Gentherm (THRM) AI Stock Analysis

• Market Cap: $1.10B
• Dividend Yield: N/A
• Average Volume (3M): 231.75K
• Price to Earnings (P/E): 35.5
• Beta (1Y): 1.07
• Revenue Growth: -0.78%
• EPS Growth: -51.80%
• Country: US
• Employees: 14,000
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Auto - Parts
• EPS (TTM): 0.54
• Shares Outstanding: 30,519,827
• 10 Day Avg. Volume: 202,170
• 30 Day Avg. Volume: 231,748
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 2.82
• Enterprise Value/Ebitda: 7.64
• 1Y Price Target: $39.50
• Price Target Upside: 9.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 77 Outperform
• Price Target: $42.00 ▲(16.63% Upside)

Gentherm's overall stock score is driven by strong technical indicators and solid financial performance. The company's strategic expansions and new business awards are positive, though high valuation and regional revenue declines present challenges. The absence of corporate events and dividend yield slightly dampens the score.

Positive Factors

Strong Business Awards

Securing significant new business awards, including from major clients like Ford, strengthens Gentherm's market position and ensures future revenue streams, supporting long-term growth.

Product Line Growth

The growth in specific product lines indicates strong demand and successful innovation, which can drive sustained revenue increases and enhance competitive advantage in the thermal management sector.

Expansion into New Markets

Diversifying into adjacent markets reduces dependency on the automotive sector, providing new growth avenues and mitigating risks associated with industry-specific downturns.

Negative Factors

Revenue Decline

A decline in revenue, even if slight, can indicate challenges in maintaining market share or pricing power, potentially impacting long-term financial stability and growth prospects.

Profitability Challenges

Decreasing margins due to higher costs can pressure profitability, affecting the company's ability to invest in growth initiatives and maintain competitive pricing.

Underperformance in Asia

Underperformance in Asia suggests regional market challenges, which could hinder global expansion efforts and limit revenue diversification opportunities.

Gentherm Business Overview & Revenue Model

Company Description

Gentherm (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 Money

Gentherm 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 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

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	1.08B	1.46B	1.47B	1.20B	1.05B	913.10M
Gross Profit	357.20M	366.43M	351.62M	273.65M	303.63M	268.10M
EBITDA	132.09M	169.20M	119.83M	99.63M	157.64M	136.13M
Net Income	31.64M	64.95M	40.34M	24.44M	93.43M	59.69M
Balance Sheet
Total Assets	1.36B	1.25B	1.23B	1.24B	935.34M	1.02B
Cash, Cash Equivalents and Short-Term Investments	128.30M	134.13M	149.67M	153.89M	190.61M	268.35M
Total Debt	61.19M	264.77M	246.71M	262.78M	64.21M	222.70M
Total Liabilities	661.66M	630.61M	589.65M	567.03M	281.54M	436.51M
Stockholders Equity	699.75M	616.95M	644.72M	672.27M	653.81M	586.33M
Cash Flow
Free Cash Flow	47.49M	36.33M	80.85M	-25.25M	97.05M	90.33M
Operating Cash Flow	114.52M	109.65M	119.27M	14.95M	143.08M	110.69M
Investing Cash Flow	-48.68M	-53.53M	-24.12M	-239.90M	-48.83M	-18.22M
Financing Cash Flow	-52.26M	-51.70M	-106.05M	189.93M	-169.14M	115.48M

Gentherm Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 36.01 is above the 20-day moving average (MA) of 35.96, above the 50-day MA of 33.59, and above the 200-day MA of 32.84, indicating a bullish trend. The MACD of 0.68 indicates Positive momentum. The RSI at 56.15 is Neutral, neither overbought nor oversold. The STOCH value of 26.58 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	82 Outperform	$3.50B	11.97	22.96%	0.21%	-3.26%	-45.84%
ALV	79 Outperform	$9.63B	13.72	29.99%	2.35%	-0.98%	21.64%
THRM	77 Outperform	$1.10B	35.52	4.72%	―	-0.78%	-51.80%
LEA	76 Outperform	$5.81B	12.65	9.51%	2.82%	-3.12%	-8.23%
GNTX	66 Neutral	$6.15B	15.88	16.38%	1.69%	2.43%	-1.25%
Sector *	61 Neutral	$18.09B	12.97	-1.60%	2.98%	1.42%	-15.92%
DAN	61 Neutral	$2.73B	―	-5.00%	1.88%	-14.46%	-2170.83%

Gentherm Corporate Events

Gentherm Reports Strong Q2 2025 Financial Results

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.