Gentherm Incorporated
Gentherm Incorporated Fundamental Analysis
Gentherm Incorporated (THRM) shows weak financial fundamentals with a PE ratio of 56.56, profit margin of 1.64%, and ROE of 2.63%. The company generates $1.1B in annual revenue with weak year-over-year growth of -1.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -64.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze THRM's fundamental strength across five key dimensions:
Efficiency Score
WeakTHRM struggles to generate sufficient returns from assets.
Valuation Score
ModerateTHRM shows balanced valuation metrics.
Growth Score
WeakTHRM faces weak or negative growth trends.
Financial Health Score
ExcellentTHRM maintains a strong and stable balance sheet.
Profitability Score
ModerateTHRM maintains healthy but balanced margins.
Key Financial Metrics
Is THRM Expensive or Cheap?
P/E Ratio
THRM trades at 56.56 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, THRM's PEG of -1.41 indicates potential undervaluation.
Price to Book
The market values Gentherm Incorporated at 1.44 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.68 times EBITDA. This is generally considered low.
How Well Does THRM Make Money?
Net Profit Margin
For every $100 in sales, Gentherm Incorporated keeps $1.64 as profit after all expenses.
Operating Margin
Core operations generate 7.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.63 in profit for every $100 of shareholder equity.
ROA
Gentherm Incorporated generates $1.31 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Gentherm Incorporated produces operating cash flow of $116.94M, showing steady but balanced cash generation.
Free Cash Flow
Gentherm Incorporated produces free cash flow of $61.20M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.00 in free cash annually.
FCF Yield
THRM converts 5.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
56.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.41
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.44
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.92
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How THRM Stacks Against Its Sector Peers
| Metric | THRM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 56.56 | 25.25 | Worse (Expensive) |
| ROE | 2.63% | 1170.00% | Weak |
| Net Margin | 1.64% | 742.00% | Weak |
| Debt/Equity | 0.08 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 1.92 | 9.19 | Neutral |
| ROA | 1.31% | -6467.00% (disorted) | Weak |
THRM outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Gentherm Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-100.00%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
-67.28%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
12.69%
Industry Style: Cyclical, Growth, Discretionary
High Growth