Gentherm (THRM)
NASDAQ:THRM
Want to see THRM full AI Analyst Report?
Top Page
Gentherm
(NASDAQ:THRM)
Select Model
Select Model
Rating:59Neutral
Price Target:
$30.00
▲(0.77% Upside)
Action:ReiteratedDate:04/23/26
Overall score reflects (1) acceptable but pressured fundamentals driven by a weak TTM income statement despite solid leverage and improving free cash flow, (2) a supportive earnings-call backdrop with maintained guidance and strong Q1 execution but acknowledged mid-year margin pressure, tempered by (3) soft longer-term technical trend and (4) high P/E valuation.
Positive Factors
Healthy balance sheet and liquidity
Low net leverage and substantial liquidity provide durable financial flexibility to fund working capital, absorb cyclical downturns, and invest in program ramps or M&A. This balance-sheet strength reduces refinancing risk and supports multi‑year OEM program deliveries and integration funding needs.
Negative Factors
Weak TTM revenue and compressed margins
A large trailing‑12‑month revenue decline with near‑breakeven net margins signals fragile earnings power that may persist across program cycles. Sustained top‑line weakness limits ability to absorb fixed costs and compresses ROE, undermining durable profitability until demand or mix improves.
Read all positive and negative factors
Positive Factors
Negative Factors
Healthy balance sheet and liquidity
Low net leverage and substantial liquidity provide durable financial flexibility to fund working capital, absorb cyclical downturns, and invest in program ramps or M&A. This balance-sheet strength reduces refinancing risk and supports multi‑year OEM program deliveries and integration funding needs.
Read all positive factors
Gentherm (THRM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$934.13M
Dividend YieldN/A
Average Volume (3M)179.15K
Price to Earnings (P/E)50.2
Beta (1Y)0.86
Revenue Growth5.81%
EPS Growth-53.66%
CountryUS
Employees14,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.84
Shares Outstanding30,667,290
10 Day Avg. Volume199,698
30 Day Avg. Volume179,150
Financial Highlights & Ratios
PEG Ratio-0.85
Price to Book (P/B)1.54
Price to Sales (P/S)0.74
P/FCF Ratio18.14
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue0.67
Enterprise Value/Gross Profit2.84
Enterprise Value/Ebitda7.94
Forecast
1Y Price Target
$37.00Price Target Upside24.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)2.53
Revenue Forecast (FY)$1.55B
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, bl...
How the Company Makes Money
Gentherm makes money primarily by selling engineered automotive components and systems to vehicle OEMs (and, in some cases, through OEM-directed Tier-1 supply channels) under multi-year vehicle platform/program awards. Revenue is largely generated...
Gentherm Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call communicated strong operational execution and multiple growth catalysts — record quarterly revenue, double-digit segment growth, substantial new business awards, margin expansion (140 bps YoY), robust liquidity and strategic M&A to broaden markets. At the same time, management flagged a meaningful near-term cost headwind (~$20 million) from logistics and commodity inflation, expected mid-year margin pressure, inventory depletion effects, and one-time merger charges that reduced GAAP EPS. Overall the positives (revenue and margin gains, product/market diversification, balance sheet strength and clear integration plan with Modine) outweigh the near-term headwinds, but management is appropriately cautious given macro uncertainty.Positive Updates
Record Quarterly Revenue
Product revenues reached a quarterly record of $394 million, up 11.3% year-over-year (7.2% growth excluding foreign currency translation).
Negative Updates
Inflationary Cost Headwind
Company estimates approximately $20 million of incremental costs in 2026 driven by logistics (lane disruptions, fuel surcharges), petrochemical/material inflation and increased processing-related costs; estimate is gross and remains fluid.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Revenue
Product revenues reached a quarterly record of $394 million, up 11.3% year-over-year (7.2% growth excluding foreign currency translation).
Read all positive updates
Company Guidance
Gentherm maintained 2026 guidance (ex‑Modine) for revenue of $1.5–$1.6 billion (≈3% growth Y/Y and mid‑single‑digit growth versus a market expected to decline ~2%), adjusted EBITDA of $175–$195 million (midpoint ≈12% margin), adjusted free cash flow of $80–$100 million, and CapEx of $45–$55 million (≈3% of sales). Management noted Q1 strength but cautioned near‑term pressure: Q1 revenue was $394 million (quarterly record, +11.3% Y/Y, +7.2% ex‑FX), Automotive Climate & Comfort +13.6% Y/Y (+9.8% ex‑FX), lumbar/massage +33% Y/Y, $49.3 million adjusted EBITDA (12.5% of sales), adjusted diluted EPS $0.84 (vs $0.51 prior year) and GAAP diluted EPS $0.14 after ~ $0.70/share merger/restructuring charges; they expect margins to be depressed in Q2–Q3 as ~ $20 million of incremental inflationary costs hit (starting in Q2) with recovery timing into Q3–Q4 and inventory drawdown during a global footprint transition. Balance sheet and cash metrics highlighted Q1 net leverage of 0.2x, liquidity of $456 million, an $8 million Y/Y improvement in operational cash flow, and Q1 CapEx of $5.6 million (down $9.2 million Y/Y).Gentherm Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
70
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.53B | 1.49B | 1.46B | 1.47B | 1.20B | 1.05B |
| Gross Profit | 362.44M | 351.67M | 366.43M | 351.62M | 273.65M | 303.63M |
| EBITDA | 129.70M | 102.91M | 175.60M | 152.63M | 99.63M | 157.64M |
| Net Income | 22.63M | 18.29M | 64.95M | 40.34M | 24.44M | 93.43M |
Balance Sheet | ||||||
| Total Assets | 1.43B | 1.40B | 1.25B | 1.23B | 1.24B | 935.34M |
| Cash, Cash Equivalents and Short-Term Investments | 177.40M | 160.83M | 134.13M | 149.67M | 153.89M | 190.61M |
| Total Debt | 273.43M | 294.93M | 264.77M | 246.71M | 262.78M | 64.21M |
| Total Liabilities | 713.82M | 676.11M | 630.61M | 589.65M | 567.03M | 281.54M |
| Stockholders Equity | 716.47M | 720.32M | 616.95M | 644.72M | 672.27M | 653.81M |
Cash Flow | ||||||
| Free Cash Flow | 78.64M | 61.12M | 36.33M | 80.85M | -25.25M | 97.05M |
| Operating Cash Flow | 125.09M | 116.79M | 109.65M | 119.27M | 14.95M | 143.08M |
| Investing Cash Flow | -47.51M | -52.40M | -53.53M | -24.12M | -239.90M | -48.83M |
| Financing Cash Flow | -55.11M | -42.48M | -51.70M | -106.05M | 189.93M | -169.14M |
Gentherm Technical Analysis
Neutral
29.77
Price Trends
29.97
Negative
33.27
Negative
33.88
Negative
Market Momentum
-0.19
Negative
55.23
Neutral
60.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THRM, the sentiment is Neutral. The current price of 29.77 is above the 20-day moving average (MA) of 28.51, below the 50-day MA of 29.97, and below the 200-day MA of 33.88, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 55.23 is Neutral, neither overbought nor oversold. The STOCH value of 60.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for THRM.
Gentherm Risk Analysis
Gentherm disclosed 38 risk factors in its most recent earnings report. Gentherm reported the most risks in the "Finance & Corporate" 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $5.10B | ― | ― | 2.05% | 9.55% | -1.26% | |
72 Outperform | $6.50B | 14.06 | 8.79% | 2.63% | -0.19% | -8.95% | |
72 Outperform | $3.03B | 9.50 | 13.34% | 0.57% | -2.04% | -43.19% | |
65 Neutral | $3.35B | 18.56 | 14.34% | ― | 6.03% | 8.26% | |
63 Neutral | $4.27B | 38.91 | -2.91% | 1.70% | -21.52% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $934.13M | 50.25 | 3.17% | ― | 5.81% | -53.66% |
* Consumer Cyclical Sector Average
THRM
Gentherm
30.46
5.77
23.37%
DAN
Dana Incorporated
38.93
26.29
208.04%
DORM
Dorman Products
111.19
-0.12
-0.11%
GNTX
Gentex
23.88
2.53
11.84%
LEA
Lear
128.32
46.11
56.08%
VC
Visteon
113.69
34.19
43.00%
Gentherm Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Gentherm Reports Record Q1 Results, Confirms 2026 Outlook
Positive
Apr 23, 2026
On April 23, 2026, Gentherm reported first-quarter 2026 results, posting record quarterly revenue of $393.7 million, up 11.3% year over year (7.2% ex-FX), with Automotive Climate and Comfort Solutions outpacing underlying light vehicle production ...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Gentherm Amends Credit Agreement Ahead of Modine Merger
Positive
Feb 27, 2026
On February 24, 2026, Gentherm Incorporated amended its Second Amended and Restated Credit Agreement with a First Amendment that accommodates a planned merger and separation structure with Modine Manufacturing Company, Platinum SpinCo Inc. and Pla...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Gentherm Posts Record 2025 Revenue, Issues 2026 Outlook
Positive
Feb 19, 2026
On February 19, 2026, Gentherm reported 2025 results showing record annual product revenue of $1.5 billion and operating cash flow up 7% year over year, while net income, gross margin and adjusted EBITDA declined amid higher material costs and foo...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Gentherm to acquire Modine Performance Technologies in merger
Positive
Jan 29, 2026
On January 29, 2026, Gentherm entered into definitive agreements with Modine Manufacturing to acquire Modine’s Performance Technologies business through a Reverse Morris Trust transaction, under which Modine will first transfer the business ...
Business Operations and StrategyM&A Transactions
Gentherm to Merge with Modine Performance Technologies Unit
Positive
Jan 29, 2026
On January 29, 2026, Gentherm and Modine announced a definitive agreement to spin off and simultaneously combine Modine’s Performance Technologies business with Gentherm in a Reverse Morris Trust transaction valued at about $1.0 billion, cre...
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.