586.33M
Cash Flow		Free Cash Flow
29.07M	36.33M	80.85M	-25.25M	97.05M	90.33M
	Operating Cash Flow
106.62M	109.65M	119.27M	14.95M	143.08M	110.69M
	Investing Cash Flow
-55.23M	-53.53M	-24.12M	-239.90M	-48.83M	-18.22M
	Financing Cash Flow
-9.43M	-51.70M	-106.05M	189.93M	-169.14M	115.48M

Gentherm Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.44
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 27.44 is below the 20-day moving average (MA) of 27.48, above the 50-day MA of 26.31, and below the 200-day MA of 36.41, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 53.51 is Neutral, neither overbought nor oversold. The STOCH value of 57.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for THRM.

Gentherm Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	83 Outperform	$2.45B	8.41	25.15%	―	-1.35%	-39.06%
LEA	75 Outperform	$4.95B	10.85	10.00%	3.40%	-3.15%	-6.70%
ALV	75 Outperform	$8.61B	12.83	28.71%	2.58%	-2.29%	35.00%
THRM	72 Outperform	$846.79M	17.22	7.74%	―	-0.51%	9.10%
GNTX	66 Neutral	$4.88B	12.73	15.90%	2.21%	-1.66%	-9.20%
Sector *	62 Neutral	$6.88B	11.07	2.77%	4.28%	2.67%	-24.94%
DAN	61 Neutral	$2.57B	―	-2.40%	2.32%	-7.00%	-366.59%

Gentherm Corporate Events

Gentherm Shareholders Approve Directors and Auditor

At the annual meeting on May 8, 2025, Gentherm shareholders elected nine directors for a one-year term, approved executive compensation, and ratified Ernst & Young LLP as the independent auditor for 2025. These decisions reflect shareholder confidence in the company’s leadership and strategic direction.

Gentherm Reports Q1 2025 Financial Results

On April 24, 2025, Gentherm announced its first quarter financial results, reporting $354 million in revenue, a 1% increase excluding foreign exchange impacts, driven by growth in lumbar and massage comfort solutions. Despite a challenging environment, the company secured $400 million in new automotive business awards and commenced shipments from a new facility in Morocco. However, net income decreased due to foreign currency losses and other factors. The company maintained its full-year revenue guidance while slightly adjusting its margin expectations, reflecting current market conditions.