Gentherm (THRM) AI Stock Analysis

• Market Cap: $977.86M
• Dividend Yield: N/A
• Average Volume (3M): 316.29K
• Price to Earnings (P/E): 31.6
• Beta (1Y): 0.96
• Revenue Growth: -0.78%
• EPS Growth: -51.80%
• Country: US
• Employees: 14,000
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Auto - Parts
• EPS (TTM): 0.54
• Shares Outstanding: 30,519,827
• 10 Day Avg. Volume: 379,860
• 30 Day Avg. Volume: 316,290
• PEG Ratio: -0.91
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.07
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 3.69
• Enterprise Value/Ebitda: 1.62
• 1Y Price Target: $38.67
• Price Target Upside: 20.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: $37.00 ▲(15.48%Upside)

The overall score reflects Gentherm's robust financial performance and strategic growth initiatives, balanced by a premium valuation and short-term challenges. The earnings call's positive guidance and new business awards drive optimism, despite potential overvaluation risks and regional performance disparities.

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 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 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.46B	1.47B	1.20B	1.05B	913.10M
Gross Profit	366.43M	351.62M	273.65M	303.63M	268.10M
EBITDA	169.20M	119.83M	99.63M	157.64M	136.13M
Net Income	64.95M	40.34M	24.44M	93.43M	59.69M
Balance Sheet
Total Assets	1.25B	1.23B	1.24B	935.34M	1.02B
Cash, Cash Equivalents and Short-Term Investments	134.13M	149.67M	153.89M	190.61M	268.35M
Total Debt	264.77M	246.71M	262.78M	64.21M	222.70M
Total Liabilities	630.61M	589.65M	567.03M	281.54M	436.51M
Stockholders Equity	616.95M	644.72M	672.27M	653.81M	586.33M
Cash Flow
Free Cash Flow	36.33M	80.85M	-25.25M	97.05M	90.33M
Operating Cash Flow	109.65M	119.27M	14.95M	143.08M	110.69M
Investing Cash Flow	-53.53M	-24.12M	-239.90M	-48.83M	-18.22M
Financing Cash Flow	-51.70M	-106.05M	189.93M	-169.14M	115.48M

Gentherm Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 32.04
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 32.04 is above the 20-day moving average (MA) of 31.54, above the 50-day MA of 29.28, and below the 200-day MA of 33.89, indicating a neutral trend. The MACD of 1.17 indicates Negative momentum. The RSI at 55.79 is Neutral, neither overbought nor oversold. The STOCH value of 56.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for THRM.

Gentherm Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	82 Outperform	$3.03B	10.60	22.96%	―	-3.26%	-45.84%
ALV	75 Outperform	$8.57B	12.20	29.99%	2.49%	-0.98%	21.64%
THRM	73 Outperform	$977.86M	31.60	4.72%	―	-0.78%	-51.80%
LEA	68 Neutral	$5.02B	11.01	9.51%	3.27%	-3.12%	-8.23%
GNTX	66 Neutral	$6.17B	15.57	16.44%	1.82%	-1.66%	-9.20%
Sector *	62 Neutral	$16.51B	10.46	-8.28%	3.32%	1.44%	-22.58%
DAN	61 Neutral	$2.32B	―	-2.40%	2.51%	-7.00%	-366.59%

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.

The most recent analyst rating on (THRM) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Gentherm stock, see the THRM Stock Forecast page.

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.