Gentherm (THRM) AI Stock Analysis

• Market Cap: $718.19M
• Dividend Yield: N/A
• Average Volume (3M): 378.11K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.92
• Revenue Growth: -0.51%
• EPS Growth: 9.10%
• Country: US
• Employees: 14,000
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Auto - Parts
• EPS (TTM): 0.29
• Shares Outstanding: 30,797,129
• 10 Day Avg. Volume: 544,679
• 30 Day Avg. Volume: 378,108
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.23
• Price to Cash Flow (P/CF): 12.30
• P/FCF Ratio: 11.80
• Enterprise Value/Market Cap: 1.91
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.74
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $35.67
• Price Target Upside: 34.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

Gentherm's overall score reflects a solid financial foundation with consistent profitability and effective cash management. Despite challenges in technical indicators suggesting bearish trends, reasonable valuation and strategic initiatives from the earnings call provide a balanced outlook. The stock's performance could benefit from stabilization in free cash flow and overcoming industry challenges.

Gentherm Business Overview & Revenue Model

Company Description

Gentherm (THRM) is a global developer and marketer of innovative thermal management technologies, serving primarily the automotive and medical industries. The company's core products include climate control seats, heated and ventilated seat systems, and battery thermal management systems. Gentherm's solutions aim to enhance comfort, energy efficiency, and performance in vehicles, as well as improve patient safety and care in medical applications.

How the Company Makes Money

Gentherm generates revenue through the design, production, and sale of its thermal management solutions. The company's primary revenue streams include the automotive sector, where it provides thermal solutions like seat comfort systems and battery thermal management systems to major automotive manufacturers. Gentherm also taps into the medical field by offering patient temperature management systems for applications in surgical and critical care environments. Significant partnerships with leading car manufacturers and healthcare providers contribute to Gentherm's earnings, along with its focus on innovation and expansion into new markets and product categories.

Gentherm Financial Statement Overview

Summary

Gentherm presents a strong financial position with consistent profitability and efficient cash flow management. While the balance sheet shows a prudent debt strategy, the income statement reflects solid margins and improving profitability. Cash flows are strong, although 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.

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.

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.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.46B	1.47B	1.20B	1.05B	913.10M
	Gross Profit
366.43M	351.62M	273.65M	303.63M	268.10M
	EBIT
107.02M	77.44M	48.31M	115.01M	89.22M
	EBITDA
169.20M	119.83M	99.63M	157.64M	136.13M
	Net Income Common Stockholders
64.95M	40.34M	24.44M	93.43M	59.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
134.13M	149.67M	153.89M	190.61M	268.35M
	Total Assets
1.25B	1.23B	1.24B	935.34M	1.02B
	Total Debt
264.77M	246.71M	262.78M	64.21M	222.70M
	Net Debt
130.64M	97.04M	108.89M	-126.40M	-45.65M
	Total Liabilities
630.61M	589.65M	567.03M	281.54M	436.51M
	Stockholders Equity
616.95M	644.72M	672.27M	653.81M	586.33M
Cash Flow		Free Cash Flow
36.33M	80.85M	-25.25M	97.05M	90.33M
	Operating Cash Flow
109.65M	119.27M	14.95M	143.08M	110.69M
	Investing Cash Flow
-53.53M	-24.12M	-239.90M	-48.83M	-18.22M
	Financing Cash Flow
-51.70M	-106.05M	189.93M	-169.14M	115.48M

Gentherm Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 26.53 is above the 20-day moving average (MA) of 24.71, below the 50-day MA of 28.34, and below the 200-day MA of 39.92, indicating a neutral trend. The MACD of -0.66 indicates Negative momentum. The RSI at 52.72 is Neutral, neither overbought nor oversold. The STOCH value of 88.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for THRM.

Gentherm Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VC	77 Outperform	$1.84B	6.94	25.15%	―	-1.35%	-39.06%
ALV	74 Outperform	$6.21B	9.98	28.71%	2.93%	-2.29%	35.00%
LEA	69 Neutral	$4.65B	9.68	10.81%	3.55%	-0.70%	-7.27%
THRM	68 Neutral	$718.19M	11.30	7.74%	―	-0.51%	9.10%
GNTX	66 Neutral	$4.82B	12.08	15.95%	2.23%	-1.66%	-9.20%
DAN	63 Neutral	$2.13B	―	-2.40%	2.74%	-2.57%	-248.28%
Sector *	61 Neutral	$6.65B	11.71	3.09%	3.98%	2.65%	-20.82%

Gentherm Corporate Events

Gentherm Reports Q1 2025 Financial Results

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.

Spark’s Take on THRM Stock

According to Spark, TipRanks’ AI Analyst, THRM is a Outperform.

Gentherm’s overall stock score of 70 reflects strong financial health and strategic positioning, balanced by technical weaknesses and market uncertainties. The company’s valuation is reasonable, and its strategic initiatives could enhance profitability. Recent earnings guidance and corporate events provide reassurance but also highlight some operational and market challenges.

To see Spark’s full report on THRM stock, click here.

Gentherm Announces RSU Awards to Top Executives

On February 24, 2025, Gentherm Incorporated announced the grant of restricted stock units to its President and CEO, William Presley, and Executive Vice President and CFO, Jonathan Douyard. This inducement award aligns with the company’s existing RSU award agreements for executive officers, reflecting its commitment to retaining top leadership and potentially impacting its executive stability and market confidence.

Gentherm Reports Strong 2024 Financial Results and Guidance

Gentherm announced its financial results for the fourth quarter and full year of 2024, reporting a 61% year-over-year increase in net income and a record annual adjusted EBITDA of $183 million. The company secured automotive new business awards worth $2.4 billion and provided its 2025 financial guidance, anticipating product revenues between $1.4 billion and $1.5 billion. Despite a slight decrease in product revenues for both the quarter and the full year compared to 2023, Gentherm maintained a strong foundation with unique capabilities and sustainable competitive advantages, as mentioned by the company’s President and CEO, Bill Presley. The report also highlighted a decrease in automotive revenue due to foreign currency translation effects and strategic business adjustments.