Gentherm Inc (THRM)
NASDAQ:THRM
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Gentherm
(NASDAQ:THRM)
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Rating:59Neutral
Price Target:
$37.00
▲(24.29% Upside)
Action:Reiterated
Date:05/20/26
The score reflects mixed fundamentals with TTM revenue/profitability pressure despite a healthy balance sheet and improving free cash flow. Earnings-call commentary and maintained guidance provide support, but a high P/E and only neutral technical trend cap the overall rating.
Positive Factors
Balance Sheet Strength
Low leverage and ample liquidity provide durable financial flexibility to fund program ramps, absorb automotive cyclicality, and execute M&A (Modine). A sound balance sheet reduces refinancing and solvency risk, supporting multi‑year program commitments to OEM customers.
Negative Factors
Recent Revenue & Margin Compression
A sharp TTM revenue decline and near‑breakeven net margin signal weakened demand and limited earnings power. Sustained margin recovery is required to convert balance sheet strength into shareholder returns; otherwise returns on equity and reinvestment capacity remain constrained.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Low leverage and ample liquidity provide durable financial flexibility to fund program ramps, absorb automotive cyclicality, and execute M&A (Modine). A sound balance sheet reduces refinancing and solvency risk, supporting multi‑year program commitments to OEM customers.
Read all positive factors
Gentherm (THRM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.14B
Dividend YieldN/A
Average Volume (3M)278.64K
Price to Earnings (P/E)51.0
Beta (1Y)0.93
Revenue Growth5.81%
EPS Growth-53.66%
CountryUS
Employees14,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.75
Shares Outstanding30,667,290
10 Day Avg. Volume275,626
30 Day Avg. Volume278,636
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 Cap1.01
Enterprise Value/Revenue0.76
Enterprise Value/Gross Profit3.20
Enterprise Value/Ebitda8.94
Forecast
1Y Price Target
$37.20Price Target Upside24.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)2.67
Revenue Forecast (FY)$1.56B
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:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call communicated strong operational execution and multiple growth catalysts — record quarterly revenue, double-digit segment growth, substantial new business awards, margin expansion (140 bps YoY), robust liquidity and strategic M&A to broaden markets. At the same time, management flagged a meaningful near-term cost headwind (~$20 million) from logistics and commodity inflation, expected mid-year margin pressure, inventory depletion effects, and one-time merger charges that reduced GAAP EPS. Overall the positives (revenue and margin gains, product/market diversification, balance sheet strength and clear integration plan with Modine) outweigh the near-term headwinds, but management is appropriately cautious given macro uncertainty.Positive Updates
Record Quarterly Revenue
Product revenues reached a quarterly record of $394 million, up 11.3% year-over-year (7.2% growth excluding foreign currency translation).
Negative Updates
Inflationary Cost Headwind
Company estimates approximately $20 million of incremental costs in 2026 driven by logistics (lane disruptions, fuel surcharges), petrochemical/material inflation and increased processing-related costs; estimate is gross and remains fluid.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Revenue
Product revenues reached a quarterly record of $394 million, up 11.3% year-over-year (7.2% growth excluding foreign currency translation).
Read all positive updates
Company Guidance
Gentherm maintained 2026 guidance (ex‑Modine) for revenue of $1.5–$1.6 billion (≈3% growth Y/Y and mid‑single‑digit growth versus a market expected to decline ~2%), adjusted EBITDA of $175–$195 million (midpoint ≈12% margin), adjusted free cash flow of $80–$100 million, and CapEx of $45–$55 million (≈3% of sales). Management noted Q1 strength but cautioned near‑term pressure: Q1 revenue was $394 million (quarterly record, +11.3% Y/Y, +7.2% ex‑FX), Automotive Climate & Comfort +13.6% Y/Y (+9.8% ex‑FX), lumbar/massage +33% Y/Y, $49.3 million adjusted EBITDA (12.5% of sales), adjusted diluted EPS $0.84 (vs $0.51 prior year) and GAAP diluted EPS $0.14 after ~ $0.70/share merger/restructuring charges; they expect margins to be depressed in Q2–Q3 as ~ $20 million of incremental inflationary costs hit (starting in Q2) with recovery timing into Q3–Q4 and inventory drawdown during a global footprint transition. Balance sheet and cash metrics highlighted Q1 net leverage of 0.2x, liquidity of $456 million, an $8 million Y/Y improvement in operational cash flow, and Q1 CapEx of $5.6 million (down $9.2 million Y/Y).Gentherm Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
70
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.53B | 1.49B | 1.46B | 1.47B | 1.20B | 1.05B |
| Gross Profit | 362.44M | 351.67M | 366.43M | 351.62M | 273.65M | 303.63M |
| EBITDA | 129.70M | 102.91M | 175.60M | 152.63M | 99.63M | 157.64M |
| Net Income | 22.63M | 18.29M | 64.95M | 40.34M | 24.44M | 93.43M |
Balance Sheet | ||||||
| Total Assets | 1.43B | 1.40B | 1.25B | 1.23B | 1.24B | 935.34M |
| Cash, Cash Equivalents and Short-Term Investments | 177.40M | 160.83M | 134.13M | 149.67M | 153.89M | 190.61M |
| Total Debt | 273.43M | 294.93M | 264.77M | 246.71M | 262.78M | 64.21M |
| Total Liabilities | 713.82M | 676.11M | 630.61M | 589.65M | 567.03M | 281.54M |
| Stockholders Equity | 716.47M | 720.32M | 616.95M | 644.72M | 672.27M | 653.81M |
Cash Flow | ||||||
| Free Cash Flow | 78.64M | 61.12M | 36.33M | 80.85M | -25.25M | 97.05M |
| Operating Cash Flow | 125.09M | 116.79M | 109.65M | 119.27M | 14.95M | 143.08M |
| Investing Cash Flow | -47.51M | -52.40M | -53.53M | -24.12M | -239.90M | -48.83M |
| Financing Cash Flow | -55.11M | -42.48M | -51.70M | -106.05M | 189.93M | -169.14M |
Gentherm Technical Analysis
Positive
29.77
Price Trends
30.45
Positive
31.55
Positive
33.77
Positive
Market Momentum
1.76
Negative
79.52
Negative
95.28
Negative
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 29.77 is below the 20-day moving average (MA) of 32.56, below the 50-day MA of 30.45, and below the 200-day MA of 33.77, indicating a bullish trend. The MACD of 1.76 indicates Negative momentum. The RSI at 79.52 is Negative, neither overbought nor oversold. The STOCH value of 95.28 is Negative, 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $5.25B | 13.78 | 15.67% | 2.05% | 14.48% | 3.93% | |
74 Outperform | $7.38B | 14.00 | 10.41% | 2.63% | 2.86% | 17.30% | |
74 Outperform | $3.31B | 19.98 | 11.08% | 0.57% | -2.04% | -43.19% | |
70 Outperform | $3.76B | 19.82 | 13.06% | ― | 5.04% | -10.80% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $1.14B | 50.99 | 3.17% | ― | 5.81% | -53.66% | |
53 Neutral | $3.96B | -24.80 | -12.67% | 1.70% | -23.37% | -131.29% |
* Consumer Cyclical Sector Average
THRM
Gentherm
37.81
10.51
38.50%
DAN
Dana Incorporated
36.55
20.39
126.22%
DORM
Dorman Products
124.75
-2.55
-2.00%
GNTX
Gentex
25.00
4.11
19.67%
LEA
Lear
144.88
59.65
69.99%
VC
Visteon
123.15
41.38
50.60%
Gentherm Corporate Events
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...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Gentherm Reports Record Q1 Results, Confirms 2026 Outlook
Positive
Apr 23, 2026
On April 23, 2026, Gentherm reported first-quarter 2026 results, posting record quarterly revenue of $393.7 million, up 11.3% year over year (7.2% ex-FX), with Automotive Climate and Comfort Solutions outpacing underlying light vehicle production ...
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.