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Gentherm
(NASDAQ:THRM)
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Rating:62Neutral
Price Target:
$48.00
▲(12.44% Upside)
Action:Reiterated
Date:07/24/26
The score reflects a strong balance sheet and a constructive earnings update (raised guidance, liquidity, and capital returns), partially offset by weak recent financial performance (TTM revenue decline and thin margins). Technicals are supportive but overbought, and valuation is a meaningful headwind due to the high P/E and lack of dividend support.
Positive Factors
Strong balance sheet and liquidity
Material debt reduction and large liquidity provide resilient financing optionality for M&A, working-capital swings, and share repurchases. Low leverage (~0.3x net) supports investment and integration of Modine while keeping financial flexibility through industry cycles.
Negative Factors
Sharp TTM revenue decline and thin net margins
A large trailing decline in revenue and compressed margins signal demand and mix pressure that can persist across quarters. Even with adjusted profitability, thin net margins limit reinvestment capacity and make earnings sensitive to cost or volume shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet and liquidity
Material debt reduction and large liquidity provide resilient financing optionality for M&A, working-capital swings, and share repurchases. Low leverage (~0.3x net) supports investment and integration of Modine while keeping financial flexibility through industry cycles.
Read all positive factors
Gentherm (THRM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.27B
Dividend YieldN/A
Average Volume (3M)358.27K
Price to Earnings (P/E)47.7
Beta (1Y)0.85
Revenue Growth8.68%
EPS Growth-14.53%
CountryUS
Employees14,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.87
Shares Outstanding30,705,208
10 Day Avg. Volume302,097
30 Day Avg. Volume358,267
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$49.25Price Target Upside15.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)2.92
Revenue Forecast (FY)$1.61B
Gentherm Business Overview & Revenue Model
Company Description
Gentherm Incorporated is a company dedicated to the creation, production, and sale of advanced thermal management technologies. Its operations are divided into two principal business segments: Automotive and Medical. The Automotive segment offers ...
How the Company Makes Money
Gentherm makes money primarily by supplying thermal comfort and thermal management products to automotive original equipment manufacturers (OEMs) and their tiered supply chains, generating revenue from the sale of engineered components and systems...
Gentherm Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call emphasized strong commercial execution, record quarterly revenue, robust automotive awards, strategic diversification (Modine combination), successful medical product milestones (ThermAffyx) and a disciplined capital plan, while acknowledging near-term margin pressure from warranty accruals, merger-related charges and second-half uncertainties. Overall, management raised full-year guidance and highlighted balance sheet strength and growth catalysts.Positive Updates
Record Quarterly Revenue and Year-over-Year Growth
Product revenue reached a quarterly record of $416 million, up 11% year-over-year (9.5% ex-FX), driven by higher automotive volumes and outperforming light vehicle production.
Negative Updates
Adjusted EBITDA Margin Compression
Adjusted EBITDA margin declined to 11.7% from 12.2% in the prior-year quarter; management expects margins to be lower in Q3 before improving in Q4, reflecting near-term headwinds.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue and Year-over-Year Growth
Product revenue reached a quarterly record of $416 million, up 11% year-over-year (9.5% ex-FX), driven by higher automotive volumes and outperforming light vehicle production.
Read all positive updates
Company Guidance
Gentherm raised its 2026 outlook (excluding the planned Modine combination), guiding to midpoint revenue of $1.6 billion (≈5% growth vs. a ~3% decline in light‑vehicle production), adjusted EBITDA of $185–$200 million (midpoint margin ≈12%) with margins expected to be lower in Q3 and rebound in Q4, adjusted free cash flow of $85–$100 million, and CapEx of $45–$55 million (≈3% of sales). The company noted Q2 product revenue of $416 million, Q2 adjusted EBITDA of $48.8 million (11.7% of sales), Q2 adjusted diluted EPS of $0.75, YTD adjusted free cash flow of ~$16 million, net leverage of 0.3x and $502 million of liquidity, and expects net leverage of ~1.0x upon closing Modine; management also authorized up to $400 million of share repurchases over three years.Gentherm Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
71
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.58B | 1.49B | 1.46B | 1.47B | 1.20B | 1.05B |
| Gross Profit | 369.10M | 351.67M | 366.43M | 351.62M | 273.65M | 303.63M |
| EBITDA | 114.52M | 102.91M | 175.60M | 152.63M | 99.63M | 157.64M |
| Net Income | 26.57M | 18.29M | 64.95M | 40.34M | 24.44M | 93.43M |
Balance Sheet | ||||||
| Total Assets | 1.49B | 1.40B | 1.25B | 1.23B | 1.24B | 935.34M |
| Cash, Cash Equivalents and Short-Term Investments | 213.17M | 160.83M | 134.13M | 149.67M | 153.89M | 190.61M |
| Total Debt | 325.08M | 294.93M | 264.77M | 246.71M | 262.78M | 64.21M |
| Total Liabilities | 770.09M | 676.11M | 630.61M | 589.65M | 567.03M | 281.54M |
| Stockholders Equity | 723.12M | 720.32M | 616.95M | 644.72M | 672.27M | 653.81M |
Cash Flow | ||||||
| Free Cash Flow | 40.89M | 61.12M | 36.33M | 80.85M | -25.25M | 97.05M |
| Operating Cash Flow | 87.36M | 116.79M | 109.65M | 119.27M | 14.95M | 143.08M |
| Investing Cash Flow | -46.95M | -52.40M | -53.53M | -24.12M | -239.90M | -48.83M |
| Financing Cash Flow | 45.71M | -42.48M | -51.70M | -106.05M | 189.93M | -169.14M |
Gentherm Technical Analysis
Positive
42.69
Price Trends
37.53
Positive
33.72
Positive
34.31
Positive
Market Momentum
1.42
Positive
56.72
Neutral
36.74
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 42.69 is above the 20-day moving average (MA) of 40.36, above the 50-day MA of 37.53, and above the 200-day MA of 34.31, indicating a bullish trend. The MACD of 1.42 indicates Positive momentum. The RSI at 56.72 is Neutral, neither overbought nor oversold. The STOCH value of 36.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $5.96B | 11.32 | 10.90% | 2.14% | 3.55% | 25.67% | |
66 Neutral | $3.95B | 18.36 | 14.76% | ― | 3.30% | -1.80% | |
63 Neutral | $2.80B | 18.96 | 9.71% | 1.23% | -1.13% | -47.30% | |
62 Neutral | $1.27B | 47.71 | 3.69% | ― | 8.68% | -14.53% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $5.02B | 12.66 | 16.24% | 2.10% | 10.13% | 6.76% | |
55 Neutral | $3.21B | -18.65 | -13.31% | 1.63% | -15.78% | -384.04% |
* Consumer Cyclical Sector Average
THRM
Gentherm
41.41
5.39
14.96%
DAN
Dana Incorporated
29.70
10.78
56.94%
DORM
Dorman Products
133.63
-22.63
-14.48%
GNTX
Gentex
23.40
-3.89
-14.24%
LEA
Lear
121.23
20.63
20.51%
VC
Visteon
106.39
-15.56
-12.76%
Gentherm Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
Gentherm Raises 2026 Outlook and Expands Capital Returns
Positive
Jul 23, 2026
Gentherm reported that second-quarter 2026 product revenues rose 11% year on year to a record $416.2 million, with automotive climate and comfort solutions driving growth despite medical revenues slipping slightly. Net income improved to $4.4 mill...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Gentherm Announces New Five-Year Secured Credit Facility
Positive
Jul 2, 2026
On June 29, 2026, Gentherm and several U.S. and German subsidiaries entered into a Third Amended and Restated Credit Agreement that fully replaces a prior facility from June 2022. The new agreement establishes a secured five-year $550 million revo...
Executive/Board ChangesShareholder Meetings
Gentherm Shareholders Expand Equity Plan and Elect Directors
Positive
May 19, 2026
On May 14, 2026, Gentherm shareholders approved an amendment to the company’s 2023 Equity Incentive Plan, raising the total share pool available for equity awards by 1.7 million common shares while leaving all other plan terms unchanged. The...
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.