Gentherm Incorporated

Gentherm Incorporated

THRMยทNASDAQ

$37.81

+1.3%
Consumer CyclicalAuto - Parts

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, 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.

At a Glance

Live Snapshot
Market Cap$1.16B
EPS0.6000
P/E Ratio63.02
Earnings Date07/23/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 63.0).

Valuation inputs: P/E 63.0, earnings yield +1.6%, momentum +1.3%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +2.5%, ROIC +4.0%).

Profitability stack: net margin +1.2%, ROE +2.5%, ROIC +4.0%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +48.4%, momentum +1.3%, net margin +1.2%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Gentherm Incorporated Market vs Earnings Trajectory

THRM ยท NASDAQ

Loading price and EPS data...

Gentherm Incorporated

Gentherm Incorporated Fair Value Envelope

THRM ยท NASDAQ

Our analysis suggests that THRM has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $37.81, this represents a potential HIDDEN relative to our calculated worth for Gentherm Incorporated.

Intrinsic Value
Current Price: $37.81
3Y-19.0%
5Y-67.0%
10Y-71.0%
3Y+24.0%
5Y+64.0%
10Y+63.0%
3Y-25.0%
5Y-69.0%
10Y-76.0%
3Y+681.0%
5Y+6.0%
10Y+8.0%
3Y-342.0%
5Y-32.0%
10Y+45.0%
3Y+13.0%
5Y+37.0%
10Y+66.0%
Gentherm Incorporated

Gentherm Incorporated Profit Bridge

THRM ยท NASDAQ
Revenue1.49B
Cost of Goods Sold (1.14B)
Gross Profit351.67M
Operating Expenses (273.62M)
Operating Income78.05M
Interest Expense (13.81M)
Other Income/Expense-42.22M
Pretax Income35.84M
Income Tax (17.55M)
Net Income18.29M
Net Income
18.29M

Profitability Analysis

Gross Margin

23.5%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

5.2%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

1.2%

Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.

Effective Tax Rate

49.0%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.

23.53%
Gross Profit Margin
-6%
3Y+4.0%
5Y-20.0%
10Y-27.0%
5.22%
Operating Profit Margin
-29%
3Y+30.0%
5Y-47.0%
10Y-55.0%
1.22%
Net Profit Margin
-73%
3Y-40.0%
5Y-81.0%
10Y-85.0%
2.54%
Return on Equity
-76%
3Y-30.0%
5Y-75.0%
10Y-85.0%
1.31%
Return on Assets
-75%
3Y-34.0%
5Y-78.0%
10Y-86.0%
3.98%
Return on Invested Capital
-46%
3Y+24.0%
5Y-50.0%
10Y-65.0%
THRM

Gentherm Incorporated Cash Conversion Engine

THRM ยท NASDAQ
Net Income18.29M
Depreciation & Amortization53.38M
Stock-Based Compensation12.30M
Change in Working Capital10.60M
Others44.57M
Capital Expenditures-55.67M
Free Cash Flow61.12M

Cash Flow Quality Analysis

FCF Conversion Rate

334.3%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

47.7%

Capital-intensive operations require significant reinvestment. Monitor whether CapEx is maintenance or growth-oriented.

FCF Growth Trend

+68.2%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$10.60M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

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Gentherm Incorporated Funding & Solvency Profile

THRM ยท NASDAQ
Cash & Cash Equivalents177.40M
Net Receivables307.07M
Inventory256.97M
Other Current Assets84.76M
Total Current Assets826 M
Property, Plant & Equipment313.69M
Goodwill & Intangible Assets159.06M
Long-Term Investments0.00
Other Non-Current Assets37.48M
Total Non-Current Assets351 M
Total Assets
1.43B

Financial Health Analysis

Current Ratio

1.97x

Strong liquidity. The company has adequate resources to meet short-term liabilities.

Debt-to-Equity Ratio

1.00x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

408 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

58% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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Gentherm Incorporated Street Expectations Map

THRM ยท NASDAQ

Wall Street analysts project that THRM stock may see slight declines over the coming 12 months. The consensus 1-year price target stands at 36.67, with estimates ranging from a low of 34.00 to a high of 38.00.

Lowest Target
34.00
-10.08%
Consensus Target
36.67
-3.02%
Highest Target
38.00
0.50%

The consensus 1-year price target stands at 36.67, with estimates ranging from a low of 34.00 to a high of 38.00.

Analyst Consensus Analysis

Upside Potential

-3.0%

Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.

Analyst Agreement

10.9% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Risk-Reward Profile

0.05x

Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.

Analyst Conviction

Moderate

Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.

Market Sentiment Insight

Efficient pricing: Stock trading at fair value with strong consensus suggests market has priced in expectations. Look for fundamental inflection points or new catalysts to drive meaningful moves.

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Gentherm Incorporated Insider Positioning

THRM ยท NASDAQ

During the last 12 months, insiders have sold $161K worth of THRM shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

1.2K

43.23K

Net Activity

-43K

-$43K

9-12 Months

Bought

0

0.00

Sold

3.4K

117.98K

Net Activity

-118K

-$118K

Top Buyers

No buying activity

Top Sellers

1
RBJ

Runyon Barbara J

Officer: Svp, Chro

3.3K sharesโ€ข1 transactions

$117K

2
SV

Sundaram Vishnu

Officer: Svp, Chief Technology Officer

1.2K sharesโ€ข1 transactions

$43K

3
NB

Nicholas Breisacher

Officer: Chief Accounting Officer

38 sharesโ€ข1 transactions

$1K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $161K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

3 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

0.00%
Dividend Yield
3Y-
5Y-
10Y-
ย 

thrm Dividend History

THRM
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%