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Gentherm Inc (THRM)
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Gentherm (THRM) AI Stock Analysis

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THRM

Gentherm

(NASDAQ:THRM)

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Outperform 76 (OpenAI - 4o)
Rating:76Outperform
Price Target:
$42.00
▲(21.00% Upside)
Gentherm's overall stock score is driven by strong technical indicators and positive earnings call sentiment, highlighting record revenue and strategic wins. Financial performance is stable but faces profitability and cash flow challenges. The valuation is relatively high, impacting the overall score.

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

Gentherm Business Overview & Revenue Model

Company DescriptionGentherm (THRM) is a global leader in thermal management technologies, primarily serving the automotive sector. The company specializes in innovative products that enhance comfort and safety in vehicles, including heated and cooled seats, battery thermal management systems, and advanced climate control solutions. Beyond automotive, Gentherm also operates in the medical and industrial sectors, providing temperature management solutions that improve user experience and performance.
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:Oct 23, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 25, 2026
Earnings Call Sentiment Positive
Gentherm's earnings call highlighted strong business performance with record revenue and significant new business awards, particularly in the automotive sector. The company demonstrated success in strategic initiatives and expansion into adjacent markets. However, challenges remain with declining medical revenue, higher material costs, and supply chain uncertainties.
Q3-2025 Updates
Positive Updates
Record Quarterly Revenue
Gentherm achieved record quarterly revenue of $387 million, driven by high demand for products and improved light vehicle industry production.
Automotive New Business Awards
Secured $745 million in Automotive new business awards, putting the company on track to deliver above $2 billion for the full year.
Strategic Conquest Win with Mercedes-Benz
Secured a strategic conquest win with Mercedes-Benz, displacing a competitor and marking the fourth global OEM to adopt Gentherm's Puls.A technology.
Operational Excellence and Cash Generation
Operational excellence initiatives contributed to $88 million in operating cash flow year-to-date, with net leverage standing at 0.2x.
Expansion into Adjacent Markets
Gentherm's efforts in expanding to adjacent markets, like furniture and commercial vehicles, have generated a commercial funnel of over $300 million of lifetime revenue.
Negative Updates
Medical Revenue Decline
Medical revenue decreased by 0.4% year-over-year or 1.6% excluding foreign currency translation.
Higher Material Costs
Profitability was affected by higher material costs, tariffs, and expenses related to footprint realignment.
Uncertainty in Supply Chain
Concerns regarding potential impacts on OEM production due to supply chain issues, such as the Nexperia component situation.
Company Guidance
During the Gentherm Third Quarter 2025 earnings call, the company provided updated guidance for the remainder of the fiscal year. They raised the midpoint of their revenue guidance to a range of $1.47 billion to $1.49 billion, driven by improved second-half light vehicle industry production. The adjusted EBITDA margin range was narrowed to 11.9% to 12.3%, considering potential impacts from volume and year-end spending initiatives. The company reported record quarterly revenue of $387 million and operating cash flow of $88 million year-to-date. Automotive new business awards reached $745 million for the quarter, contributing to a year-to-date total of $1.8 billion, with expectations to exceed $2 billion for the full year. They also highlighted ongoing strategic initiatives, including expanding into adjacent markets with a commercial funnel of over $300 million and preparing to supply comfort solutions to a large global furniture brand starting in Q1 2026.

Gentherm Financial Statement Overview

Summary
Gentherm demonstrates stable financial performance with consistent revenue growth and a strong balance sheet characterized by low leverage. However, profitability margins have faced some pressure, and cash flow conversion efficiency could be improved. The company is well-positioned in terms of financial stability but should focus on enhancing profitability and cash flow management to drive future growth.
Income Statement
72
Positive
Gentherm's income statement shows a stable revenue growth trajectory with a TTM revenue growth rate of 1.06%. The gross profit margin is healthy at 24.34%, although it has slightly decreased from previous years. The net profit margin has also decreased to 2.08% in TTM, indicating some pressure on profitability. EBIT and EBITDA margins have seen a decline, suggesting increased operational costs or pricing pressures. Overall, the company demonstrates moderate growth with some profitability challenges.
Balance Sheet
78
Positive
The balance sheet reflects a strong financial position with a low debt-to-equity ratio of 0.08 in TTM, indicating low leverage and financial stability. The return on equity is modest at 4.57%, showing room for improvement in generating returns for shareholders. The equity ratio is solid, highlighting a strong equity base relative to total assets. Overall, Gentherm maintains a stable balance sheet with low financial risk.
Cash Flow
65
Positive
Cash flow analysis reveals a significant improvement in free cash flow growth at 42.49% in TTM, indicating better cash generation capabilities. However, the operating cash flow to net income ratio is relatively low at 0.31, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio is moderate at 0.54, reflecting a balanced cash flow position. Overall, while cash flow generation is improving, there are areas that require attention to enhance cash conversion efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.46B1.46B1.47B1.20B1.05B913.10M
Gross Profit353.49M366.43M351.62M273.65M303.63M268.10M
EBITDA153.25M175.60M152.63M99.63M157.64M136.13M
Net Income30.62M64.95M40.34M24.44M93.43M59.69M
Balance Sheet
Total Assets1.38B1.25B1.23B1.24B935.34M1.02B
Cash, Cash Equivalents and Short-Term Investments154.25M134.13M149.67M153.89M190.61M268.35M
Total Debt59.97M264.77M246.71M262.78M64.21M222.70M
Total Liabilities663.39M630.61M589.65M567.03M281.54M436.51M
Stockholders Equity717.95M616.95M644.72M672.27M653.81M586.33M
Cash Flow
Free Cash Flow67.67M36.33M80.85M-25.25M97.05M90.33M
Operating Cash Flow124.38M109.65M119.27M14.95M143.08M110.69M
Investing Cash Flow-50.17M-53.53M-24.12M-239.90M-48.83M-18.22M
Financing Cash Flow-53.53M-51.70M-106.05M189.93M-169.14M115.48M

Gentherm Technical Analysis

Technical Analysis Sentiment
Positive
Last Price34.71
Price Trends
50DMA
35.47
Positive
100DMA
33.31
Positive
200DMA
31.86
Positive
Market Momentum
MACD
0.53
Negative
RSI
58.26
Neutral
STOCH
70.95
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 34.71 is below the 20-day moving average (MA) of 35.25, below the 50-day MA of 35.47, and above the 200-day MA of 31.86, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 58.26 is Neutral, neither overbought nor oversold. The STOCH value of 70.95 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
$1.12B36.934.44%-0.10%-53.49%
$4.08B16.6218.19%7.94%34.84%
$5.54B12.059.51%2.98%-3.12%-8.23%
$2.87B9.3623.16%0.25%-4.03%-39.51%
$5.17B14.0415.29%2.04%2.99%-9.82%
$18.38B12.79-2.54%3.03%1.52%-15.83%
$2.83B-4.82%2.03%-18.23%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
THRM
Gentherm
36.60
-5.35
-12.75%
DAN
Dana Incorporated
20.90
13.46
180.91%
DORM
Dorman Products
134.50
20.47
17.95%
GNTX
Gentex
23.56
-6.15
-20.70%
LEA
Lear
103.52
10.73
11.56%
VC
Visteon
105.35
15.31
17.00%

Gentherm Corporate Events

Gentherm Inc. Reports Record Revenue and Strategic Wins
Oct 25, 2025

Gentherm Inc.’s recent earnings call conveyed a positive sentiment, underscored by record revenue achievements and substantial new business awards, particularly in the automotive sector. The company showcased its strategic successes and expansion into new markets, although it acknowledged challenges such as declining medical revenue, increased material costs, and supply chain uncertainties.

Gentherm Inc. Reports Record Third-Quarter Revenue
Oct 24, 2025

Gentherm Inc., a leader in thermal management and pneumatic comfort technologies, operates in the automotive and medical sectors, offering products like Climate Control Seats and patient temperature management systems. In its third-quarter earnings report for 2025, Gentherm announced record quarterly revenue of $387 million and a strong operating cash flow of $88 million. The company secured $745 million in new automotive business awards and raised its full-year revenue guidance midpoint. Key financial highlights include a 4.1% increase in product revenues, driven by a significant rise in Automotive Climate and Comfort Solutions revenue, which outperformed market production rates. Despite higher material costs impacting gross margin, the company maintained a solid adjusted EBITDA margin of 12.7%. Looking ahead, Gentherm remains focused on executing its strategic priorities, including expanding into adjacent markets and leveraging its core technologies for long-term growth.

Business Operations and StrategyFinancial Disclosures
Gentherm Reports Record Q3 2025 Revenue and Growth
Positive
Oct 23, 2025

On October 23, 2025, Gentherm announced its financial results for the third quarter of 2025, achieving a record quarterly revenue of $387 million and securing $745 million in automotive new business awards. The company raised its full-year revenue guidance midpoint and highlighted its strategic initiatives, including entering the furniture market with comfort solutions expected to start production in early 2026. Despite a slight decrease in gross margin and net income compared to the previous year, Gentherm demonstrated strong cash flow and operational excellence, positioning itself for long-term growth and value creation.

The most recent analyst rating on (THRM) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on Gentherm stock, see the THRM Stock Forecast page.

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 26, 2025