Gentherm (THRM) AI Stock Analysis

• Market Cap: $1.13B
• Dividend Yield: N/A
• Average Volume (3M): 167.22K
• Price to Earnings (P/E): 37.3
• Beta (1Y): 0.92
• Revenue Growth: -0.10%
• EPS Growth: -53.49%
• Country: US
• Employees: 14,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.73
• Shares Outstanding: 30,525,148
• 10 Day Avg. Volume: 181,565
• 30 Day Avg. Volume: 167,225
• PEG Ratio: 0.28
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 34.38
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 3.23
• Enterprise Value/Ebitda: 7.45
• 1Y Price Target: $43.33
• Price Target Upside: 24.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.38
• Revenue Forecast (FY): $1.48B

• Rating: 74 Outperform
• Price Target: $41.00 ▲(18.12% Upside)

Gentherm's overall stock score reflects strong earnings performance and strategic expansion efforts, which are slightly offset by valuation concerns and profitability pressures. The company's stable financial position and positive technical indicators support its growth potential, while the high P/E ratio and lack of dividend yield present valuation challenges.

Positive Factors

Record Quarterly Revenue

Record revenue indicates strong demand and effective market positioning, supporting long-term growth and stability in the automotive sector.

Automotive New Business Awards

New business awards enhance revenue visibility and strengthen market position, providing a foundation for sustained growth in the automotive industry.

Expansion into Adjacent Markets

Diversifying into new markets like furniture and commercial vehicles broadens revenue streams and reduces dependency on the automotive sector.

Negative Factors

Profitability Pressure

Rising costs and tariffs can erode margins, challenging long-term profitability and necessitating cost management strategies.

Medical Revenue Decline

Declining medical revenue highlights potential weaknesses in product diversification, impacting overall revenue stability.

Supply Chain Uncertainty

Supply chain disruptions can hinder production and delivery, affecting revenue and operational efficiency in the long term.

Gentherm Business Overview & Revenue Model

Company Description

Gentherm (THRM) is a global leader in thermal management technologies, primarily serving the automotive, medical, and consumer electronics sectors. The company specializes in the design and manufacturing of advanced heating and cooling solutions, including heated and cooled seats, climate control systems, and other innovative thermal management products. Gentherm's commitment to enhancing comfort and safety through its technologies positions it as a key player in the evolving landscape of smart and efficient thermal solutions.

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

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.46B	1.46B	1.47B	1.20B	1.05B	913.10M
Gross Profit	353.49M	366.43M	351.62M	273.65M	303.63M	268.10M
EBITDA	153.25M	175.60M	152.63M	99.63M	157.64M	136.13M
Net Income	30.62M	64.95M	40.34M	24.44M	93.43M	59.69M
Balance Sheet
Total Assets	1.38B	1.25B	1.23B	1.24B	935.34M	1.02B
Cash, Cash Equivalents and Short-Term Investments	154.25M	134.13M	149.67M	153.89M	190.61M	268.35M
Total Debt	59.97M	264.77M	246.71M	262.78M	64.21M	222.70M
Total Liabilities	663.39M	630.61M	589.65M	567.03M	281.54M	436.51M
Stockholders Equity	717.95M	616.95M	644.72M	672.27M	653.81M	586.33M
Cash Flow
Free Cash Flow	67.67M	36.33M	80.85M	-25.25M	97.05M	90.33M
Operating Cash Flow	124.38M	109.65M	119.27M	14.95M	143.08M	110.69M
Investing Cash Flow	-50.17M	-53.53M	-24.12M	-239.90M	-48.83M	-18.22M
Financing Cash Flow	-53.53M	-51.70M	-106.05M	189.93M	-169.14M	115.48M

Gentherm Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.71
• 50DMA: Positive
• 100DMA: Positive
• 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 34.71 is below the 20-day moving average (MA) of 35.81, below the 50-day MA of 35.79, and above the 200-day MA of 31.73, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 54.31 is Neutral, neither overbought nor oversold. The STOCH value of 75.55 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
DORM	75 Outperform	$3.91B	15.93	18.19%	―	7.94%	34.84%
LEA	75 Outperform	$5.89B	13.89	8.96%	2.71%	-1.90%	-13.86%
THRM	74 Outperform	$1.13B	37.26	4.44%	―	-0.10%	-53.49%
VC	73 Outperform	$2.84B	9.35	23.16%	0.53%	-4.03%	-39.51%
GNTX	70 Outperform	$5.18B	14.00	15.23%	2.03%	2.99%	-9.80%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	58 Neutral	$2.66B	51.47	-4.82%	1.76%	-18.23%	―

Gentherm Corporate Events

Gentherm Reports Record Q3 2025 Revenue and Growth

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.