Gentherm (THRM) AI Stock Analysis

• Market Cap: $1.12B
• Dividend Yield: N/A
• Average Volume (3M): 215.82K
• Price to Earnings (P/E): 36.9
• Beta (1Y): 1.00
• 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: 226,705
• 30 Day Avg. Volume: 215,825
• 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: 1.02
• 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

• Rating: 76 Outperform
• Price Target: $42.00 ▲(21.00% Upside)

Gentherm's overall stock score is driven by strong technical indicators and positive earnings call sentiment, highlighting record revenue and strategic wins. Financial performance is stable but faces profitability and cash flow challenges. The valuation is relatively high, impacting the overall score.

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 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 35.25, below the 50-day MA of 35.47, and above the 200-day MA of 31.86, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 58.26 is Neutral, neither overbought nor oversold. The STOCH value of 70.95 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
THRM	―	$1.12B	36.93	4.44%	―	-0.10%	-53.49%
DORM	―	$4.08B	16.62	18.19%	―	7.94%	34.84%
LEA	―	$5.54B	12.05	9.51%	2.98%	-3.12%	-8.23%
VC	―	$2.87B	9.36	23.16%	0.25%	-4.03%	-39.51%
GNTX	―	$5.17B	14.04	15.29%	2.04%	2.99%	-9.82%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DAN	―	$2.83B	―	-4.82%	2.03%	-18.23%	―

Gentherm Corporate Events

Gentherm Inc. Reports Record Revenue and Strategic Wins

Gentherm Inc.’s recent earnings call conveyed a positive sentiment, underscored by record revenue achievements and substantial new business awards, particularly in the automotive sector. The company showcased its strategic successes and expansion into new markets, although it acknowledged challenges such as declining medical revenue, increased material costs, and supply chain uncertainties.

Gentherm Inc. Reports Record Third-Quarter Revenue

Gentherm Inc., a leader in thermal management and pneumatic comfort technologies, operates in the automotive and medical sectors, offering products like Climate Control Seats and patient temperature management systems. In its third-quarter earnings report for 2025, Gentherm announced record quarterly revenue of $387 million and a strong operating cash flow of $88 million. The company secured $745 million in new automotive business awards and raised its full-year revenue guidance midpoint. Key financial highlights include a 4.1% increase in product revenues, driven by a significant rise in Automotive Climate and Comfort Solutions revenue, which outperformed market production rates. Despite higher material costs impacting gross margin, the company maintained a solid adjusted EBITDA margin of 12.7%. Looking ahead, Gentherm remains focused on executing its strategic priorities, including expanding into adjacent markets and leveraging its core technologies for long-term growth.

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.

The most recent analyst rating on (THRM) stock is a Hold with a $38.00 price target. To see the full list of analyst forecasts on Gentherm stock, see the THRM Stock Forecast page.