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Gentherm (THRM)
NASDAQ:THRM
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Gentherm
(NASDAQ:THRM)
Rating:67Neutral
Price Target:
$29.00
▲( 8.01% Upside)
Gentherm (THRM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$828.59M
Dividend YieldN/A
Average Volume (3M)438.85K
Price to Earnings (P/E)16.8
Beta (1Y)0.92
Revenue Growth-0.51%
EPS Growth9.10%
CountryUS
Employees14,000
SectorConsumer Cyclical
Sector Strength75
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.51
Shares Outstanding30,859,785
10 Day Avg. Volume231,337
30 Day Avg. Volume438,854
Financial Highlights & Ratios
PEG Ratio-0.73
Price to Book (P/B)1.27
Price to Sales (P/S)0.00
P/FCF Ratio28.36
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue0.17
Enterprise Value/Gross Profit2.67
Enterprise Value/Ebitda1.52
Forecast
1Y Price Target
$32.50Price Target Upside21.04% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Gentherm Business Overview & Revenue Model
Company DescriptionGentherm 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 MoneyGentherm 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 reflects solid margins and improving profitability, while the balance sheet shows a prudent debt strategy. Cash flows are strong, though some volatility in free cash flow suggests room for stability.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.78
Positive
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.72
Positive
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.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.45B | 1.46B | 1.47B | 1.20B | 1.05B | 913.10M | Gross Profit |
| 368.81M | 366.43M | 351.62M | 273.65M | 303.63M | 268.10M | EBIT |
| 113.13M | 107.02M | 77.44M | 48.31M | 115.01M | 89.22M | EBITDA |
| 155.27M | 169.20M | 119.83M | 99.63M | 157.64M | 136.13M | Net Income Common Stockholders |
| 50.03M | 64.95M | 40.34M | 24.44M | 93.43M | 59.69M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 125.11M | 134.13M | 149.67M | 153.89M | 190.61M | 268.35M | Total Assets |
| 1.25B | 1.25B | 1.23B | 1.24B | 935.34M | 1.02B | Total Debt |
| 253.26M | 264.77M | 246.71M | 262.78M | 64.21M | 222.70M | Net Debt |
| 128.16M | 130.64M | 97.04M | 108.89M | -126.40M | -45.65M | Total Liabilities |
| 602.88M | 630.61M | 589.65M | 567.03M | 281.54M | 436.51M | Stockholders Equity |
| 647.06M | 616.95M | 644.72M | 672.27M | 653.81M | 586.33M |
| Cash Flow | Free Cash Flow | ||||
| 29.07M | 36.33M | 80.85M | -25.25M | 97.05M | 90.33M | Operating Cash Flow |
| 106.62M | 109.65M | 119.27M | 14.95M | 143.08M | 110.69M | Investing Cash Flow |
| -55.23M | -53.53M | -24.12M | -239.90M | -48.83M | -18.22M | Financing Cash Flow |
| -9.43M | -51.70M | -106.05M | 189.93M | -169.14M | 115.48M |
Gentherm Technical Analysis
Negative
26.85
Price Trends
26.80
Positive
31.62
Negative
38.11
Negative
Market Momentum
0.25
Negative
49.28
Neutral
19.96
Positive
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 26.85 is below the 20-day moving average (MA) of 26.86, above the 50-day MA of 26.80, and below the 200-day MA of 38.11, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 49.28 is Neutral, neither overbought nor oversold. The STOCH value of 19.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for THRM.
Gentherm Risk Analysis
Gentherm disclosed 35 risk factors in its most recent earnings report. Gentherm reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
Gentherm's unsuccessful adoption of new technology such as artificial intelligence could adversely impact its business, operations and reputation. Q4, 2024
2.
Our business in China may be subject to aggressive competition and is sensitive to economic, political, and market conditions. Q4, 2024
Gentherm Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.26B | 7.77 | 25.15% | ― | -1.35% | -39.06% | |
76 Outperform | $4.77B | 10.45 | 10.00% | 3.45% | -3.15% | -6.70% | |
73 Outperform | $7.79B | 11.61 | 28.71% | 2.74% | -2.29% | 35.00% | |
67 Neutral | $828.59M | 16.85 | 7.74% | ― | -0.51% | 9.10% | |
66 Neutral | $4.86B | 12.67 | 15.90% | 2.22% | -1.66% | -9.20% | |
63 Neutral | $2.39B | ― | -2.40% | 2.44% | -7.00% | -366.59% | |
62 Neutral | $6.84B | 11.23 | 3.09% | 3.95% | 2.66% | -25.23% |
* Consumer Cyclical Sector Average
Performance Comparison
THRM
Gentherm
26.85
-24.26
-47.47%
ALV
Autoliv
100.79
-24.76
-19.72%
DAN
Dana Incorporated
16.42
2.94
21.81%
GNTX
Gentex
21.62
-12.20
-36.07%
LEA
Lear
89.16
-32.25
-26.56%
VC
Visteon
83.01
-26.28
-24.05%
Gentherm Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 8.18%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
While Gentherm has made notable progress in securing new business awards and expanding its medical segment, the company faces challenges in the form of declining revenues and profitability pressures due to higher costs and industry volume declines. The overall sentiment of the earnings call reflects a cautious optimism, with focus on long-term strategic initiatives amid near-term uncertainties.Q1-2025 Updates
Positive Updates
Solid New Business Awards
Gentherm secured $400 million in automotive new business awards during the quarter, including significant wins with a Japanese OEM and Volvo. This demonstrates progress in expanding their global business and customer diversification.
Medical Business Growth
The medical segment saw revenues increase by 6% (adjusted for foreign exchange), driven by growth in Europe. Gentherm is leveraging its core technology platforms to explore new opportunities in medical applications.
Recognition by General Motors
Gentherm was recognized as General Motors Supplier of the Year for the third time, highlighting their strong relationship and innovative technology.
Strategic Footprint Realignment
The company is realigning its production footprint to optimize capacity and lower manufacturing costs, including consolidations in North America, Europe, and Asia.
Negative Updates
Revenue Decline
First quarter revenues decreased by 0.6% compared to the same period last year, although they grew approximately 1% when adjusted for foreign exchange.
Profitability Pressure
Adjusted EBITDA margin decreased to 11.1% from 12.2% in the prior year, driven by higher freight costs, product mix, and costs related to footprint realignment.
Guidance Pressure from Industry Volumes
The operating backdrop is increasingly dynamic with reduced global vehicle production forecasts, including a 10% reduction in North America volumes, impacting the revenue guidance.
Company Guidance
During the Gentherm First Quarter 2025 Earnings Conference Call, the company maintained its revenue guidance despite industry forecasts predicting a decline in global light vehicle production, particularly a 10% reduction in North America, which constitutes 40% of Gentherm's total revenue. The company secured $400 million in new automotive business awards and continued to focus on expanding into non-automotive markets, leveraging existing technology platforms. Adjusted EBITDA for the quarter was $39.3 million, representing 11.1% of sales, with the guidance range adjusted to reflect an increasingly dynamic operating environment. Gentherm emphasized strong customer relationships and operational excellence, with notable progress in mitigating tariff impacts and optimizing their strategic footprint.Gentherm Corporate Events
Executive/Board ChangesShareholder Meetings
Gentherm Shareholders Approve Directors and Auditor
Positive
May 8, 2025
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.
Business Operations and StrategyFinancial Disclosures
Gentherm Reports Q1 2025 Financial Results
Neutral
Apr 24, 2025
On April 24, 2025, Gentherm announced its first quarter financial results, reporting $354 million in revenue, a 1% increase excluding foreign exchange impacts, driven by growth in lumbar and massage comfort solutions. Despite a challenging environment, the company secured $400 million in new automotive business awards and commenced shipments from a new facility in Morocco. However, net income decreased due to foreign currency losses and other factors. The company maintained its full-year revenue guidance while slightly adjusting its margin expectations, reflecting current market conditions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.