Thermon Group Holdings, Inc.
Thermon Group Holdings, Inc. Fundamental Analysis
Thermon Group Holdings, Inc. (THR) shows moderate financial fundamentals with a PE ratio of 27.67, profit margin of 11.26%, and ROE of 11.42%. The company generates $0.5B in annual revenue with weak year-over-year growth of 0.72%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze THR's fundamental strength across five key dimensions:
Efficiency Score
WeakTHR struggles to generate sufficient returns from assets.
Valuation Score
WeakTHR trades at a premium to fair value.
Growth Score
WeakTHR faces weak or negative growth trends.
Financial Health Score
ExcellentTHR maintains a strong and stable balance sheet.
Profitability Score
WeakTHR struggles to sustain strong margins.
Key Financial Metrics
Is THR Expensive or Cheap?
P/E Ratio
THR trades at 27.67 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, THR's PEG of 48.98 indicates potential overvaluation.
Price to Book
The market values Thermon Group Holdings, Inc. at 3.02 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.96 times EBITDA. This signals the market has high growth expectations.
How Well Does THR Make Money?
Net Profit Margin
For every $100 in sales, Thermon Group Holdings, Inc. keeps $11.26 as profit after all expenses.
Operating Margin
Core operations generate 15.92 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.42 in profit for every $100 of shareholder equity.
ROA
Thermon Group Holdings, Inc. generates $7.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Thermon Group Holdings, Inc. produces operating cash flow of $68.39M, showing steady but balanced cash generation.
Free Cash Flow
Thermon Group Holdings, Inc. generates strong free cash flow of $54.88M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.67 in free cash annually.
FCF Yield
THR converts 3.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.67
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
48.98
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.32
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How THR Stacks Against Its Sector Peers
| Metric | THR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.67 | 26.49 | Neutral |
| ROE | 11.42% | 1307.00% | Weak |
| Net Margin | 11.26% | -5131.00% (disorted) | Strong |
| Debt/Equity | 0.32 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 2.90 | 10.48 | Strong Liquidity |
| ROA | 7.20% | -1549793.00% (disorted) | Weak |
THR outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Thermon Group Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
26.26%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
335.67%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-13.27%
Industry Style: Cyclical, Value, Infrastructure
Declining