Gentherm (THRM)
NASDAQ:THRM
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Gentherm
(NASDAQ:THRM)
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Rating:62Neutral
Price Target:
$29.00
▲(4.47% Upside)
Action:ReiteratedDate:02/28/26
The score is driven mainly by solid financial footing (notably the conservative balance sheet) and a positive earnings-call outlook with growth initiatives, partially offset by mixed/less reliable operating data signals and uneven cash-flow quality. Technicals are neutral-to-weak and valuation is a notable headwind due to the high P/E.
Positive Factors
Conservative balance sheet / low leverage
Gentherm's materially reduced leverage and sizeable equity base provide durable financial flexibility to fund program ramps, R&D, and M&A without forcing distress-driven capital actions. Low debt-to-equity supports resilience through automotive cyclical swings and integration funding for strategic deals.
Negative Factors
Margin pressure and footprint realignment drag
Persistent margin compression from material inflation, unfavorable product mix, and ongoing footprint moves can erode operating leverage even as revenue grows. Multi-quarter realignment drags delay margin recovery and make margin expansion dependent on sustained cost reduction and mix improvement execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Gentherm's materially reduced leverage and sizeable equity base provide durable financial flexibility to fund program ramps, R&D, and M&A without forcing distress-driven capital actions. Low debt-to-equity supports resilience through automotive cyclical swings and integration funding for strategic deals.
Read all positive factors
Gentherm (THRM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$847.41M
Dividend YieldN/A
Average Volume (3M)179.15K
Price to Earnings (P/E)60.6
Beta (1Y)0.88
Revenue Growth-0.10%
EPS Growth-53.49%
CountryUS
Employees14,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.49
Shares Outstanding30,526,464
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 Cap1.16
Enterprise Value/Revenue0.66
Enterprise Value/Gross Profit2.79
Enterprise Value/Ebitda6.97
Forecast
1Y Price Target
$39.50Price Target Upside42.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)2.56
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:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presented a largely positive strategic and commercial narrative: record revenue, strong new business awards, rapid validation and commercialization in adjacent markets (including a sizeable $300M+ funnel and immediate furniture wins), material M&A upside via the Modine combination (synergies, new markets, valve scale), and strengthened cash generation and balance sheet. Offsetting this optimism are near-term margin pressures from higher material costs, unfavorable mix, and footprint realignment (a ~90 bps margin decline in 2025 and an expected ~60 bps drag in 2026), some planned-business exits reducing near-term revenue, and FX/headwinds that temper reported growth. On balance, the strategic growth initiatives, M&A upside, product pipeline (notably ThermoFix) and improving cash/awards pipeline outweigh the near-term operational and margin challenges.Positive Updates
Planned Combination with Modine Performance Technologies
Announced planned combination creating a pro forma $2.6B company with a pathway to >$3.5B revenue; pro forma synergy-adjusted EBITDA of ~13%; identified near-term run-rate cost synergies of ~$25M and a commercial synergy funnel >$100M (valves >50% of funnel) unlocking new end markets (power generation, heavy-duty equipment, commercial vehicles, data centers).
Negative Updates
Adjusted EBITDA Margin Contraction in 2025
Adjusted EBITDA totaled $175M (11.7% of sales) in 2025, down from 12.6% the prior year (a ~90 basis point decline), primarily due to higher material costs, unfavorable mix, and expenses related to footprint realignment.
Read all updates
Q4-2025 Updates
Positive
Negative
Planned Combination with Modine Performance Technologies
Announced planned combination creating a pro forma $2.6B company with a pathway to >$3.5B revenue; pro forma synergy-adjusted EBITDA of ~13%; identified near-term run-rate cost synergies of ~$25M and a commercial synergy funnel >$100M (valves >50% of funnel) unlocking new end markets (power generation, heavy-duty equipment, commercial vehicles, data centers).
Read all positive updates
Company Guidance
The company guided 2026 revenue of $1.5B–$1.6B (midpoint ≈ +3% ex‑FX versus 2025), noting S&P Global expects light‑vehicle production down ~1% so Gentherm expects to grow above market by mid‑single digits; they excluded any impact from the planned Modine combination. Adjusted EBITDA for 2026 is forecast at $175M–$195M (midpoint implying ~12% margin, ~30 bps expansion year‑over‑year) while ongoing footprint transitions are expected to be a ~60 bps drag; management expects H2 to be slightly stronger than H1 and Q1 to be roughly flat to prior year with improvement through the year. They estimate adjusted free cash flow of $80M–$100M assuming CapEx of $45M–$55M (~3% of sales), implying ~50% adjusted FCF conversion with a target to improve to 60%+, and provided a preliminary 2027 revenue outlook of $1.7B (≈ +10% vs the 2026 midpoint).Gentherm Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
78
Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.49B | 1.46B | 1.47B | 1.20B | 1.05B |
| Gross Profit | 351.67M | 366.43M | 351.62M | 273.65M | 303.63M |
| EBITDA | 102.91M | 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
Negative
27.76
Price Trends
31.13
Negative
33.94
Negative
33.84
Negative
Market Momentum
-0.97
Negative
39.27
Neutral
39.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THRM, the sentiment is Negative. The current price of 27.76 is below the 20-day moving average (MA) of 28.31, below the 50-day MA of 31.13, and below the 200-day MA of 33.84, indicating a bearish trend. The MACD of -0.97 indicates Negative momentum. The RSI at 39.27 is Neutral, neither overbought nor oversold. The STOCH value of 39.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.63B | 13.27 | 15.56% | 2.05% | 2.99% | -9.80% | |
72 Outperform | $6.01B | 14.06 | 8.79% | 2.63% | -1.90% | -13.86% | |
72 Outperform | $2.45B | 12.87 | 13.90% | 0.57% | -4.03% | -39.51% | |
65 Neutral | $3.05B | 18.56 | 14.34% | ― | 7.94% | 34.84% | |
62 Neutral | $847.41M | 60.64 | 4.44% | ― | -0.10% | -53.49% | |
62 Neutral | $3.63B | 38.91 | -2.91% | 1.70% | -18.23% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
THRM
Gentherm
27.76
3.09
12.53%
DAN
Dana Incorporated
33.40
22.75
213.64%
DORM
Dorman Products
100.90
-12.94
-11.37%
GNTX
Gentex
21.51
0.56
2.69%
LEA
Lear
118.54
42.36
55.60%
VC
Visteon
91.38
21.16
30.14%
Gentherm Corporate Events
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.