NasdaqGS:THRM

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Gentherm Incorporated designs, develops, manufactures, and markets thermal management technologies. More Details

Rewards

PE ratio (42.6x) is below the Auto Components industry average (42.8x)

Earnings are forecast to grow 50.67% per year

Risk Analysis

No risks detected for THRM from our risk checks.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Gentherm's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: THRM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.4%

THRM

-4.7%

US Auto Components

-4.1%

US Market


1 Year Return

12.8%

THRM

1.0%

US Auto Components

12.0%

US Market

Return vs Industry: THRM exceeded the US Auto Components industry which returned 1% over the past year.

Return vs Market: THRM matched the US Market which returned 12% over the past year.


Shareholder returns

THRMIndustryMarket
7 Day0.4%-4.7%-4.1%
30 Day15.4%8.3%-0.2%
90 Day21.8%14.7%2.8%
1 Year12.8%12.8%2.0%1.0%14.6%12.0%
3 Year41.8%41.8%-13.8%-23.3%35.8%26.8%
5 Year-1.5%-1.5%14.9%-4.0%75.2%55.6%

Price Volatility Vs. Market

How volatile is Gentherm's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gentherm undervalued compared to its fair value and its price relative to the market?

42.61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: THRM ($47.21) is trading above our estimate of fair value ($29.36)

Significantly Below Fair Value: THRM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: THRM is good value based on its PE Ratio (42.6x) compared to the US Auto Components industry average (42.8x).

PE vs Market: THRM is poor value based on its PE Ratio (42.6x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: THRM is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: THRM is overvalued based on its PB Ratio (3x) compared to the US Auto Components industry average (1.7x).


Next Steps

Future Growth

How is Gentherm forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

50.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: THRM's forecast earnings growth (50.7% per year) is above the savings rate (2.2%).

Earnings vs Market: THRM's earnings (50.7% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: THRM's revenue (13.6% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: THRM's revenue (13.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: THRM's Return on Equity is forecast to be low in 3 years time (15.4%).


Next Steps

Past Performance

How has Gentherm performed over the past 5 years?

-26.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: THRM has high quality earnings.

Growing Profit Margin: THRM's current net profit margins (4.2%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: THRM's earnings have declined by 26.1% per year over the past 5 years.

Accelerating Growth: THRM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: THRM had negative earnings growth (-8.8%) over the past year, making it difficult to compare to the Auto Components industry average (-15.1%).


Return on Equity

High ROE: THRM's Return on Equity (7.1%) is considered low.


Next Steps

Financial Health

How is Gentherm's financial position?


Financial Position Analysis

Short Term Liabilities: THRM's short term assets ($574.9M) exceed its short term liabilities ($190.6M).

Long Term Liabilities: THRM's short term assets ($574.9M) exceed its long term liabilities ($219.1M).


Debt to Equity History and Analysis

Debt Level: THRM's debt to equity ratio (38.2%) is considered satisfactory.

Reducing Debt: THRM's debt to equity ratio has increased from 29.7% to 38.2% over the past 5 years.

Debt Coverage: THRM's debt is well covered by operating cash flow (55.3%).

Interest Coverage: THRM's interest payments on its debt are well covered by EBIT (16.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Gentherm current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate THRM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate THRM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if THRM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if THRM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of THRM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Phil Eyler (49 yo)

2.83yrs

Tenure

US$4,933,682

Compensation

Mr. Phillip M. Eyler, also known as Phil, has been President and Chief Executive Officer of Gentherm Incorporated since December 4, 2017. Mr. Eyler has been an Executive Vice President and President of Con ...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD4.93M) is about average for companies of similar size in the US market ($USD4.53M).

Compensation vs Earnings: Phil's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Phillip Eyler
President2.83yrsUS$4.93m0.093%
$ 1.4m
Matteo Anversa
Executive VP of Finance1.75yrsUS$2.72m0.0048%
$ 74.2k
Yijing Brentano
Senior Vice President of Investor Relations2.58yrsUS$908.16k0.0081%
$ 124.7k
Barbara Runyon
Senior VP & Chief Human Resources Officer2.17yrsUS$1.22m0.0074%
$ 114.7k
Paul Giberson
Senior Vice President of Global Sales1.92yrsUS$1.34m0.017%
$ 256.5k
Jörg Evers
Executive Vice President of Operationsno datano datano data
Jennifer Zoldos
Chief Accounting Officer0.33yrno datano data
Matthew Fisch
Senior VP & CTO0.50yrno data0.0024%
$ 37.2k
Wayne Kauffman
VP, General Counsel & Secretary1.25yrsno data0.0056%
$ 85.9k
Jaymi Wilson
Vice President of Strategy1.75yrsno datano data
Thomas Stocker
Senior VP & GM of Global Automotive1.08yrsno data0.0059%
$ 90.8k
Hui Xu
Senior VP0.92yrno datano data

1.8yrs

Average Tenure

49yo

Average Age

Experienced Management: THRM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Phillip Eyler
President2.83yrsUS$4.93m0.093%
$ 1.4m
David Heinzmann
Independent Director0.17yrno data0.012%
$ 191.9k
Charles Kummeth
Independent Director2.17yrsUS$186.00k0.026%
$ 407.9k
John Stacey
Independent Director2.42yrsUS$181.00k0.030%
$ 463.3k
Yvonne Hao
Independent Director4.75yrsUS$191.00k0.047%
$ 727.3k
Ronald Hundzinski
Independent Non Executive Chairman of the Board0.42yrUS$191.00k0.055%
$ 848.1k
Sophie Desormière
Independent Director8.42yrsUS$186.00k0.077%
$ 1.2m
Byron Shaw
Independent Director7.75yrsUS$191.00k0.066%
$ 1.0m

2.6yrs

Average Tenure

54yo

Average Age

Experienced Board: THRM's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Gentherm Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gentherm Incorporated
  • Ticker: THRM
  • Exchange: NasdaqGS
  • Founded: 1991
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$1.542b
  • Shares outstanding: 32.65m
  • Website: https://www.gentherm.com

Number of Employees


Location

  • Gentherm Incorporated
  • 21680 Haggerty Road
  • Northville
  • Michigan
  • 48167
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
THRMNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJun 1993
QA4ADB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1993

Biography

Gentherm Incorporated designs, develops, manufactures, and markets thermal management technologies. The company operates through two segments, Automotive and Industrial. The Automotive segment offers clima ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 03:37
End of Day Share Price2020/10/29 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.