Gentherm (THRM) AI Stock Analysis

• Market Cap: $942.31M
• Dividend Yield: N/A
• Average Volume (3M): 179.15K
• Price to Earnings (P/E): 52.7
• Beta (1Y): 0.89
• Revenue Growth: -0.10%
• EPS Growth: -53.49%
• Country: US
• Employees: 14,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.49
• Shares Outstanding: 30,485,632
• 10 Day Avg. Volume: 199,698
• 30 Day Avg. Volume: 179,150
• PEG Ratio: -0.85
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 18.20
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 3.25
• Enterprise Value/Ebitda: 7.82
• 1Y Price Target: $36.00
• Price Target Upside: 5.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $36.00 ▲(5.54% Upside)

The score is primarily supported by a conservative balance sheet and a positive forward narrative from the latest earnings call (growth visibility, margin/cash improvement targets, and strategic expansion). Offsetting this are weak technical momentum and a high P/E valuation, alongside mixed cash-flow consistency and some financial data-quality inconsistencies that increase risk.

Positive Factors

Balance Sheet Strength

Gentherm's materially lower leverage and sizable equity base provide durable financial flexibility to fund R&D, capex, and strategic M&A while withstanding cyclical auto demand. This reduces refinancing risk and supports execution of multi-year growth and integration plans.

Automotive New Business Awards

A $2.2B new-award backlog signals validated technology and strong OEM relationships, underpinning multiyear revenue visibility. Repeat design wins and expanded adoption (pulse solutions, Ford, Mercedes) support market share gains and secular demand durability in vehicle comfort systems.

Adjacency Growth & Strategic M&A

The Modine tie-up and rapid adjacent-market wins (>$300M funnel, furniture, commercial vehicles, powersports) diversify end markets beyond light vehicles. Scale, cross-selling and valve/pneumatic capabilities create sustainable growth vectors and reduce dependence on a single OEM cycle.

Negative Factors

Margin Pressure

Structural cost and mix headwinds compressed margins in 2025 and management expects footprint realignment to drag margins ~60 bps in 2026. Until material savings and productivity are realized, margin recovery depends on execution, creating multi-quarter profit pressure risk.

Inconsistent Free Cash Flow Conversion

Variable FCF conversion limits Gentherm's ability to consistently self-fund growth, de-lever after acquisitions, or return cash. History of working-capital swings and episodic capex creates execution risk; management targets better conversion but must prove consistency over multiple quarters.

Integration & Leverage Risk from Modine Deal

The Reverse Morris Trust adds scale but meaningfully raises pro forma leverage and requires bridge financing and successful integration to realize $25M cost synergies. Execution, cultural integration, and timely refinancing are durable risks that could constrain capital allocation and margin upside.

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, 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 Money

Gentherm generates revenue through the sales of its thermal management products, primarily to automotive manufacturers and suppliers. The company has established long-term relationships with major automotive brands, providing them with customized solutions that enhance vehicle comfort and energy efficiency. Key revenue streams include the sale of heated and cooled seats, climate control systems, and related components. Additionally, Gentherm benefits from partnerships with other technology firms to integrate its thermal management systems into broader vehicle technologies. The company's focus on innovation and sustainability also opens up opportunities in electric vehicle markets, where efficient thermal management is crucial for battery performance and passenger comfort, contributing to its overall revenue growth.

Gentherm Financial Statement Overview

Summary

Balance sheet strength is a key positive (low leverage in 2025 and sizable equity base), but operating/cash-flow quality is mixed: revenue momentum slowed, margins remain modest versus earlier peak years, free cash flow has been choppy, and the 2025 revenue/margin data inconsistency reduces confidence in near-term financial trend interpretation.

Income Statement

Revenue grew strongly in 2022–2023, but momentum stalled in 2024 (slightly down year over year), and the 2025 annual data shows revenue as 0 with margins also at 0%, which is inconsistent with positive profits and suggests data quality/reporting issues that reduce confidence. Profitability improved from 2022 to 2024 (net income and operating profit both higher), but margins remain modest (2024 net margin ~4.5%, operating margin ~8.4%) and are well below 2020–2021 levels, indicating weaker pricing/power or higher costs versus the earlier peak period.

Balance Sheet

The balance sheet looks conservative overall, with low leverage in the latest year (2025 debt-to-equity ~0.08) and a sizable equity base (equity ~$720M vs. assets ~$1.40B). Leverage was moderate in 2022–2024 (debt-to-equity ~0.38–0.43) and improved meaningfully in 2025, supporting financial flexibility. Returns on equity are positive but have been volatile and currently low (2025 ~2.5% vs. 2024 ~10.5%), reflecting uneven earnings power.

Cash Flow

Cash generation is generally positive, with operating cash flow solid in 2023–2025 (~$110–$117M) and free cash flow positive in those years, but free cash flow has been choppy (negative in 2022 and down again in 2024–2025). Cash conversion is mixed: free cash flow is only ~33% of net income in 2024 and ~52% in 2025 (better, but still not consistently strong), while 2022 showed cash burn despite positive net income. Overall, cash flow supports operations, but consistency and conversion quality are a watch item.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.50B	1.46B	1.47B	1.20B	1.05B
Gross Profit	362.18M	366.43M	351.62M	273.65M	303.63M
EBITDA	150.28M	175.60M	152.63M	99.63M	157.64M
Net Income	18.29M	64.95M	40.34M	24.44M	93.43M
Balance Sheet
Total Assets	1.40B	1.25B	1.23B	1.24B	935.34M
Cash, Cash Equivalents and Short-Term Investments	160.83M	134.13M	149.67M	153.89M	190.61M
Total Debt	294.93M	264.77M	246.71M	262.78M	64.21M
Total Liabilities	676.11M	630.61M	589.65M	567.03M	281.54M
Stockholders Equity	720.32M	616.95M	644.72M	672.27M	653.81M
Cash Flow
Free Cash Flow	61.12M	36.33M	80.85M	-25.25M	97.05M
Operating Cash Flow	116.79M	109.65M	119.27M	14.95M	143.08M
Investing Cash Flow	-52.40M	-53.53M	-24.12M	-239.90M	-48.83M
Financing Cash Flow	-42.48M	-51.70M	-106.05M	189.93M	-169.14M

Gentherm Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 34.11 is above the 20-day moving average (MA) of 33.11, below the 50-day MA of 35.71, and above the 200-day MA of 33.53, indicating a neutral trend. The MACD of -1.12 indicates Negative momentum. The RSI at 52.16 is Neutral, neither overbought nor oversold. The STOCH value of 48.71 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
GNTX	77 Outperform	$5.37B	14.10	15.36%	2.05%	2.99%	-9.80%
DORM	73 Outperform	$3.93B	15.90	18.19%	―	7.94%	34.84%
LEA	72 Outperform	$6.94B	16.80	9.21%	2.63%	-1.90%	-13.86%
VC	72 Outperform	$2.90B	9.53	14.37%	0.57%	-4.03%	-39.51%
THRM	62 Neutral	$942.31M	52.70	4.44%	―	-0.10%	-53.49%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	53 Neutral	$4.06B	78.70	-4.82%	1.70%	-18.23%	―

Gentherm Corporate Events

Gentherm Posts Record 2025 Revenue, Issues 2026 Outlook

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 footprint realignment expenses. The company highlighted $2.2 billion in automotive new business awards, a sharply lower net leverage ratio of about 0.2 times, and issued 2026 guidance for $1.5 billion to $1.6 billion in product revenue plus a preliminary 2027 revenue outlook of about $1.7 billion, as it prepares for a planned year-end combination with Modine Performance Technologies that is expected to broaden its product range and end-market exposure.

The most recent analyst rating on (THRM) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on Gentherm stock, see the THRM Stock Forecast page.

Gentherm to acquire Modine Performance Technologies in merger

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 into a new subsidiary, Platinum SpinCo, distribute SpinCo shares pro rata to Modine shareholders, and then merge SpinCo with a Gentherm subsidiary so that SpinCo becomes a wholly owned Gentherm unit. After completion, which is subject to multiple regulatory, tax and shareholder approvals and other customary conditions, Gentherm shareholders are expected to own about 60% and former SpinCo shareholders about 40% of the combined company on a fully diluted basis, with the structure designed to preserve tax efficiency, supported by a $210 million cash distribution from SpinCo to Modine and bridge financing that will later be refinanced with permanent debt; the deal, unanimously approved by both boards, will add Modine’s Performance Technologies operations under Gentherm’s control, reshape Gentherm’s shareholder base and board composition, and increase its leverage while positioning the company as a larger thermal management player pending successful execution and integration.

The most recent analyst rating on (THRM) stock is a Hold with a $39.00 price target. To see the full list of analyst forecasts on Gentherm stock, see the THRM Stock Forecast page.

Gentherm to Merge with Modine Performance Technologies Unit

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, creating a scaled leader in thermal management solutions with pro forma revenue of $2.6 billion, a 13% synergy-adjusted EBITDA margin and net leverage of roughly 1.0x. The deal, unanimously approved by both boards, will leave Modine shareholders owning about 40% and Gentherm shareholders about 60% of the combined company, while Modine retains its Climate Solutions unit as a pure-play data center and commercial HVAC and refrigeration business; the transaction is expected to broaden Gentherm’s portfolio, reduce its dependence on light vehicles, unlock cost and commercial synergies including cross-selling and new market access, and give Modine investors exposure to two more focused, higher-growth thermal and climate platforms.

The most recent analyst rating on (THRM) stock is a Buy with a $41.00 price target. To see the full list of analyst forecasts on Gentherm stock, see the THRM Stock Forecast page.